Hanesbrands Inc (HBI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HBI - US4103451021 - Common Stock
6.47 USD
-0.12 (-1.82%)
6.65 USD
+0.18 (+2.78%)
Taking everything into account, HBI scores 4 out of 10 in our fundamental rating. HBI was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. There are concerns on the financial health of HBI while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on HBI.
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.
HBI had negative earnings in 4 of the past 5 years.
Of the past 5 years HBI 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.71%, HBI belongs to the top of the industry, outperforming 84.78% of the companies in the same industry.
HBI has a better Return On Equity (73.92%) than 100.00% of its industry peers.
HBI has a Return On Invested Capital of 12.06%. This is in the better half of the industry: HBI outperforms 76.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HBI is below the industry average of 11.62%.
The 3 year average ROIC (9.25%) for HBI is below the current ROIC(12.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 73.92% | ||
| ROIC | 12.06% |
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 of 9.59%. This is amongst the best in the industry. HBI outperforms 89.13% of its industry peers.
HBI has a Operating Margin of 13.46%. This is amongst the best in the industry. HBI outperforms 84.78% of its industry peers.
In the last couple of years the Operating Margin of HBI has declined.
HBI has a Gross Margin of 41.93%. This is in the lower half of the industry: HBI underperforms 63.04% of its industry peers.
In the last couple of years the Gross Margin of HBI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.46% | ||
| PM (TTM) | 9.59% | ||
| GM | 41.93% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HBI is still creating some value.
HBI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HBI has less shares outstanding
Compared to 1 year ago, HBI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.89 indicates that HBI is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of HBI (1.89) is worse than 76.09% of its industry peers.
A Debt/Equity ratio of 4.94 is on the high side and indicates that HBI has dependencies on debt financing.
The Debt to Equity ratio of HBI (4.94) is worse than 89.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.89 |
ROIC/WACC1.11
WACC10.82%
2.3 Liquidity
HBI has a Current Ratio of 1.51. This is a normal value and indicates that HBI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.51, HBI is doing worse than 73.91% of the companies in the same industry.
A Quick Ratio of 0.71 indicates that HBI may have some problems paying its short term obligations.
HBI has a worse Quick ratio (0.71) than 84.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
HBI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 103.23%, which is quite impressive.
HBI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.96% yearly.
HBI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.16%.
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)103.23%
EPS 3Y-37.35%
EPS 5Y-23.96%
EPS Q2Q%0%
Revenue 1Y (TTM)-14.16%
Revenue growth 3Y-19.81%
Revenue growth 5Y-11.4%
Sales Q2Q%-4.85%
3.2 Future
The Earnings Per Share is expected to grow by 13.79% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.46% on average over the next years.
EPS Next Y46.56%
EPS Next 2Y23.88%
EPS Next 3Y20.18%
EPS Next 5Y13.79%
Revenue Next Year-2.25%
Revenue Next 2Y-1.78%
Revenue Next 3Y-0.63%
Revenue Next 5Y0.46%
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
The Price/Earnings ratio is 10.27, which indicates a very decent valuation of HBI.
80.43% of the companies in the same industry are more expensive than HBI, based on the Price/Earnings ratio.
HBI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
With a Price/Forward Earnings ratio of 9.37, the valuation of HBI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, HBI is valued cheaper than 91.30% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HBI to the average of the S&P500 Index (23.13), we can say HBI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.27 | ||
| Fwd PE | 9.37 |
4.2 Price Multiples
HBI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HBI is cheaper than 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.65 |
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.
HBI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HBI's earnings are expected to grow with 20.18% in the coming years.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y23.88%
EPS Next 3Y20.18%
5. Dividend
5.1 Amount
No dividends for HBI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.47
-0.12 (-1.82%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners88.94%
Inst Owner Change0.02%
Ins Owners0.65%
Ins Owner Change-82.76%
Market Cap2.29B
Revenue(TTM)3.44B
Net Income(TTM)330.01M
Analysts71.11
Price Target5.88 (-9.12%)
Short Float %N/A
Short RatioN/A
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)1
Avg EPS beat(2)12.76%
Min EPS beat(2)-7.98%
Max EPS beat(2)33.5%
EPS beat(4)3
Avg EPS beat(4)65.2%
Min EPS beat(4)-7.98%
Max EPS beat(4)217.92%
EPS beat(8)6
Avg EPS beat(8)43.09%
EPS beat(12)8
Avg EPS beat(12)33.28%
EPS beat(16)10
Avg EPS beat(16)25.82%
Revenue beat(2)1
Avg Revenue beat(2)-0.13%
Min Revenue beat(2)-1.45%
Max Revenue beat(2)1.19%
Revenue beat(4)2
Avg Revenue beat(4)-1.91%
Min Revenue beat(4)-7.43%
Max Revenue beat(4)1.19%
Revenue beat(8)2
Avg Revenue beat(8)-6.58%
Revenue beat(12)3
Avg Revenue beat(12)-4.77%
Revenue beat(16)4
Avg Revenue beat(16)-4.44%
PT rev (1m)-4.57%
PT rev (3m)-1.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.56%
EPS NY rev (1m)-1.48%
EPS NY rev (3m)-1.48%
Revenue NQ rev (1m)0.79%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.27 | ||
| Fwd PE | 9.37 | ||
| P/S | 0.67 | ||
| P/FCF | N/A | ||
| P/OCF | 98.84 | ||
| P/B | 5.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.65 |
EPS(TTM)0.63
EY9.74%
EPS(NY)0.69
Fwd EY10.67%
FCF(TTM)-0.02
FCFYN/A
OCF(TTM)0.07
OCFY1.01%
SpS9.72
BVpS1.26
TBVpS-3.14
PEG (NY)0.22
PEG (5Y)N/A
Graham Number4.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 73.92% | ||
| ROCE | 15.27% | ||
| ROIC | 12.06% | ||
| ROICexc | 13% | ||
| ROICexgc | 29.09% | ||
| OM | 13.46% | ||
| PM (TTM) | 9.59% | ||
| GM | 41.93% | ||
| FCFM | N/A |
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 Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.94 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.33 | ||
| Cap/Depr | 66.65% | ||
| Cap/Sales | 0.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 4.54% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 1.89 |
F-Score7
WACC10.82%
ROIC/WACC1.11
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)103.23%
EPS 3Y-37.35%
EPS 5Y-23.96%
EPS Q2Q%0%
EPS Next Y46.56%
EPS Next 2Y23.88%
EPS Next 3Y20.18%
EPS Next 5Y13.79%
Revenue 1Y (TTM)-14.16%
Revenue growth 3Y-19.81%
Revenue growth 5Y-11.4%
Sales Q2Q%-4.85%
Revenue Next Year-2.25%
Revenue Next 2Y-1.78%
Revenue Next 3Y-0.63%
Revenue Next 5Y0.46%
EBIT growth 1Y12.1%
EBIT growth 3Y-23.76%
EBIT growth 5Y-14.59%
EBIT Next Year36.32%
EBIT Next 3Y12.11%
EBIT Next 5Y8.42%
FCF growth 1Y-102.39%
FCF growth 3Y-25.8%
FCF growth 5Y-20.26%
OCF growth 1Y-94.49%
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.
What is the valuation status for HBI stock?
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 6 / 10.
Can you provide the PE and PB ratios for HBI stock?
The Price/Earnings (PE) ratio for Hanesbrands Inc (HBI) is 10.27 and the Price/Book (PB) ratio is 5.13.
What is the expected EPS growth for Hanesbrands Inc (HBI) stock?
The Earnings per Share (EPS) of Hanesbrands Inc (HBI) is expected to grow by 46.56% in the next year.