HNI CORP (HNI) Stock Fundamental Analysis
NYSE:HNI - US4042511000 - Common Stock
44.89 USD
+1.42 (+3.27%)
44.74 USD
-0.15 (-0.33%)
We assign a fundamental rating of 6 out of 10 to HNI. HNI was compared to 84 industry peers in the Commercial Services & Supplies industry. HNI has an excellent profitability rating, but there are some minor concerns on its financial health. HNI is valued quite cheap, while showing a decent growth score. This is a good combination! Finally HNI also has an excellent dividend rating. This makes HNI very considerable for value and dividend investing!
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.
Each year in the past 5 years HNI has been profitable.
HNI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HNI has a Return On Assets of 7.74%. This is amongst the best in the industry. HNI outperforms 80.95% of its industry peers.
The Return On Equity of HNI (18.24%) is better than 85.71% of its industry peers.
HNI has a better Return On Invested Capital (11.95%) than 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HNI is in line with the industry average of 11.08%.
The last Return On Invested Capital (11.95%) for HNI is above the 3 year average (10.10%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 5.73%, HNI is in the better half of the industry, outperforming 70.24% of the companies in the same industry.
HNI's Profit Margin has improved in the last couple of years.
HNI's Operating Margin of 9.04% is fine compared to the rest of the industry. HNI outperforms 65.48% of its industry peers.
HNI's Operating Margin has improved in the last couple of years.
HNI's Gross Margin of 41.37% is fine compared to the rest of the industry. HNI outperforms 70.24% of its industry peers.
In the last couple of years the Gross Margin of HNI has grown nicely.
| 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.
The debt/assets ratio for HNI has been reduced compared to a year ago.
2.2 Solvency
HNI has an Altman-Z score of 3.42. This indicates that HNI is financially healthy and has little risk of bankruptcy at the moment.
HNI's Altman-Z score of 3.42 is fine compared to the rest of the industry. HNI outperforms 69.05% of its industry peers.
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.
HNI has a Debt to FCF ratio of 2.74. This is in the better half of the industry: HNI outperforms 76.19% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that HNI is somewhat dependend on debt financing.
HNI's Debt to Equity ratio of 0.56 is in line compared to the rest of the industry. HNI outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 3.42 |
ROIC/WACC1.41
WACC8.48%
2.3 Liquidity
HNI has a Current Ratio of 1.46. This is a normal value and indicates that HNI is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.46, HNI perfoms like the industry average, outperforming 44.05% of the companies in the same industry.
A Quick Ratio of 0.93 indicates that HNI may have some problems paying its short term obligations.
HNI has a worse Quick ratio (0.93) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.38% over the past year.
HNI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.47% yearly.
HNI shows a decrease in Revenue. In the last year, the revenue decreased by -0.83%.
HNI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.37% yearly.
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
The Earnings Per Share is expected to grow by 15.76% on average over the next years. This is quite good.
HNI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.49% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 13.01, the valuation of HNI can be described as correct.
Based on the Price/Earnings ratio, HNI is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
HNI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.24.
A Price/Forward Earnings ratio of 11.16 indicates a reasonable valuation of HNI.
Based on the Price/Forward Earnings ratio, HNI is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 35.82. HNI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HNI is valued cheaper than 86.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HNI is valued cheaper than 84.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.24 | ||
| EV/EBITDA | 7.1 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of HNI 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)0.93
PEG (5Y)3.75
EPS Next 2Y14.64%
EPS Next 3Y15.76%
5. Dividend
5.1 Amount
HNI has a Yearly Dividend Yield of 3.07%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.30, HNI pays a better dividend. On top of this HNI pays more dividend than 89.29% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, HNI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
The dividend of HNI has a limited annual growth rate of 3.58%.
HNI has paid a dividend for at least 10 years, which is 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 42.87% 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.
DP42.87%
EPS Next 2Y14.64%
EPS Next 3Y15.76%
44.89
+1.42 (+3.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners82.1%
Inst Owner Change0.01%
Ins Owners1.58%
Ins Owner Change2.06%
Market Cap2.06B
Analysts80
Price Target66.05 (47.14%)
Short Float %1.45%
Short Ratio1.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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)1.17%
PT rev (3m)5%
EPS NQ rev (1m)-8%
EPS NQ rev (3m)-11.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.59%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)1.17%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 11.16 | ||
| P/S | 0.8 | ||
| P/FCF | 12.24 | ||
| P/OCF | 9.2 | ||
| P/B | 2.54 | ||
| P/tB | 10.26 | ||
| EV/EBITDA | 7.1 |
EPS(TTM)3.45
EY7.69%
EPS(NY)4.02
Fwd EY8.96%
FCF(TTM)3.67
FCFY8.17%
OCF(TTM)4.88
OCFY10.87%
SpS56.37
BVpS17.71
TBVpS4.38
PEG (NY)0.93
PEG (5Y)3.75
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 | 3.42 |
F-Score8
WACC8.48%
ROIC/WACC1.41
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 Year66.78%
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%