HANESBRANDS INC (HBI) Stock Fundamental Analysis
USA - NYSE:HBI - US4103451021 - Common Stock
6.5 USD
+0.02 (+0.31%)
6.45 USD
-0.05 (-0.77%)
We assign a fundamental rating of 3 out of 10 to HBI. HBI was compared to 48 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 has a decent growth rate and is not valued too expensively.
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.
HBI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.22%, HBI is in line with its industry, outperforming 47.92% of the companies in the same industry.
Looking at the Return On Equity, with a value of 53.63%, HBI belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
HBI has a better Return On Invested Capital (13.28%) than 77.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HBI is below the industry average of 12.21%.
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 in line with its industry peers.
Looking at the Operating Margin, with a value of 13.47%, HBI belongs to the top of the industry, outperforming 85.42% of the companies in the same industry.
In the last couple of years the Operating Margin of HBI has declined.
Looking at the Gross Margin, with a value of 42.19%, HBI is doing worse than 60.42% 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 | 13.47% | ||
| 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
HBI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
HBI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.91 indicates that HBI is not a great score, but indicates only limited risk for bankruptcy at the moment.
HBI has a Altman-Z score of 1.91. This is in the lower half of the industry: HBI underperforms 77.08% of its industry peers.
The Debt to FCF ratio of HBI is 41.06, which is on the high side as it means it would take HBI, 41.06 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 41.06, HBI is doing worse than 60.42% 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.
Looking at the Debt to Equity ratio, with a value of 13.62, HBI is doing worse than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 13.62 | ||
| Debt/FCF | 41.06 | ||
| Altman-Z | 1.91 |
ROIC/WACC1.23
WACC10.83%
2.3 Liquidity
HBI has a Current Ratio of 1.52. This is a normal value and indicates that HBI is financially healthy and should not expect problems in meeting its short term obligations.
HBI's Current ratio of 1.52 is on the low side compared to the rest of the industry. HBI is outperformed by 72.92% of its industry peers.
A Quick Ratio of 0.74 indicates that HBI may have some problems paying its short term obligations.
With a Quick ratio value of 0.74, HBI is not doing good in the industry: 83.33% 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 103.23% over the past year.
The earnings per share for HBI have been decreasing by -23.96% on average. This is quite bad
Looking at the last year, HBI shows a decrease in Revenue. The Revenue has decreased by -3.63% in the last year.
HBI shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -11.40% yearly.
EPS 1Y (TTM)103.23%
EPS 3Y-37.35%
EPS 5Y-23.96%
EPS Q2Q%0%
Revenue 1Y (TTM)-3.63%
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.
The Revenue is expected to grow by 0.83% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 10.32, which indicates a very decent valuation of HBI.
81.25% 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 (25.07), we can say HBI is valued rather cheaply.
The Price/Forward Earnings ratio is 9.60, which indicates a very decent valuation of HBI.
HBI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HBI is cheaper than 79.17% of the companies in the same industry.
HBI is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.32 | ||
| Fwd PE | 9.6 |
4.2 Price Multiples
HBI's Enterprise Value to EBITDA is on the same level as the industry average.
HBI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.87 | ||
| EV/EBITDA | 8.42 |
4.3 Compensation for Growth
The 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)0.21
PEG (5Y)N/A
EPS Next 2Y22.64%
EPS Next 3Y17.53%
5. Dividend
5.1 Amount
No dividends for HBI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.5
+0.02 (+0.31%)
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-0.18%
Ins Owners1.11%
Ins Owner Change-0.15%
Market Cap2.30B
Revenue(TTM)3.51B
Net Income(TTM)89.23M
Analysts70
Price Target6.16 (-5.23%)
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)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)3.68%
PT rev (3m)14.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)22.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.32 | ||
| Fwd PE | 9.6 | ||
| P/S | 0.66 | ||
| P/FCF | 39.87 | ||
| P/OCF | 26.2 | ||
| P/B | 13.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.42 |
EPS(TTM)0.63
EY9.69%
EPS(NY)0.68
Fwd EY10.41%
FCF(TTM)0.16
FCFY2.51%
OCF(TTM)0.25
OCFY3.82%
SpS9.85
BVpS0.47
TBVpS-3.94
PEG (NY)0.21
PEG (5Y)N/A
Graham Number2.58
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%
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 Turnover0.87
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 | 1.91 |
F-Score7
WACC10.83%
ROIC/WACC1.23
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)-3.63%
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 1Y8.16%
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-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%
HANESBRANDS INC / HBI FAQ
What is the fundamental rating for HBI stock?
ChartMill assigns a fundamental rating of 3 / 10 to HBI.
Can you provide the valuation status for HANESBRANDS INC?
ChartMill assigns a valuation rating of 6 / 10 to HANESBRANDS INC (HBI). This can be considered as Fairly Valued.
How profitable is HANESBRANDS INC (HBI) stock?
HANESBRANDS INC (HBI) has a profitability rating of 4 / 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%.