HNI CORP (HNI)
US4042511000 - Common Stock
Overall HNI gets a fundamental rating of 5 out of 10. We evaluated HNI against 84 industry peers in the Commercial Services & Supplies industry. HNI has a medium profitability rating, but doesn't score so well on its financial health evaluation. HNI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HNI had positive earnings in the past year.
In the past year HNI had a positive cash flow from operations.
In the past 5 years HNI has always been profitable.
HNI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.42%, HNI is in the better half of the industry, outperforming 68.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.48%, HNI is in the better half of the industry, outperforming 67.47% of the companies in the same industry.
HNI has a Return On Invested Capital of 10.28%. This is in the better half of the industry: HNI outperforms 79.52% of its industry peers.
HNI had an Average Return On Invested Capital over the past 3 years of 8.34%. This is in line with the industry average of 10.11%.
The 3 year average ROIC (8.34%) for HNI is below the current ROIC(10.28%), indicating increased profibility in the last year.
| Industry Rank | Sector 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 has a better Profit Margin (2.57%) than 61.45% of its industry peers.
HNI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.58%, HNI is in the better half of the industry, outperforming 62.65% of the companies in the same industry.
In the last couple of years the Operating Margin of HNI has declined.
HNI has a better Gross Margin (39.60%) than 72.29% of its industry peers.
HNI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
The number of shares outstanding for HNI has been increased compared to 1 year ago.
HNI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HNI is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of HNI is 2.77, which is a good value as it means it would take HNI, 2.77 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.77, HNI is in the better half of the industry, outperforming 73.49% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that HNI is somewhat dependend on debt financing.
HNI's Debt to Equity ratio of 0.61 is in line compared to the rest of the industry. HNI outperforms 51.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | N/A |
ROIC/WACC1.16
WACC8.84%
2.3 Liquidity
HNI has a Current Ratio of 1.29. This is a normal value and indicates that HNI is financially healthy and should not expect problems in meeting its short term obligations.
HNI's Current ratio of 1.29 is on the low side compared to the rest of the industry. HNI is outperformed by 61.45% of its industry peers.
HNI has a Quick Ratio of 1.29. 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 0.77. This is amonst the worse of the industry: HNI underperforms 81.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.77 |
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.
Measured over the past 5 years, HNI shows a small growth in Earnings Per Share. The EPS has been growing by 1.45% on average per year.
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 growth Q2Q184.62%
Revenue 1Y (TTM)12.1%
Revenue growth 3Y7.57%
Revenue growth 5Y1.51%
Revenue growth Q2Q22.73%
3.2 Future
The Earnings Per Share is expected to grow by 12.90% 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 4.49% yearly.
EPS Next Y13.48%
EPS Next 2Y13.7%
EPS Next 3Y12.9%
EPS Next 5YN/A
Revenue Next Year9.87%
Revenue Next 2Y6.6%
Revenue Next 3Y4.49%
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.
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
The Price/Earnings ratio is 15.61, which indicates a correct valuation of HNI.
80.72% of the companies in the same industry are more expensive than HNI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.28, HNI is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.20 indicates a correct valuation of HNI.
HNI's Price/Forward Earnings ratio is rather cheap when compared to the industry. HNI is cheaper than 81.93% of the companies in the same industry.
HNI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 13.2 |
4.2 Price Multiples
HNI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HNI is cheaper than 74.70% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HNI is valued a bit cheaper than 77.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.89 | ||
| EV/EBITDA | 8.5 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of HNI may justify a higher PE ratio.
HNI's earnings are expected to grow with 12.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.16
PEG (5Y)10.76
EPS Next 2Y13.7%
EPS Next 3Y12.9%
5. Dividend
5.1 Amount
HNI has a Yearly Dividend Yield of 2.95%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.39, HNI pays a better dividend. On top of this HNI pays more dividend than 85.54% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, HNI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
5.2 History
The dividend of HNI has a limited annual growth rate of 4.81%.
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)4.81%
Div Incr Years13
Div Non Decr Years19
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 2Y13.7%
EPS Next 3Y12.9%
HNI CORP
NYSE:HNI (5/3/2024, 7:04:00 PM)
After market: 44.19 0 (0%)44.19
+0.84 (+1.94%)
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 Cap2.09B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 | 15.61 | ||
| Fwd PE | 13.2 | ||
| 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)1.16
PEG (5Y)10.76
Profitability
| Industry Rank | Sector 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 Rank | Sector 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)
Growth
EPS 1Y (TTM)42.21%
EPS 3Y13.32%
EPS 5Y
EPS growth Q2Q
EPS Next Y13.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.1%
Revenue growth 3Y7.57%
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