HIGHWOODS PROPERTIES INC (HIW) Stock Fundamental Analysis
USA - NYSE:HIW - US4312841087 - REIT
28.41 USD
-1.11 (-3.76%)
28.41 USD
0 (0%)
Taking everything into account, HIW scores 4 out of 10 in our fundamental rating. HIW was compared to 127 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 is valued correctly, but it does not seem to be growing.
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.
In the past 5 years HIW always reported a positive cash flow from operatings.
1.2 Ratios
HIW has a better Return On Assets (2.09%) than 66.14% of its industry peers.
Looking at the Return On Equity, with a value of 5.33%, HIW is in the better half of the industry, outperforming 67.72% of the companies in the same industry.
HIW has a Return On Invested Capital (2.79%) which is in line with 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 has a Profit Margin of 15.61%. This is in the better half of the industry: HIW outperforms 65.35% of its industry peers.
In the last couple of years the Profit Margin of HIW has declined.
HIW's Operating Margin of 25.21% is in line compared to the rest of the industry. HIW outperforms 55.91% of its industry peers.
In the last couple of years the Operating Margin of HIW has remained more or less at the same level.
HIW's Gross Margin of 67.21% is in line compared to the rest of the industry. HIW outperforms 51.18% of its industry peers.
HIW's Gross Margin has been stable in the last couple of years.
| 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.
HIW has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HIW is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.58, we must say that HIW is in the distress zone and has some risk of bankruptcy.
HIW has a Altman-Z score (0.58) which is in line with its industry peers.
The Debt to FCF ratio of HIW is 18.77, which is on the high side as it means it would take HIW, 18.77 years of fcf income to pay off all of its debts.
HIW's Debt to FCF ratio of 18.77 is fine compared to the rest of the industry. HIW outperforms 76.38% of its industry peers.
A Debt/Equity ratio of 1.41 is on the high side and indicates that HIW has dependencies on debt financing.
HIW has a Debt to Equity ratio (1.41) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 18.77 | ||
| Altman-Z | 0.58 |
ROIC/WACC0.45
WACC6.24%
2.3 Liquidity
HIW has a Current Ratio of 1.36. This is a normal value and indicates that HIW is financially healthy and should not expect problems in meeting its short term obligations.
HIW's Current ratio of 1.36 is fine compared to the rest of the industry. HIW outperforms 61.42% of its industry peers.
HIW has a Quick Ratio of 1.36. This is a normal value and indicates that HIW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.36, HIW is in the better half of the industry, outperforming 62.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 58.96% over the past year.
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 -0.98% 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)58.96%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%514.29%
Revenue 1Y (TTM)-0.98%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-1.25%
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 -14.14% on average per year.
Based on estimates for the next years, HIW will show a small growth in Revenue. The Revenue will grow by 3.28% on average per year.
EPS Next Y7.04%
EPS Next 2Y-20.21%
EPS Next 3Y-14.14%
EPS Next 5YN/A
Revenue Next Year-0.68%
Revenue Next 2Y2.28%
Revenue Next 3Y2.26%
Revenue Next 5Y3.28%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 13.34 indicates a correct valuation of HIW.
HIW's Price/Earnings ratio is rather cheap when compared to the industry. HIW is cheaper than 92.91% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.76. HIW is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 38.14 indicates a quite expensive valuation of HIW.
Based on the Price/Forward Earnings ratio, HIW is valued a bit cheaper than 64.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HIW to the average of the S&P500 Index (22.63), we can say HIW is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 38.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HIW is valued a bit cheaper than the industry average as 67.72% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HIW indicates a rather cheap valuation: HIW is cheaper than 80.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.28 | ||
| EV/EBITDA | 12.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A cheap valuation may be justified as HIW's earnings are expected to decrease with -14.14% in the coming years.
PEG (NY)1.89
PEG (5Y)N/A
EPS Next 2Y-20.21%
EPS Next 3Y-14.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.78%, HIW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.24, HIW pays a bit more dividend than its industry peers.
HIW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.78% |
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 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
171.21% of the earnings are spent on dividend by HIW. 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-20.21%
EPS Next 3Y-14.14%
28.41
-1.11 (-3.76%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners110.25%
Inst Owner Change0.03%
Ins Owners1.89%
Ins Owner Change0.6%
Market Cap3.07B
Revenue(TTM)825.86M
Net Income(TTM)126.55M
Analysts70
Price Target32.03 (12.74%)
Short Float %4.65%
Short Ratio4.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.78% |
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%
PT rev (3m)0.72%
EPS NQ rev (1m)-2.9%
EPS NQ rev (3m)-4.29%
EPS NY rev (1m)0%
EPS NY rev (3m)16.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 38.14 | ||
| P/S | 3.79 | ||
| P/FCF | 17.28 | ||
| P/OCF | 8.43 | ||
| P/B | 1.29 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 12.71 |
EPS(TTM)2.13
EY7.5%
EPS(NY)0.74
Fwd EY2.62%
FCF(TTM)1.64
FCFY5.79%
OCF(TTM)3.37
OCFY11.86%
SpS7.5
BVpS21.95
TBVpS21.95
PEG (NY)1.89
PEG (5Y)N/A
Graham Number32.43
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%
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 | 1.41 | ||
| 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 | 0.58 |
F-Score3
WACC6.24%
ROIC/WACC0.45
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)58.96%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%514.29%
EPS Next Y7.04%
EPS Next 2Y-20.21%
EPS Next 3Y-14.14%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.98%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-1.25%
Revenue Next Year-0.68%
Revenue Next 2Y2.28%
Revenue Next 3Y2.26%
Revenue Next 5Y3.28%
EBIT growth 1Y-4.55%
EBIT growth 3Y-2.82%
EBIT growth 5Y2.42%
EBIT Next Year123.3%
EBIT Next 3Y33.78%
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%
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 4 / 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 13.34 and the Price/Book (PB) ratio is 1.29.
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 7.04% in the next year.