HAVERTY FURNITURE (HVT) Stock Fundamental Analysis
NYSE:HVT - New York Stock Exchange, Inc. - US4195961010 - Common Stock - Currency: USD
Overall HVT gets a fundamental rating of 6 out of 10. We evaluated HVT against 122 industry peers in the Specialty Retail industry. HVT is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. HVT is valued quite cheap, while showing a decent growth score. This is a good combination! Finally HVT also has an excellent dividend rating. With these ratings, HVT could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year HVT was profitable.
In the past year HVT had a positive cash flow from operations.
HVT had positive earnings in each of the past 5 years.
In the past 5 years HVT always reported a positive cash flow from operatings.
1.2 Ratios
HVT's Return On Assets of 3.32% is in line compared to the rest of the industry. HVT outperforms 59.84% of its industry peers.
With a decent Return On Equity value of 6.99%, HVT is doing good in the industry, outperforming 63.93% of the companies in the same industry.
With a Return On Invested Capital value of 3.36%, HVT perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HVT is below the industry average of 12.95%.
The last Return On Invested Capital (3.36%) for HVT is well below the 3 year average (10.44%), which needs to be investigated, but indicates that HVT had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 6.99% | ||
| ROIC | 3.36% |
ROA(3y)8.49%
ROA(5y)9.48%
ROE(3y)18.55%
ROE(5y)22.89%
ROIC(3y)10.44%
ROIC(5y)12.56%
1.3 Margins
HVT's Profit Margin of 2.96% is fine compared to the rest of the industry. HVT outperforms 67.21% of its industry peers.
HVT's Profit Margin has been stable in the last couple of years.
HVT's Operating Margin of 3.12% is in line compared to the rest of the industry. HVT outperforms 55.74% of its industry peers.
HVT's Operating Margin has declined in the last couple of years.
HVT has a Gross Margin of 60.95%. This is amongst the best in the industry. HVT outperforms 89.34% of its industry peers.
In the last couple of years the Gross Margin of HVT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.12% | ||
| PM (TTM) | 2.96% | ||
| GM | 60.95% |
OM growth 3Y-38.05%
OM growth 5Y-4.06%
PM growth 3Y-32.47%
PM growth 5Y0.23%
GM growth 3Y2.3%
GM growth 5Y2.32%
2. Health
2.1 Basic Checks
HVT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, HVT has more shares outstanding
Compared to 5 years ago, HVT has less shares outstanding
There is no outstanding debt for HVT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 2.94 indicates that HVT is not a great score, but indicates only limited risk for bankruptcy at the moment.
HVT has a Altman-Z score of 2.94. This is in the better half of the industry: HVT outperforms 68.03% of its industry peers.
There is no outstanding debt for HVT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.94 |
ROIC/WACC0.35
WACC9.62%
2.3 Liquidity
A Current Ratio of 1.81 indicates that HVT should not have too much problems paying its short term obligations.
HVT's Current ratio of 1.81 is fine compared to the rest of the industry. HVT outperforms 77.05% of its industry peers.
HVT has a Quick Ratio of 1.12. This is a normal value and indicates that HVT is financially healthy and should not expect problems in meeting its short term obligations.
HVT's Quick ratio of 1.12 is fine compared to the rest of the industry. HVT outperforms 78.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The earnings per share for HVT have decreased strongly by -53.99% in the last year.
Measured over the past 5 years, HVT shows a small growth in Earnings Per Share. The EPS has been growing by 0.17% on average per year.
HVT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.28%.
HVT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.06% yearly.
EPS 1Y (TTM)-53.99%
EPS 3Y-37.83%
EPS 5Y0.17%
EPS Q2Q%64.29%
Revenue 1Y (TTM)-12.28%
Revenue growth 3Y-10.63%
Revenue growth 5Y-2.06%
Sales Q2Q%-1.32%
3.2 Future
The Earnings Per Share is expected to grow by 44.66% on average over the next years. This is a very strong growth
HVT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.41% yearly.
EPS Next Y11.27%
EPS Next 2Y44.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.58%
Revenue Next 2Y6.41%
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
Based on the Price/Earnings ratio of 16.31, the valuation of HVT can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of HVT indicates a somewhat cheap valuation: HVT is cheaper than 74.59% of the companies listed in the same industry.
HVT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.39, the valuation of HVT can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HVT indicates a rather cheap valuation: HVT is cheaper than 86.07% of the companies listed in the same industry.
HVT is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 8.39 |
4.2 Price Multiples
82.79% of the companies in the same industry are more expensive than HVT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HVT is valued cheaply inside the industry as 82.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.11 | ||
| EV/EBITDA | 5 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HVT has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HVT's earnings are expected to grow with 44.66% in the coming years.
PEG (NY)1.45
PEG (5Y)95.77
EPS Next 2Y44.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.60%, HVT is a good candidate for dividend investing.
HVT's Dividend Yield is rather good when compared to the industry average which is at 4.90. HVT pays more dividend than 92.62% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, HVT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.6% |
5.2 History
On average, the dividend of HVT grows each year by 10.67%, which is quite nice.
HVT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.67%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
HVT pays out 97.45% of its income as dividend. This is not a sustainable payout ratio.
The dividend of HVT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP97.45%
EPS Next 2Y44.66%
EPS Next 3YN/A
20.72
-0.15 (-0.72%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners87.37%
Inst Owner Change-0.08%
Ins Owners10.92%
Ins Owner Change1.34%
Market Cap334.63M
Analysts80
Price Target23.46 (13.22%)
Short Float %7.3%
Short Ratio8.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.6% |
Yearly Dividend1.27
Dividend Growth(5Y)10.67%
DP97.45%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)143.05%
Min EPS beat(2)62.66%
Max EPS beat(2)223.43%
EPS beat(4)3
Avg EPS beat(4)75.48%
Min EPS beat(4)-41.43%
Max EPS beat(4)223.43%
EPS beat(8)4
Avg EPS beat(8)27.87%
EPS beat(12)7
Avg EPS beat(12)28.99%
EPS beat(16)11
Avg EPS beat(16)28.73%
Revenue beat(2)2
Avg Revenue beat(2)1.33%
Min Revenue beat(2)1.16%
Max Revenue beat(2)1.49%
Revenue beat(4)2
Avg Revenue beat(4)-3%
Min Revenue beat(4)-10.52%
Max Revenue beat(4)1.49%
Revenue beat(8)2
Avg Revenue beat(8)-5.38%
Revenue beat(12)5
Avg Revenue beat(12)-2.08%
Revenue beat(16)8
Avg Revenue beat(16)-0.67%
PT rev (1m)0%
PT rev (3m)-23.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-38.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.31 | ||
| Fwd PE | 8.39 | ||
| P/S | 0.46 | ||
| P/FCF | 11.11 | ||
| P/OCF | 5.4 | ||
| P/B | 1.1 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 5 |
EPS(TTM)1.27
EY6.13%
EPS(NY)2.47
Fwd EY11.92%
FCF(TTM)1.86
FCFY9%
OCF(TTM)3.83
OCFY18.51%
SpS44.61
BVpS18.91
TBVpS18.91
PEG (NY)1.45
PEG (5Y)95.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 6.99% | ||
| ROCE | 4.37% | ||
| ROIC | 3.36% | ||
| ROICexc | 4.3% | ||
| ROICexgc | 4.3% | ||
| OM | 3.12% | ||
| PM (TTM) | 2.96% | ||
| GM | 60.95% | ||
| FCFM | 4.18% |
ROA(3y)8.49%
ROA(5y)9.48%
ROE(3y)18.55%
ROE(5y)22.89%
ROIC(3y)10.44%
ROIC(5y)12.56%
ROICexc(3y)13.79%
ROICexc(5y)18.41%
ROICexgc(3y)13.79%
ROICexgc(5y)18.41%
ROCE(3y)13.58%
ROCE(5y)16.34%
ROICexcg growth 3Y-49.04%
ROICexcg growth 5Y-8%
ROICexc growth 3Y-49.04%
ROICexc growth 5Y-8%
OM growth 3Y-38.05%
OM growth 5Y-4.06%
PM growth 3Y-32.47%
PM growth 5Y0.23%
GM growth 3Y2.3%
GM growth 5Y2.32%
F-Score4
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 141.05% | ||
| Cap/Sales | 4.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 137.53% | ||
| Profit Quality | 141.08% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.94 |
F-Score4
WACC9.62%
ROIC/WACC0.35
Cap/Depr(3y)200.69%
Cap/Depr(5y)174.23%
Cap/Sales(3y)4.44%
Cap/Sales(5y)3.63%
Profit Quality(3y)79.31%
Profit Quality(5y)101.86%
High Growth Momentum
Growth
EPS 1Y (TTM)-53.99%
EPS 3Y-37.83%
EPS 5Y0.17%
EPS Q2Q%64.29%
EPS Next Y11.27%
EPS Next 2Y44.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-12.28%
Revenue growth 3Y-10.63%
Revenue growth 5Y-2.06%
Sales Q2Q%-1.32%
Revenue Next Year4.58%
Revenue Next 2Y6.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-58.72%
EBIT growth 3Y-44.64%
EBIT growth 5Y-6.04%
EBIT Next Year375.13%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y123.02%
FCF growth 3Y-24.82%
FCF growth 5Y-10.46%
OCF growth 1Y49.22%
OCF growth 3Y-15.37%
OCF growth 5Y-1.46%