HIGHWOODS PROPERTIES INC (HIW) Stock Fundamental Analysis
NYSE:HIW - New York Stock Exchange, Inc. - US4312841087 - REIT - Currency: USD
HIW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. HIW has only an average score on both its financial health and profitability. HIW has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
HIW had positive earnings in the past year.
HIW had a positive operating cash flow in the past year.
In the past 5 years HIW has always been profitable.
In the past 5 years HIW always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.82%, HIW is doing good in the industry, outperforming 75.97% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.10%, HIW belongs to the top of the industry, outperforming 82.17% of the companies in the same industry.
HIW's Return On Invested Capital of 2.84% is in line compared to the rest of the industry. HIW outperforms 56.59% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HIW is in line with the industry average of 3.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 7.1% | ||
| ROIC | 2.84% |
ROA(3y)2.22%
ROA(5y)3.75%
ROE(3y)5.52%
ROE(5y)8.77%
ROIC(3y)3.09%
ROIC(5y)3.29%
1.3 Margins
HIW has a better Profit Margin (21.00%) than 77.52% of its industry peers.
In the last couple of years the Profit Margin of HIW has declined.
HIW has a Operating Margin (25.71%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HIW has remained more or less at the same level.
The Gross Margin of HIW (67.27%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of HIW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.71% | ||
| PM (TTM) | 21% | ||
| GM | 67.27% |
OM growth 3Y-5.14%
OM growth 5Y0.08%
PM growth 3Y-33.17%
PM growth 5Y-7.93%
GM growth 3Y-1.06%
GM growth 5Y0.24%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HIW is destroying value.
HIW has more shares outstanding than it did 1 year ago.
HIW has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HIW has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.65, we must say that HIW is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of HIW (0.65) is comparable to the rest of the industry.
The Debt to FCF ratio of HIW is 17.31, which is on the high side as it means it would take HIW, 17.31 years of fcf income to pay off all of its debts.
HIW has a better Debt to FCF ratio (17.31) than 82.95% of its industry peers.
A Debt/Equity ratio of 1.38 is on the high side and indicates that HIW has dependencies on debt financing.
With a Debt to Equity ratio value of 1.38, HIW perfoms like the industry average, outperforming 45.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 17.31 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.42
WACC6.72%
2.3 Liquidity
HIW has a Current Ratio of 1.49. This is a normal value and indicates that HIW is financially healthy and should not expect problems in meeting its short term obligations.
HIW has a Current ratio of 1.49. This is in the better half of the industry: HIW outperforms 69.77% of its industry peers.
A Quick Ratio of 1.49 indicates that HIW should not have too much problems paying its short term obligations.
HIW has a better Quick ratio (1.49) than 70.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 50.00% over the past year.
Measured over the past years, HIW shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.09% on average per year.
Looking at the last year, HIW shows a decrease in Revenue. The Revenue has decreased by -2.11% in the last year.
HIW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.33% yearly.
EPS 1Y (TTM)50%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%264%
Revenue 1Y (TTM)-2.11%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-5.16%
3.2 Future
Based on estimates for the next years, HIW will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.23% on average per year.
Based on estimates for the next years, HIW will show a small growth in Revenue. The Revenue will grow by 3.27% on average per year.
EPS Next Y-8.28%
EPS Next 2Y-20.21%
EPS Next 3Y-13.23%
EPS Next 5YN/A
Revenue Next Year-0.82%
Revenue Next 2Y1.91%
Revenue Next 3Y2.14%
Revenue Next 5Y3.27%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.19, the valuation of HIW can be described as rather expensive.
Based on the Price/Earnings ratio, HIW is valued cheaper than 88.37% of the companies in the same industry.
When comparing the Price/Earnings ratio of HIW to the average of the S&P500 Index (27.41), we can say HIW is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 42.24, the valuation of HIW can be described as expensive.
HIW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HIW is cheaper than 62.79% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.19. HIW is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 42.24 |
4.2 Price Multiples
HIW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HIW is cheaper than 60.47% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HIW is valued a bit cheaper than the industry average as 79.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.59 | ||
| EV/EBITDA | 13.25 |
4.3 Compensation for Growth
HIW has a very decent profitability rating, which may justify a higher PE ratio.
HIW's earnings are expected to decrease with -13.23% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-20.21%
EPS Next 3Y-13.23%
5. Dividend
5.1 Amount
HIW has a Yearly Dividend Yield of 6.39%, which is a nice return.
HIW's Dividend Yield is comparable with the industry average which is at 6.44.
HIW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.39% |
5.2 History
The dividend of HIW has a limited annual growth rate of 0.93%.
HIW has been paying a dividend for at least 10 years, so it has a reliable track record.
HIW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.93%
Div Incr Years0
Div Non Decr Years20
5.3 Sustainability
HIW pays out 126.08% of its income as dividend. This is not a sustainable payout ratio.
HIW's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP126.08%
EPS Next 2Y-20.21%
EPS Next 3Y-13.23%
31.46
+0.16 (+0.51%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners108.64%
Inst Owner Change0%
Ins Owners1.9%
Ins Owner Change0.78%
Market Cap3.39B
Analysts71.43
Price Target31.05 (-1.3%)
Short Float %5.71%
Short Ratio6.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.39% |
Yearly Dividend2.01
Dividend Growth(5Y)0.93%
DP126.08%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)192.63%
Min EPS beat(2)71.02%
Max EPS beat(2)314.25%
EPS beat(4)3
Avg EPS beat(4)116.52%
Min EPS beat(4)-35.53%
Max EPS beat(4)314.25%
EPS beat(8)6
Avg EPS beat(8)71.25%
EPS beat(12)8
Avg EPS beat(12)50.12%
EPS beat(16)12
Avg EPS beat(16)52.75%
Revenue beat(2)0
Avg Revenue beat(2)-1.26%
Min Revenue beat(2)-2.25%
Max Revenue beat(2)-0.27%
Revenue beat(4)0
Avg Revenue beat(4)-1.24%
Min Revenue beat(4)-2.25%
Max Revenue beat(4)-0.27%
Revenue beat(8)1
Avg Revenue beat(8)-1.1%
Revenue beat(12)1
Avg Revenue beat(12)-1.05%
Revenue beat(16)3
Avg Revenue beat(16)-0.73%
PT rev (1m)0%
PT rev (3m)-1.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.55%
EPS NY rev (1m)0%
EPS NY rev (3m)52.33%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-0.2%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 42.24 | ||
| P/S | 4.16 | ||
| P/FCF | 17.59 | ||
| P/OCF | 8.98 | ||
| P/B | 1.41 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 13.25 |
EPS(TTM)1.83
EY5.82%
EPS(NY)0.74
Fwd EY2.37%
FCF(TTM)1.79
FCFY5.68%
OCF(TTM)3.5
OCFY11.13%
SpS7.56
BVpS22.36
TBVpS22.36
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 7.1% | ||
| ROCE | 3.59% | ||
| ROIC | 2.84% | ||
| ROICexc | 2.85% | ||
| ROICexgc | 2.85% | ||
| OM | 25.71% | ||
| PM (TTM) | 21% | ||
| GM | 67.27% | ||
| FCFM | 23.66% |
ROA(3y)2.22%
ROA(5y)3.75%
ROE(3y)5.52%
ROE(5y)8.77%
ROIC(3y)3.09%
ROIC(5y)3.29%
ROICexc(3y)3.11%
ROICexc(5y)3.32%
ROICexgc(3y)3.11%
ROICexgc(5y)3.32%
ROCE(3y)3.92%
ROCE(5y)4.16%
ROICexcg growth 3Y-5.82%
ROICexcg growth 5Y-0.78%
ROICexc growth 3Y-5.82%
ROICexc growth 5Y-0.78%
OM growth 3Y-5.14%
OM growth 5Y0.08%
PM growth 3Y-33.17%
PM growth 5Y-7.93%
GM growth 3Y-1.06%
GM growth 5Y0.24%
F-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 17.31 | ||
| Debt/EBITDA | 6.59 | ||
| Cap/Depr | 62.23% | ||
| Cap/Sales | 22.66% | ||
| Interest Coverage | 1.42 | ||
| Cash Conversion | 74.55% | ||
| Profit Quality | 112.66% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 0.65 |
F-Score5
WACC6.72%
ROIC/WACC0.42
Cap/Depr(3y)72.48%
Cap/Depr(5y)90.32%
Cap/Sales(3y)25.75%
Cap/Sales(5y)30.97%
Profit Quality(3y)148.86%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)50%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%264%
EPS Next Y-8.28%
EPS Next 2Y-20.21%
EPS Next 3Y-13.23%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.11%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-5.16%
Revenue Next Year-0.82%
Revenue Next 2Y1.91%
Revenue Next 3Y2.14%
Revenue Next 5Y3.27%
EBIT growth 1Y-1.94%
EBIT growth 3Y-2.82%
EBIT growth 5Y2.42%
EBIT Next Year121.4%
EBIT Next 3Y34%
EBIT Next 5Y25.48%
FCF growth 1Y15.11%
FCF growth 3Y3.3%
FCF growth 5Y30.32%
OCF growth 1Y-7.25%
OCF growth 3Y-0.89%
OCF growth 5Y1.99%