HANESBRANDS INC (HBI) Stock Fundamental Analysis
NYSE:HBI - New York Stock Exchange, Inc. - US4103451021 - Common Stock - Currency: USD
Taking everything into account, HBI scores 3 out of 10 in our fundamental rating. HBI was compared to 50 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.
HBI had a positive operating cash flow in the past year.
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 -8.34% is on the low side compared to the rest of the industry. HBI is outperformed by 75.51% of its industry peers.
Looking at the Return On Equity, with a value of -942.17%, HBI is doing worse than 93.88% of the companies in the same industry.
With a decent Return On Invested Capital value of 12.65%, HBI is doing good in the industry, outperforming 75.51% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HBI is below the industry average of 11.76%.
The 3 year average ROIC (9.25%) for HBI is below the current ROIC(12.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.34% | ||
| ROE | -942.17% | ||
| ROIC | 12.65% |
ROA(3y)-3.54%
ROA(5y)-2.1%
ROE(3y)-326.11%
ROE(5y)-195.33%
ROIC(3y)9.25%
ROIC(5y)10.86%
1.3 Margins
HBI has a Operating Margin of 11.84%. This is amongst the best in the industry. HBI outperforms 81.63% of its industry peers.
HBI's Operating Margin has declined in the last couple of years.
The Gross Margin of HBI (41.36%) is worse than 65.31% 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 | 11.84% | ||
| PM (TTM) | N/A | ||
| GM | 41.36% |
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.
The number of shares outstanding for HBI has been increased compared to 1 year ago.
HBI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HBI is higher compared to a year ago.
2.2 Solvency
HBI has an Altman-Z score of 1.84. 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 Altman-Z score of 1.84. This is in the lower half of the industry: HBI underperforms 73.47% of its industry peers.
The Debt to FCF ratio of HBI is 10.08, which is on the high side as it means it would take HBI, 10.08 years of fcf income to pay off all of its debts.
HBI has a worse Debt to FCF ratio (10.08) than 63.27% of its industry peers.
A Debt/Equity ratio of 64.28 is on the high side and indicates that HBI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 64.28, HBI is doing worse than 93.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 64.28 | ||
| Debt/FCF | 10.08 | ||
| Altman-Z | 1.84 |
ROIC/WACC1.19
WACC10.66%
2.3 Liquidity
HBI has a Current Ratio of 1.37. 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 1.37 is on the low side compared to the rest of the industry. HBI is outperformed by 83.67% of its industry peers.
HBI has a Quick Ratio of 1.37. This is a bad value and indicates that HBI is not financially healthy enough and could expect problems in meeting its short term obligations.
HBI has a worse Quick ratio (0.68) than 91.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
HBI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 650.00%, which is quite impressive.
HBI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.96% yearly.
HBI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -37.77%.
HBI shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -11.40% yearly.
EPS 1Y (TTM)650%
EPS 3Y-37.35%
EPS 5Y-23.96%
EPS Q2Q%466.67%
Revenue 1Y (TTM)-37.77%
Revenue growth 3Y-19.81%
Revenue growth 5Y-11.4%
Sales Q2Q%-31.49%
3.2 Future
Based on estimates for the next years, HBI will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.31% on average per year.
HBI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.71% yearly.
EPS Next Y22.28%
EPS Next 2Y21.56%
EPS Next 3Y23.29%
EPS Next 5Y17.31%
Revenue Next Year-2.44%
Revenue Next 2Y-0.92%
Revenue Next 3Y0.87%
Revenue Next 5Y2.71%
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
With a Price/Earnings ratio of 13.64, HBI is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of HBI indicates a somewhat cheap valuation: HBI is cheaper than 79.59% of the companies listed in the same industry.
HBI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 11.16, which indicates a very decent valuation of HBI.
Based on the Price/Forward Earnings ratio, HBI is valued cheaply inside the industry as 83.67% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.68. HBI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.64 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HBI is valued a bit cheaper than 69.39% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HBI is valued a bit cheaper than the industry average as 75.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.56 | ||
| EV/EBITDA | 8.35 |
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 23.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y21.56%
EPS Next 3Y23.29%
5. Dividend
5.1 Amount
No dividends for HBI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.14
-0.02 (-0.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners98.03%
Inst Owner Change2.49%
Ins Owners0.8%
Ins Owner Change-2.08%
Market Cap2.16B
Analysts50
Price Target6.46 (5.21%)
Short Float %11.03%
Short Ratio6.37
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)20.88%
Min EPS beat(2)17.38%
Max EPS beat(2)24.38%
EPS beat(4)4
Avg EPS beat(4)41.98%
Min EPS beat(4)17.38%
Max EPS beat(4)70.66%
EPS beat(8)6
Avg EPS beat(8)19.96%
EPS beat(12)8
Avg EPS beat(12)14.15%
EPS beat(16)11
Avg EPS beat(16)15.54%
Revenue beat(2)0
Avg Revenue beat(2)-8%
Min Revenue beat(2)-8.58%
Max Revenue beat(2)-7.43%
Revenue beat(4)0
Avg Revenue beat(4)-11.69%
Min Revenue beat(4)-27.34%
Max Revenue beat(4)-3.41%
Revenue beat(8)1
Avg Revenue beat(8)-7.11%
Revenue beat(12)2
Avg Revenue beat(12)-5.82%
Revenue beat(16)3
Avg Revenue beat(16)-3.99%
PT rev (1m)0%
PT rev (3m)36.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.72%
EPS NY rev (1m)0%
EPS NY rev (3m)12.87%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.64 | ||
| Fwd PE | 11.16 | ||
| P/S | 0.62 | ||
| P/FCF | 9.56 | ||
| P/OCF | 8.19 | ||
| P/B | 63.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.35 |
EPS(TTM)0.45
EY7.33%
EPS(NY)0.55
Fwd EY8.96%
FCF(TTM)0.64
FCFY10.46%
OCF(TTM)0.75
OCFY12.21%
SpS9.95
BVpS0.1
TBVpS-4.23
PEG (NY)0.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.34% | ||
| ROE | -942.17% | ||
| ROCE | 16.01% | ||
| ROIC | 12.65% | ||
| ROICexc | 13.8% | ||
| ROICexgc | 38.45% | ||
| OM | 11.84% | ||
| PM (TTM) | N/A | ||
| GM | 41.36% | ||
| FCFM | 6.45% |
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 | 64.28 | ||
| Debt/FCF | 10.08 | ||
| Debt/EBITDA | 4.31 | ||
| Cap/Depr | 41.16% | ||
| Cap/Sales | 1.08% | ||
| Interest Coverage | 1.73 | ||
| Cash Conversion | 52.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 1.84 |
F-Score4
WACC10.66%
ROIC/WACC1.19
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)650%
EPS 3Y-37.35%
EPS 5Y-23.96%
EPS Q2Q%466.67%
EPS Next Y22.28%
EPS Next 2Y21.56%
EPS Next 3Y23.29%
EPS Next 5Y17.31%
Revenue 1Y (TTM)-37.77%
Revenue growth 3Y-19.81%
Revenue growth 5Y-11.4%
Sales Q2Q%-31.49%
Revenue Next Year-2.44%
Revenue Next 2Y-0.92%
Revenue Next 3Y0.87%
Revenue Next 5Y2.71%
EBIT growth 1Y2.58%
EBIT growth 3Y-23.76%
EBIT growth 5Y-14.59%
EBIT Next Year28.42%
EBIT Next 3Y17.07%
EBIT Next 5Y10.96%
FCF growth 1Y-56.28%
FCF growth 3Y-25.8%
FCF growth 5Y-20.26%
OCF growth 1Y-52.96%
OCF growth 3Y-24.88%
OCF growth 5Y-19.94%