HANESBRANDS INC (HBI)
US4103451021 - Common Stock
Overall HBI gets a fundamental rating of 3 out of 10. We evaluated HBI against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. HBI may be in some trouble as it scores bad on both profitability and health. HBI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year HBI was profitable.
In the past year HBI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HBI reported negative net income in multiple years.
Of the past 5 years HBI 4 years had a positive operating cash flow.
1.2 Ratios
HBI has a worse Return On Assets (-4.20%) than 66.00% of its industry peers.
With a Return On Equity value of -153.75%, HBI is not doing good in the industry: 88.00% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 8.40%, HBI is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HBI is in line with the industry average of 11.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.2% | ||
| ROE | -153.75% | ||
| ROIC | 8.4% |
ROA(3y)-0.39%
ROA(5y)1.2%
ROE(3y)-8.39%
ROE(5y)2.82%
ROIC(3y)10.94%
ROIC(5y)11.34%
1.3 Margins
HBI has a better Operating Margin (10.31%) than 76.00% of its industry peers.
In the last couple of years the Operating Margin of HBI has declined.
The Gross Margin of HBI (39.73%) is worse than 72.00% of its industry peers.
In the last couple of years the Gross Margin of HBI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.31% | ||
| PM (TTM) | N/A | ||
| GM | 39.73% |
OM growth 3Y-17.27%
OM growth 5Y-12.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2%
GM growth 5Y-2.46%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HBI is still creating some value.
The number of shares outstanding for HBI has been increased compared to 1 year ago.
The number of shares outstanding for HBI has been reduced compared to 5 years ago.
Compared to 1 year ago, HBI has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.54, we must say that HBI is in the distress zone and has some risk of bankruptcy.
HBI has a Altman-Z score of 1.54. This is in the lower half of the industry: HBI underperforms 78.00% of its industry peers.
The Debt to FCF ratio of HBI is 7.59, which is on the high side as it means it would take HBI, 7.59 years of fcf income to pay off all of its debts.
HBI has a worse Debt to FCF ratio (7.59) than 62.00% of its industry peers.
A Debt/Equity ratio of 21.50 is on the high side and indicates that HBI has dependencies on debt financing.
With a Debt to Equity ratio value of 21.50, HBI is not doing good in the industry: 94.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 21.5 | ||
| Debt/FCF | 7.59 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.97
WACC8.68%
2.3 Liquidity
A Current Ratio of 1.49 indicates that HBI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.49, HBI is doing worse than 74.00% of the companies in the same industry.
A Quick Ratio of 0.90 indicates that HBI may have some problems paying its short term obligations.
HBI has a Quick ratio of 0.90. This is in the lower half of the industry: HBI underperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 210.00% over the past year.
Measured over the past years, HBI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -49.01% on average per year.
HBI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -31.06%.
The Revenue has been decreasing by -3.69% on average over the past years.
EPS 1Y (TTM)210%
EPS 3Y-65.41%
EPS 5Y-49.01%
EPS Q2Q%50%
Revenue 1Y (TTM)-31.06%
Revenue growth 3Y-2.74%
Revenue growth 5Y-3.69%
Sales Q2Q%-37.99%
3.2 Future
HBI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 73.35% yearly.
The Revenue is expected to decrease by -6.82% on average over the next years.
EPS Next Y564.68%
EPS Next 2Y216.9%
EPS Next 3Y127.14%
EPS Next 5Y73.35%
Revenue Next Year-36.68%
Revenue Next 2Y-19.87%
Revenue Next 3Y-13.34%
Revenue Next 5Y-6.82%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.37 indicates a quite expensive valuation of HBI.
Compared to the rest of the industry, the Price/Earnings ratio of HBI is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.42, HBI is valued at the same level.
The Price/Forward Earnings ratio is 13.57, which indicates a correct valuation of HBI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HBI indicates a somewhat cheap valuation: HBI is cheaper than 68.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HBI to the average of the S&P500 Index (22.56), we can say HBI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.37 | ||
| Fwd PE | 13.57 |
4.2 Price Multiples
HBI's Enterprise Value to EBITDA is on the same level as the industry average.
86.00% of the companies in the same industry are more expensive than HBI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.69 | ||
| EV/EBITDA | 11.25 |
4.3 Compensation for Growth
HBI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as HBI's earnings are expected to grow with 127.14% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y216.9%
EPS Next 3Y127.14%
5. Dividend
5.1 Amount
HBI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HANESBRANDS INC
NYSE:HBI (12/20/2024, 10:28:07 AM)
8.175
+0.08 (+0.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners86.22%
Inst Owner Change3.72%
Ins Owners2.71%
Ins Owner Change1.03%
Market Cap2.88B
Analysts50.77
Price Target6.97 (-14.74%)
Short Float %13.57%
Short Ratio8.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)39.95%
Min EPS beat(2)24.38%
Max EPS beat(2)55.51%
EPS beat(4)3
Avg EPS beat(4)20.98%
Min EPS beat(4)-66.63%
Max EPS beat(4)70.66%
EPS beat(8)5
Avg EPS beat(8)17.32%
EPS beat(12)7
Avg EPS beat(12)12.69%
EPS beat(16)11
Avg EPS beat(16)16.43%
Revenue beat(2)0
Avg Revenue beat(2)-17.96%
Min Revenue beat(2)-27.34%
Max Revenue beat(2)-8.58%
Revenue beat(4)0
Avg Revenue beat(4)-11.25%
Min Revenue beat(4)-27.34%
Max Revenue beat(4)-3.41%
Revenue beat(8)1
Avg Revenue beat(8)-6.19%
Revenue beat(12)2
Avg Revenue beat(12)-5.28%
Revenue beat(16)4
Avg Revenue beat(16)-3.4%
PT rev (1m)36.67%
PT rev (3m)38.65%
EPS NQ rev (1m)14.72%
EPS NQ rev (3m)2.19%
EPS NY rev (1m)12.87%
EPS NY rev (3m)14.17%
Revenue NQ rev (1m)0.84%
Revenue NQ rev (3m)-27.57%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.37 | ||
| Fwd PE | 13.57 | ||
| P/S | 0.72 | ||
| P/FCF | 6.69 | ||
| P/OCF | 6.11 | ||
| P/B | 19.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.25 |
EPS(TTM)0.31
EY3.79%
EPS(NY)0.6
Fwd EY7.37%
FCF(TTM)1.22
FCFY14.95%
OCF(TTM)1.34
OCFY16.35%
SpS11.37
BVpS0.42
TBVpS-4.18
PEG (NY)0.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.2% | ||
| ROE | -153.75% | ||
| ROCE | 10.63% | ||
| ROIC | 8.4% | ||
| ROICexc | 9.14% | ||
| ROICexgc | 16.77% | ||
| OM | 10.31% | ||
| PM (TTM) | N/A | ||
| GM | 39.73% | ||
| FCFM | 10.75% |
ROA(3y)-0.39%
ROA(5y)1.2%
ROE(3y)-8.39%
ROE(5y)2.82%
ROIC(3y)10.94%
ROIC(5y)11.34%
ROICexc(3y)11.91%
ROICexc(5y)12.51%
ROICexgc(3y)26.81%
ROICexgc(5y)27.34%
ROCE(3y)13.85%
ROCE(5y)14.36%
ROICexcg growth 3Y-11.69%
ROICexcg growth 5Y-13.2%
ROICexc growth 3Y-15.44%
ROICexc growth 5Y-12.84%
OM growth 3Y-17.27%
OM growth 5Y-12.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2%
GM growth 5Y-2.46%
F-Score4
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 21.5 | ||
| Debt/FCF | 7.59 | ||
| Debt/EBITDA | 6.22 | ||
| Cap/Depr | 39.12% | ||
| Cap/Sales | 1.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.24% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 1.54 |
F-Score4
WACC8.68%
ROIC/WACC0.97
Cap/Depr(3y)101.66%
Cap/Depr(5y)84.55%
Cap/Sales(3y)1.75%
Cap/Sales(5y)1.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)210%
EPS 3Y-65.41%
EPS 5Y-49.01%
EPS Q2Q%50%
EPS Next Y564.68%
EPS Next 2Y216.9%
EPS Next 3Y127.14%
EPS Next 5Y73.35%
Revenue 1Y (TTM)-31.06%
Revenue growth 3Y-2.74%
Revenue growth 5Y-3.69%
Sales Q2Q%-37.99%
Revenue Next Year-36.68%
Revenue Next 2Y-19.87%
Revenue Next 3Y-13.34%
Revenue Next 5Y-6.82%
EBIT growth 1Y9.73%
EBIT growth 3Y-19.54%
EBIT growth 5Y-15.59%
EBIT Next Year23.39%
EBIT Next 3Y11.22%
EBIT Next 5Y10.83%
FCF growth 1Y173.81%
FCF growth 3Y9.45%
FCF growth 5Y-1.46%
OCF growth 1Y219.1%
OCF growth 3Y7.79%
OCF growth 5Y-2.68%