HIGHWOODS PROPERTIES INC (HIW) Stock Fundamental Analysis
NYSE:HIW - New York Stock Exchange, Inc. - US4312841087 - REIT - Currency: USD
Taking everything into account, HIW scores 4 out of 10 in our fundamental rating. HIW was compared to 130 industry peers in the Diversified REITs industry. While HIW is still in line with the averages on profitability rating, there are concerns on its financial health. HIW does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
HIW had positive earnings in the past year.
In the past year HIW had a positive cash flow from operations.
Each year in the past 5 years HIW has been profitable.
Each year in the past 5 years HIW had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HIW (1.65%) is better than 63.08% of its industry peers.
HIW has a Return On Equity of 4.23%. This is in the better half of the industry: HIW outperforms 66.92% of its industry peers.
The Return On Invested Capital of HIW (2.93%) is comparable to the rest of the industry.
HIW had an Average Return On Invested Capital over the past 3 years of 3.09%. This is in line with the industry average of 3.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 4.23% | ||
| ROIC | 2.93% |
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's Profit Margin of 12.08% is fine compared to the rest of the industry. HIW outperforms 66.15% of its industry peers.
In the last couple of years the Profit Margin of HIW has declined.
HIW has a Operating Margin (25.76%) which is in line with its industry peers.
In the last couple of years the Operating Margin of HIW has remained more or less at the same level.
Looking at the Gross Margin, with a value of 67.04%, HIW is in line with its industry, outperforming 52.31% of the companies in the same industry.
HIW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.76% | ||
| PM (TTM) | 12.08% | ||
| GM | 67.04% |
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
HIW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for HIW has been increased compared to 1 year ago.
Compared to 5 years ago, HIW has more shares outstanding
Compared to 1 year ago, HIW has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.59, we must say that HIW is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.59, HIW is in line with its industry, outperforming 53.85% of the companies in the same industry.
The Debt to FCF ratio of HIW is 15.35, which is on the high side as it means it would take HIW, 15.35 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 15.35, HIW belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
A Debt/Equity ratio of 1.39 is on the high side and indicates that HIW has dependencies on debt financing.
With a Debt to Equity ratio value of 1.39, HIW perfoms like the industry average, outperforming 43.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 15.35 | ||
| Altman-Z | 0.59 |
ROIC/WACC0.44
WACC6.63%
2.3 Liquidity
A Current Ratio of 1.44 indicates that HIW should not have too much problems paying its short term obligations.
HIW's Current ratio of 1.44 is fine compared to the rest of the industry. HIW outperforms 61.54% of its industry peers.
A Quick Ratio of 1.25 indicates that HIW should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.25, HIW perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
HIW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.59%.
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.
The Revenue has decreased by -0.98% in the past 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)-8.59%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%-47.22%
Revenue 1Y (TTM)-0.98%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-0.64%
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 -14.01% on average per year.
Based on estimates for the next years, HIW will show a small growth in Revenue. The Revenue will grow by 3.35% on average per year.
EPS Next Y-40.22%
EPS Next 2Y-20.89%
EPS Next 3Y-14.01%
EPS Next 5YN/A
Revenue Next Year-0.19%
Revenue Next 2Y2.43%
Revenue Next 3Y2.21%
Revenue Next 5Y3.35%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.12, the valuation of HIW can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of HIW indicates a somewhat cheap valuation: HIW is cheaper than 71.54% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.79. HIW is around the same levels.
The Price/Forward Earnings ratio is 40.35, which means the current valuation is very expensive for HIW.
Based on the Price/Forward Earnings ratio, HIW is valued a bit cheaper than the industry average as 64.62% of the companies are valued more expensively.
HIW's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.12 | ||
| Fwd PE | 40.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HIW is valued a bit cheaper than 65.38% of the companies in the same industry.
78.46% of the companies in the same industry are more expensive than HIW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.18 | ||
| EV/EBITDA | 12.34 |
4.3 Compensation for Growth
A cheap valuation may be justified as HIW's earnings are expected to decrease with -14.01% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-20.89%
EPS Next 3Y-14.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.07%, HIW is a good candidate for dividend investing.
HIW's Dividend Yield is a higher than the industry average which is at 16.90.
Compared to an average S&P500 Dividend Yield of 2.47, HIW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.07% |
5.2 History
The dividend of HIW has a limited annual growth rate of 0.93%.
HIW has paid a dividend for at least 10 years, which is a reliable track record.
HIW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.93%
Div Incr Years0
Div Non Decr Years20
5.3 Sustainability
HIW pays out 215.35% 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.
DP215.35%
EPS Next 2Y-20.89%
EPS Next 3Y-14.01%
28.22
-0.07 (-0.25%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners104.59%
Inst Owner Change0%
Ins Owners1.67%
Ins Owner Change-0.26%
Market Cap3.04B
Analysts71.43
Price Target31.28 (10.84%)
Short Float %4.98%
Short Ratio4.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.07% |
Yearly Dividend2.01
Dividend Growth(5Y)0.93%
DP215.35%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.74%
Min EPS beat(2)-35.53%
Max EPS beat(2)71.02%
EPS beat(4)3
Avg EPS beat(4)46.41%
Min EPS beat(4)-35.53%
Max EPS beat(4)116.36%
EPS beat(8)6
Avg EPS beat(8)36.15%
EPS beat(12)8
Avg EPS beat(12)24.82%
EPS beat(16)12
Avg EPS beat(16)38.25%
Revenue beat(2)0
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)-0.27%
Revenue beat(4)1
Avg Revenue beat(4)-0.38%
Min Revenue beat(4)-1.28%
Max Revenue beat(4)1.16%
Revenue beat(8)1
Avg Revenue beat(8)-1.02%
Revenue beat(12)2
Avg Revenue beat(12)-0.82%
Revenue beat(16)4
Avg Revenue beat(16)-0.56%
PT rev (1m)-2.26%
PT rev (3m)-3.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)210.71%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)77.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.12 | ||
| Fwd PE | 40.35 | ||
| P/S | 3.68 | ||
| P/FCF | 14.18 | ||
| P/OCF | 7.54 | ||
| P/B | 1.29 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 12.34 |
EPS(TTM)1.17
EY4.15%
EPS(NY)0.7
Fwd EY2.48%
FCF(TTM)1.99
FCFY7.05%
OCF(TTM)3.74
OCFY13.27%
SpS7.66
BVpS21.9
TBVpS21.9
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 4.23% | ||
| ROCE | 3.71% | ||
| ROIC | 2.93% | ||
| ROICexc | 2.94% | ||
| ROICexgc | 2.94% | ||
| OM | 25.76% | ||
| PM (TTM) | 12.08% | ||
| GM | 67.04% | ||
| FCFM | 25.99% |
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-Score3
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 15.35 | ||
| Debt/EBITDA | 6.44 | ||
| Cap/Depr | 63.19% | ||
| Cap/Sales | 22.88% | ||
| Interest Coverage | 1.59 | ||
| Cash Conversion | 78.86% | ||
| Profit Quality | 215.12% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 0.59 |
F-Score3
WACC6.63%
ROIC/WACC0.44
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)-8.59%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%-47.22%
EPS Next Y-40.22%
EPS Next 2Y-20.89%
EPS Next 3Y-14.01%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.98%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-0.64%
Revenue Next Year-0.19%
Revenue Next 2Y2.43%
Revenue Next 3Y2.21%
Revenue Next 5Y3.35%
EBIT growth 1Y-4.61%
EBIT growth 3Y-2.82%
EBIT growth 5Y2.42%
EBIT Next Year120.66%
EBIT Next 3Y33.89%
EBIT Next 5Y25.05%
FCF growth 1Y26.15%
FCF growth 3Y3.3%
FCF growth 5Y30.32%
OCF growth 1Y6.05%
OCF growth 3Y-0.89%
OCF growth 5Y1.99%