HANESBRANDS INC (HBI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HBI - US4103451021 - Common Stock
6.59 USD
-0.03 (-0.45%)
6.71 USD
+0.12 (+1.82%)
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. 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
HBI had positive earnings in the past year.
HBI had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 7.71%, HBI belongs to the top of the industry, outperforming 84.78% of the companies in the same industry.
The Return On Equity of HBI (73.92%) is better than 100.00% of its industry peers.
HBI has a better Return On Invested Capital (12.06%) than 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
The Profit Margin of HBI (9.59%) is better than 89.13% of its industry peers.
HBI has a Operating Margin of 13.46%. This is amongst the best in the industry. HBI outperforms 84.78% of its industry peers.
HBI's Operating Margin has declined in the last couple of years.
HBI has a Gross Margin of 41.93%. This is in the lower half of the industry: HBI underperforms 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
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.
The number of shares outstanding for HBI has been reduced compared to 5 years ago.
The debt/assets ratio for HBI is higher compared to a year ago.
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 80.43% 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
WACC10.8%
2.3 Liquidity
HBI has a Current Ratio of 1.51. This is a normal value and indicates that HBI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of HBI (1.51) is worse than 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 worse Quick ratio (0.71) than 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 103.23% over the past year.
The earnings per share for HBI have been decreasing by -23.96% on average. This is quite bad
HBI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.16%.
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
Based on estimates for the next years, HBI will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.06% on average per year.
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
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
Based on the Price/Earnings ratio of 10.46, the valuation of HBI can be described as reasonable.
80.43% of the companies in the same industry are more expensive than HBI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.15, HBI is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.74, the valuation of HBI can be described as very reasonable.
84.78% 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 36.12, HBI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 9.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HBI is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.73 |
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
HBI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.59
-0.03 (-0.45%)
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 Cap2.33B
Revenue(TTM)3.44B
Net Income(TTM)330.01M
Analysts70
Price Target6.17 (-6.37%)
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 | 10.46 | ||
| Fwd PE | 9.74 | ||
| P/S | 0.68 | ||
| P/FCF | N/A | ||
| P/OCF | 100.67 | ||
| P/B | 5.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.73 |
EPS(TTM)0.63
EY9.56%
EPS(NY)0.68
Fwd EY10.27%
FCF(TTM)-0.02
FCFYN/A
OCF(TTM)0.07
OCFY0.99%
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 5Y14.06%
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 5Y0.83%
EBIT growth 1Y12.1%
EBIT growth 3Y-23.76%
EBIT growth 5Y-14.59%
EBIT Next Year31.24%
EBIT Next 3Y10.56%
EBIT Next 5Y8.7%
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%.