HNI CORP (HNI)
US4042511000 - Common Stock
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. While HNI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HNI is not valued too expensively and it also shows a decent growth rate. 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.
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
With a decent Return On Assets value of 5.88%, HNI is doing good in the industry, outperforming 73.49% of the companies in the same industry.
With a decent Return On Equity value of 14.50%, HNI is doing good in the industry, outperforming 77.11% of the companies in the same industry.
HNI's Return On Invested Capital of 11.67% is amongst the best of the industry. HNI outperforms 83.13% 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 9.77%.
The 3 year average ROIC (8.34%) for HNI is below the current ROIC(11.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 14.5% | ||
| ROIC | 11.67% |
ROA(3y)5.1%
ROA(5y)5.17%
ROE(3y)12.23%
ROE(5y)12.54%
ROIC(3y)8.34%
ROIC(5y)9.29%
1.3 Margins
Looking at the Profit Margin, with a value of 4.39%, HNI is in the better half of the industry, outperforming 65.06% of the companies in the same industry.
In the last couple of years the Profit Margin of HNI has declined.
The Operating Margin of HNI (8.19%) is better than 60.24% of its industry peers.
HNI's Operating Margin has declined in the last couple of years.
HNI has a better Gross Margin (40.47%) than 73.49% of its industry peers.
HNI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.19% | ||
| PM (TTM) | 4.39% | ||
| GM | 40.47% |
OM growth 3Y0.48%
OM growth 5Y-2.73%
PM growth 3Y-1.93%
PM growth 5Y-13.34%
GM growth 3Y1.85%
GM growth 5Y1.05%
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
Compared to 5 years ago, HNI has more shares outstanding
Compared to 1 year ago, HNI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.50 indicates that HNI is not in any danger for bankruptcy at the moment.
The Altman-Z score of HNI (3.50) is better than 72.29% of its industry peers.
HNI has a debt to FCF ratio of 2.29. This is a good value and a sign of high solvency as HNI would need 2.29 years to pay back of all of its debts.
HNI has a better Debt to FCF ratio (2.29) than 79.52% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that HNI is somewhat dependend on debt financing.
HNI's Debt to Equity ratio of 0.53 is in line compared to the rest of the industry. HNI outperforms 49.40% of its industry peers.
Although HNI does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.29 | ||
| Altman-Z | 3.5 |
ROIC/WACC1.38
WACC8.46%
2.3 Liquidity
A Current Ratio of 1.20 indicates that HNI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.20, HNI is not doing good in the industry: 72.29% of the companies in the same industry are doing better.
A Quick Ratio of 0.73 indicates that HNI may have some problems paying its short term obligations.
HNI's Quick ratio of 0.73 is on the low side compared to the rest of the industry. HNI is outperformed by 85.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.98% over the past year.
HNI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.45% yearly.
The Revenue has grown by 17.77% in the past year. This is quite good.
HNI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.51% yearly.
EPS 1Y (TTM)51.98%
EPS 3Y13.32%
EPS 5Y1.45%
EPS Q2Q%43.64%
Revenue 1Y (TTM)17.77%
Revenue growth 3Y7.57%
Revenue growth 5Y1.51%
Sales Q2Q%10.68%
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 18.62% on average per year.
Based on estimates for the next years, HNI will show a small growth in Revenue. The Revenue will grow by 4.94% on average per year.
EPS Next Y24.69%
EPS Next 2Y21.69%
EPS Next 3Y18.62%
EPS Next 5YN/A
Revenue Next Year7.88%
Revenue Next 2Y5.88%
Revenue Next 3Y4.94%
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
With a Price/Earnings ratio of 17.36, HNI is valued on the expensive side.
HNI's Price/Earnings ratio is a bit cheaper when compared to the industry. HNI is cheaper than 69.88% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 31.71. HNI is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.90, the valuation of HNI can be described as correct.
Based on the Price/Forward Earnings ratio, HNI is valued a bit cheaper than 74.70% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.81. HNI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.36 | ||
| Fwd PE | 13.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HNI is valued a bit cheaper than the industry average as 65.06% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HNI is valued a bit cheaper than the industry average as 72.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.08 | ||
| EV/EBITDA | 9.47 |
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 decent profitability rating of HNI may justify a higher PE ratio.
A more expensive valuation may be justified as HNI's earnings are expected to grow with 18.62% in the coming years.
PEG (NY)0.7
PEG (5Y)11.96
EPS Next 2Y21.69%
EPS Next 3Y18.62%
5. Dividend
5.1 Amount
HNI has a Yearly Dividend Yield of 2.38%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.18, HNI pays a better dividend. On top of this HNI pays more dividend than 83.13% of the companies listed in the same industry.
HNI's Dividend Yield is comparable with the S&P500 average which is at 2.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
5.2 History
The dividend of HNI has a limited annual growth rate of 4.81%.
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)4.81%
Div Incr Years13
Div Non Decr Years25
5.3 Sustainability
HNI pays out 54.29% 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.
DP54.29%
EPS Next 2Y21.69%
EPS Next 3Y18.62%
HNI CORP
NYSE:HNI (10/21/2024, 5:32:52 PM)
After market: 53.3 0 (0%)53.3
-1.34 (-2.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.51B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.36 | ||
| Fwd PE | 13.9 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.7
PEG (5Y)11.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 14.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.19% | ||
| PM (TTM) | 4.39% | ||
| GM | 40.47% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)51.98%
EPS 3Y13.32%
EPS 5Y
EPS Q2Q%
EPS Next Y24.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.77%
Revenue growth 3Y7.57%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y