HIGHWOODS PROPERTIES INC (HIW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HIW - US4312841087 - REIT
26.05 USD
+0.49 (+1.92%)
25.7 USD
-0.35 (-1.34%)
Overall HIW gets a fundamental rating of 4 out of 10. We evaluated HIW against 128 industry peers in the Diversified REITs industry. Both the profitability and the financial health of HIW get a neutral evaluation. Nothing too spectacular is happening here. HIW has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
HIW had positive earnings in each of the past 5 years.
HIW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HIW's Return On Assets of 2.03% is fine compared to the rest of the industry. HIW outperforms 64.06% of its industry peers.
The Return On Equity of HIW (5.24%) is better than 64.06% of its industry peers.
HIW has a Return On Invested Capital (2.80%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for HIW is in line with the industry average of 3.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 5.24% | ||
| ROIC | 2.8% |
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
With a decent Profit Margin value of 15.45%, HIW is doing good in the industry, outperforming 62.50% of the companies in the same industry.
HIW's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 25.78%, HIW is in line with its industry, outperforming 56.25% of the companies in the same industry.
HIW's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 67.08%, HIW perfoms like the industry average, outperforming 48.44% 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 | 25.78% | ||
| PM (TTM) | 15.45% | ||
| GM | 67.08% |
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.
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.
The debt/assets ratio for HIW is higher compared to a year ago.
2.2 Solvency
HIW has an Altman-Z score of 0.53. This is a bad value and indicates that HIW is not financially healthy and even has some risk of bankruptcy.
HIW has a Altman-Z score (0.53) which is in line with its industry peers.
HIW has a debt to FCF ratio of 12.30. This is a negative value and a sign of low solvency as HIW would need 12.30 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.30, HIW belongs to the top of the industry, outperforming 86.72% of the companies in the same industry.
HIW has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
HIW has a Debt to Equity ratio (1.43) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 12.3 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.45
WACC6.26%
2.3 Liquidity
HIW has a Current Ratio of 1.42. This is a normal value and indicates that HIW is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of HIW (1.42) is better than 67.19% of its industry peers.
A Quick Ratio of 1.39 indicates that HIW should not have too much problems paying its short term obligations.
HIW has a better Quick ratio (1.39) than 64.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
HIW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.73%.
The Earnings Per Share has been decreasing by -2.09% on average over the past years.
Looking at the last year, HIW shows a decrease in Revenue. The Revenue has decreased by -2.29% 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)3.73%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)-2.29%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-1.25%
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 -14.66% yearly.
The Revenue is expected to grow by 3.55% on average over the next years.
EPS Next Y17.69%
EPS Next 2Y-19.94%
EPS Next 3Y-14.66%
EPS Next 5YN/A
Revenue Next Year-1.36%
Revenue Next 2Y2.04%
Revenue Next 3Y2.42%
Revenue Next 5Y3.55%
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
HIW is valuated rather expensively with a Price/Earnings ratio of 18.74.
HIW's Price/Earnings ratio is rather cheap when compared to the industry. HIW is cheaper than 84.38% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. HIW is valued slightly cheaper when compared to this.
HIW is valuated quite expensively with a Price/Forward Earnings ratio of 34.74.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HIW indicates a somewhat cheap valuation: HIW is cheaper than 70.31% of the companies listed in the same industry.
HIW's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.74 | ||
| Fwd PE | 34.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HIW is valued a bit cheaper than 70.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HIW is valued cheaply inside the industry as 86.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.34 | ||
| EV/EBITDA | 12.53 |
4.3 Compensation for Growth
HIW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A cheap valuation may be justified as HIW's earnings are expected to decrease with -14.66% in the coming years.
PEG (NY)1.06
PEG (5Y)N/A
EPS Next 2Y-19.94%
EPS Next 3Y-14.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.53%, HIW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.59, HIW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, HIW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.53% |
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 174.24% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of HIW has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP174.24%
EPS Next 2Y-19.94%
EPS Next 3Y-14.66%
26.05
+0.49 (+1.92%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners108.33%
Inst Owner Change-1.17%
Ins Owners1.86%
Ins Owner Change-0.18%
Market Cap2.86B
Revenue(TTM)808.28M
Net Income(TTM)124.87M
Analysts69.33
Price Target31.42 (20.61%)
Short Float %5.3%
Short Ratio5.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.53% |
Yearly Dividend2.01
Dividend Growth(5Y)0.93%
DP174.24%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-17.12%
Min EPS beat(2)-29.07%
Max EPS beat(2)-5.17%
EPS beat(4)2
Avg EPS beat(4)87.76%
Min EPS beat(4)-29.07%
Max EPS beat(4)314.25%
EPS beat(8)5
Avg EPS beat(8)62.52%
EPS beat(12)7
Avg EPS beat(12)46.95%
EPS beat(16)10
Avg EPS beat(16)40.09%
Revenue beat(2)0
Avg Revenue beat(2)-2.65%
Min Revenue beat(2)-2.94%
Max Revenue beat(2)-2.36%
Revenue beat(4)0
Avg Revenue beat(4)-1.95%
Min Revenue beat(4)-2.94%
Max Revenue beat(4)-0.27%
Revenue beat(8)1
Avg Revenue beat(8)-1.32%
Revenue beat(12)1
Avg Revenue beat(12)-1.34%
Revenue beat(16)3
Avg Revenue beat(16)-1.05%
PT rev (1m)-1.91%
PT rev (3m)0.07%
EPS NQ rev (1m)24.07%
EPS NQ rev (3m)9.84%
EPS NY rev (1m)9.95%
EPS NY rev (3m)9.95%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.74 | ||
| Fwd PE | 34.74 | ||
| P/S | 3.54 | ||
| P/FCF | 10.34 | ||
| P/OCF | 7.87 | ||
| P/B | 1.2 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 12.53 |
EPS(TTM)1.39
EY5.34%
EPS(NY)0.75
Fwd EY2.88%
FCF(TTM)2.52
FCFY9.67%
OCF(TTM)3.31
OCFY12.7%
SpS7.36
BVpS21.67
TBVpS21.67
PEG (NY)1.06
PEG (5Y)N/A
Graham Number26.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 5.24% | ||
| ROCE | 3.55% | ||
| ROIC | 2.8% | ||
| ROICexc | 2.8% | ||
| ROICexgc | 2.8% | ||
| OM | 25.78% | ||
| PM (TTM) | 15.45% | ||
| GM | 67.08% | ||
| FCFM | 34.24% |
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%
ROICexgc growth 3Y-5.82%
ROICexgc 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 Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 12.3 | ||
| Debt/EBITDA | 6.8 | ||
| Cap/Depr | 29.7% | ||
| Cap/Sales | 10.73% | ||
| Interest Coverage | 1.44 | ||
| Cash Conversion | 72.65% | ||
| Profit Quality | 221.67% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 0.53 |
F-Score3
WACC6.26%
ROIC/WACC0.45
Cap/Depr(3y)43.95%
Cap/Depr(5y)73.2%
Cap/Sales(3y)15.46%
Cap/Sales(5y)24.79%
Profit Quality(3y)222.52%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.73%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%-14.29%
EPS Next Y17.69%
EPS Next 2Y-19.94%
EPS Next 3Y-14.66%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.29%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-1.25%
Revenue Next Year-1.36%
Revenue Next 2Y2.04%
Revenue Next 3Y2.42%
Revenue Next 5Y3.55%
EBIT growth 1Y0.25%
EBIT growth 3Y-2.82%
EBIT growth 5Y2.42%
EBIT Next Year124.7%
EBIT Next 3Y34.56%
EBIT Next 5Y24.95%
FCF growth 1Y83.8%
FCF growth 3Y22.56%
FCF growth 5Y44.4%
OCF growth 1Y-4.26%
OCF growth 3Y-0.89%
OCF growth 5Y1.99%
HIGHWOODS PROPERTIES INC / HIW FAQ
What is the fundamental rating for HIW stock?
ChartMill assigns a fundamental rating of 4 / 10 to HIW.
What is the valuation status for HIW stock?
ChartMill assigns a valuation rating of 5 / 10 to HIGHWOODS PROPERTIES INC (HIW). This can be considered as Fairly Valued.
How profitable is HIGHWOODS PROPERTIES INC (HIW) stock?
HIGHWOODS PROPERTIES INC (HIW) has a profitability rating of 5 / 10.
What are the PE and PB ratios of HIGHWOODS PROPERTIES INC (HIW) stock?
The Price/Earnings (PE) ratio for HIGHWOODS PROPERTIES INC (HIW) is 18.74 and the Price/Book (PB) ratio is 1.2.
What is the expected EPS growth for HIGHWOODS PROPERTIES INC (HIW) stock?
The Earnings per Share (EPS) of HIGHWOODS PROPERTIES INC (HIW) is expected to grow by 17.69% in the next year.