HNI CORP (HNI)

US4042511000 - Common Stock

49.43  +0.65 (+1.33%)

Fundamental Rating

5

Taking everything into account, HNI scores 5 out of 10 in our fundamental rating. HNI was compared to 84 industry peers in the Commercial Services & Supplies industry. HNI has an average financial health and profitability rating. HNI is not valued too expensively and it also shows a decent growth rate.



6

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.
In the past 5 years HNI always reported a positive cash flow from operatings.

1.2 Ratios

HNI has a better Return On Assets (3.42%) than 65.48% of its industry peers.
HNI has a better Return On Equity (8.48%) than 67.86% of its industry peers.
HNI has a Return On Invested Capital of 10.28%. This is amongst the best in the industry. HNI outperforms 82.14% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HNI is in line with the industry average of 9.40%.
The 3 year average ROIC (8.34%) for HNI is below the current ROIC(10.28%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.42%
ROE 8.48%
ROIC 10.28%
ROA(3y)5.1%
ROA(5y)5.17%
ROE(3y)12.23%
ROE(5y)12.54%
ROIC(3y)8.34%
ROIC(5y)9.29%

1.3 Margins

HNI's Profit Margin of 2.57% is in line compared to the rest of the industry. HNI outperforms 58.33% of its industry peers.
In the last couple of years the Profit Margin of HNI has declined.
HNI has a Operating Margin (7.58%) which is comparable to the rest of the industry.
HNI's Operating Margin has declined in the last couple of years.
HNI has a Gross Margin of 39.60%. This is in the better half of the industry: HNI outperforms 70.24% of its industry peers.
HNI's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 7.58%
PM (TTM) 2.57%
GM 39.6%
OM growth 3Y0.48%
OM growth 5Y-2.73%
PM growth 3Y-1.93%
PM growth 5Y-13.34%
GM growth 3Y1.85%
GM growth 5Y1.05%

4

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.
Compared to 5 years ago, HNI has more shares outstanding
Compared to 1 year ago, HNI has a worse debt to assets ratio.

2.2 Solvency

HNI has an Altman-Z score of 3.33. This indicates that HNI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HNI (3.33) is better than 72.62% of its industry peers.
HNI has a debt to FCF ratio of 2.77. This is a good value and a sign of high solvency as HNI would need 2.77 years to pay back of all of its debts.
HNI's Debt to FCF ratio of 2.77 is fine compared to the rest of the industry. HNI outperforms 75.00% of its industry peers.
HNI has a Debt/Equity ratio of 0.61. This is a neutral value indicating HNI is somewhat dependend on debt financing.
HNI has a Debt to Equity ratio (0.61) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF 2.77
Altman-Z 3.33
ROIC/WACC1.2
WACC8.57%

2.3 Liquidity

A Current Ratio of 1.29 indicates that HNI should not have too much problems paying its short term obligations.
HNI's Current ratio of 1.29 is in line compared to the rest of the industry. HNI outperforms 41.67% of its industry peers.
A Quick Ratio of 0.77 indicates that HNI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.77, HNI is doing worse than 82.14% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.29
Quick Ratio 0.77

6

3. Growth

3.1 Past

HNI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.21%, which is quite impressive.
HNI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.45% yearly.
The Revenue has grown by 12.10% in the past year. This is quite good.
HNI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.51% yearly.
EPS 1Y (TTM)42.21%
EPS 3Y13.32%
EPS 5Y1.45%
EPS Q2Q%184.62%
Revenue 1Y (TTM)12.1%
Revenue growth 3Y7.57%
Revenue growth 5Y1.51%
Sales Q2Q%22.73%

3.2 Future

The Earnings Per Share is expected to grow by 17.03% on average over the next years. This is quite good.
HNI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.81% yearly.
EPS Next Y20.5%
EPS Next 2Y18.94%
EPS Next 3Y17.03%
EPS Next 5YN/A
Revenue Next Year9.3%
Revenue Next 2Y6.7%
Revenue Next 3Y4.81%
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.

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 17.47, HNI is valued on the expensive side.
Based on the Price/Earnings ratio, HNI is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.53. HNI is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.49, which indicates a correct valuation of HNI.
Based on the Price/Forward Earnings ratio, HNI is valued a bit cheaper than 78.57% of the companies in the same industry.
HNI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.94, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 17.47
Fwd PE 13.49

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HNI is valued a bit cheaper than 69.05% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HNI indicates a somewhat cheap valuation: HNI is cheaper than 75.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 13.31
EV/EBITDA 9.37

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 a very decent profitability rating, which may justify a higher PE ratio.
HNI's earnings are expected to grow with 17.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)12.04
EPS Next 2Y18.94%
EPS Next 3Y17.03%

6

5. Dividend

5.1 Amount

HNI has a Yearly Dividend Yield of 2.80%. Purely for dividend investing, there may be better candidates out there.
HNI's Dividend Yield is rather good when compared to the industry average which is at 2.31. HNI pays more dividend than 86.90% of the companies in the same industry.
HNI's Dividend Yield is a higher than the S&P500 average which is at 2.33.
Industry RankSector Rank
Dividend Yield 2.8%

5.2 History

The dividend of HNI has a limited annual growth rate of 4.81%.
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)4.81%
Div Incr Years13
Div Non Decr Years25

5.3 Sustainability

93.88% of the earnings are spent on dividend by HNI. This is not a sustainable payout ratio.
HNI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP93.88%
EPS Next 2Y18.94%
EPS Next 3Y17.03%

HNI CORP

NYSE:HNI (7/17/2024, 1:30:29 PM)

49.43

+0.65 (+1.33%)

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 Cap2.34B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.8%
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)
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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)
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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 RankSector Rank
PE 17.47
Fwd PE 13.49
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)0.85
PEG (5Y)12.04
Profitability
Industry RankSector Rank
ROA 3.42%
ROE 8.48%
ROCE
ROIC
ROICexc
ROICexgc
OM 7.58%
PM (TTM) 2.57%
GM 39.6%
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 Turnover1.33
Health
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.29
Quick Ratio 0.77
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)
High Growth Momentum
Growth
EPS 1Y (TTM)42.21%
EPS 3Y13.32%
EPS 5Y
EPS Q2Q%
EPS Next Y20.5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.1%
Revenue growth 3Y7.57%
Revenue growth 5Y
Sales 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