HNI CORP (HNI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HNI - US4042511000 - Common Stock
42.58 USD
+0.54 (+1.28%)
42.58 USD
0 (0%)
Taking everything into account, HNI scores 7 out of 10 in our fundamental rating. HNI was compared to 81 industry peers in the Commercial Services & Supplies industry. Both the health and profitability get an excellent rating, making HNI a very profitable company, without any liquidiy or solvency issues. HNI is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
In the past 5 years HNI has always been profitable.
In the past 5 years HNI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.68%, HNI belongs to the top of the industry, outperforming 82.72% of the companies in the same industry.
The Return On Equity of HNI (16.94%) is better than 81.48% of its industry peers.
The Return On Invested Capital of HNI (12.16%) is better than 82.72% 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 10.33%.
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
HNI has a Profit Margin of 5.46%. This is in the better half of the industry: HNI outperforms 69.14% of its industry peers.
HNI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.75%, HNI is in the better half of the industry, outperforming 65.43% of the companies in the same industry.
HNI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 41.49%, HNI is in the better half of the industry, outperforming 74.07% 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 | 8.75% | ||
| 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
HNI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
HNI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.55 indicates that HNI is not in any danger for bankruptcy at the moment.
HNI has a Altman-Z score of 3.55. This is in the better half of the industry: HNI outperforms 74.07% of its industry peers.
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.
The Debt to FCF ratio of HNI (1.80) is better than 81.48% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that HNI is not too dependend on debt financing.
HNI's Debt to Equity ratio of 0.40 is in line compared to the rest of the industry. HNI outperforms 58.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 3.55 |
ROIC/WACC1.48
WACC8.23%
2.3 Liquidity
A Current Ratio of 1.33 indicates that HNI should not have too much problems paying its short term obligations.
HNI has a Current ratio of 1.33. This is comparable to the rest of the industry: HNI outperforms 44.44% of its industry peers.
HNI has a Quick Ratio of 1.33. This is a bad value and indicates that HNI is not financially healthy enough and could expect problems in meeting its short term obligations.
HNI has a Quick ratio of 0.85. This is in the lower half of the industry: HNI underperforms 71.60% of its industry peers.
HNI does not score too well on the current and quick ratio evaluation. However, as it has 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.
HNI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.47% yearly.
HNI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.15%.
HNI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.37% yearly.
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
Based on estimates for the next years, HNI will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.64% on average per year.
Based on estimates for the next years, HNI will show a small growth in Revenue. The Revenue will grow by 3.59% on average per year.
EPS Next Y17.17%
EPS Next 2Y15.76%
EPS Next 3Y15.64%
EPS Next 5YN/A
Revenue Next Year4.05%
Revenue Next 2Y3.65%
Revenue Next 3Y3.59%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HNI is valuated correctly with a Price/Earnings ratio of 12.10.
Based on the Price/Earnings ratio, HNI is valued cheaply inside the industry as 85.19% of the companies are valued more expensively.
HNI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.60.
Based on the Price/Forward Earnings ratio of 10.38, the valuation of HNI can be described as reasonable.
90.12% of the companies in the same industry are more expensive than HNI, based on the Price/Forward Earnings ratio.
HNI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.1 | ||
| Fwd PE | 10.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HNI is valued cheaper than 82.72% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HNI indicates a rather cheap valuation: HNI is cheaper than 90.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.3 | ||
| EV/EBITDA | 6.77 |
4.3 Compensation for Growth
HNI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HNI has an outstanding profitability rating, which 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)0.7
PEG (5Y)3.48
EPS Next 2Y15.76%
EPS Next 3Y15.64%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.21%, 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 0.89. HNI pays more dividend than 88.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, HNI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
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
44.63% 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.
DP44.63%
EPS Next 2Y15.76%
EPS Next 3Y15.64%
42.58
+0.54 (+1.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners94.91%
Inst Owner Change13.41%
Ins Owners1.58%
Ins Owner Change-13.11%
Market Cap1.95B
Revenue(TTM)2.59B
Net Income(TTM)141.60M
Analysts80
Price Target68.34 (60.5%)
Short Float %6.29%
Short Ratio3.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
Yearly Dividend1.35
Dividend Growth(5Y)3.58%
DP44.63%
Div Incr Years14
Div Non Decr Years26
Ex-DateN/A
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%
PT rev (3m)0.37%
EPS NQ rev (1m)-0.98%
EPS NQ rev (3m)-5.73%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.1 | ||
| Fwd PE | 10.38 | ||
| P/S | 0.75 | ||
| P/FCF | 10.3 | ||
| P/OCF | 7.8 | ||
| P/B | 2.34 | ||
| P/tB | 8.41 | ||
| EV/EBITDA | 6.77 |
EPS(TTM)3.52
EY8.27%
EPS(NY)4.1
Fwd EY9.63%
FCF(TTM)4.13
FCFY9.71%
OCF(TTM)5.46
OCFY12.81%
SpS56.57
BVpS18.24
TBVpS5.06
PEG (NY)0.7
PEG (5Y)3.48
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 | 3.55 |
F-Score8
WACC8.23%
ROIC/WACC1.48
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 Y17.17%
EPS Next 2Y15.76%
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 2Y3.65%
Revenue Next 3Y3.59%
Revenue Next 5YN/A
EBIT growth 1Y1.25%
EBIT growth 3Y29.3%
EBIT growth 5Y7.21%
EBIT Next Year65.47%
EBIT Next 3Y39.42%
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.
Can you provide the valuation status for HNI CORP?
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.
What is the valuation of HNI CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HNI CORP (HNI) is 12.1 and the Price/Book (PB) ratio is 2.34.
How financially healthy is HNI CORP?
The financial health rating of HNI CORP (HNI) is 7 / 10.