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. HNI has an excellent profitability rating, but there are some minor concerns on its financial health. HNI may be a bit undervalued, certainly considering the very reasonable score on growth HNI also has an excellent dividend rating. These ratings would make HNI suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year HNI was profitable.
In the past year HNI had a positive cash flow from operations.
HNI had positive earnings in each of the past 5 years.
In the past 5 years HNI always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 7.30%, HNI is doing good in the industry, outperforming 74.70% of the companies in the same industry.
HNI has a Return On Equity of 16.89%. This is in the better half of the industry: HNI outperforms 79.52% of its industry peers.
The Return On Invested Capital of HNI (11.88%) is better than 79.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HNI is in line with the industry average of 11.67%.
The last Return On Invested Capital (11.88%) for HNI is above the 3 year average (10.10%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 5.35%, HNI is doing good in 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.
The Operating Margin of HNI (8.62%) is better than 62.65% of its industry peers.
In the last couple of years the Operating Margin of HNI has grown nicely.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HNI is creating some value.
HNI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HNI has been increased compared to 5 years ago.
HNI has a better debt/assets ratio than last year.
2.2 Solvency
HNI has an Altman-Z score of 3.53. This indicates that HNI is financially healthy and has little risk of bankruptcy at the moment.
HNI has a better Altman-Z score (3.53) than 69.88% 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.
HNI's Debt to FCF ratio of 2.28 is fine compared to the rest of the industry. HNI outperforms 77.11% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that HNI is not too dependend on debt financing.
HNI has a Debt to Equity ratio (0.45) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.28 | ||
| Altman-Z | 3.53 |
ROIC/WACC1.39
WACC8.54%
2.3 Liquidity
A Current Ratio of 1.19 indicates that HNI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.19, HNI is not doing good in the industry: 69.88% of the companies in the same industry are doing better.
A Quick Ratio of 0.73 indicates that HNI may have some problems paying its short term obligations.
HNI has a worse Quick ratio (0.73) than 83.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.60% 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.
The Revenue has decreased by -0.18% in the past 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)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
HNI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.76% yearly.
Based on estimates for the next years, HNI will show a small growth in Revenue. The Revenue will grow by 4.49% on average per year.
EPS Next Y14.62%
EPS Next 2Y13.97%
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
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
A Price/Earnings ratio of 15.24 indicates a correct valuation of HNI.
Compared to the rest of the industry, the Price/Earnings ratio of HNI indicates a somewhat cheap valuation: HNI is cheaper than 74.70% of the companies listed in the same industry.
HNI is valuated rather cheaply when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.00, which indicates a correct valuation of HNI.
HNI's Price/Forward Earnings ratio is rather cheap when compared to the industry. HNI is cheaper than 80.72% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.40. HNI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HNI is valued a bit cheaper than 75.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HNI is valued cheaper than 81.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.01 | ||
| EV/EBITDA | 8.04 |
4.3 Compensation for Growth
The 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 15.76% in the coming years.
PEG (NY)1.04
PEG (5Y)4.39
EPS Next 2Y13.97%
EPS Next 3Y15.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.92%, 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 2.48. HNI pays more dividend than 87.95% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, HNI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
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
46.57% 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.
DP46.57%
EPS Next 2Y13.97%
EPS Next 3Y15.76%
NYSE:HNI (6/12/2025, 1:47:40 PM)
47.71
-0.19 (-0.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners81.84%
Inst Owner Change-6.21%
Ins Owners1.54%
Ins Owner Change5.71%
Market Cap2.22B
Analysts80
Price Target65.28 (36.83%)
Short Float %1.74%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.92% |
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)-2.17%
EPS NQ rev (3m)-2.17%
EPS NY rev (1m)2.13%
EPS NY rev (3m)-0.14%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 12 | ||
| P/S | 0.87 | ||
| P/FCF | 12.01 | ||
| P/OCF | 9.14 | ||
| P/B | 2.76 | ||
| P/tB | 11.93 | ||
| EV/EBITDA | 8.04 |
EPS(TTM)3.13
EY6.56%
EPS(NY)3.97
Fwd EY8.33%
FCF(TTM)3.97
FCFY8.33%
OCF(TTM)5.22
OCFY10.94%
SpS54.53
BVpS17.26
TBVpS4
PEG (NY)1.04
PEG (5Y)4.39
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 | 3.53 |
F-Score8
WACC8.54%
ROIC/WACC1.39
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 Y14.62%
EPS Next 2Y13.97%
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%