HIGHWOODS PROPERTIES INC (HIW)
US4312841087 - REIT
HIW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 126 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year HIW was profitable.
HIW had a positive operating cash flow in the past year.
HIW had positive earnings in each of the past 5 years.
Each year in the past 5 years HIW had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.44%, HIW is in the better half of the industry, outperforming 69.92% of the companies in the same industry.
The Return On Equity of HIW (6.01%) is better than 75.61% of its industry peers.
With a decent Return On Invested Capital value of 3.08%, HIW is doing good in the industry, outperforming 60.16% of the companies in the same industry.
HIW had an Average Return On Invested Capital over the past 3 years of 3.29%. This is in line with the industry average of 2.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 6.01% | ||
| ROIC | 3.08% |
ROA(3y)3.49%
ROA(5y)3.94%
ROE(3y)8.29%
ROE(5y)9.18%
ROIC(3y)3.29%
ROIC(5y)3.31%
1.3 Margins
HIW has a Profit Margin of 17.53%. This is in the better half of the industry: HIW outperforms 70.73% of its industry peers.
In the last couple of years the Profit Margin of HIW has declined.
HIW's Operating Margin of 26.74% is fine compared to the rest of the industry. HIW outperforms 60.98% of its industry peers.
In the last couple of years the Operating Margin of HIW has declined.
Looking at the Gross Margin, with a value of 67.77%, HIW is in line with its industry, outperforming 49.59% of the companies in the same 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 | 26.74% | ||
| PM (TTM) | 17.53% | ||
| GM | 67.77% |
OM growth 3Y-3.98%
OM growth 5Y-1.5%
PM growth 3Y-27.91%
PM growth 5Y-5.7%
GM growth 3Y-0.38%
GM growth 5Y0.43%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HIW is destroying value.
The number of shares outstanding for HIW has been increased compared to 1 year ago.
The number of shares outstanding for HIW has been increased compared to 5 years ago.
HIW has a worse debt/assets ratio than last year.
2.2 Solvency
HIW has an Altman-Z score of 0.57. This is a bad value and indicates that HIW is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.57, HIW is in line with its industry, outperforming 52.03% of the companies in the same industry.
The Debt to FCF ratio of HIW is 18.89, which is on the high side as it means it would take HIW, 18.89 years of fcf income to pay off all of its debts.
HIW's Debt to FCF ratio of 18.89 is fine compared to the rest of the industry. HIW outperforms 69.11% of its industry peers.
HIW has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of HIW (1.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 18.89 | ||
| Altman-Z | 0.57 |
ROIC/WACC0.44
WACC6.93%
2.3 Liquidity
HIW has a Current Ratio of 1.52. This is a normal value and indicates that HIW is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.52, HIW is doing good in the industry, outperforming 62.60% of the companies in the same industry.
A Quick Ratio of 1.52 indicates that HIW should not have too much problems paying its short term obligations.
The Quick ratio of HIW (1.52) is better than 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The earnings per share for HIW have decreased strongly by -13.51% in the last year.
HIW shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.72% yearly.
Looking at the last year, HIW shows a small growth in Revenue. The Revenue has grown by 0.62% in the last year.
Measured over the past years, HIW shows a small growth in Revenue. The Revenue has been growing by 2.98% on average per year.
EPS 1Y (TTM)-13.51%
EPS 3Y-27.29%
EPS 5Y-4.72%
EPS growth Q2Q38.46%
Revenue 1Y (TTM)0.62%
Revenue growth 3Y4.21%
Revenue growth 5Y2.98%
Revenue growth Q2Q-2.29%
3.2 Future
HIW is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -29.72% yearly.
Based on estimates for the next years, HIW will show a small growth in Revenue. The Revenue will grow by 3.17% on average per year.
EPS Next Y-45.55%
EPS Next 2Y-43.12%
EPS Next 3Y-29.72%
EPS Next 5YN/A
Revenue Next Year-1.08%
Revenue Next 2Y-0.54%
Revenue Next 3Y0.83%
Revenue Next 5Y3.17%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.84 indicates a rather expensive valuation of HIW.
Compared to the rest of the industry, the Price/Earnings ratio of HIW indicates a rather cheap valuation: HIW is cheaper than 82.11% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.20, HIW is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 36.45, the valuation of HIW can be described as expensive.
71.54% of the companies in the same industry are more expensive than HIW, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, HIW is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.84 | ||
| Fwd PE | 36.45 |
4.2 Price Multiples
HIW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HIW is cheaper than 79.67% 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 79.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.82 | ||
| EV/EBITDA | 11.11 |
4.3 Compensation for Growth
HIW has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as HIW's earnings are expected to decrease with -29.72% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-43.12%
EPS Next 3Y-29.72%
5. Dividend
5.1 Amount
HIW has a Yearly Dividend Yield of 8.35%, which is a nice return.
HIW's Dividend Yield is a higher than the industry average which is at 6.14.
Compared to an average S&P500 Dividend Yield of 2.45, HIW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.35% |
5.2 History
The dividend of HIW has a limited annual growth rate of 1.56%.
HIW has been paying a dividend for at least 10 years, so it has 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)1.56%
Div Incr Years0
Div Non Decr Years19
5.3 Sustainability
HIW pays out 146.04% 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.
DP146.04%
EPS Next 2Y-43.12%
EPS Next 3Y-29.72%
HIGHWOODS PROPERTIES INC
NYSE:HIW (4/23/2024, 6:05:32 PM)
After market: 25.4 0 (0%)25.4
+0.69 (+2.79%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.35% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.84 | ||
| Fwd PE | 36.45 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 6.01% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.74% | ||
| PM (TTM) | 17.53% | ||
| GM | 67.77% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-13.51%
EPS 3Y-27.29%
EPS 5Y
EPS growth Q2Q
EPS Next Y-45.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.62%
Revenue growth 3Y4.21%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y