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. There are concerns on the financial health of HBI while its profitability can be described as average. 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

In the past year HBI was profitable.
HBI had a positive operating cash flow in the past year.
In the past 5 years HBI reported 4 times negative net income.
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 11.59%.
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's Profit Margin of 9.59% is amongst the best of the industry. HBI outperforms 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.
Looking at the Gross Margin, with a value of 41.93%, HBI is doing worse than 63.04% of the companies in the same industry.
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

HBI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, HBI has more shares outstanding
HBI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HBI has a worse debt to assets ratio.

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.
Looking at the Altman-Z score, with a value of 1.89, HBI is doing worse than 76.09% of the companies in the same industry.
A Debt/Equity ratio of 4.94 is on the high side and indicates that HBI has dependencies on debt financing.
With a Debt to Equity ratio value of 4.94, HBI is not doing good in the industry: 89.13% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	4.94
Debt/FCF	N/A
Altman-Z	1.89

ROIC/WACC1.11

WACC10.82%

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.
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.
The Quick ratio of HBI (0.71) is worse than 84.78% of its industry peers.

		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

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
The Revenue for HBI has decreased by -14.16% in the past year. This is quite bad
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

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.

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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.
80.43% of the companies in the same industry are more expensive than HBI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HBI to the average of the S&P500 Index (28.39), we can say HBI is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.37, the valuation of HBI can be described as very reasonable.
HBI's Price/Forward Earnings ratio is rather cheap when compared to the industry. HBI is cheaper than 91.30% of the companies in the same industry.
HBI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.72.

		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.