HANESBRANDS INC (HBI) Stock Fundamental Analysis
USA - NYSE:HBI - US4103451021 - Common Stock
6.27 USD
-0.05 (-0.79%)
6.33 USD
+0.06 (+0.96%)
HBI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 49 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
Of the past 5 years HBI 4 years had a positive operating cash flow.
1.2 Ratios
HBI has a Return On Assets (2.22%) which is comparable to the rest of the industry.
With an excellent Return On Equity value of 53.63%, HBI belongs to the best of the industry, outperforming 97.96% of the companies in the same industry.
With a decent Return On Invested Capital value of 13.28%, HBI is doing good in the industry, outperforming 77.55% 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 12.08%.
The 3 year average ROIC (9.25%) for HBI is below the current ROIC(13.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 53.63% | ||
| ROIC | 13.28% |
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 (2.56%) which is comparable to the rest of the industry.
HBI's Operating Margin of 13.47% is amongst the best of the industry. HBI outperforms 83.67% of its industry peers.
In the last couple of years the Operating Margin of HBI has declined.
HBI has a Gross Margin of 42.19%. This is in the lower half of the industry: HBI underperforms 63.27% 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 | 13.47% | ||
| PM (TTM) | 2.56% | ||
| GM | 42.19% |
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.
Compared to 1 year ago, HBI has more shares outstanding
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.
The Altman-Z score of HBI (1.89) is worse than 81.63% of its industry peers.
HBI has a debt to FCF ratio of 41.06. This is a negative value and a sign of low solvency as HBI would need 41.06 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 41.06, HBI is doing worse than 63.27% of the companies in the same industry.
HBI has a Debt/Equity ratio of 13.62. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of HBI (13.62) is worse than 91.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.62 | ||
| Debt/FCF | 41.06 | ||
| Altman-Z | 1.89 |
ROIC/WACC1.24
WACC10.71%
2.3 Liquidity
A Current Ratio of 1.52 indicates that HBI should not have too much problems paying its short term obligations.
HBI has a worse Current ratio (1.52) than 73.47% of its industry peers.
HBI has a Quick Ratio of 1.52. 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 0.74, HBI is not doing good in the industry: 79.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 142.31% over the past year.
HBI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.96% yearly.
The Revenue for HBI has decreased by -23.93% in the past year. This is quite bad
The Revenue for HBI have been decreasing by -11.40% on average. This is quite bad
EPS 1Y (TTM)142.31%
EPS 3Y-37.35%
EPS 5Y-23.96%
EPS Q2Q%60%
Revenue 1Y (TTM)-23.93%
Revenue growth 3Y-19.81%
Revenue growth 5Y-11.4%
Sales Q2Q%-0.41%
3.2 Future
The Earnings Per Share is expected to grow by 14.06% on average over the next years. This is quite good.
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
With a Price/Earnings ratio of 9.95, the valuation of HBI can be described as very reasonable.
Based on the Price/Earnings ratio, HBI is valued cheaply inside the industry as 83.67% of the companies are valued more expensively.
HBI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
HBI is valuated reasonably with a Price/Forward Earnings ratio of 9.26.
89.80% of the companies in the same industry are more expensive than HBI, based on the Price/Forward Earnings ratio.
HBI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 9.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HBI indicates a somewhat cheap valuation: HBI is cheaper than 61.22% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HBI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.46 | ||
| EV/EBITDA | 8.26 |
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's earnings are expected to grow with 17.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
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 |
6.27
-0.05 (-0.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners93.15%
Inst Owner Change1.92%
Ins Owners1.12%
Ins Owner Change7.33%
Market Cap2.22B
Analysts70
Price Target5.95 (-5.1%)
Short Float %6.13%
Short Ratio2.37
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)125.71%
Min EPS beat(2)33.5%
Max EPS beat(2)217.92%
EPS beat(4)4
Avg EPS beat(4)73.29%
Min EPS beat(4)17.38%
Max EPS beat(4)217.92%
EPS beat(8)6
Avg EPS beat(8)43.31%
EPS beat(12)9
Avg EPS beat(12)34.6%
EPS beat(16)11
Avg EPS beat(16)27.01%
Revenue beat(2)2
Avg Revenue beat(2)0.62%
Min Revenue beat(2)0.05%
Max Revenue beat(2)1.19%
Revenue beat(4)2
Avg Revenue beat(4)-3.69%
Min Revenue beat(4)-8.58%
Max Revenue beat(4)1.19%
Revenue beat(8)2
Avg Revenue beat(8)-6.83%
Revenue beat(12)3
Avg Revenue beat(12)-4.9%
Revenue beat(16)4
Avg Revenue beat(16)-4.45%
PT rev (1m)10.87%
PT rev (3m)7.94%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.4%
EPS NY rev (1m)22.22%
EPS NY rev (3m)22.22%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)1.16%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 9.26 | ||
| P/S | 0.64 | ||
| P/FCF | 38.46 | ||
| P/OCF | 25.27 | ||
| P/B | 13.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.26 |
EPS(TTM)0.63
EY10.05%
EPS(NY)0.68
Fwd EY10.8%
FCF(TTM)0.16
FCFY2.6%
OCF(TTM)0.25
OCFY3.96%
SpS9.85
BVpS0.47
TBVpS-3.94
PEG (NY)0.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 53.63% | ||
| ROCE | 16.81% | ||
| ROIC | 13.28% | ||
| ROICexc | 14.42% | ||
| ROICexgc | 36.61% | ||
| OM | 13.47% | ||
| PM (TTM) | 2.56% | ||
| GM | 42.19% | ||
| FCFM | 1.65% |
ROA(3y)-3.54%
ROA(5y)-2.1%
ROE(3y)-326.11%
ROE(5y)-195.33%
ROIC(3y)9.25%
ROIC(5y)10.86%
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-Score7
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.62 | ||
| Debt/FCF | 41.06 | ||
| Debt/EBITDA | 4.29 | ||
| Cap/Depr | 51.19% | ||
| Cap/Sales | 0.86% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 16.62% | ||
| Profit Quality | 64.63% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 1.89 |
F-Score7
WACC10.71%
ROIC/WACC1.24
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)142.31%
EPS 3Y-37.35%
EPS 5Y-23.96%
EPS Q2Q%60%
EPS Next Y48.77%
EPS Next 2Y22.64%
EPS Next 3Y17.53%
EPS Next 5Y14.06%
Revenue 1Y (TTM)-23.93%
Revenue growth 3Y-19.81%
Revenue growth 5Y-11.4%
Sales Q2Q%-0.41%
Revenue Next Year-2.25%
Revenue Next 2Y-1.67%
Revenue Next 3Y-0.89%
Revenue Next 5Y0.83%
EBIT growth 1Y8.16%
EBIT growth 3Y-23.76%
EBIT growth 5Y-14.59%
EBIT Next Year26.31%
EBIT Next 3Y9.48%
EBIT Next 5Y8.7%
FCF growth 1Y-45.95%
FCF growth 3Y-25.8%
FCF growth 5Y-20.26%
OCF growth 1Y-59.08%
OCF growth 3Y-24.88%
OCF growth 5Y-19.94%