HNI CORP (HNI)
US4042511000 - Common Stock
HNI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 industry peers in the Commercial Services & Supplies industry. HNI has an average financial health and profitability rating. HNI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year HNI was profitable.
HNI had a positive operating cash flow in the past year.
Each year in the past 5 years HNI has been profitable.
HNI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HNI (2.13%) is comparable to the rest of the industry.
HNI has a Return On Equity (5.79%) which is comparable to the rest of the industry.
The Return On Invested Capital of HNI (7.96%) is better than 76.25% 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 9.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.13% | ||
| ROE | 5.79% | ||
| ROIC | 7.96% |
ROA(3y)5.24%
ROA(5y)6%
ROE(3y)12.45%
ROE(5y)14.57%
ROIC(3y)8.82%
ROIC(5y)10.23%
1.3 Margins
HNI has a Profit Margin (1.85%) which is in line with its industry peers.
HNI's Profit Margin has improved in the last couple of years.
The Operating Margin of HNI (6.44%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HNI has remained more or less at the same level.
With a decent Gross Margin value of 38.41%, HNI is doing good in the industry, outperforming 73.75% of the companies in the same industry.
HNI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.44% | ||
| PM (TTM) | 1.85% | ||
| GM | 38.41% |
OM growth 3Y-9.36%
OM growth 5Y-0.25%
PM growth 3Y2.18%
PM growth 5Y4.92%
GM growth 3Y-1.26%
GM growth 5Y-0.17%
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 less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HNI has less shares outstanding
The debt/assets ratio for HNI is higher compared to a year ago.
2.2 Solvency
HNI has an Altman-Z score of 2.67. This is not the best score and indicates that HNI is in the grey zone with still only limited risk for bankruptcy at the moment.
HNI has a Altman-Z score of 2.67. This is in the better half of the industry: HNI outperforms 71.25% of its industry peers.
HNI has a debt to FCF ratio of 4.15. This is a neutral value as HNI would need 4.15 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.15, HNI is doing good in the industry, outperforming 73.75% of the companies in the same industry.
HNI has a Debt/Equity ratio of 0.68. This is a neutral value indicating HNI is somewhat dependend on debt financing.
HNI's Debt to Equity ratio of 0.68 is in line compared to the rest of the industry. HNI outperforms 47.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 4.15 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.93
WACC8.59%
2.3 Liquidity
A Current Ratio of 1.14 indicates that HNI should not have too much problems paying its short term obligations.
HNI has a worse Current ratio (1.14) than 68.75% of its industry peers.
HNI has a Quick Ratio of 1.14. 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's Quick ratio of 0.68 is on the low side compared to the rest of the industry. HNI is outperformed by 86.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.56% 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 2.14% on average per year.
The Revenue has decreased by -3.03% in the past year.
Measured over the past years, HNI shows a small growth in Revenue. The Revenue has been growing by 1.65% on average per year.
EPS 1Y (TTM)12.56%
EPS 3Y-5.32%
EPS 5Y2.14%
EPS growth Q2Q30.99%
Revenue 1Y (TTM)-3.03%
Revenue growth 3Y1.68%
Revenue growth 5Y1.65%
Revenue growth Q2Q18.84%
3.2 Future
HNI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.01% yearly.
HNI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.01% yearly.
EPS Next Y-0.61%
EPS Next 2Y9.61%
EPS Next 3Y3.01%
EPS Next 5YN/A
Revenue Next Year5.01%
Revenue Next 2Y9.35%
Revenue Next 3Y1.01%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.66 indicates a rather expensive valuation of HNI.
68.75% of the companies in the same industry are more expensive than HNI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HNI to the average of the S&P500 Index (24.81), we can say HNI is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.03, which indicates a correct valuation of HNI.
HNI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HNI is cheaper than 68.75% of the companies in the same industry.
HNI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 19.91, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.66 | ||
| Fwd PE | 15.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HNI is valued a bit cheaper than the industry average as 66.25% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HNI is valued a bit cheaper than 76.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.47 | ||
| EV/EBITDA | 9.82 |
4.3 Compensation for Growth
The decent profitability rating of HNI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)8.25
EPS Next 2Y9.61%
EPS Next 3Y3.01%
5. Dividend
5.1 Amount
HNI has a Yearly Dividend Yield of 3.28%.
HNI's Dividend Yield is rather good when compared to the industry average which is at 2.60. HNI pays more dividend than 88.75% of the companies in the same industry.
HNI's Dividend Yield is a higher than the S&P500 average which is at 2.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
5.2 History
The dividend of HNI has a limited annual growth rate of 5.42%.
HNI has paid a dividend for at least 10 years, which is a reliable track record.
HNI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.42%
Div Incr Years13
Div Non Decr Years20
5.3 Sustainability
132.40% of the earnings are spent on dividend by HNI. This is not a sustainable payout ratio.
HNI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP132.4%
EPS Next 2Y9.61%
EPS Next 3Y3.01%
HNI CORP
NYSE:HNI (12/6/2023, 10:34:03 AM)
39.555
-0.2 (-0.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.84B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.66 | ||
| Fwd PE | 15.03 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)8.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.13% | ||
| ROE | 5.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.44% | ||
| PM (TTM) | 1.85% | ||
| GM | 38.41% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)12.56%
EPS 3Y-5.32%
EPS 5Y
EPS growth Q2Q
EPS Next Y-0.61%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.03%
Revenue growth 3Y1.68%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y