HNI CORP (HNI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HNI - US4042511000 - Common Stock
41.52 USD
+0.39 (+0.95%)
41.52 USD
0 (0%)
Taking everything into account, HNI scores 7 out of 10 in our fundamental rating. HNI was compared to 82 industry peers in the Commercial Services & Supplies industry. HNI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on HNI. Finally HNI also has an excellent dividend rating. These ratings would make HNI suitable for value and dividend and quality 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's Return On Assets of 7.68% is amongst the best of the industry. HNI outperforms 82.93% of its industry peers.
Looking at the Return On Equity, with a value of 16.94%, HNI belongs to the top of the industry, outperforming 81.71% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.16%, HNI belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
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 10.51%.
The 3 year average ROIC (10.10%) for HNI is below the current ROIC(12.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.68% | ||
| ROE | 16.94% | ||
| ROIC | 12.16% |
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 5.46%, HNI is in the better half of the industry, outperforming 67.07% of the companies in the same industry.
In the last couple of years the Profit Margin of HNI has grown nicely.
Looking at the Operating Margin, with a value of 8.75%, HNI is in the better half of the industry, outperforming 67.07% of the companies in the same industry.
In the last couple of years the Operating Margin of HNI has grown nicely.
HNI's Gross Margin of 41.49% is fine compared to the rest of the industry. HNI outperforms 70.73% of its industry peers.
HNI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.75% | ||
| PM (TTM) | 5.46% | ||
| GM | 41.49% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HNI 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
An Altman-Z score of 3.52 indicates that HNI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.52, HNI is doing good in the industry, outperforming 71.95% of the companies in the same industry.
The Debt to FCF ratio of HNI is 1.80, which is an excellent value as it means it would take HNI, only 1.80 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.80, HNI belongs to the top of the industry, outperforming 81.71% of the companies in the same industry.
A Debt/Equity ratio of 0.40 indicates that HNI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.40, HNI is in line with its industry, outperforming 58.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 3.52 |
ROIC/WACC1.51
WACC8.07%
2.3 Liquidity
HNI has a Current Ratio of 1.33. This is a normal value and indicates that HNI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of HNI (1.33) is comparable to the rest of the industry.
A Quick Ratio of 0.85 indicates that HNI may have some problems paying its short term obligations.
The Quick ratio of HNI (0.85) is worse than 73.17% of its industry peers.
The current and quick ratio evaluation for HNI is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.04% over the past year.
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 small growth in Revenue. The Revenue has grown by 1.15% in the last year.
Measured over the past years, HNI shows a small growth in Revenue. The Revenue has been growing by 2.37% on average per year.
EPS 1Y (TTM)11.04%
EPS 3Y23.61%
EPS 5Y3.47%
EPS Q2Q%6.8%
Revenue 1Y (TTM)1.15%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%1.73%
3.2 Future
The Earnings Per Share is expected to grow by 15.64% on average over the next years. This is quite good.
HNI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.24% yearly.
EPS Next Y18.16%
EPS Next 2Y15.97%
EPS Next 3Y15.64%
EPS Next 5YN/A
Revenue Next Year4.05%
Revenue Next 2Y3.79%
Revenue Next 3Y21.24%
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 11.80, the valuation of HNI can be described as very reasonable.
Based on the Price/Earnings ratio, HNI is valued cheaply inside the industry as 84.15% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.31. HNI is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.09, the valuation of HNI can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HNI indicates a rather cheap valuation: HNI is cheaper than 86.59% of the companies listed in the same industry.
HNI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 10.09 |
4.2 Price Multiples
HNI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HNI is cheaper than 82.93% of the companies in the same industry.
89.02% of the companies in the same industry are more expensive than HNI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.04 | ||
| EV/EBITDA | 6.64 |
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.
A more expensive valuation may be justified as HNI's earnings are expected to grow with 15.64% in the coming years.
PEG (NY)0.65
PEG (5Y)3.4
EPS Next 2Y15.97%
EPS Next 3Y15.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.46%, 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 2.61. HNI pays more dividend than 89.02% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, HNI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
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
44.63% 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.
DP44.63%
EPS Next 2Y15.97%
EPS Next 3Y15.64%
41.52
+0.39 (+0.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners81.69%
Inst Owner Change13.89%
Ins Owners1.58%
Ins Owner Change-0.48%
Market Cap1.90B
Revenue(TTM)2.59B
Net Income(TTM)141.60M
Analysts80
Price Target68.34 (64.6%)
Short Float %13.71%
Short Ratio9.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
Yearly Dividend1.35
Dividend Growth(5Y)3.58%
DP44.63%
Div Incr Years14
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.18%
Min EPS beat(2)1.98%
Max EPS beat(2)28.39%
EPS beat(4)4
Avg EPS beat(4)18.82%
Min EPS beat(4)1.98%
Max EPS beat(4)28.39%
EPS beat(8)8
Avg EPS beat(8)28.21%
EPS beat(12)12
Avg EPS beat(12)82.31%
EPS beat(16)16
Avg EPS beat(16)68.46%
Revenue beat(2)1
Avg Revenue beat(2)0.2%
Min Revenue beat(2)-1.78%
Max Revenue beat(2)2.18%
Revenue beat(4)2
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-3.18%
Max Revenue beat(4)2.31%
Revenue beat(8)3
Avg Revenue beat(8)-1.33%
Revenue beat(12)5
Avg Revenue beat(12)-0.8%
Revenue beat(16)8
Avg Revenue beat(16)-0.9%
PT rev (1m)0.37%
PT rev (3m)0.37%
EPS NQ rev (1m)-4.79%
EPS NQ rev (3m)-4.79%
EPS NY rev (1m)0.51%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 10.09 | ||
| P/S | 0.73 | ||
| P/FCF | 10.04 | ||
| P/OCF | 7.61 | ||
| P/B | 2.28 | ||
| P/tB | 8.2 | ||
| EV/EBITDA | 6.64 |
EPS(TTM)3.52
EY8.48%
EPS(NY)4.12
Fwd EY9.91%
FCF(TTM)4.13
FCFY9.96%
OCF(TTM)5.46
OCFY13.14%
SpS56.57
BVpS18.24
TBVpS5.06
PEG (NY)0.65
PEG (5Y)3.4
Graham Number38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.68% | ||
| ROE | 16.94% | ||
| ROCE | 15.82% | ||
| ROIC | 12.16% | ||
| ROICexc | 12.4% | ||
| ROICexgc | 21.74% | ||
| OM | 8.75% | ||
| PM (TTM) | 5.46% | ||
| GM | 41.49% | ||
| FCFM | 7.31% |
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 Turnover1.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.8 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 58.78% | ||
| Cap/Sales | 2.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.81% | ||
| Profit Quality | 133.83% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 3.52 |
F-Score8
WACC8.07%
ROIC/WACC1.51
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)11.04%
EPS 3Y23.61%
EPS 5Y3.47%
EPS Q2Q%6.8%
EPS Next Y18.16%
EPS Next 2Y15.97%
EPS Next 3Y15.64%
EPS Next 5YN/A
Revenue 1Y (TTM)1.15%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%1.73%
Revenue Next Year4.05%
Revenue Next 2Y3.79%
Revenue Next 3Y21.24%
Revenue Next 5YN/A
EBIT growth 1Y1.25%
EBIT growth 3Y29.3%
EBIT growth 5Y7.21%
EBIT Next Year66.47%
EBIT Next 3Y52.69%
EBIT Next 5YN/A
FCF growth 1Y48.86%
FCF growth 3Y38.73%
FCF growth 5Y2.65%
OCF growth 1Y19.21%
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 11.8 and the Price/Book (PB) ratio is 2.28.
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 18.16% in the next year.