HANESBRANDS INC (HBI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HBI - US4103451021 - Common Stock
6.56 USD
+0.06 (+0.92%)
6.38 USD
-0.18 (-2.74%)
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. While HBI is still in line with the averages on profitability rating, there are concerns on its financial health. HBI is not valued too expensively and it also shows a decent growth rate.
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
Looking at the Return On Assets, with a value of 2.22%, HBI is in line with its industry, outperforming 47.92% of the companies in the same industry.
HBI has a Return On Equity of 53.63%. This is amongst the best in the industry. HBI outperforms 95.83% of its industry peers.
HBI has a better Return On Invested Capital (13.28%) than 77.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HBI is below the industry average of 12.21%.
The last Return On Invested Capital (13.28%) for HBI is above the 3 year average (9.25%), which is a sign of increasing profitability.
| 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
HBI has a Profit Margin of 2.56%. This is comparable to the rest of the industry: HBI outperforms 50.00% of its industry peers.
With an excellent Operating Margin value of 13.47%, HBI belongs to the best 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's Gross Margin of 42.19% is on the low side compared to the rest of the industry. HBI is outperformed by 60.42% 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 | 13.47% | ||
| 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
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
An Altman-Z score of 1.91 indicates that HBI is not a great score, but indicates only limited risk for bankruptcy at the moment.
HBI has a Altman-Z score of 1.91. This is in the lower half of the industry: HBI underperforms 77.08% of its industry peers.
The Debt to FCF ratio of HBI is 41.06, which is on the high side as it means it would take HBI, 41.06 years of fcf income to pay off all of its debts.
HBI's Debt to FCF ratio of 41.06 is on the low side compared to the rest of the industry. HBI is outperformed by 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.
HBI's Debt to Equity ratio of 13.62 is on the low side compared to the rest of the industry. HBI is outperformed by 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.62 | ||
| Debt/FCF | 41.06 | ||
| Altman-Z | 1.91 |
ROIC/WACC1.23
WACC10.81%
2.3 Liquidity
A Current Ratio of 1.52 indicates that HBI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.52, HBI is not doing good in the industry: 72.92% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 0.74, HBI is doing worse than 83.33% of the companies in the same industry.
| 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.
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 has decreased by -3.63% in the past year.
Measured over the past years, HBI shows a very negative growth in Revenue. The Revenue has been decreasing by -11.40% on average per year.
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
The Earnings Per Share is expected to grow by 14.06% 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 0.83% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.41 indicates a reasonable 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.
HBI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.45.
Based on the Price/Forward Earnings ratio of 9.69, the valuation of HBI can be described as reasonable.
79.17% of the companies in the same industry are more expensive than HBI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.46. HBI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.41 | ||
| Fwd PE | 9.69 |
4.2 Price Multiples
HBI's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 40.24 | ||
| EV/EBITDA | 8.42 |
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.
A more expensive valuation may be justified as HBI's earnings are expected to grow with 17.53% in the coming years.
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 |
6.56
+0.06 (+0.92%)
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 Cap2.32B
Revenue(TTM)3.51B
Net Income(TTM)89.23M
Analysts70
Price Target6.17 (-5.95%)
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)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 | 10.41 | ||
| Fwd PE | 9.69 | ||
| P/S | 0.67 | ||
| P/FCF | 40.24 | ||
| P/OCF | 26.44 | ||
| P/B | 13.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.42 |
EPS(TTM)0.63
EY9.6%
EPS(NY)0.68
Fwd EY10.32%
FCF(TTM)0.16
FCFY2.48%
OCF(TTM)0.25
OCFY3.78%
SpS9.85
BVpS0.47
TBVpS-3.94
PEG (NY)0.21
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 | 1.91 |
F-Score7
WACC10.81%
ROIC/WACC1.23
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 3 / 10 to HBI.
Can you provide the valuation status for HANESBRANDS INC?
ChartMill assigns a valuation rating of 6 / 10 to HANESBRANDS INC (HBI). This can be considered as Fairly Valued.
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%.