HIGHWOODS PROPERTIES INC (HIW) Stock Fundamental Analysis
NYSE:HIW - US4312841087 - REIT
31.79 USD
+0.56 (+1.81%)
31.79 USD
0 (0%)
Taking everything into account, HIW scores 4 out of 10 in our fundamental rating. HIW was compared to 129 industry peers in the Diversified REITs industry. HIW has a medium profitability rating, but doesn't score so well on its financial health evaluation. HIW has a expensive valuation and it also 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.
In the past 5 years HIW has always been profitable.
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 2.09%, HIW is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Return On Equity of HIW (5.33%) is better than 68.22% of its industry peers.
HIW has a Return On Invested Capital of 2.79%. This is comparable to the rest of the industry: HIW outperforms 51.94% 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 3.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 5.33% | ||
| ROIC | 2.79% |
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 15.61% is fine compared to the rest of the industry. HIW outperforms 65.89% of its industry peers.
HIW's Profit Margin has declined in the last couple of years.
HIW has a Operating Margin of 25.21%. This is comparable to the rest of the industry: HIW outperforms 56.59% of its industry peers.
HIW's Operating Margin has been stable in the last couple of years.
HIW's Gross Margin of 67.21% is in line compared to the rest of the industry. HIW outperforms 51.94% of its industry peers.
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 | 25.21% | ||
| PM (TTM) | 15.61% | ||
| GM | 67.21% |
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.
Compared to 1 year ago, HIW has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.64, we must say that HIW is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of HIW (0.64) is comparable to the rest of the industry.
HIW has a debt to FCF ratio of 18.77. This is a negative value and a sign of low solvency as HIW would need 18.77 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 18.77, HIW is in the better half of the industry, outperforming 77.52% of the companies in the same industry.
A Debt/Equity ratio of 1.41 is on the high side and indicates that HIW has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.41, HIW is in line with its industry, outperforming 44.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 18.77 | ||
| Altman-Z | 0.64 |
ROIC/WACC0.43
WACC6.55%
2.3 Liquidity
A Current Ratio of 1.36 indicates that HIW should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.36, HIW is doing good in the industry, outperforming 60.47% of the companies in the same industry.
A Quick Ratio of 1.36 indicates that HIW should not have too much problems paying its short term obligations.
HIW has a Quick ratio of 1.36. This is in the better half of the industry: HIW outperforms 61.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
HIW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.00%.
HIW shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.09% yearly.
Looking at the last year, HIW shows a decrease in Revenue. The Revenue has decreased by -2.31% in the last year.
Measured over the past years, HIW shows a small growth in Revenue. The Revenue has been growing by 2.33% on average per year.
EPS 1Y (TTM)0%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%-71.19%
Revenue 1Y (TTM)-2.31%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-2.02%
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 -12.73% on average per year.
The Revenue is expected to grow by 3.27% on average over the next years.
EPS Next Y7.04%
EPS Next 2Y-18.74%
EPS Next 3Y-12.73%
EPS Next 5YN/A
Revenue Next Year-0.74%
Revenue Next 2Y2.14%
Revenue Next 3Y2.16%
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
A Price/Earnings ratio of 22.55 indicates a rather expensive valuation of HIW.
83.72% of the companies in the same industry are more expensive than HIW, based on the Price/Earnings ratio.
HIW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.07, which is the current average of the S&P500 Index.
HIW is valuated quite expensively with a Price/Forward Earnings ratio of 41.14.
65.12% 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 22.59, HIW is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.55 | ||
| Fwd PE | 41.14 |
4.2 Price Multiples
63.57% of the companies in the same industry are more expensive than HIW, based on the Enterprise Value to EBITDA ratio.
HIW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HIW is cheaper than 78.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.34 | ||
| EV/EBITDA | 13.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HIW does not grow enough to justify the current Price/Earnings ratio.
HIW's earnings are expected to decrease with -12.73% in the coming years. This may justify a cheaper valuation.
PEG (NY)3.2
PEG (5Y)N/A
EPS Next 2Y-18.74%
EPS Next 3Y-12.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.39%, HIW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.63, HIW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.46, HIW pays a better dividend.
| 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 paid a dividend for at least 10 years, which is 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 171.21% 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.
DP171.21%
EPS Next 2Y-18.74%
EPS Next 3Y-12.73%
31.79
+0.56 (+1.81%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners107.58%
Inst Owner Change2.28%
Ins Owners1.9%
Ins Owner Change0.78%
Market Cap3.44B
Analysts70
Price Target31.39 (-1.26%)
Short Float %5.39%
Short Ratio5.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.39% |
Yearly Dividend2.01
Dividend Growth(5Y)0.93%
DP171.21%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)154.54%
Min EPS beat(2)-5.17%
Max EPS beat(2)314.25%
EPS beat(4)2
Avg EPS beat(4)86.14%
Min EPS beat(4)-35.53%
Max EPS beat(4)314.25%
EPS beat(8)5
Avg EPS beat(8)65.84%
EPS beat(12)8
Avg EPS beat(12)50.42%
EPS beat(16)11
Avg EPS beat(16)48.1%
Revenue beat(2)0
Avg Revenue beat(2)-2.3%
Min Revenue beat(2)-2.36%
Max Revenue beat(2)-2.25%
Revenue beat(4)0
Avg Revenue beat(4)-1.54%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)-0.27%
Revenue beat(8)1
Avg Revenue beat(8)-1.06%
Revenue beat(12)1
Avg Revenue beat(12)-1.1%
Revenue beat(16)3
Avg Revenue beat(16)-0.87%
PT rev (1m)-0.36%
PT rev (3m)1.1%
EPS NQ rev (1m)-4.17%
EPS NQ rev (3m)43.75%
EPS NY rev (1m)16.71%
EPS NY rev (3m)16.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.55 | ||
| Fwd PE | 41.14 | ||
| P/S | 4.24 | ||
| P/FCF | 19.34 | ||
| P/OCF | 9.44 | ||
| P/B | 1.45 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 13.44 |
EPS(TTM)1.41
EY4.44%
EPS(NY)0.77
Fwd EY2.43%
FCF(TTM)1.64
FCFY5.17%
OCF(TTM)3.37
OCFY10.6%
SpS7.5
BVpS21.95
TBVpS21.95
PEG (NY)3.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 5.33% | ||
| ROCE | 3.53% | ||
| ROIC | 2.79% | ||
| ROICexc | 2.8% | ||
| ROICexgc | 2.8% | ||
| OM | 25.21% | ||
| PM (TTM) | 15.61% | ||
| GM | 67.21% | ||
| FCFM | 21.91% |
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 Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 18.77 | ||
| Debt/EBITDA | 6.64 | ||
| Cap/Depr | 62.62% | ||
| Cap/Sales | 22.99% | ||
| Interest Coverage | 1.37 | ||
| Cash Conversion | 72.5% | ||
| Profit Quality | 140.37% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 0.64 |
F-Score3
WACC6.55%
ROIC/WACC0.43
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)0%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%-71.19%
EPS Next Y7.04%
EPS Next 2Y-18.74%
EPS Next 3Y-12.73%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.31%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-2.02%
Revenue Next Year-0.74%
Revenue Next 2Y2.14%
Revenue Next 3Y2.16%
Revenue Next 5Y3.27%
EBIT growth 1Y-4.55%
EBIT growth 3Y-2.82%
EBIT growth 5Y2.42%
EBIT Next Year128.89%
EBIT Next 3Y33.97%
EBIT Next 5Y25.03%
FCF growth 1Y14.61%
FCF growth 3Y3.3%
FCF growth 5Y30.32%
OCF growth 1Y-7.74%
OCF growth 3Y-0.89%
OCF growth 5Y1.99%