HIGHWOODS PROPERTIES INC (HIW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HIW - US4312841087 - REIT
27.88 USD
+0.32 (+1.16%)
27.88 USD
0 (0%)
Taking everything into account, HIW scores 4 out of 10 in our fundamental rating. HIW was compared to 128 industry peers in the Diversified REITs industry. HIW has an average financial health and profitability rating. HIW has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
HIW had positive earnings in each of the past 5 years.
In the past 5 years HIW always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.03%, HIW is doing good in the industry, outperforming 67.19% of the companies in the same industry.
HIW has a better Return On Equity (5.24%) than 67.19% of its industry peers.
HIW has a Return On Invested Capital of 2.80%. This is comparable to the rest of the industry: HIW outperforms 51.56% of its industry peers.
HIW had an Average Return On Invested Capital over the past 3 years of 3.09%. This is in line with the industry average of 3.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 5.24% | ||
| ROIC | 2.8% |
ROA(3y)2.22%
ROA(5y)3.75%
ROE(3y)5.52%
ROE(5y)8.77%
ROIC(3y)3.09%
ROIC(5y)3.29%
1.3 Margins
The Profit Margin of HIW (15.45%) is better than 66.41% of its industry peers.
HIW's Profit Margin has declined in the last couple of years.
HIW's Operating Margin of 25.78% is in line compared to the rest of the industry. HIW outperforms 56.25% of its industry peers.
In the last couple of years the Operating Margin of HIW has remained more or less at the same level.
With a Gross Margin value of 67.08%, HIW perfoms like the industry average, outperforming 51.56% of the companies in the same industry.
HIW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.78% | ||
| PM (TTM) | 15.45% | ||
| GM | 67.08% |
OM growth 3Y-5.14%
OM growth 5Y0.08%
PM growth 3Y-33.17%
PM growth 5Y-7.93%
GM growth 3Y-1.06%
GM growth 5Y0.24%
2. Health
2.1 Basic Checks
HIW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
HIW has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HIW has been increased compared to 5 years ago.
Compared to 1 year ago, HIW has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.55, we must say that HIW is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.55, HIW is in line with its industry, outperforming 51.56% of the companies in the same industry.
The Debt to FCF ratio of HIW is 12.30, which is on the high side as it means it would take HIW, 12.30 years of fcf income to pay off all of its debts.
HIW has a better Debt to FCF ratio (12.30) than 86.72% of its industry peers.
A Debt/Equity ratio of 1.43 is on the high side and indicates that HIW has dependencies on debt financing.
HIW has a Debt to Equity ratio of 1.43. This is comparable to the rest of the industry: HIW outperforms 45.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 12.3 | ||
| Altman-Z | 0.55 |
ROIC/WACC0.45
WACC6.19%
2.3 Liquidity
A Current Ratio of 1.42 indicates that HIW should not have too much problems paying its short term obligations.
HIW's Current ratio of 1.42 is fine compared to the rest of the industry. HIW outperforms 64.06% of its industry peers.
HIW has a Quick Ratio of 1.39. This is a normal value and indicates that HIW is financially healthy and should not expect problems in meeting its short term obligations.
HIW's Quick ratio of 1.39 is fine compared to the rest of the industry. HIW outperforms 64.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
HIW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.73%.
HIW shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.09% yearly.
The Revenue has decreased by -2.29% in the past year.
HIW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.33% yearly.
EPS 1Y (TTM)3.73%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)-2.29%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-1.25%
3.2 Future
The Earnings Per Share is expected to decrease by -14.14% on average over the next years. This is quite bad
Based on estimates for the next years, HIW will show a small growth in Revenue. The Revenue will grow by 3.28% on average per year.
EPS Next Y7.04%
EPS Next 2Y-20.21%
EPS Next 3Y-14.14%
EPS Next 5YN/A
Revenue Next Year-0.75%
Revenue Next 2Y2.18%
Revenue Next 3Y2.26%
Revenue Next 5Y3.28%
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 decreasing.
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
With a Price/Earnings ratio of 20.06, HIW is valued on the expensive side.
HIW's Price/Earnings ratio is rather cheap when compared to the industry. HIW is cheaper than 83.59% of the companies in the same industry.
HIW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.15.
HIW is valuated quite expensively with a Price/Forward Earnings ratio of 37.43.
HIW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HIW is cheaper than 69.53% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HIW to the average of the S&P500 Index (36.12), we can say HIW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.06 | ||
| Fwd PE | 37.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HIW is valued a bit cheaper than the industry average as 67.19% of the companies are valued more expensively.
HIW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HIW is cheaper than 88.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.89 | ||
| EV/EBITDA | 12.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HIW does not grow enough to justify the current Price/Earnings ratio.
A cheap valuation may be justified as HIW's earnings are expected to decrease with -14.14% in the coming years.
PEG (NY)2.85
PEG (5Y)N/A
EPS Next 2Y-20.21%
EPS Next 3Y-14.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.36%, HIW is a good candidate for dividend investing.
HIW's Dividend Yield is a higher than the industry average which is at 6.59.
HIW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.36% |
5.2 History
The dividend of HIW has a limited annual growth rate of 0.93%.
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)0.93%
Div Incr Years0
Div Non Decr Years20
5.3 Sustainability
HIW pays out 174.24% of its income as dividend. 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.
DP174.24%
EPS Next 2Y-20.21%
EPS Next 3Y-14.14%
27.88
+0.32 (+1.16%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners110.25%
Inst Owner Change-1.24%
Ins Owners1.89%
Ins Owner Change-0.18%
Market Cap3.01B
Revenue(TTM)808.28M
Net Income(TTM)124.87M
Analysts69.33
Price Target31.93 (14.53%)
Short Float %4.88%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.36% |
Yearly Dividend2.01
Dividend Growth(5Y)0.93%
DP174.24%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-17.12%
Min EPS beat(2)-29.07%
Max EPS beat(2)-5.17%
EPS beat(4)2
Avg EPS beat(4)87.76%
Min EPS beat(4)-29.07%
Max EPS beat(4)314.25%
EPS beat(8)5
Avg EPS beat(8)62.52%
EPS beat(12)7
Avg EPS beat(12)46.95%
EPS beat(16)10
Avg EPS beat(16)40.09%
Revenue beat(2)0
Avg Revenue beat(2)-2.65%
Min Revenue beat(2)-2.94%
Max Revenue beat(2)-2.36%
Revenue beat(4)0
Avg Revenue beat(4)-1.95%
Min Revenue beat(4)-2.94%
Max Revenue beat(4)-0.27%
Revenue beat(8)1
Avg Revenue beat(8)-1.32%
Revenue beat(12)1
Avg Revenue beat(12)-1.34%
Revenue beat(16)3
Avg Revenue beat(16)-1.05%
PT rev (1m)0.97%
PT rev (3m)1.7%
EPS NQ rev (1m)-5.08%
EPS NQ rev (3m)-8.2%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.06 | ||
| Fwd PE | 37.43 | ||
| P/S | 3.73 | ||
| P/FCF | 10.89 | ||
| P/OCF | 8.29 | ||
| P/B | 1.26 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 12.83 |
EPS(TTM)1.39
EY4.99%
EPS(NY)0.74
Fwd EY2.67%
FCF(TTM)2.56
FCFY9.19%
OCF(TTM)3.36
OCFY12.07%
SpS7.48
BVpS22.04
TBVpS22.04
PEG (NY)2.85
PEG (5Y)N/A
Graham Number26.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 5.24% | ||
| ROCE | 3.55% | ||
| ROIC | 2.8% | ||
| ROICexc | 2.8% | ||
| ROICexgc | 2.8% | ||
| OM | 25.78% | ||
| PM (TTM) | 15.45% | ||
| GM | 67.08% | ||
| FCFM | 34.24% |
ROA(3y)2.22%
ROA(5y)3.75%
ROE(3y)5.52%
ROE(5y)8.77%
ROIC(3y)3.09%
ROIC(5y)3.29%
ROICexc(3y)3.11%
ROICexc(5y)3.32%
ROICexgc(3y)3.11%
ROICexgc(5y)3.32%
ROCE(3y)3.92%
ROCE(5y)4.16%
ROICexgc growth 3Y-5.82%
ROICexgc growth 5Y-0.78%
ROICexc growth 3Y-5.82%
ROICexc growth 5Y-0.78%
OM growth 3Y-5.14%
OM growth 5Y0.08%
PM growth 3Y-33.17%
PM growth 5Y-7.93%
GM growth 3Y-1.06%
GM growth 5Y0.24%
F-Score3
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 12.3 | ||
| Debt/EBITDA | 6.8 | ||
| Cap/Depr | 29.7% | ||
| Cap/Sales | 10.73% | ||
| Interest Coverage | 1.44 | ||
| Cash Conversion | 72.65% | ||
| Profit Quality | 221.67% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 0.55 |
F-Score3
WACC6.19%
ROIC/WACC0.45
Cap/Depr(3y)43.95%
Cap/Depr(5y)73.2%
Cap/Sales(3y)15.46%
Cap/Sales(5y)24.79%
Profit Quality(3y)222.52%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.73%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%-14.29%
EPS Next Y7.04%
EPS Next 2Y-20.21%
EPS Next 3Y-14.14%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.29%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-1.25%
Revenue Next Year-0.75%
Revenue Next 2Y2.18%
Revenue Next 3Y2.26%
Revenue Next 5Y3.28%
EBIT growth 1Y0.25%
EBIT growth 3Y-2.82%
EBIT growth 5Y2.42%
EBIT Next Year123.3%
EBIT Next 3Y33.78%
EBIT Next 5Y23.56%
FCF growth 1Y83.8%
FCF growth 3Y22.56%
FCF growth 5Y44.4%
OCF growth 1Y-4.26%
OCF growth 3Y-0.89%
OCF growth 5Y1.99%
HIGHWOODS PROPERTIES INC / HIW FAQ
What is the fundamental rating for HIW stock?
ChartMill assigns a fundamental rating of 4 / 10 to HIW.
What is the valuation status for HIW stock?
ChartMill assigns a valuation rating of 4 / 10 to HIGHWOODS PROPERTIES INC (HIW). This can be considered as Fairly Valued.
How profitable is HIGHWOODS PROPERTIES INC (HIW) stock?
HIGHWOODS PROPERTIES INC (HIW) has a profitability rating of 5 / 10.
What are the PE and PB ratios of HIGHWOODS PROPERTIES INC (HIW) stock?
The Price/Earnings (PE) ratio for HIGHWOODS PROPERTIES INC (HIW) is 20.06 and the Price/Book (PB) ratio is 1.26.
What is the expected EPS growth for HIGHWOODS PROPERTIES INC (HIW) stock?
The Earnings per Share (EPS) of HIGHWOODS PROPERTIES INC (HIW) is expected to grow by 7.04% in the next year.