HNI CORP (HNI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HNI - US4042511000 - Common Stock
42.33 USD
0 (0%)
42.33 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to HNI. HNI was compared to 81 industry peers in the Commercial Services & Supplies industry. HNI gets an excellent profitability rating and is at the same time showing great financial health properties. HNI scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally HNI also has an excellent dividend rating. These ratings would make HNI suitable for value and dividend and quality investing!
1. Profitability
1.1 Basic Checks
In the past year HNI was profitable.
HNI had a positive operating cash flow in the past year.
HNI had positive earnings in each of the past 5 years.
Each year in the past 5 years HNI had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.68%, HNI belongs to the best of the industry, outperforming 82.72% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.94%, HNI belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.16%, HNI belongs to the best of the industry, outperforming 82.72% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HNI is in line with the industry average of 10.33%.
The last Return On Invested Capital (12.16%) for HNI is above the 3 year average (10.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.68% | ||
| ROE | 16.94% | ||
| ROIC | 12.16% |
ROA(3y)6.25%
ROA(5y)5.14%
ROE(3y)14.39%
ROE(5y)12.08%
ROIC(3y)10.1%
ROIC(5y)9.3%
1.3 Margins
HNI has a better Profit Margin (5.46%) than 69.14% of its industry peers.
HNI's Profit Margin has improved in the last couple of years.
HNI has a Operating Margin of 8.75%. This is in the better half of the industry: HNI outperforms 65.43% of its industry peers.
In the last couple of years the Operating Margin of HNI has grown nicely.
HNI's Gross Margin of 41.49% is fine compared to the rest of the industry. HNI outperforms 71.60% of its industry peers.
In the last couple of years the Gross Margin of HNI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.75% | ||
| PM (TTM) | 5.46% | ||
| GM | 41.49% |
OM growth 3Y23.18%
OM growth 5Y4.73%
PM growth 3Y26.35%
PM growth 5Y2.34%
GM growth 3Y5.48%
GM growth 5Y2.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HNI is creating some value.
The number of shares outstanding for HNI has been increased compared to 1 year ago.
The number of shares outstanding for HNI has been increased compared to 5 years ago.
HNI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.55 indicates that HNI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.55, HNI is doing good in the industry, outperforming 74.07% of the companies in the same industry.
HNI has a debt to FCF ratio of 1.80. This is a very positive value and a sign of high solvency as it would only need 1.80 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.80, HNI belongs to the best of the industry, outperforming 81.48% of the companies in the same industry.
A Debt/Equity ratio of 0.40 indicates that HNI is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.40, HNI perfoms like the industry average, outperforming 58.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 3.55 |
ROIC/WACC1.48
WACC8.19%
2.3 Liquidity
A Current Ratio of 1.33 indicates that HNI should not have too much problems paying its short term obligations.
HNI has a Current ratio of 1.33. This is comparable to the rest of the industry: HNI outperforms 43.21% of its industry peers.
A Quick Ratio of 0.85 indicates that HNI may have some problems paying its short term obligations.
HNI's Quick ratio of 0.85 is on the low side compared to the rest of the industry. HNI is outperformed by 72.84% of its industry peers.
The current and quick ratio evaluation for HNI is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
HNI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.04%, which is quite good.
The Earnings Per Share has been growing slightly by 3.47% on average over the past years.
The Revenue has been growing slightly by 1.15% in the past year.
The Revenue has been growing slightly by 2.37% on average over the past years.
EPS 1Y (TTM)11.04%
EPS 3Y23.61%
EPS 5Y3.47%
EPS Q2Q%6.8%
Revenue 1Y (TTM)1.15%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%1.73%
3.2 Future
The Earnings Per Share is expected to grow by 15.64% on average over the next years. This is quite good.
Based on estimates for the next years, HNI will show a small growth in Revenue. The Revenue will grow by 3.59% on average per year.
EPS Next Y17.17%
EPS Next 2Y15.76%
EPS Next 3Y15.64%
EPS Next 5YN/A
Revenue Next Year4.05%
Revenue Next 2Y3.65%
Revenue Next 3Y3.59%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 12.03, HNI is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of HNI indicates a rather cheap valuation: HNI is cheaper than 85.19% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.92, HNI is valued rather cheaply.
HNI is valuated reasonably with a Price/Forward Earnings ratio of 10.32.
90.12% of the companies in the same industry are more expensive than HNI, based on the Price/Forward Earnings ratio.
HNI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 10.32 |
4.2 Price Multiples
82.72% of the companies in the same industry are more expensive than HNI, based on the Enterprise Value to EBITDA ratio.
HNI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HNI is cheaper than 90.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.24 | ||
| EV/EBITDA | 6.81 |
4.3 Compensation for Growth
HNI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HNI has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HNI's earnings are expected to grow with 15.64% in the coming years.
PEG (NY)0.7
PEG (5Y)3.46
EPS Next 2Y15.76%
EPS Next 3Y15.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.21%, HNI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.89, HNI pays a better dividend. On top of this HNI pays more dividend than 88.89% of the companies listed in the same industry.
HNI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
5.2 History
The dividend of HNI has a limited annual growth rate of 3.58%.
HNI has been paying a dividend for at least 10 years, so it has a reliable track record.
HNI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.58%
Div Incr Years14
Div Non Decr Years26
5.3 Sustainability
HNI pays out 44.63% of its income as dividend. This is a bit on the high side, but may be sustainable.
HNI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP44.63%
EPS Next 2Y15.76%
EPS Next 3Y15.64%
42.33
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners94.91%
Inst Owner Change13.41%
Ins Owners1.58%
Ins Owner Change-13.11%
Market Cap1.94B
Revenue(TTM)2.59B
Net Income(TTM)141.60M
Analysts80
Price Target68.34 (61.45%)
Short Float %13.65%
Short Ratio8.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
Yearly Dividend1.35
Dividend Growth(5Y)3.58%
DP44.63%
Div Incr Years14
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.18%
Min EPS beat(2)1.98%
Max EPS beat(2)28.39%
EPS beat(4)4
Avg EPS beat(4)18.82%
Min EPS beat(4)1.98%
Max EPS beat(4)28.39%
EPS beat(8)8
Avg EPS beat(8)28.21%
EPS beat(12)12
Avg EPS beat(12)82.31%
EPS beat(16)16
Avg EPS beat(16)68.46%
Revenue beat(2)1
Avg Revenue beat(2)0.2%
Min Revenue beat(2)-1.78%
Max Revenue beat(2)2.18%
Revenue beat(4)2
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-3.18%
Max Revenue beat(4)2.31%
Revenue beat(8)3
Avg Revenue beat(8)-1.33%
Revenue beat(12)5
Avg Revenue beat(12)-0.8%
Revenue beat(16)8
Avg Revenue beat(16)-0.9%
PT rev (1m)0%
PT rev (3m)0.37%
EPS NQ rev (1m)-0.98%
EPS NQ rev (3m)-5.73%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.03 | ||
| Fwd PE | 10.32 | ||
| P/S | 0.75 | ||
| P/FCF | 10.24 | ||
| P/OCF | 7.76 | ||
| P/B | 2.32 | ||
| P/tB | 8.36 | ||
| EV/EBITDA | 6.81 |
EPS(TTM)3.52
EY8.32%
EPS(NY)4.1
Fwd EY9.69%
FCF(TTM)4.13
FCFY9.77%
OCF(TTM)5.46
OCFY12.89%
SpS56.57
BVpS18.24
TBVpS5.06
PEG (NY)0.7
PEG (5Y)3.46
Graham Number38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.68% | ||
| ROE | 16.94% | ||
| ROCE | 15.82% | ||
| ROIC | 12.16% | ||
| ROICexc | 12.4% | ||
| ROICexgc | 21.74% | ||
| OM | 8.75% | ||
| PM (TTM) | 5.46% | ||
| GM | 41.49% | ||
| FCFM | 7.31% |
ROA(3y)6.25%
ROA(5y)5.14%
ROE(3y)14.39%
ROE(5y)12.08%
ROIC(3y)10.1%
ROIC(5y)9.3%
ROICexc(3y)10.32%
ROICexc(5y)9.75%
ROICexgc(3y)18.8%
ROICexgc(5y)18.69%
ROCE(3y)13.14%
ROCE(5y)12.1%
ROICexgc growth 3Y10.64%
ROICexgc growth 5Y-2.01%
ROICexc growth 3Y13.99%
ROICexc growth 5Y-0.96%
OM growth 3Y23.18%
OM growth 5Y4.73%
PM growth 3Y26.35%
PM growth 5Y2.34%
GM growth 3Y5.48%
GM growth 5Y2.07%
F-Score8
Asset Turnover1.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.8 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 58.78% | ||
| Cap/Sales | 2.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.81% | ||
| Profit Quality | 133.83% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 3.55 |
F-Score8
WACC8.19%
ROIC/WACC1.48
Cap/Depr(3y)71.22%
Cap/Depr(5y)69.5%
Cap/Sales(3y)2.75%
Cap/Sales(5y)2.68%
Profit Quality(3y)172.64%
Profit Quality(5y)207.79%
High Growth Momentum
Growth
EPS 1Y (TTM)11.04%
EPS 3Y23.61%
EPS 5Y3.47%
EPS Q2Q%6.8%
EPS Next Y17.17%
EPS Next 2Y15.76%
EPS Next 3Y15.64%
EPS Next 5YN/A
Revenue 1Y (TTM)1.15%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%1.73%
Revenue Next Year4.05%
Revenue Next 2Y3.65%
Revenue Next 3Y3.59%
Revenue Next 5YN/A
EBIT growth 1Y1.25%
EBIT growth 3Y29.3%
EBIT growth 5Y7.21%
EBIT Next Year65.47%
EBIT Next 3Y39.42%
EBIT Next 5YN/A
FCF growth 1Y48.86%
FCF growth 3Y38.73%
FCF growth 5Y2.65%
OCF growth 1Y19.21%
OCF growth 3Y19.88%
OCF growth 5Y0.66%
HNI CORP / HNI FAQ
What is the fundamental rating for HNI stock?
ChartMill assigns a fundamental rating of 7 / 10 to HNI.
What is the valuation status for HNI stock?
ChartMill assigns a valuation rating of 9 / 10 to HNI CORP (HNI). This can be considered as Undervalued.
What is the profitability of HNI stock?
HNI CORP (HNI) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for HNI stock?
The Price/Earnings (PE) ratio for HNI CORP (HNI) is 12.03 and the Price/Book (PB) ratio is 2.32.
What is the expected EPS growth for HNI CORP (HNI) stock?
The Earnings per Share (EPS) of HNI CORP (HNI) is expected to grow by 17.17% in the next year.