HANESBRANDS INC (HBI) Stock Fundamental Analysis
USA - NYSE:HBI - US4103451021 - Common Stock
6.86 USD
-0.03 (-0.44%)
6.86 USD
0 (0%)
HBI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 48 industry peers in the Textiles, Apparel & Luxury Goods industry. While HBI is still in line with the averages on profitability rating, there are concerns on its financial health. HBI may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
HBI had positive earnings in the past year.
HBI had a positive operating cash flow in the past year.
HBI had negative earnings in 4 of the past 5 years.
HBI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HBI has a Return On Assets of 2.22%. This is comparable to the rest of the industry: HBI outperforms 47.92% of its industry peers.
Looking at the Return On Equity, with a value of 53.63%, HBI belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
HBI's Return On Invested Capital of 13.28% is fine compared to the rest of the industry. HBI outperforms 77.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HBI is below the industry average of 12.15%.
The last Return On Invested Capital (13.28%) for HBI is above the 3 year average (9.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 53.63% | ||
| ROIC | 13.28% |
ROA(3y)-3.54%
ROA(5y)-2.1%
ROE(3y)-326.11%
ROE(5y)-195.33%
ROIC(3y)9.25%
ROIC(5y)10.86%
1.3 Margins
HBI has a Profit Margin (2.56%) which is comparable to the rest of the industry.
With an excellent Operating Margin value of 13.47%, HBI belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
HBI's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 42.19%, HBI is not doing good in the industry: 60.42% of the companies in the same industry are doing better.
HBI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.47% | ||
| PM (TTM) | 2.56% | ||
| GM | 42.19% |
OM growth 3Y-4.92%
OM growth 5Y-3.59%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.86%
GM growth 5Y1.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HBI is creating some value.
HBI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HBI has been reduced compared to 5 years ago.
HBI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.93 indicates that HBI is not a great score, but indicates only limited risk for bankruptcy at the moment.
HBI's Altman-Z score of 1.93 is on the low side compared to the rest of the industry. HBI is outperformed by 79.17% of its industry peers.
HBI has a debt to FCF ratio of 41.06. This is a negative value and a sign of low solvency as HBI would need 41.06 years to pay back of all of its debts.
HBI has a Debt to FCF ratio of 41.06. This is in the lower half of the industry: HBI underperforms 62.50% of its industry peers.
HBI has a Debt/Equity ratio of 13.62. This is a high value indicating a heavy dependency on external financing.
HBI's Debt to Equity ratio of 13.62 is on the low side compared to the rest of the industry. HBI is outperformed by 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.62 | ||
| Debt/FCF | 41.06 | ||
| Altman-Z | 1.93 |
ROIC/WACC1.22
WACC10.89%
2.3 Liquidity
HBI has a Current Ratio of 1.52. This is a normal value and indicates that HBI is financially healthy and should not expect problems in meeting its short term obligations.
HBI's Current ratio of 1.52 is on the low side compared to the rest of the industry. HBI is outperformed by 75.00% of its industry peers.
A Quick Ratio of 0.74 indicates that HBI may have some problems paying its short term obligations.
HBI has a worse Quick ratio (0.74) than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
HBI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 142.31%, which is quite impressive.
The earnings per share for HBI have been decreasing by -23.96% on average. This is quite bad
The Revenue for HBI has decreased by -23.93% in the past year. This is quite bad
HBI shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -11.40% yearly.
EPS 1Y (TTM)142.31%
EPS 3Y-37.35%
EPS 5Y-23.96%
EPS Q2Q%60%
Revenue 1Y (TTM)-23.93%
Revenue growth 3Y-19.81%
Revenue growth 5Y-11.4%
Sales Q2Q%-0.41%
3.2 Future
The Earnings Per Share is expected to grow by 14.06% on average over the next years. This is quite good.
Based on estimates for the next years, HBI will show a small growth in Revenue. The Revenue will grow by 0.83% on average per year.
EPS Next Y48.77%
EPS Next 2Y22.64%
EPS Next 3Y17.53%
EPS Next 5Y14.06%
Revenue Next Year-2.25%
Revenue Next 2Y-1.67%
Revenue Next 3Y-0.89%
Revenue Next 5Y0.83%
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
A Price/Earnings ratio of 10.89 indicates a reasonable valuation of HBI.
Compared to the rest of the industry, the Price/Earnings ratio of HBI indicates a rather cheap valuation: HBI is cheaper than 81.25% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.89. HBI is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.13 indicates a reasonable valuation of HBI.
Based on the Price/Forward Earnings ratio, HBI is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, HBI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 10.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HBI indicates a somewhat cheap valuation: HBI is cheaper than 60.42% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as HBI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.08 | ||
| EV/EBITDA | 8.66 |
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.
HBI's earnings are expected to grow with 17.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y22.64%
EPS Next 3Y17.53%
5. Dividend
5.1 Amount
HBI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.86
-0.03 (-0.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners92.24%
Inst Owner Change-2.09%
Ins Owners1.11%
Ins Owner Change-0.09%
Market Cap2.43B
Revenue(TTM)3.49B
Net Income(TTM)89.23M
Analysts70
Price Target5.95 (-13.27%)
Short Float %6.79%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)125.71%
Min EPS beat(2)33.5%
Max EPS beat(2)217.92%
EPS beat(4)4
Avg EPS beat(4)73.29%
Min EPS beat(4)17.38%
Max EPS beat(4)217.92%
EPS beat(8)6
Avg EPS beat(8)43.31%
EPS beat(12)9
Avg EPS beat(12)34.6%
EPS beat(16)11
Avg EPS beat(16)27.01%
Revenue beat(2)2
Avg Revenue beat(2)0.62%
Min Revenue beat(2)0.05%
Max Revenue beat(2)1.19%
Revenue beat(4)2
Avg Revenue beat(4)-3.69%
Min Revenue beat(4)-8.58%
Max Revenue beat(4)1.19%
Revenue beat(8)2
Avg Revenue beat(8)-6.83%
Revenue beat(12)3
Avg Revenue beat(12)-4.9%
Revenue beat(16)4
Avg Revenue beat(16)-4.45%
PT rev (1m)0%
PT rev (3m)7.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.4%
EPS NY rev (1m)0%
EPS NY rev (3m)22.22%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 10.13 | ||
| P/S | 0.7 | ||
| P/FCF | 42.08 | ||
| P/OCF | 27.65 | ||
| P/B | 14.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.66 |
EPS(TTM)0.63
EY9.18%
EPS(NY)0.68
Fwd EY9.87%
FCF(TTM)0.16
FCFY2.38%
OCF(TTM)0.25
OCFY3.62%
SpS9.85
BVpS0.47
TBVpS-3.94
PEG (NY)0.22
PEG (5Y)N/A
Graham Number2.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 53.63% | ||
| ROCE | 16.81% | ||
| ROIC | 13.28% | ||
| ROICexc | 14.42% | ||
| ROICexgc | 36.61% | ||
| OM | 13.47% | ||
| PM (TTM) | 2.56% | ||
| GM | 42.19% | ||
| FCFM | 1.65% |
ROA(3y)-3.54%
ROA(5y)-2.1%
ROE(3y)-326.11%
ROE(5y)-195.33%
ROIC(3y)9.25%
ROIC(5y)10.86%
ROICexc(3y)9.89%
ROICexc(5y)12.07%
ROICexgc(3y)24.54%
ROICexgc(5y)28.18%
ROCE(3y)11.7%
ROCE(5y)13.75%
ROICexgc growth 3Y-1.22%
ROICexgc growth 5Y5.88%
ROICexc growth 3Y-7.77%
ROICexc growth 5Y0.09%
OM growth 3Y-4.92%
OM growth 5Y-3.59%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.86%
GM growth 5Y1.34%
F-Score7
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.62 | ||
| Debt/FCF | 41.06 | ||
| Debt/EBITDA | 4.29 | ||
| Cap/Depr | 51.19% | ||
| Cap/Sales | 0.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 16.62% | ||
| Profit Quality | 64.63% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 1.93 |
F-Score7
WACC10.89%
ROIC/WACC1.22
Cap/Depr(3y)95.15%
Cap/Depr(5y)77.33%
Cap/Sales(3y)1.91%
Cap/Sales(5y)1.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)142.31%
EPS 3Y-37.35%
EPS 5Y-23.96%
EPS Q2Q%60%
EPS Next Y48.77%
EPS Next 2Y22.64%
EPS Next 3Y17.53%
EPS Next 5Y14.06%
Revenue 1Y (TTM)-23.93%
Revenue growth 3Y-19.81%
Revenue growth 5Y-11.4%
Sales Q2Q%-0.41%
Revenue Next Year-2.25%
Revenue Next 2Y-1.67%
Revenue Next 3Y-0.89%
Revenue Next 5Y0.83%
EBIT growth 1Y8.16%
EBIT growth 3Y-23.76%
EBIT growth 5Y-14.59%
EBIT Next Year31.24%
EBIT Next 3Y10.56%
EBIT Next 5Y8.7%
FCF growth 1Y-45.95%
FCF growth 3Y-25.8%
FCF growth 5Y-20.26%
OCF growth 1Y-59.08%
OCF growth 3Y-24.88%
OCF growth 5Y-19.94%
HANESBRANDS INC / HBI FAQ
What is the fundamental rating for HBI stock?
ChartMill assigns a fundamental rating of 4 / 10 to HBI.
Can you provide the valuation status for HANESBRANDS INC?
ChartMill assigns a valuation rating of 7 / 10 to HANESBRANDS INC (HBI). This can be considered as Undervalued.
How profitable is HANESBRANDS INC (HBI) stock?
HANESBRANDS INC (HBI) has a profitability rating of 4 / 10.
What is the earnings growth outlook for HANESBRANDS INC?
The Earnings per Share (EPS) of HANESBRANDS INC (HBI) is expected to grow by 48.77% in the next year.
Is the dividend of HANESBRANDS INC sustainable?
The dividend rating of HANESBRANDS INC (HBI) is 0 / 10 and the dividend payout ratio is 0%.