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%)
We assign a fundamental rating of 4 out of 10 to HBI. HBI was compared to 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 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.
- 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'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 better Return On Equity (73.92%) than 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.
- HBI had an Average Return On Invested Capital over the past 3 years of 9.25%. This 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.
- 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.
- HBI's Gross Margin has been stable in the last couple of years.
| 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.
- 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.
- Compared to 1 year ago, HBI has a worse debt to assets ratio.
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: 76.09% 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.
- HBI's Debt to Equity ratio of 4.94 is on the low side compared to the rest of the industry. HBI is outperformed by 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 |
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.
- Measured over the past years, HBI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -23.96% on average per year.
- 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
- HBI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.79% yearly.
- HBI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.46% yearly.
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.
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.
- The average S&P500 Price/Earnings ratio is at 27.38. HBI is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 9.37 indicates a reasonable valuation of HBI.
- Based on the Price/Forward Earnings ratio, HBI is valued cheaper than 91.30% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of HBI to the average of the S&P500 Index (24.29), we can say HBI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.27 | ||
| Fwd PE | 9.37 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HBI is valued a bit cheaper than 69.57% of the companies in the same industry.
| 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.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y23.88%
EPS Next 3Y20.18%
5. Dividend
5.1 Amount
- HBI does not give a dividend.
| 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)11-06 2025-11-06/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners88.94%
Inst Owner Change-0.21%
Ins Owners0.65%
Ins Owner Change-82.61%
Market Cap2.29B
Revenue(TTM)3.44B
Net Income(TTM)330.01M
Analysts71.11
Price Target5.88 (-9.12%)
Short Float %N/A
Short RatioN/A
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)-4.57%
PT rev (3m)-1.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.56%
EPS NY rev (1m)-1.48%
EPS NY rev (3m)-1.48%
Revenue NQ rev (1m)0.79%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.27 | ||
| Fwd PE | 9.37 | ||
| 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)0.69
Fwd EY10.67%
FCF(TTM)-0.02
FCFYN/A
OCF(TTM)0.07
OCFY1.01%
SpS9.72
BVpS1.26
TBVpS-3.14
PEG (NY)0.22
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
WACC10.82%
ROIC/WACC1.11
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 Y46.56%
EPS Next 2Y23.88%
EPS Next 3Y20.18%
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-1.78%
Revenue Next 3Y-0.63%
Revenue Next 5Y0.46%
EBIT growth 1Y12.1%
EBIT growth 3Y-23.76%
EBIT growth 5Y-14.59%
EBIT Next Year36.32%
EBIT Next 3Y12.11%
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.
What is the valuation status for HBI stock?
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.
Can you provide the PE and PB ratios for HBI stock?
The Price/Earnings (PE) ratio for Hanesbrands Inc (HBI) is 10.27 and the Price/Book (PB) ratio is 5.13.
What is the expected EPS growth for Hanesbrands Inc (HBI) stock?
The Earnings per Share (EPS) of Hanesbrands Inc (HBI) is expected to grow by 46.56% in the next year.