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%)
We assign a fundamental rating of 4 out of 10 to HBI. HBI was compared to 46 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. HBI is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year HBI was profitable.
HBI had a positive operating cash flow in the past year.
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
HBI has a Return On Assets of 7.71%. This is amongst the best in the industry. HBI outperforms 84.78% of its industry peers.
HBI has a better Return On Equity (73.92%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.06%, HBI is in the better half of the industry, outperforming 76.09% 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 11.99%.
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
Looking at the Profit Margin, with a value of 9.59%, HBI belongs to the top of the industry, outperforming 89.13% of the companies in the same industry.
HBI has a better Operating Margin (13.46%) than 84.78% of its industry peers.
HBI's Operating Margin has declined in the last couple of years.
The Gross Margin of HBI (41.93%) is worse than 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
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.
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.
HBI has a worse Altman-Z score (1.89) than 78.26% 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.
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/WACC1.12
WACC10.77%
2.3 Liquidity
A Current Ratio of 1.51 indicates that HBI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.51, HBI is not doing good in the industry: 71.74% of the companies in the same industry are doing better.
A Quick Ratio of 0.71 indicates that HBI may have some problems paying its short term obligations.
With a Quick ratio value of 0.71, HBI is not doing good in the industry: 82.61% of the companies in the same industry are doing better.
| 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.
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.
Looking at the last year, HBI shows a very negative growth in Revenue. The Revenue has decreased by -14.16% in the last 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)-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 Y48.77%
EPS Next 2Y22.64%
EPS Next 3Y17.53%
EPS Next 5Y13.79%
Revenue Next Year-2.25%
Revenue Next 2Y-1.67%
Revenue Next 3Y-0.89%
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.
Compared to an average S&P500 Price/Earnings ratio of 26.31, HBI is valued rather cheaply.
HBI is valuated reasonably with a Price/Forward Earnings ratio of 9.56.
Based on the Price/Forward Earnings ratio, HBI is valued cheaply inside the industry as 86.96% of the companies are valued more expensively.
HBI is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.27 | ||
| Fwd PE | 9.56 |
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 67.39% 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
The 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.
HBI's earnings are expected to grow with 17.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y22.64%
EPS Next 3Y17.53%
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 Owners92.24%
Inst Owner Change-0.03%
Ins Owners1.11%
Ins Owner Change-0.09%
Market Cap2.29B
Revenue(TTM)3.44B
Net Income(TTM)330.01M
Analysts70
Price Target6.17 (-4.64%)
Short Float %8.38%
Short Ratio4.66
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)3.8%
PT rev (3m)3.8%
EPS NQ rev (1m)2.56%
EPS NQ rev (3m)2.56%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)1.33%
Revenue NQ rev (3m)1.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.27 | ||
| Fwd PE | 9.56 | ||
| 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)0.68
Fwd EY10.46%
FCF(TTM)-0.02
FCFYN/A
OCF(TTM)0.07
OCFY1.01%
SpS9.72
BVpS1.26
TBVpS-3.14
PEG (NY)0.21
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
WACC10.77%
ROIC/WACC1.12
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 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-1.67%
Revenue Next 3Y-0.89%
Revenue Next 5Y0.46%
EBIT growth 1Y12.1%
EBIT growth 3Y-23.76%
EBIT growth 5Y-14.59%
EBIT Next Year31.24%
EBIT Next 3Y10.56%
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.
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 6 / 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%.