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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HNI has a correct valuation and a medium growth rate. Finally HNI also has an excellent dividend rating. These ratings could make HNI a good candidate for 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.
HNI had positive earnings in each of the past 5 years.
HNI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.30%, HNI is in the better half of the industry, outperforming 74.70% of the companies in the same industry.
HNI's Return On Equity of 16.89% is fine compared to the rest of the industry. HNI outperforms 79.52% of its industry peers.
HNI has a Return On Invested Capital of 11.88%. This is in the better half of the industry: HNI outperforms 79.52% of its industry peers.
HNI had an Average Return On Invested Capital over the past 3 years of 10.10%. This is in line with the industry average of 11.67%.
The 3 year average ROIC (10.10%) for HNI is below the current ROIC(11.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 16.89% | ||
| ROIC | 11.89% |
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 5.35%, HNI is in the better half of the industry, outperforming 66.27% of the companies in the same industry.
In the last couple of years the Profit Margin of HNI has grown nicely.
HNI has a better Operating Margin (8.62%) than 62.65% of its industry peers.
HNI's Operating Margin has improved in the last couple of years.
HNI has a Gross Margin of 41.12%. This is in the better half of the industry: HNI outperforms 68.67% of its industry peers.
HNI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.62% | ||
| PM (TTM) | 5.35% | ||
| GM | 41.12% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HNI is still creating some value.
The number of shares outstanding for HNI has been increased compared to 1 year ago.
Compared to 5 years ago, HNI has more shares outstanding
The debt/assets ratio for HNI has been reduced compared to a year ago.
2.2 Solvency
HNI has an Altman-Z score of 3.63. This indicates that HNI is financially healthy and has little risk of bankruptcy at the moment.
HNI has a Altman-Z score of 3.63. This is in the better half of the industry: HNI outperforms 71.08% of its industry peers.
The Debt to FCF ratio of HNI is 2.28, which is a good value as it means it would take HNI, 2.28 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.28, HNI is in the better half of the industry, outperforming 77.11% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that HNI is not too dependend on debt financing.
HNI has a Debt to Equity ratio of 0.45. This is comparable to the rest of the industry: HNI outperforms 54.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.28 | ||
| Altman-Z | 3.63 |
ROIC/WACC1.18
WACC10.07%
2.3 Liquidity
HNI has a Current Ratio of 1.19. 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 worse Current ratio (1.19) than 69.88% of its industry peers.
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 83.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
HNI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.60%, which is quite good.
Measured over the past 5 years, HNI shows a small growth in Earnings Per Share. The EPS has been growing by 3.47% on average per year.
Looking at the last year, HNI shows a decrease in Revenue. The Revenue has decreased by -0.18% in the last year.
The Revenue has been growing slightly by 2.37% on average over the past years.
EPS 1Y (TTM)10.6%
EPS 3Y23.61%
EPS 5Y3.47%
EPS Q2Q%18.92%
Revenue 1Y (TTM)-0.18%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%2.01%
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.
The Revenue is expected to grow by 4.49% on average over the next years.
EPS Next Y13.94%
EPS Next 2Y14.64%
EPS Next 3Y15.76%
EPS Next 5YN/A
Revenue Next Year2.88%
Revenue Next 2Y3.18%
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 16.65, the valuation of HNI can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of HNI indicates a somewhat cheap valuation: HNI is cheaper than 72.29% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.28, HNI is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.95, HNI is valued correctly.
Based on the Price/Forward Earnings ratio, HNI is valued a bit cheaper than the industry average as 79.52% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. HNI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.65 | ||
| Fwd PE | 12.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HNI is valued a bit cheaper than 74.70% of the companies in the same industry.
HNI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HNI is cheaper than 80.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.12 | ||
| EV/EBITDA | 8.58 |
4.3 Compensation for Growth
HNI's 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)1.19
PEG (5Y)4.79
EPS Next 2Y14.64%
EPS Next 3Y15.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.74%, 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 87.95% of the companies in the same industry.
HNI's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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 46.57% 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.
DP46.57%
EPS Next 2Y14.64%
EPS Next 3Y15.76%
52.1
+0.39 (+0.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.44%
Inst Owner Change-6.21%
Ins Owners1.57%
Ins Owner Change5.94%
Market Cap2.43B
Analysts80
Price Target65.28 (25.3%)
Short Float %1.89%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
Yearly Dividend1.35
Dividend Growth(5Y)3.58%
DP46.57%
Div Incr Years14
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.46%
Min EPS beat(2)16.8%
Max EPS beat(2)28.13%
EPS beat(4)4
Avg EPS beat(4)19.24%
Min EPS beat(4)4.33%
Max EPS beat(4)28.13%
EPS beat(8)8
Avg EPS beat(8)49.72%
EPS beat(12)12
Avg EPS beat(12)84.73%
EPS beat(16)15
Avg EPS beat(16)71.68%
Revenue beat(2)1
Avg Revenue beat(2)-0.44%
Min Revenue beat(2)-3.18%
Max Revenue beat(2)2.31%
Revenue beat(4)1
Avg Revenue beat(4)-2.67%
Min Revenue beat(4)-6.61%
Max Revenue beat(4)2.31%
Revenue beat(8)2
Avg Revenue beat(8)-1.67%
Revenue beat(12)5
Avg Revenue beat(12)-1.35%
Revenue beat(16)8
Avg Revenue beat(16)-0.89%
PT rev (1m)3.78%
PT rev (3m)3.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.17%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.65 | ||
| Fwd PE | 12.95 | ||
| P/S | 0.96 | ||
| P/FCF | 13.12 | ||
| P/OCF | 9.98 | ||
| P/B | 3.02 | ||
| P/tB | 13.03 | ||
| EV/EBITDA | 8.58 |
EPS(TTM)3.13
EY6.01%
EPS(NY)4.02
Fwd EY7.72%
FCF(TTM)3.97
FCFY7.62%
OCF(TTM)5.22
OCFY10.02%
SpS54.53
BVpS17.26
TBVpS4
PEG (NY)1.19
PEG (5Y)4.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 16.89% | ||
| ROCE | 15.46% | ||
| ROIC | 11.89% | ||
| ROICexc | 12.12% | ||
| ROICexgc | 21.85% | ||
| OM | 8.62% | ||
| PM (TTM) | 5.35% | ||
| GM | 41.12% | ||
| FCFM | 7.28% |
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 Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.28 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 54.26% | ||
| Cap/Sales | 2.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.6% | ||
| Profit Quality | 136.26% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 3.63 |
F-Score8
WACC10.07%
ROIC/WACC1.18
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)10.6%
EPS 3Y23.61%
EPS 5Y3.47%
EPS Q2Q%18.92%
EPS Next Y13.94%
EPS Next 2Y14.64%
EPS Next 3Y15.76%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.18%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%2.01%
Revenue Next Year2.88%
Revenue Next 2Y3.18%
Revenue Next 3Y4.49%
Revenue Next 5YN/A
EBIT growth 1Y11.3%
EBIT growth 3Y29.3%
EBIT growth 5Y7.21%
EBIT Next Year61.09%
EBIT Next 3Y26.22%
EBIT Next 5YN/A
FCF growth 1Y174.74%
FCF growth 3Y38.73%
FCF growth 5Y2.65%
OCF growth 1Y76.53%
OCF growth 3Y19.88%
OCF growth 5Y0.66%