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%)
HBI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 45 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
- HBI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- HBI's Return On Assets of 7.71% is amongst the best of the industry. HBI outperforms 84.78% of its industry peers.
- Looking at the Return On Equity, with a value of 73.92%, HBI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- HBI's Return On Invested Capital of 12.06% is fine compared to the rest 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 11.59%.
- The last Return On Invested Capital (12.06%) for HBI is above the 3 year average (9.25%), which is a sign of increasing profitability.
| 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
- With an excellent Profit Margin value of 9.59%, HBI belongs to the best of the industry, outperforming 89.13% of the companies in the same industry.
- HBI's Operating Margin of 13.46% is amongst the best of 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.
- HBI's Gross Margin has been stable in the last couple of years.
| 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.
- 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
- HBI has an Altman-Z score of 1.89. This is not the best score and indicates that HBI is in the grey zone with still only limited risk for bankruptcy at the moment.
- HBI has a worse Altman-Z score (1.89) than 76.09% of its industry peers.
- HBI has a Debt/Equity ratio of 4.94. This is a high value indicating a heavy dependency on external financing.
- HBI has a Debt to Equity ratio of 4.94. This is amonst the worse of the industry: HBI underperforms 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.
- HBI's Current ratio of 1.51 is on the low side compared to the rest of the industry. HBI is outperformed by 73.91% of its industry peers.
- A Quick Ratio of 0.71 indicates that HBI may have some problems paying its short term obligations.
- The Quick ratio of HBI (0.71) is worse than 84.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 103.23% 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 -23.96% on average per year.
- The Revenue for HBI has decreased by -14.16% in the past year. This is quite bad
- The Revenue for HBI have been decreasing by -11.40% on average. This is quite bad
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
- HBI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.79% yearly.
- 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
- HBI is valuated reasonably with a Price/Earnings ratio of 10.27.
- Compared to the rest of the industry, the Price/Earnings ratio of HBI indicates a rather cheap valuation: HBI is cheaper than 80.43% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of HBI to the average of the S&P500 Index (26.94), we can say HBI is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.37 indicates a reasonable valuation of HBI.
- HBI's Price/Forward Earnings ratio is rather cheap when compared to the industry. HBI is cheaper than 91.30% of the companies in the same industry.
- HBI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.27 | ||
| Fwd PE | 9.37 |
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 69.57% of the companies listed 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.
- The decent profitability rating of HBI 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)11-06 2025-11-06/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners88.94%
Inst Owner Change-0.21%
Ins Owners0.65%
Ins Owner Change-82.61%
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.