HNI CORP (HNI) Stock Fundamental Analysis
NYSE:HNI - New York Stock Exchange, Inc. - US4042511000 - Common Stock - Currency: USD
HNI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 could make HNI a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
In the past year HNI was profitable.
HNI had a positive operating cash flow in the past year.
HNI had positive earnings in each of the past 5 years.
Each year in the past 5 years HNI had a positive operating cash flow.
1.2 Ratios
HNI has a Return On Assets of 7.30%. This is in the better half of the industry: HNI outperforms 74.70% of its industry peers.
Looking at the Return On Equity, with a value of 16.89%, HNI is in the better half of the industry, outperforming 78.31% of the companies in the same industry.
The Return On Invested Capital of HNI (11.88%) is better than 80.72% 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 10.89%.
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
With a decent Profit Margin value of 5.35%, HNI is doing good in the industry, outperforming 67.47% of the companies in the same industry.
HNI's Profit Margin has improved in the last couple of years.
HNI has a better Operating Margin (8.62%) than 63.86% of its industry peers.
HNI's Operating Margin has improved in the last couple of years.
The Gross Margin of HNI (41.12%) is better than 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
Compared to 1 year ago, HNI has an improved debt to assets ratio.
2.2 Solvency
HNI has an Altman-Z score of 3.47. This indicates that HNI is financially healthy and has little risk of bankruptcy at the moment.
HNI has a better Altman-Z score (3.47) than 69.88% of its industry peers.
HNI has a debt to FCF ratio of 2.28. This is a good value and a sign of high solvency as HNI would need 2.28 years to pay back of 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 78.31% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that HNI is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.45, HNI perfoms like the industry average, outperforming 54.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.28 | ||
| Altman-Z | 3.47 |
ROIC/WACC1.39
WACC8.55%
2.3 Liquidity
A Current Ratio of 1.19 indicates that HNI should not have too much problems paying its short term obligations.
HNI has a worse Current ratio (1.19) than 67.47% of its industry peers.
HNI has a Quick Ratio of 1.19. 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 0.73. This is amonst the worse of the industry: HNI underperforms 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.
The Earnings Per Share has been growing slightly by 3.47% on average over the past years.
HNI shows a decrease in Revenue. In the last year, the revenue decreased by -0.18%.
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
HNI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.97% yearly.
HNI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.41% yearly.
EPS Next Y14.62%
EPS Next 2Y13.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.59%
Revenue Next 2Y3.41%
Revenue Next 3YN/A
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 14.55.
Based on the Price/Earnings ratio, HNI is valued a bit cheaper than the industry average as 75.90% of the companies are valued more expensively.
HNI is valuated rather cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.46, the valuation of HNI can be described as reasonable.
Based on the Price/Forward Earnings ratio, HNI is valued cheaply inside the industry as 81.93% of the companies are valued more expensively.
HNI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 11.46 |
4.2 Price Multiples
HNI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HNI is cheaper than 75.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HNI is valued cheaply inside the industry as 80.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.46 | ||
| EV/EBITDA | 7.7 |
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.
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 13.97% in the coming years.
PEG (NY)1
PEG (5Y)4.19
EPS Next 2Y13.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HNI has a Yearly Dividend Yield of 2.95%.
Compared to an average industry Dividend Yield of 2.55, HNI pays a better dividend. On top of this HNI pays more dividend than 86.75% of the companies listed in the same industry.
HNI's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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
46.57% 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.
DP46.57%
EPS Next 2Y13.97%
EPS Next 3YN/A
45.53
-0.88 (-1.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners81.84%
Inst Owner Change-6.2%
Ins Owners1.54%
Ins Owner Change5.6%
Market Cap2.12B
Analysts80
Price Target62.9 (38.15%)
Short Float %1.77%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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)0%
PT rev (3m)1.09%
EPS NQ rev (1m)-2.17%
EPS NQ rev (3m)-3.58%
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)1.88%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 11.46 | ||
| P/S | 0.84 | ||
| P/FCF | 11.46 | ||
| P/OCF | 8.73 | ||
| P/B | 2.64 | ||
| P/tB | 11.39 | ||
| EV/EBITDA | 7.7 |
EPS(TTM)3.13
EY6.87%
EPS(NY)3.97
Fwd EY8.73%
FCF(TTM)3.97
FCFY8.72%
OCF(TTM)5.22
OCFY11.46%
SpS54.53
BVpS17.26
TBVpS4
PEG (NY)1
PEG (5Y)4.19
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 | 3.47 |
F-Score8
WACC8.55%
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 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.18%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%2.01%
Revenue Next Year3.59%
Revenue Next 2Y3.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y11.3%
EBIT growth 3Y29.3%
EBIT growth 5Y7.21%
EBIT Next Year61.09%
EBIT Next 3YN/A
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%