HNI CORP (HNI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HNI - US4042511000 - Common Stock
43.35 USD
+0.61 (+1.43%)
43.35 USD
0 (0%)
HNI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 80 industry peers in the Commercial Services & Supplies industry. HNI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A decent growth rate in combination with a cheap valuation! Better keep an eye on HNI. Finally HNI also has an excellent dividend rating. With these ratings, HNI could be worth investigating further for value and dividend and quality investing!.
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.
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 better Return On Assets (7.68%) than 82.50% of its industry peers.
Looking at the Return On Equity, with a value of 16.94%, HNI belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
HNI has a Return On Invested Capital of 12.16%. This is amongst the best in the industry. HNI outperforms 81.25% 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 10.60%.
The 3 year average ROIC (10.10%) for HNI is below the current ROIC(12.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.68% | ||
| ROE | 16.94% | ||
| ROIC | 12.16% |
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
Looking at the Profit Margin, with a value of 5.46%, HNI is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
HNI's Profit Margin has improved in the last couple of years.
The Operating Margin of HNI (8.75%) is better than 65.00% of its industry peers.
HNI's Operating Margin has improved in the last couple of years.
HNI's Gross Margin of 41.49% is fine compared to the rest of the industry. HNI outperforms 75.00% of its industry peers.
HNI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.75% | ||
| PM (TTM) | 5.46% | ||
| GM | 41.49% |
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.
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
An Altman-Z score of 3.57 indicates that HNI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.57, HNI is doing good in the industry, outperforming 72.50% of the companies in the same industry.
The Debt to FCF ratio of HNI is 1.80, which is an excellent value as it means it would take HNI, only 1.80 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.80, HNI belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
HNI has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of HNI (0.40) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 3.57 |
ROIC/WACC1.48
WACC8.23%
2.3 Liquidity
HNI has a Current Ratio of 1.33. This is a normal value and indicates that HNI is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.33, HNI perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
A Quick Ratio of 0.85 indicates that HNI may have some problems paying its short term obligations.
HNI's Quick ratio of 0.85 is on the low side compared to the rest of the industry. HNI is outperformed by 72.50% of its industry peers.
HNI does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.04% over the past year.
The Earnings Per Share has been growing slightly by 3.47% on average over the past years.
The Revenue has been growing slightly by 1.15% in the past year.
The Revenue has been growing slightly by 2.37% on average over the past years.
EPS 1Y (TTM)11.04%
EPS 3Y23.61%
EPS 5Y3.47%
EPS Q2Q%6.8%
Revenue 1Y (TTM)1.15%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%1.73%
3.2 Future
Based on estimates for the next years, HNI will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.64% on average per year.
HNI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.59% yearly.
EPS Next Y17.17%
EPS Next 2Y15.76%
EPS Next 3Y15.64%
EPS Next 5YN/A
Revenue Next Year4.05%
Revenue Next 2Y3.65%
Revenue Next 3Y3.59%
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
HNI is valuated correctly with a Price/Earnings ratio of 12.32.
85.00% of the companies in the same industry are more expensive than HNI, based on the Price/Earnings ratio.
HNI is valuated cheaply when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.57 indicates a reasonable valuation of HNI.
Based on the Price/Forward Earnings ratio, HNI is valued cheaper than 90.00% of the companies in the same industry.
HNI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.32 | ||
| Fwd PE | 10.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HNI indicates a rather cheap valuation: HNI is cheaper than 82.50% of the companies listed in the same industry.
HNI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HNI is cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.49 | ||
| EV/EBITDA | 6.86 |
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.
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 15.64% in the coming years.
PEG (NY)0.72
PEG (5Y)3.55
EPS Next 2Y15.76%
EPS Next 3Y15.64%
5. Dividend
5.1 Amount
HNI has a Yearly Dividend Yield of 3.24%.
Compared to an average industry Dividend Yield of 0.90, HNI pays a better dividend. On top of this HNI pays more dividend than 88.75% of the companies listed in the same industry.
HNI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
The dividend of HNI has a limited annual growth rate of 3.58%.
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)3.58%
Div Incr Years14
Div Non Decr Years26
5.3 Sustainability
HNI pays out 44.63% of its income as dividend. 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.
DP44.63%
EPS Next 2Y15.76%
EPS Next 3Y15.64%
43.35
+0.61 (+1.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners94.88%
Inst Owner Change0%
Ins Owners1.61%
Ins Owner Change-12.59%
Market Cap1.99B
Revenue(TTM)2.59B
Net Income(TTM)141.60M
Analysts80
Price Target68.34 (57.65%)
Short Float %6.29%
Short Ratio3.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Yearly Dividend1.35
Dividend Growth(5Y)3.58%
DP44.63%
Div Incr Years14
Div Non Decr Years26
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.18%
Min EPS beat(2)1.98%
Max EPS beat(2)28.39%
EPS beat(4)4
Avg EPS beat(4)18.82%
Min EPS beat(4)1.98%
Max EPS beat(4)28.39%
EPS beat(8)8
Avg EPS beat(8)28.21%
EPS beat(12)12
Avg EPS beat(12)82.31%
EPS beat(16)16
Avg EPS beat(16)68.46%
Revenue beat(2)1
Avg Revenue beat(2)0.2%
Min Revenue beat(2)-1.78%
Max Revenue beat(2)2.18%
Revenue beat(4)2
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-3.18%
Max Revenue beat(4)2.31%
Revenue beat(8)3
Avg Revenue beat(8)-1.33%
Revenue beat(12)5
Avg Revenue beat(12)-0.8%
Revenue beat(16)8
Avg Revenue beat(16)-0.9%
PT rev (1m)0%
PT rev (3m)0.37%
EPS NQ rev (1m)-0.98%
EPS NQ rev (3m)-5.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.32 | ||
| Fwd PE | 10.57 | ||
| P/S | 0.77 | ||
| P/FCF | 10.49 | ||
| P/OCF | 7.95 | ||
| P/B | 2.38 | ||
| P/tB | 8.57 | ||
| EV/EBITDA | 6.86 |
EPS(TTM)3.52
EY8.12%
EPS(NY)4.1
Fwd EY9.46%
FCF(TTM)4.13
FCFY9.54%
OCF(TTM)5.46
OCFY12.59%
SpS56.57
BVpS18.24
TBVpS5.06
PEG (NY)0.72
PEG (5Y)3.55
Graham Number38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.68% | ||
| ROE | 16.94% | ||
| ROCE | 15.82% | ||
| ROIC | 12.16% | ||
| ROICexc | 12.4% | ||
| ROICexgc | 21.74% | ||
| OM | 8.75% | ||
| PM (TTM) | 5.46% | ||
| GM | 41.49% | ||
| FCFM | 7.31% |
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%
ROICexgc growth 3Y10.64%
ROICexgc 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 Turnover1.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.8 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 58.78% | ||
| Cap/Sales | 2.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.81% | ||
| Profit Quality | 133.83% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 3.57 |
F-Score8
WACC8.23%
ROIC/WACC1.48
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)11.04%
EPS 3Y23.61%
EPS 5Y3.47%
EPS Q2Q%6.8%
EPS Next Y17.17%
EPS Next 2Y15.76%
EPS Next 3Y15.64%
EPS Next 5YN/A
Revenue 1Y (TTM)1.15%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%1.73%
Revenue Next Year4.05%
Revenue Next 2Y3.65%
Revenue Next 3Y3.59%
Revenue Next 5YN/A
EBIT growth 1Y1.25%
EBIT growth 3Y29.3%
EBIT growth 5Y7.21%
EBIT Next Year65.47%
EBIT Next 3Y39.42%
EBIT Next 5YN/A
FCF growth 1Y48.86%
FCF growth 3Y38.73%
FCF growth 5Y2.65%
OCF growth 1Y19.21%
OCF growth 3Y19.88%
OCF growth 5Y0.66%
HNI CORP / HNI FAQ
What is the fundamental rating for HNI stock?
ChartMill assigns a fundamental rating of 7 / 10 to HNI.
Can you provide the valuation status for HNI CORP?
ChartMill assigns a valuation rating of 9 / 10 to HNI CORP (HNI). This can be considered as Undervalued.
What is the profitability of HNI stock?
HNI CORP (HNI) has a profitability rating of 8 / 10.
What is the valuation of HNI CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HNI CORP (HNI) is 12.32 and the Price/Book (PB) ratio is 2.38.
How financially healthy is HNI CORP?
The financial health rating of HNI CORP (HNI) is 7 / 10.