HIGHWOODS PROPERTIES INC (HIW) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:HIW • US4312841087
25.85 USD
-0.04 (-0.15%)
At close: Jan 30, 2026
25.85 USD
0 (0%)
After Hours: 1/30/2026, 8:04:00 PM
Taking everything into account, HIW scores 4 out of 10 in our fundamental rating. HIW was compared to 124 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- HIW had positive earnings in the past year.
- In the past year HIW had a positive cash flow from operations.
- 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
- HIW has a better Return On Assets (2.03%) than 64.52% of its industry peers.
- HIW has a Return On Equity of 5.24%. This is in the better half of the industry: HIW outperforms 65.32% of its industry peers.
- With a Return On Invested Capital value of 2.80%, HIW perfoms like the industry average, outperforming 52.42% 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 3.05%.
| 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
- HIW has a better Profit Margin (15.45%) than 62.90% of its industry peers.
- In the last couple of years the Profit Margin of HIW has declined.
- HIW has a Operating Margin (25.78%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of HIW has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 67.08%, HIW is in line with its industry, outperforming 48.39% 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.
- The number of shares outstanding for HIW has been increased compared to 1 year ago.
- Compared to 5 years ago, HIW has more shares outstanding
- The debt/assets ratio for HIW is higher compared to a year ago.
2.2 Solvency
- HIW has an Altman-Z score of 0.53. This is a bad value and indicates that HIW is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of HIW (0.53) is comparable to the rest of the industry.
- HIW has a debt to FCF ratio of 12.30. This is a negative value and a sign of low solvency as HIW would need 12.30 years to pay back of all of its debts.
- HIW's Debt to FCF ratio of 12.30 is amongst the best of the industry. HIW outperforms 87.10% of its industry peers.
- HIW has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
- HIW has a Debt to Equity ratio of 1.43. This is comparable to the rest of the industry: HIW outperforms 45.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 12.3 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.45
WACC6.29%
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 69.35% 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 has a Quick ratio of 1.39. This is in the better half of the industry: HIW outperforms 67.74% 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%.
- Measured over the past years, HIW shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.09% on average per year.
- HIW shows a decrease in Revenue. In the last year, the revenue decreased by -2.29%.
- The Revenue has been growing slightly by 2.33% on average over the past years.
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
- Based on estimates for the next years, HIW will show a very negative growth in Earnings Per Share. The EPS will decrease by -15.26% on average per year.
- The Revenue is expected to grow by 3.55% on average over the next years.
EPS Next Y19.42%
EPS Next 2Y-20.35%
EPS Next 3Y-15.26%
EPS Next 5YN/A
Revenue Next Year-1.63%
Revenue Next 2Y1.99%
Revenue Next 3Y2.69%
Revenue Next 5Y3.55%
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 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 18.60, which indicates a rather expensive current valuation of HIW.
- Based on the Price/Earnings ratio, HIW is valued cheaper than 85.48% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, HIW is valued a bit cheaper.
- The Price/Forward Earnings ratio is 34.82, which means the current valuation is very expensive for HIW.
- 71.77% of the companies in the same industry are more expensive than HIW, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, HIW is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.6 | ||
| Fwd PE | 34.82 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HIW indicates a somewhat cheap valuation: HIW is cheaper than 70.97% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, HIW is valued cheaply inside the industry as 87.90% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.26 | ||
| EV/EBITDA | 12.48 |
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.
- A cheap valuation may be justified as HIW's earnings are expected to decrease with -15.26% in the coming years.
PEG (NY)0.96
PEG (5Y)N/A
EPS Next 2Y-20.35%
EPS Next 3Y-15.26%
5. Dividend
5.1 Amount
- HIW has a Yearly Dividend Yield of 7.72%, which is a nice return.
- HIW's Dividend Yield is a higher than the industry average which is at 6.98.
- HIW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.72% |
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
- 174.24% 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.
DP174.24%
EPS Next 2Y-20.35%
EPS Next 3Y-15.26%
HIGHWOODS PROPERTIES INC / HIW FAQ
What is the fundamental rating for HIW stock?
ChartMill assigns a fundamental rating of 4 / 10 to HIW.
Can you provide the valuation status for HIGHWOODS PROPERTIES INC?
ChartMill assigns a valuation rating of 5 / 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.
How financially healthy is HIGHWOODS PROPERTIES INC?
The financial health rating of HIGHWOODS PROPERTIES INC (HIW) is 4 / 10.
Can you provide the dividend sustainability for HIW stock?
The dividend rating of HIGHWOODS PROPERTIES INC (HIW) is 6 / 10 and the dividend payout ratio is 174.24%.