HANESBRANDS INC (HBI) Stock Fundamental Analysis
NYSE:HBI - New York Stock Exchange, Inc. - US4103451021 - Common Stock - Currency: USD
Overall HBI gets a fundamental rating of 3 out of 10. We evaluated HBI against 49 industry peers in the Textiles, Apparel & Luxury Goods industry. HBI may be in some trouble as it scores bad on both profitability and health. 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.
In the past 5 years HBI reported 4 times negative net income.
Of the past 5 years HBI 4 years had a positive operating cash flow.
1.2 Ratios
HBI has a worse Return On Assets (-7.61%) than 71.43% of its industry peers.
HBI's Return On Equity of -669.26% is on the low side compared to the rest of the industry. HBI is outperformed by 89.80% of its industry peers.
The Return On Invested Capital of HBI (12.87%) is better than 77.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HBI is below the industry average of 11.45%.
The last Return On Invested Capital (12.87%) for HBI is above the 3 year average (9.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.61% | ||
| ROE | -669.26% | ||
| ROIC | 12.87% |
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's Operating Margin of 12.67% is amongst the best of the industry. HBI outperforms 81.63% of its industry peers.
HBI's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 41.77%, HBI is not doing good in the industry: 67.35% of the companies in the same industry are doing better.
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 | 12.67% | ||
| PM (TTM) | N/A | ||
| GM | 41.77% |
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.
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.
HBI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.83 indicates that HBI is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of HBI (1.83) is worse than 77.55% of its industry peers.
HBI has a debt to FCF ratio of 23.24. This is a negative value and a sign of low solvency as HBI would need 23.24 years to pay back of all of its debts.
HBI has a worse Debt to FCF ratio (23.24) than 63.27% of its industry peers.
HBI has a Debt/Equity ratio of 53.45. This is a high value indicating a heavy dependency on external financing.
HBI has a Debt to Equity ratio of 53.45. This is amonst the worse of the industry: HBI underperforms 93.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 53.45 | ||
| Debt/FCF | 23.24 | ||
| Altman-Z | 1.83 |
ROIC/WACC1.3
WACC9.9%
2.3 Liquidity
A Current Ratio of 1.55 indicates that HBI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.55, HBI is doing worse than 67.35% of the companies in the same industry.
A Quick Ratio of 0.67 indicates that HBI may have some problems paying its short term obligations.
With a Quick ratio value of 0.67, HBI is not doing good in the industry: 79.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
HBI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 440.00%, which is quite impressive.
Measured over the past years, HBI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.96% on average per year.
HBI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -30.56%.
The Revenue for HBI have been decreasing by -11.40% on average. This is quite bad
EPS 1Y (TTM)440%
EPS 3Y-37.35%
EPS 5Y-23.96%
EPS Q2Q%450%
Revenue 1Y (TTM)-30.56%
Revenue growth 3Y-19.81%
Revenue growth 5Y-11.4%
Sales Q2Q%-34.25%
3.2 Future
The Earnings Per Share is expected to grow by 14.58% on average over the next years. This is quite good.
HBI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.87% yearly.
EPS Next Y21.72%
EPS Next 2Y15.11%
EPS Next 3Y13.68%
EPS Next 5Y14.58%
Revenue Next Year-3.32%
Revenue Next 2Y-1.94%
Revenue Next 3Y-1.02%
Revenue Next 5Y0.87%
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
Based on the Price/Earnings ratio of 8.63, the valuation of HBI can be described as reasonable.
Based on the Price/Earnings ratio, HBI is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
HBI is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.82, the valuation of HBI can be described as very cheap.
Based on the Price/Forward Earnings ratio, HBI is valued cheaper than 89.80% of the companies in the same industry.
HBI is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 7.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HBI is valued a bit cheaper than the industry average as 73.47% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HBI is valued a bit cheaper than the industry average as 63.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.31 | ||
| EV/EBITDA | 7.34 |
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 13.68% in the coming years.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y15.11%
EPS Next 3Y13.68%
5. Dividend
5.1 Amount
HBI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.66
+0.05 (+1.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners93.02%
Inst Owner Change0%
Ins Owners1.12%
Ins Owner Change4.61%
Market Cap1.65B
Analysts50.77
Price Target5.51 (18.24%)
Short Float %10.69%
Short Ratio7.09
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)117.65%
Min EPS beat(2)17.38%
Max EPS beat(2)217.92%
EPS beat(4)4
Avg EPS beat(4)78.8%
Min EPS beat(4)17.38%
Max EPS beat(4)217.92%
EPS beat(8)6
Avg EPS beat(8)45.62%
EPS beat(12)8
Avg EPS beat(12)30.73%
EPS beat(16)11
Avg EPS beat(16)26.04%
Revenue beat(2)1
Avg Revenue beat(2)-3.69%
Min Revenue beat(2)-7.43%
Max Revenue beat(2)0.05%
Revenue beat(4)1
Avg Revenue beat(4)-10.83%
Min Revenue beat(4)-27.34%
Max Revenue beat(4)0.05%
Revenue beat(8)1
Avg Revenue beat(8)-7.24%
Revenue beat(12)2
Avg Revenue beat(12)-5.92%
Revenue beat(16)4
Avg Revenue beat(16)-3.95%
PT rev (1m)10.2%
PT rev (3m)-14.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 7.82 | ||
| P/S | 0.47 | ||
| P/FCF | 16.31 | ||
| P/OCF | 12.69 | ||
| P/B | 37.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.34 |
EPS(TTM)0.54
EY11.59%
EPS(NY)0.6
Fwd EY12.79%
FCF(TTM)0.29
FCFY6.13%
OCF(TTM)0.37
OCFY7.88%
SpS9.87
BVpS0.12
TBVpS-4.2
PEG (NY)0.4
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -7.61% | ||
| ROE | -669.26% | ||
| ROCE | 16.29% | ||
| ROIC | 12.87% | ||
| ROICexc | 13.76% | ||
| ROICexgc | 34.66% | ||
| OM | 12.67% | ||
| PM (TTM) | N/A | ||
| GM | 41.77% | ||
| FCFM | 2.89% |
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%
ROICexcg growth 3Y-1.22%
ROICexcg 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-Score4
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 53.45 | ||
| Debt/FCF | 23.24 | ||
| Debt/EBITDA | 4.46 | ||
| Cap/Depr | 37.03% | ||
| Cap/Sales | 0.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 24.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 1.83 |
F-Score4
WACC9.9%
ROIC/WACC1.3
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)440%
EPS 3Y-37.35%
EPS 5Y-23.96%
EPS Q2Q%450%
EPS Next Y21.72%
EPS Next 2Y15.11%
EPS Next 3Y13.68%
EPS Next 5Y14.58%
Revenue 1Y (TTM)-30.56%
Revenue growth 3Y-19.81%
Revenue growth 5Y-11.4%
Sales Q2Q%-34.25%
Revenue Next Year-3.32%
Revenue Next 2Y-1.94%
Revenue Next 3Y-1.02%
Revenue Next 5Y0.87%
EBIT growth 1Y11.81%
EBIT growth 3Y-23.76%
EBIT growth 5Y-14.59%
EBIT Next Year26.54%
EBIT Next 3Y9.56%
EBIT Next 5Y8.73%
FCF growth 1Y133.33%
FCF growth 3Y-25.8%
FCF growth 5Y-20.26%
OCF growth 1Y256.3%
OCF growth 3Y-24.88%
OCF growth 5Y-19.94%