Overall HBI gets a fundamental rating of 4 out of 10. We evaluated HBI against 45 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
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's Return On Assets of 7.71% is amongst the best of the industry. HBI outperforms 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 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 11.59%.
The last Return On Invested Capital (12.06%) for HBI is above the 3 year average (9.25%), which is a sign of increasing profitability.

		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 better Profit Margin (9.59%) than 89.13% of its industry peers.
With an excellent Operating Margin value of 13.46%, HBI belongs to the best of the industry, outperforming 84.78% of the companies in the same industry.
HBI's Operating Margin has declined in the last couple of years.
HBI has a worse Gross Margin (41.93%) than 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
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

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.
The Altman-Z score of HBI (1.89) is worse than 76.09% of its industry peers.
A Debt/Equity ratio of 4.94 is on the high side and indicates that HBI has dependencies on debt 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/WACC1.11

WACC10.82%

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: 73.91% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.71, HBI is not doing good in the industry: 84.78% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	1.51
Quick Ratio	0.71

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WACC

Debt/Equity

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Altman-Z score

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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
HBI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.16%.
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)-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 13.79% on average per year.
Based on estimates for the next years, HBI will show a small growth in Revenue. The Revenue will grow by 0.46% on average per year.

EPS Next Y46.56%

EPS Next 2Y23.88%

EPS Next 3Y20.18%

EPS Next 5Y13.79%

Revenue Next Year-2.25%

Revenue Next 2Y-1.78%

Revenue Next 3Y-0.63%

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.27, the valuation of HBI can be described as very reasonable.
HBI's Price/Earnings ratio is rather cheap when compared to the industry. HBI is cheaper than 80.43% 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 28.32.
With a Price/Forward Earnings ratio of 9.37, the valuation of HBI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, HBI is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 25.57. HBI is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	10.27
Fwd PE	9.37

4.2 Price Multiples

69.57% of the companies in the same industry are more expensive than HBI, based on the Enterprise Value to EBITDA ratio.

		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.
HBI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HBI's earnings are expected to grow with 20.18% in the coming years.