HANESBRANDS INC (HBI) Stock Fundamental Analysis
USA - NYSE:HBI - US4103451021 - Common Stock
6.65 USD
+0.06 (+0.91%)
6.65 USD
0 (0%)
Overall HBI gets a fundamental rating of 3 out of 10. We evaluated HBI against 48 industry peers in the Textiles, Apparel & Luxury Goods industry. HBI has a medium profitability rating, but doesn't score so well on its financial health evaluation. HBI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
HBI had positive earnings in the past year.
In the past year HBI had a positive cash flow from operations.
In the past 5 years HBI reported 4 times negative net income.
HBI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of HBI (2.22%) is comparable to the rest of the industry.
The Return On Equity of HBI (53.63%) is better than 95.83% of its industry peers.
With a decent Return On Invested Capital value of 13.28%, HBI is doing good in the industry, outperforming 77.08% of the companies in the same industry.
HBI had an Average Return On Invested Capital over the past 3 years of 9.25%. This is below the industry average of 12.21%.
The 3 year average ROIC (9.25%) for HBI is below the current ROIC(13.28%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 2.56%, HBI is in line with its industry, outperforming 50.00% of the companies in the same industry.
Looking at the Operating Margin, with a value of 13.47%, HBI belongs to the top of the industry, outperforming 85.42% of the companies in the same industry.
In the last couple of years the Operating Margin of HBI has declined.
HBI has a worse Gross Margin (42.19%) than 60.42% of its industry peers.
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.
Compared to 1 year ago, HBI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.92 indicates that HBI is not a great score, but indicates only limited risk for bankruptcy at the moment.
HBI has a worse Altman-Z score (1.92) than 77.08% 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 worse Debt to FCF ratio (41.06) than 60.42% 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.
Looking at the Debt to Equity ratio, with a value of 13.62, HBI is doing worse than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.62 | ||
| Debt/FCF | 41.06 | ||
| Altman-Z | 1.92 |
ROIC/WACC1.22
WACC10.88%
2.3 Liquidity
A Current Ratio of 1.52 indicates that HBI should not have too much problems paying its short term obligations.
HBI has a Current ratio of 1.52. This is in the lower half of the industry: HBI underperforms 72.92% of its industry peers.
HBI has a Quick Ratio of 1.52. This is a bad value and indicates that HBI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of HBI (0.74) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 103.23% over the past year.
HBI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.96% yearly.
The Revenue has decreased by -3.63% in the past year.
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)-3.63%
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 14.06% yearly.
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.
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 10.56, which indicates a very decent valuation of HBI.
HBI's Price/Earnings ratio is rather cheap when compared to the industry. HBI is cheaper than 81.25% of the companies in the same industry.
When comparing the Price/Earnings ratio of HBI to the average of the S&P500 Index (25.89), we can say HBI is valued rather cheaply.
A Price/Forward Earnings ratio of 9.82 indicates a reasonable 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 79.17% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. HBI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 9.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HBI is valued a bit cheaper than 62.50% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HBI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.8 | ||
| EV/EBITDA | 8.52 |
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 |
6.65
+0.06 (+0.91%)
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-0.18%
Ins Owners1.11%
Ins Owner Change-0.15%
Market Cap2.35B
Revenue(TTM)3.51B
Net Income(TTM)89.23M
Analysts70
Price Target6.16 (-7.37%)
Short Float %8.46%
Short Ratio4.38
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)3.68%
PT rev (3m)14.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)22.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 9.82 | ||
| P/S | 0.67 | ||
| P/FCF | 40.8 | ||
| P/OCF | 26.8 | ||
| P/B | 14.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.52 |
EPS(TTM)0.63
EY9.47%
EPS(NY)0.68
Fwd EY10.18%
FCF(TTM)0.16
FCFY2.45%
OCF(TTM)0.25
OCFY3.73%
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 | 1.92 |
F-Score7
WACC10.88%
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)103.23%
EPS 3Y-37.35%
EPS 5Y-23.96%
EPS Q2Q%0%
EPS Next Y48.77%
EPS Next 2Y22.64%
EPS Next 3Y17.53%
EPS Next 5Y14.06%
Revenue 1Y (TTM)-3.63%
Revenue growth 3Y-19.81%
Revenue growth 5Y-11.4%
Sales Q2Q%-4.85%
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%.