HNI CORP (HNI) Stock Fundamental Analysis
USA - NYSE:HNI - US4042511000 - Common Stock
45.25 USD
+0.46 (+1.03%)
45.25 USD
0 (0%)
HNI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 82 industry peers in the Commercial Services & Supplies industry. HNI scores excellent on profitability, but there are some minor concerns on its financial health. HNI may be a bit undervalued, certainly considering the very reasonable score on growth Finally HNI also has an excellent dividend rating. These ratings could make HNI a good candidate 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.
Each year in the past 5 years HNI had a positive operating cash flow.
1.2 Ratios
HNI has a better Return On Assets (7.74%) than 82.93% of its industry peers.
HNI's Return On Equity of 18.24% is amongst the best of the industry. HNI outperforms 85.37% of its industry peers.
With an excellent Return On Invested Capital value of 11.95%, HNI belongs to the best of the industry, outperforming 84.15% 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 10.38%.
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 70.73% of the companies in the same industry.
In the last couple of years the Profit Margin of HNI has grown nicely.
With a decent Operating Margin value of 9.04%, HNI is doing good in the industry, outperforming 68.29% of the companies in the same industry.
In the last couple of years the Operating Margin of HNI has grown nicely.
Looking at the Gross Margin, with a value of 41.37%, HNI is in the better half of the industry, outperforming 71.95% of the companies in the same industry.
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.
HNI has more shares outstanding than it did 1 year ago.
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
An Altman-Z score of 3.46 indicates that HNI is not in any danger for bankruptcy at the moment.
HNI has a Altman-Z score of 3.46. This is in the better half of the industry: HNI outperforms 68.29% 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.
The Debt to FCF ratio of HNI (2.74) is better than 74.39% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that HNI is somewhat dependend on debt financing.
HNI has a Debt to Equity ratio of 0.56. This is comparable to the rest of the industry: HNI outperforms 47.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 3.46 |
ROIC/WACC1.47
WACC8.12%
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.
HNI has a Current ratio of 1.46. This is comparable to the rest of the industry: HNI outperforms 47.56% of its industry peers.
A Quick Ratio of 0.93 indicates that HNI may have some problems paying its short term obligations.
With a Quick ratio value of 0.93, HNI is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been growing slightly by 3.47% on average over the past years.
HNI shows a decrease in Revenue. In the last year, the revenue decreased by -0.83%.
The Revenue has been growing slightly by 2.37% on average over the past years.
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
HNI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.14% yearly.
HNI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 35.00% yearly.
EPS Next Y17.57%
EPS Next 2Y15.69%
EPS Next 3Y17.14%
EPS Next 5YN/A
Revenue Next Year4.17%
Revenue Next 2Y3.97%
Revenue Next 3Y35%
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
The Price/Earnings ratio is 13.12, which indicates a correct valuation of HNI.
Based on the Price/Earnings ratio, HNI is valued cheaper than 84.15% of the companies in the same industry.
HNI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.89.
With a Price/Forward Earnings ratio of 11.05, the valuation of HNI can be described as very reasonable.
85.37% of the companies in the same industry are more expensive than HNI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, HNI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 11.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HNI indicates a rather cheap valuation: HNI is cheaper than 81.71% of the companies listed in the same industry.
HNI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HNI is cheaper than 81.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.35 | ||
| EV/EBITDA | 7.35 |
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 17.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)3.78
EPS Next 2Y15.69%
EPS Next 3Y17.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.04%, HNI has a reasonable but not impressive dividend return.
HNI's Dividend Yield is rather good when compared to the industry average which is at 2.44. HNI pays more dividend than 90.24% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, HNI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
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 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
42.87% of the earnings are spent on dividend by HNI. 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 2Y15.69%
EPS Next 3Y17.14%
45.25
+0.46 (+1.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners81.69%
Inst Owner Change0%
Ins Owners1.58%
Ins Owner Change0.83%
Market Cap2.07B
Revenue(TTM)2.58B
Net Income(TTM)147.90M
Analysts80
Price Target68.08 (50.45%)
Short Float %12.43%
Short Ratio8.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
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)4.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.64%
EPS NY rev (1m)0%
EPS NY rev (3m)3.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 11.05 | ||
| P/S | 0.8 | ||
| P/FCF | 12.35 | ||
| P/OCF | 9.28 | ||
| P/B | 2.56 | ||
| P/tB | 10.35 | ||
| EV/EBITDA | 7.35 |
EPS(TTM)3.45
EY7.62%
EPS(NY)4.1
Fwd EY9.05%
FCF(TTM)3.66
FCFY8.1%
OCF(TTM)4.87
OCFY10.77%
SpS56.32
BVpS17.69
TBVpS4.37
PEG (NY)0.75
PEG (5Y)3.78
Graham Number37.06
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%
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 Turnover1.35
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 | 3.46 |
F-Score8
WACC8.12%
ROIC/WACC1.47
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 Y17.57%
EPS Next 2Y15.69%
EPS Next 3Y17.14%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%6.96%
Revenue Next Year4.17%
Revenue Next 2Y3.97%
Revenue Next 3Y35%
Revenue Next 5YN/A
EBIT growth 1Y7.61%
EBIT growth 3Y29.3%
EBIT growth 5Y7.21%
EBIT Next Year66.47%
EBIT Next 3Y52.69%
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%
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 13.12 and the Price/Book (PB) ratio is 2.56.
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 17.57% in the next year.