HNI CORP (HNI) Stock Fundamental Analysis
NYSE:HNI - New York Stock Exchange, Inc. - US4042511000 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to HNI. HNI was compared to 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 decent growth rate and is not valued too expensively. Finally HNI also has an excellent dividend rating. These ratings would make HNI suitable 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.
In the past 5 years HNI has always been profitable.
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 7.44%, HNI is in the better half of the industry, outperforming 75.90% of the companies in the same industry.
HNI's Return On Equity of 16.61% is fine compared to the rest of the industry. HNI outperforms 77.11% of its industry peers.
HNI has a better Return On Invested Capital (11.84%) than 79.52% of its industry peers.
HNI had an Average Return On Invested Capital over the past 3 years of 10.01%. This is in line with the industry average of 10.57%.
The 3 year average ROIC (10.01%) for HNI is below the current ROIC(11.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.44% | ||
| ROE | 16.61% | ||
| ROIC | 11.84% |
ROA(3y)6.25%
ROA(5y)5.14%
ROE(3y)14.39%
ROE(5y)12.08%
ROIC(3y)10.01%
ROIC(5y)9.25%
1.3 Margins
The Profit Margin of HNI (5.52%) is better than 68.67% of its industry peers.
In the last couple of years the Profit Margin of HNI has grown nicely.
HNI has a Operating Margin of 8.52%. This is in the better half of the industry: HNI outperforms 63.86% of its industry peers.
HNI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 41.00%, HNI is in the better half of the industry, outperforming 68.67% of the companies in the same industry.
In the last couple of years the Gross Margin of HNI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.52% | ||
| PM (TTM) | 5.52% | ||
| GM | 41% |
OM growth 3Y22.23%
OM growth 5Y4.24%
PM growth 3Y26.35%
PM growth 5Y2.34%
GM growth 3Y5.31%
GM growth 5Y1.97%
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.
Compared to 5 years ago, HNI has more shares outstanding
HNI has a better debt/assets ratio than last year.
2.2 Solvency
HNI has an Altman-Z score of 3.35. This indicates that HNI is financially healthy and has little risk of bankruptcy at the moment.
HNI's Altman-Z score of 3.35 is fine compared to the rest of the industry. HNI outperforms 69.88% of its industry peers.
HNI has a debt to FCF ratio of 2.08. This is a good value and a sign of high solvency as HNI would need 2.08 years to pay back of all of its debts.
The Debt to FCF ratio of HNI (2.08) is better than 79.52% of its industry peers.
HNI has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
HNI's Debt to Equity ratio of 0.36 is in line compared to the rest of the industry. HNI outperforms 56.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.08 | ||
| Altman-Z | 3.35 |
ROIC/WACC1.41
WACC8.38%
2.3 Liquidity
HNI has a Current Ratio of 1.10. This is a normal value and indicates that HNI is financially healthy and should not expect problems in meeting its short term obligations.
HNI's Current ratio of 1.10 is on the low side compared to the rest of the industry. HNI is outperformed by 72.29% of its industry peers.
A Quick Ratio of 0.69 indicates that HNI may have some problems paying its short term obligations.
With a Quick ratio value of 0.69, HNI is not doing good in the industry: 85.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
HNI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.15%, 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 been growing slightly by 3.80% in the past year.
HNI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.37% yearly.
EPS 1Y (TTM)18.15%
EPS 3Y23.61%
EPS 5Y3.47%
EPS Q2Q%-11.22%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%-5.49%
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 13.68% on average per year.
Based on estimates for the next years, HNI will show a small growth in Revenue. The Revenue will grow by 2.82% on average per year.
EPS Next Y12.22%
EPS Next 2Y13.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.68%
Revenue Next 2Y2.82%
Revenue Next 3YN/A
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.30, HNI is valued correctly.
HNI's Price/Earnings ratio is a bit cheaper when compared to the industry. HNI is cheaper than 78.31% of the companies in the same industry.
HNI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.22.
With a Price/Forward Earnings ratio of 12.74, HNI is valued correctly.
81.93% 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 20.86, HNI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 12.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HNI indicates a somewhat cheap valuation: HNI is cheaper than 78.31% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HNI is valued a bit cheaper than 77.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.81 | ||
| EV/EBITDA | 7.13 |
4.3 Compensation for Growth
HNI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent 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 13.68% in the coming years.
PEG (NY)1.17
PEG (5Y)4.12
EPS Next 2Y13.68%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HNI has a Yearly Dividend Yield of 3.13%.
HNI's Dividend Yield is rather good when compared to the industry average which is at 2.55. HNI pays more dividend than 87.95% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, HNI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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 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
45.59% of the earnings are spent on dividend by HNI. 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.
DP45.59%
EPS Next 2Y13.68%
EPS Next 3YN/A
43.75
+1.56 (+3.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners81.84%
Inst Owner Change-0.03%
Ins Owners1.54%
Ins Owner Change4.33%
Market Cap2.05B
Analysts80
Price Target62.9 (43.77%)
Short Float %1.66%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Yearly Dividend1.35
Dividend Growth(5Y)3.58%
DP45.59%
Div Incr Years14
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.56%
Min EPS beat(2)4.33%
Max EPS beat(2)16.8%
EPS beat(4)4
Avg EPS beat(4)37.39%
Min EPS beat(4)4.33%
Max EPS beat(4)100.73%
EPS beat(8)8
Avg EPS beat(8)112.33%
EPS beat(12)12
Avg EPS beat(12)86.02%
EPS beat(16)15
Avg EPS beat(16)87.54%
Revenue beat(2)0
Avg Revenue beat(2)-4.89%
Min Revenue beat(2)-6.61%
Max Revenue beat(2)-3.18%
Revenue beat(4)1
Avg Revenue beat(4)-2.91%
Min Revenue beat(4)-6.61%
Max Revenue beat(4)1.33%
Revenue beat(8)2
Avg Revenue beat(8)-1.63%
Revenue beat(12)5
Avg Revenue beat(12)-1.43%
Revenue beat(16)8
Avg Revenue beat(16)-0.75%
PT rev (1m)0%
PT rev (3m)1.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.26%
EPS NY rev (1m)-1.09%
EPS NY rev (3m)-2.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.3 | ||
| Fwd PE | 12.74 | ||
| P/S | 0.81 | ||
| P/FCF | 11.81 | ||
| P/OCF | 9.05 | ||
| P/B | 2.44 | ||
| P/tB | 9.51 | ||
| EV/EBITDA | 7.13 |
EPS(TTM)3.06
EY6.99%
EPS(NY)3.43
Fwd EY7.85%
FCF(TTM)3.71
FCFY8.47%
OCF(TTM)4.83
OCFY11.05%
SpS53.87
BVpS17.91
TBVpS4.6
PEG (NY)1.17
PEG (5Y)4.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.44% | ||
| ROE | 16.61% | ||
| ROCE | 15.41% | ||
| ROIC | 11.84% | ||
| ROICexc | 12.09% | ||
| ROICexgc | 22.23% | ||
| OM | 8.52% | ||
| PM (TTM) | 5.52% | ||
| GM | 41% | ||
| FCFM | 6.88% |
ROA(3y)6.25%
ROA(5y)5.14%
ROE(3y)14.39%
ROE(5y)12.08%
ROIC(3y)10.01%
ROIC(5y)9.25%
ROICexc(3y)10.22%
ROICexc(5y)9.69%
ROICexgc(3y)18.62%
ROICexgc(5y)18.58%
ROCE(3y)13.02%
ROCE(5y)12.03%
ROICexcg growth 3Y9.78%
ROICexcg growth 5Y-2.46%
ROICexc growth 3Y13.11%
ROICexc growth 5Y-1.42%
OM growth 3Y22.23%
OM growth 5Y4.24%
PM growth 3Y26.35%
PM growth 5Y2.34%
GM growth 3Y5.31%
GM growth 5Y1.97%
F-Score8
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.08 | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 49.07% | ||
| Cap/Sales | 2.09% | ||
| Interest Coverage | 7.5 | ||
| Cash Conversion | 70.16% | ||
| Profit Quality | 124.59% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 3.35 |
F-Score8
WACC8.38%
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)18.15%
EPS 3Y23.61%
EPS 5Y3.47%
EPS Q2Q%-11.22%
EPS Next Y12.22%
EPS Next 2Y13.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.8%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%-5.49%
Revenue Next Year1.68%
Revenue Next 2Y2.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y21.78%
EBIT growth 3Y28.31%
EBIT growth 5Y6.71%
EBIT Next Year63.79%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-7.75%
FCF growth 3Y38.73%
FCF growth 5Y2.65%
OCF growth 1Y-15.25%
OCF growth 3Y19.88%
OCF growth 5Y0.66%