HNI CORP (HNI) Stock Fundamental Analysis
NYSE:HNI - New York Stock Exchange, Inc. - US4042511000 - Common Stock - Currency: USD
Overall HNI gets a fundamental rating of 6 out of 10. We evaluated HNI against 83 industry peers in the Commercial Services & Supplies industry. While HNI has a great profitability rating, there are quite some concerns on its financial health. HNI is not valued too expensively and it also shows a decent growth rate. Finally HNI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
HNI had positive earnings in the past year.
HNI had a positive operating cash flow in the past year.
In the past 5 years HNI has always been profitable.
In the past 5 years HNI always reported a positive cash flow from operatings.
1.2 Ratios
HNI has a Return On Assets of 7.74%. This is in the better half of the industry: HNI outperforms 75.90% of its industry peers.
HNI has a better Return On Equity (18.24%) than 81.93% of its industry peers.
HNI has a better Return On Invested Capital (11.95%) than 80.72% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HNI is in line with the industry average of 11.64%.
The 3 year average ROIC (10.10%) for HNI is below the current ROIC(11.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.74% | ||
| ROE | 18.24% | ||
| ROIC | 11.95% |
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
The Profit Margin of HNI (5.73%) is better than 68.67% of its industry peers.
HNI's Profit Margin has improved in the last couple of years.
The Operating Margin of HNI (9.04%) is better than 65.06% of its industry peers.
In the last couple of years the Operating Margin of HNI has grown nicely.
HNI has a better Gross Margin (41.37%) than 69.88% of its industry peers.
HNI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.04% | ||
| PM (TTM) | 5.73% | ||
| GM | 41.37% |
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
HNI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, HNI has more shares outstanding
HNI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HNI has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of HNI is 2.74, which is a good value as it means it would take HNI, 2.74 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.74, HNI is in the better half of the industry, outperforming 75.90% of the companies in the same industry.
HNI has a Debt/Equity ratio of 0.56. This is a neutral value indicating HNI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.56, HNI is in line with its industry, outperforming 49.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | N/A |
ROIC/WACC1.4
WACC8.53%
2.3 Liquidity
A Current Ratio of 1.46 indicates that HNI should not have too much problems paying its short term obligations.
HNI has a Current ratio (1.46) which is in line with its industry peers.
HNI has a Quick Ratio of 1.46. This is a bad value and indicates that HNI is not financially healthy enough and could expect problems in meeting its short term obligations.
HNI has a Quick ratio of 0.93. This is in the lower half of the industry: HNI underperforms 73.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
HNI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.38%, which is quite good.
HNI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.47% yearly.
The Revenue has decreased by -0.83% in the past year.
Measured over the past years, HNI shows a small growth in Revenue. The Revenue has been growing by 2.37% on average per year.
EPS 1Y (TTM)12.38%
EPS 3Y23.61%
EPS 5Y3.47%
EPS Q2Q%40.51%
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%6.96%
3.2 Future
Based on estimates for the next years, HNI will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.76% on average per year.
Based on estimates for the next years, HNI will show a small growth in Revenue. The Revenue will grow by 4.49% on average per year.
EPS Next Y13.94%
EPS Next 2Y14.64%
EPS Next 3Y15.76%
EPS Next 5YN/A
Revenue Next Year4.09%
Revenue Next 2Y3.86%
Revenue Next 3Y4.49%
Revenue Next 5YN/A
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 accelerating.
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
A Price/Earnings ratio of 15.02 indicates a correct valuation of HNI.
Based on the Price/Earnings ratio, HNI is valued a bit cheaper than the industry average as 74.70% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.91. HNI is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.89, the valuation of HNI can be described as correct.
Based on the Price/Forward Earnings ratio, HNI is valued a bit cheaper than 79.52% of the companies in the same industry.
HNI is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 12.89 |
4.2 Price Multiples
75.90% 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 a bit cheaper when compared to the industry. HNI is cheaper than 75.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.36 | ||
| EV/EBITDA | 8.35 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HNI has an outstanding profitability rating, which may justify a higher PE ratio.
HNI's earnings are expected to grow with 15.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)4.33
EPS Next 2Y14.64%
EPS Next 3Y15.76%
5. Dividend
5.1 Amount
HNI has a Yearly Dividend Yield of 2.60%. Purely for dividend investing, there may be better candidates out there.
HNI's Dividend Yield is rather good when compared to the industry average which is at 2.37. HNI pays more dividend than 87.95% of the companies in the same industry.
HNI's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.58%
Div Incr Years14
Div Non Decr Years26
5.3 Sustainability
HNI pays out 42.87% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of HNI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP42.87%
EPS Next 2Y14.64%
EPS Next 3Y15.76%
51.83
-0.52 (-0.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.44%
Inst Owner Change-0.04%
Ins Owners1.57%
Ins Owner Change5.39%
Market Cap2.41B
Analysts80
Price Target65.28 (25.95%)
Short Float %1.95%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.6% |
Yearly Dividend1.35
Dividend Growth(5Y)3.58%
DP42.87%
Div Incr Years14
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28.26%
Min EPS beat(2)28.13%
Max EPS beat(2)28.39%
EPS beat(4)4
Avg EPS beat(4)19.41%
Min EPS beat(4)4.33%
Max EPS beat(4)28.39%
EPS beat(8)8
Avg EPS beat(8)33.73%
EPS beat(12)12
Avg EPS beat(12)82.9%
EPS beat(16)15
Avg EPS beat(16)68.28%
Revenue beat(2)2
Avg Revenue beat(2)2.24%
Min Revenue beat(2)2.18%
Max Revenue beat(2)2.31%
Revenue beat(4)2
Avg Revenue beat(4)-1.33%
Min Revenue beat(4)-6.61%
Max Revenue beat(4)2.31%
Revenue beat(8)3
Avg Revenue beat(8)-1.26%
Revenue beat(12)5
Avg Revenue beat(12)-1.29%
Revenue beat(16)8
Avg Revenue beat(16)-0.9%
PT rev (1m)0%
PT rev (3m)3.78%
EPS NQ rev (1m)2.64%
EPS NQ rev (3m)0.41%
EPS NY rev (1m)0%
EPS NY rev (3m)1.53%
Revenue NQ rev (1m)1.07%
Revenue NQ rev (3m)1.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 12.89 | ||
| P/S | 0.93 | ||
| P/FCF | 14.36 | ||
| P/OCF | 10.8 | ||
| P/B | 2.97 | ||
| P/tB | 12.04 | ||
| EV/EBITDA | 8.35 |
EPS(TTM)3.45
EY6.66%
EPS(NY)4.02
Fwd EY7.76%
FCF(TTM)3.61
FCFY6.96%
OCF(TTM)4.8
OCFY9.26%
SpS55.46
BVpS17.42
TBVpS4.31
PEG (NY)1.08
PEG (5Y)4.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.74% | ||
| ROE | 18.24% | ||
| ROCE | 15.55% | ||
| ROIC | 11.95% | ||
| ROICexc | 12.26% | ||
| ROICexgc | 21.04% | ||
| OM | 9.04% | ||
| PM (TTM) | 5.73% | ||
| GM | 41.37% | ||
| FCFM | 6.51% |
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%
ROICexcg growth 3Y10.64%
ROICexcg 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 Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.74 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 52.51% | ||
| Cap/Sales | 2.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.92% | ||
| Profit Quality | 113.59% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | N/A |
F-Score8
WACC8.53%
ROIC/WACC1.4
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)12.38%
EPS 3Y23.61%
EPS 5Y3.47%
EPS Q2Q%40.51%
EPS Next Y13.94%
EPS Next 2Y14.64%
EPS Next 3Y15.76%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%6.96%
Revenue Next Year4.09%
Revenue Next 2Y3.86%
Revenue Next 3Y4.49%
Revenue Next 5YN/A
EBIT growth 1Y7.61%
EBIT growth 3Y29.3%
EBIT growth 5Y7.21%
EBIT Next Year61.09%
EBIT Next 3Y26.22%
EBIT Next 5YN/A
FCF growth 1Y120.47%
FCF growth 3Y38.73%
FCF growth 5Y2.65%
OCF growth 1Y46.49%
OCF growth 3Y19.88%
OCF growth 5Y0.66%