HIGHWOODS PROPERTIES INC (HIW) Stock Fundamental Analysis
NYSE:HIW - New York Stock Exchange, Inc. - US4312841087 - REIT
We assign a fundamental rating of 4 out of 10 to HIW. HIW was compared to 129 industry peers in the Diversified REITs industry. While HIW is still in line with the averages on profitability rating, there are concerns on its financial health. HIW is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
HIW had positive earnings in the past year.
HIW had a positive operating cash flow in the past year.
Each year in the past 5 years HIW has been profitable.
Each year in the past 5 years HIW had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HIW (2.35%) is better than 72.22% of its industry peers.
HIW's Return On Equity of 5.99% is fine compared to the rest of the industry. HIW outperforms 76.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.85%, HIW is in line with its industry, outperforming 54.76% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HIW is in line with the industry average of 3.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.35% | ||
| ROE | 5.99% | ||
| ROIC | 2.85% |
ROA(3y)3.49%
ROA(5y)3.94%
ROE(3y)8.29%
ROE(5y)9.18%
ROIC(3y)3.29%
ROIC(5y)3.31%
1.3 Margins
HIW has a Profit Margin of 17.10%. This is in the better half of the industry: HIW outperforms 71.43% of its industry peers.
HIW's Profit Margin has declined in the last couple of years.
HIW has a Operating Margin of 25.08%. This is comparable to the rest of the industry: HIW outperforms 55.56% of its industry peers.
HIW's Operating Margin has declined in the last couple of years.
HIW has a Gross Margin (67.33%) which is in line with its industry peers.
HIW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.08% | ||
| PM (TTM) | 17.1% | ||
| GM | 67.33% |
OM growth 3Y-3.98%
OM growth 5Y-1.5%
PM growth 3Y-27.91%
PM growth 5Y-5.7%
GM growth 3Y-0.38%
GM growth 5Y0.43%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HIW is destroying value.
Compared to 1 year ago, HIW has more shares outstanding
The number of shares outstanding for HIW has been increased compared to 5 years ago.
The debt/assets ratio for HIW is higher compared to a year ago.
2.2 Solvency
HIW has an Altman-Z score of 0.63. This is a bad value and indicates that HIW is not financially healthy and even has some risk of bankruptcy.
HIW has a Altman-Z score (0.63) which is comparable to the rest of the industry.
The Debt to FCF ratio of HIW is 15.89, which is on the high side as it means it would take HIW, 15.89 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HIW (15.89) is better than 78.57% of its industry peers.
HIW has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
HIW's Debt to Equity ratio of 1.40 is in line compared to the rest of the industry. HIW outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 15.89 | ||
| Altman-Z | 0.63 |
ROIC/WACC0.46
WACC6.24%
2.3 Liquidity
A Current Ratio of 1.58 indicates that HIW should not have too much problems paying its short term obligations.
HIW's Current ratio of 1.58 is fine compared to the rest of the industry. HIW outperforms 64.29% of its industry peers.
A Quick Ratio of 1.58 indicates that HIW should not have too much problems paying its short term obligations.
The Quick ratio of HIW (1.58) is better than 67.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
HIW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.56%, which is quite good.
HIW shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.72% yearly.
Looking at the last year, HIW shows a decrease in Revenue. The Revenue has decreased by -1.40% in the last year.
HIW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.98% yearly.
EPS 1Y (TTM)13.56%
EPS 3Y-27.29%
EPS 5Y-4.72%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)-1.4%
Revenue growth 3Y4.21%
Revenue growth 5Y2.98%
Sales Q2Q%-1.34%
3.2 Future
HIW is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -30.43% yearly.
The Revenue is expected to grow by 2.67% on average over the next years.
EPS Next Y-13.6%
EPS Next 2Y-44.53%
EPS Next 3Y-30.43%
EPS Next 5YN/A
Revenue Next Year-1.36%
Revenue Next 2Y-0.62%
Revenue Next 3Y0.85%
Revenue Next 5Y2.67%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HIW is valuated rather expensively with a Price/Earnings ratio of 22.75.
Based on the Price/Earnings ratio, HIW is valued a bit cheaper than the industry average as 79.37% of the companies are valued more expensively.
HIW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 77.38, the valuation of HIW can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HIW is on the same level as its industry peers.
HIW's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.75 | ||
| Fwd PE | 77.38 |
4.2 Price Multiples
67.46% of the companies in the same industry are more expensive than HIW, based on the Enterprise Value to EBITDA ratio.
80.16% of the companies in the same industry are more expensive than HIW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.58 | ||
| EV/EBITDA | 12.62 |
4.3 Compensation for Growth
HIW's earnings are expected to decrease with -30.43% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-44.53%
EPS Next 3Y-30.43%
5. Dividend
5.1 Amount
HIW has a Yearly Dividend Yield of 6.72%, which is a nice return.
HIW's Dividend Yield is a higher than the industry average which is at 18.51.
Compared to an average S&P500 Dividend Yield of 2.28, HIW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.72% |
5.2 History
The dividend of HIW has a limited annual growth rate of 1.56%.
HIW has paid a dividend for at least 10 years, which is a reliable track record.
HIW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.56%
Div Incr Years0
Div Non Decr Years20
5.3 Sustainability
151.42% of the earnings are spent on dividend by HIW. This is not a sustainable payout ratio.
The Dividend Rate of HIW has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP151.42%
EPS Next 2Y-44.53%
EPS Next 3Y-30.43%
HIGHWOODS PROPERTIES INC
NYSE:HIW (1/21/2025, 8:05:35 PM)
After market: 30.48 0 (0%)30.48
+0.26 (+0.86%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners106.62%
Inst Owner Change-0.09%
Ins Owners1.71%
Ins Owner Change-0.27%
Market Cap3.23B
Analysts68.57
Price Target32.53 (6.73%)
Short Float %5.01%
Short Ratio5.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.72% |
Yearly Dividend2.02
Dividend Growth(5Y)1.56%
DP151.42%
Div Incr Years0
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)40.41%
Min EPS beat(2)-35.53%
Max EPS beat(2)116.36%
EPS beat(4)3
Avg EPS beat(4)37.28%
Min EPS beat(4)-35.53%
Max EPS beat(4)116.36%
EPS beat(8)5
Avg EPS beat(8)26.55%
EPS beat(12)8
Avg EPS beat(12)24.21%
EPS beat(16)12
Avg EPS beat(16)41.27%
Revenue beat(2)0
Avg Revenue beat(2)-1.21%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)-1.15%
Revenue beat(4)1
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-1.45%
Max Revenue beat(4)1.16%
Revenue beat(8)1
Avg Revenue beat(8)-1.03%
Revenue beat(12)3
Avg Revenue beat(12)-0.75%
Revenue beat(16)4
Avg Revenue beat(16)-0.62%
PT rev (1m)-0.35%
PT rev (3m)6.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-60.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)3.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.75 | ||
| Fwd PE | 77.38 | ||
| P/S | 3.91 | ||
| P/FCF | 15.58 | ||
| P/OCF | 8.03 | ||
| P/B | 1.37 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 12.62 |
EPS(TTM)1.34
EY4.4%
EPS(NY)0.39
Fwd EY1.29%
FCF(TTM)1.96
FCFY6.42%
OCF(TTM)3.8
OCFY12.46%
SpS7.8
BVpS22.27
TBVpS22.27
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.35% | ||
| ROE | 5.99% | ||
| ROCE | 3.61% | ||
| ROIC | 2.85% | ||
| ROICexc | 2.86% | ||
| ROICexgc | 2.86% | ||
| OM | 25.08% | ||
| PM (TTM) | 17.1% | ||
| GM | 67.33% | ||
| FCFM | 25.07% |
ROA(3y)3.49%
ROA(5y)3.94%
ROE(3y)8.29%
ROE(5y)9.18%
ROIC(3y)3.29%
ROIC(5y)3.31%
ROICexc(3y)3.3%
ROICexc(5y)3.34%
ROICexgc(3y)3.3%
ROICexgc(5y)3.34%
ROCE(3y)4.16%
ROCE(5y)4.19%
ROICexcg growth 3Y-6.06%
ROICexcg growth 5Y-3.29%
ROICexc growth 3Y-6.06%
ROICexc growth 5Y-3.29%
OM growth 3Y-3.98%
OM growth 5Y-1.5%
PM growth 3Y-27.91%
PM growth 5Y-5.7%
GM growth 3Y-0.38%
GM growth 5Y0.43%
F-Score5
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 15.89 | ||
| Debt/EBITDA | 6.42 | ||
| Cap/Depr | 63.89% | ||
| Cap/Sales | 23.6% | ||
| Interest Coverage | 1.51 | ||
| Cash Conversion | 78.48% | ||
| Profit Quality | 146.6% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 0.63 |
F-Score5
WACC6.24%
ROIC/WACC0.46
Cap/Depr(3y)79.69%
Cap/Depr(5y)101.94%
Cap/Sales(3y)27.67%
Cap/Sales(5y)34.78%
Profit Quality(3y)98.04%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.56%
EPS 3Y-27.29%
EPS 5Y-4.72%
EPS Q2Q%-33.33%
EPS Next Y-13.6%
EPS Next 2Y-44.53%
EPS Next 3Y-30.43%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.4%
Revenue growth 3Y4.21%
Revenue growth 5Y2.98%
Sales Q2Q%-1.34%
Revenue Next Year-1.36%
Revenue Next 2Y-0.62%
Revenue Next 3Y0.85%
Revenue Next 5Y2.67%
EBIT growth 1Y-11.45%
EBIT growth 3Y0.07%
EBIT growth 5Y1.44%
EBIT Next Year118.99%
EBIT Next 3Y30.42%
EBIT Next 5Y22.4%
FCF growth 1Y-1.7%
FCF growth 3YN/A
FCF growth 5Y55.85%
OCF growth 1Y-5.33%
OCF growth 3Y2.04%
OCF growth 5Y1.2%