HAVERTY FURNITURE (HVT) Stock Fundamental Analysis
NYSE:HVT - New York Stock Exchange, Inc. - US4195961010 - Common Stock - Currency: USD
Taking everything into account, HVT scores 6 out of 10 in our fundamental rating. HVT was compared to 121 industry peers in the Specialty Retail industry. While HVT has a great health rating, its profitability is only average at the moment. HVT may be a bit undervalued, certainly considering the very reasonable score on growth HVT also has an excellent dividend rating. These ratings could make HVT a good candidate 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.
In the past 5 years HVT has always been profitable.
Each year in the past 5 years HVT had a positive operating cash flow.
1.2 Ratios
HVT's Return On Assets of 3.08% is in line compared to the rest of the industry. HVT outperforms 59.50% of its industry peers.
HVT has a better Return On Equity (6.49%) than 63.64% of its industry peers.
HVT has a Return On Invested Capital of 2.98%. This is comparable to the rest of the industry: HVT outperforms 49.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HVT is below the industry average of 12.74%.
The last Return On Invested Capital (2.98%) 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 | 3.08% | ||
| ROE | 6.49% | ||
| ROIC | 2.98% |
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 has a better Profit Margin (2.76%) than 67.77% of its industry peers.
HVT's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 2.78%, HVT is in line with its industry, outperforming 53.72% of the companies in the same industry.
In the last couple of years the Operating Margin of HVT has declined.
HVT has a better Gross Margin (60.74%) than 90.08% of its industry peers.
In the last couple of years the Gross Margin of HVT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.78% | ||
| PM (TTM) | 2.76% | ||
| GM | 60.74% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HVT is still creating some value.
HVT has more shares outstanding than it did 1 year ago.
HVT has less shares outstanding than it did 5 years ago.
HVT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.89 indicates that HVT is not a great score, but indicates only limited risk for bankruptcy at the moment.
HVT has a better Altman-Z score (2.89) than 66.12% of its industry peers.
HVT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.89 |
ROIC/WACC0.3
WACC9.81%
2.3 Liquidity
HVT has a Current Ratio of 1.82. This is a normal value and indicates that HVT is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.82, HVT is doing good in the industry, outperforming 78.51% of the companies in the same industry.
A Quick Ratio of 1.18 indicates that HVT should not have too much problems paying its short term obligations.
The Quick ratio of HVT (1.18) is better than 80.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
HVT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.99%.
The Earnings Per Share has been growing slightly by 0.17% on average over the past years.
Looking at the last year, HVT shows a very negative growth in Revenue. The Revenue has decreased by -16.15% in the last year.
Measured over the past years, HVT shows a decrease in Revenue. The Revenue has been decreasing by -2.06% on average per year.
EPS 1Y (TTM)-53.99%
EPS 3Y-37.83%
EPS 5Y0.17%
EPS Q2Q%64.29%
Revenue 1Y (TTM)-16.15%
Revenue growth 3Y-10.63%
Revenue growth 5Y-2.06%
Sales Q2Q%-1.32%
3.2 Future
HVT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.66% yearly.
Based on estimates for the next years, HVT will show a small growth in Revenue. The Revenue will grow by 6.41% on average per year.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.94, HVT is valued correctly.
72.73% of the companies in the same industry are more expensive than HVT, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.82, HVT is valued a bit cheaper.
A Price/Forward Earnings ratio of 8.20 indicates a reasonable valuation of HVT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HVT indicates a rather cheap valuation: HVT is cheaper than 86.78% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HVT to the average of the S&P500 Index (21.76), we can say HVT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 8.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HVT is valued cheaper than 80.99% of the companies in the same industry.
75.21% of the companies in the same industry are more expensive than HVT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.2 | ||
| EV/EBITDA | 4.97 |
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.
HVT's earnings are expected to grow with 44.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.41
PEG (5Y)93.6
EPS Next 2Y44.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HVT has a Yearly Dividend Yield of 6.19%, which is a nice return.
Compared to an average industry Dividend Yield of 5.28, HVT pays a better dividend. On top of this HVT pays more dividend than 92.56% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, HVT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
5.2 History
On average, the dividend of HVT grows each year by 10.67%, which is quite nice.
HVT has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of HVT decreased recently.
Dividend Growth(5Y)10.67%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
HVT pays out 102.57% of its income as dividend. This is not a sustainable payout ratio.
HVT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP102.57%
EPS Next 2Y44.66%
EPS Next 3YN/A
20.25
-0.22 (-1.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners89.16%
Inst Owner Change-2.55%
Ins Owners10.74%
Ins Owner Change4.9%
Market Cap327.04M
Analysts80
Price Target23.46 (15.85%)
Short Float %7%
Short Ratio5.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
Yearly Dividend1.27
Dividend Growth(5Y)10.67%
DP102.57%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)91%
Min EPS beat(2)-41.43%
Max EPS beat(2)223.43%
EPS beat(4)2
Avg EPS beat(4)44.35%
Min EPS beat(4)-61.85%
Max EPS beat(4)223.43%
EPS beat(8)3
Avg EPS beat(8)19.28%
EPS beat(12)7
Avg EPS beat(12)26.89%
EPS beat(16)11
Avg EPS beat(16)34.26%
Revenue beat(2)1
Avg Revenue beat(2)-4.51%
Min Revenue beat(2)-10.52%
Max Revenue beat(2)1.49%
Revenue beat(4)1
Avg Revenue beat(4)-5.11%
Min Revenue beat(4)-10.52%
Max Revenue beat(4)1.49%
Revenue beat(8)1
Avg Revenue beat(8)-6.04%
Revenue beat(12)5
Avg Revenue beat(12)-2.1%
Revenue beat(16)8
Avg Revenue beat(16)0.31%
PT rev (1m)-23.33%
PT rev (3m)-34.29%
EPS NQ rev (1m)-9.68%
EPS NQ rev (3m)-55.32%
EPS NY rev (1m)-9.41%
EPS NY rev (3m)-35.64%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-2.88%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.94 | ||
| Fwd PE | 8.2 | ||
| P/S | 0.45 | ||
| P/FCF | 12.2 | ||
| P/OCF | 5.55 | ||
| P/B | 1.06 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 4.97 |
EPS(TTM)1.27
EY6.27%
EPS(NY)2.47
Fwd EY12.19%
FCF(TTM)1.66
FCFY8.2%
OCF(TTM)3.65
OCFY18.01%
SpS44.76
BVpS19.04
TBVpS19.04
PEG (NY)1.41
PEG (5Y)93.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.08% | ||
| ROE | 6.49% | ||
| ROCE | 3.88% | ||
| ROIC | 2.98% | ||
| ROICexc | 3.89% | ||
| ROICexgc | 3.89% | ||
| OM | 2.78% | ||
| PM (TTM) | 2.76% | ||
| GM | 60.74% | ||
| FCFM | 3.71% |
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-Score6
Asset Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 148.5% | ||
| Cap/Sales | 4.44% | ||
| Interest Coverage | 123.13 | ||
| Cash Conversion | 141.33% | ||
| Profit Quality | 134.38% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 2.89 |
F-Score6
WACC9.81%
ROIC/WACC0.3
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)-16.15%
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-70.13%
EBIT growth 3Y-44.64%
EBIT growth 5Y-6.04%
EBIT Next Year375.13%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-39.17%
FCF growth 3Y-24.82%
FCF growth 5Y-10.46%
OCF growth 1Y-39.4%
OCF growth 3Y-15.37%
OCF growth 5Y-1.46%