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%)
Overall HBI gets a fundamental rating of 4 out of 10. We evaluated HBI against 46 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
Of the past 5 years HBI 4 years had a positive operating cash flow.
1.2 Ratios
HBI has a better Return On Assets (7.71%) than 84.78% of its industry peers.
HBI has a Return On Equity of 73.92%. This is amongst the best in the industry. HBI outperforms 100.00% of its industry peers.
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 11.99%.
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
HBI has a Profit Margin of 9.59%. This is amongst the best in the industry. HBI outperforms 89.13% of its industry peers.
HBI has a better Operating Margin (13.46%) than 84.78% of its industry peers.
In the last couple of years the Operating Margin of HBI has declined.
HBI's Gross Margin of 41.93% is on the low side compared to the rest of the industry. HBI is outperformed by 63.04% 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 | 13.46% | ||
| 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.
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 1.89. 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.
With a Altman-Z score value of 1.89, HBI is not doing good in the industry: 78.26% of the companies in the same industry are doing better.
HBI has a Debt/Equity ratio of 4.94. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 4.94, HBI is doing worse than 89.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.89 |
ROIC/WACC1.12
WACC10.8%
2.3 Liquidity
A Current Ratio of 1.51 indicates that HBI should not have too much problems paying its short term obligations.
HBI has a Current ratio of 1.51. This is in the lower half of the industry: HBI underperforms 71.74% of its industry peers.
HBI has a Quick Ratio of 1.51. 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 Quick ratio of 0.71. This is amonst the worse of the industry: HBI underperforms 82.61% of its industry peers.
| 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.
The earnings per share for HBI have been decreasing by -23.96% on average. This is quite bad
Looking at the last year, HBI shows a very negative growth in Revenue. The Revenue has decreased by -14.16% in the last year.
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)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
The Earnings Per Share is expected to grow by 13.79% 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 0.46% yearly.
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
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.
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 10.27, which indicates a very decent valuation of HBI.
80.43% of the companies in the same industry are more expensive than HBI, based on the Price/Earnings ratio.
HBI is valuated cheaply when we compare the Price/Earnings ratio to 26.37, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.56, which indicates a very decent valuation of HBI.
91.30% of the companies in the same industry are more expensive than HBI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.20, HBI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.27 | ||
| Fwd PE | 9.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HBI is valued a bit cheaper than the industry average as 71.74% of the companies are valued more expensively.
| 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 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 |
6.47
-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 %9.04%
Short Ratio3.39
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
WACC10.8%
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%.