HIGHWOODS PROPERTIES INC (HIW)
US4312841087 - REIT
Overall HIW gets a fundamental rating of 4 out of 10. We evaluated HIW against 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 has a expensive valuation and it also scores bad on growth.
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
With a decent Return On Assets value of 2.35%, HIW is doing good in the industry, outperforming 72.44% of the companies in the same industry.
HIW has a Return On Equity of 5.99%. This is in the better half of the industry: HIW outperforms 77.17% of its industry peers.
The Return On Invested Capital of HIW (2.85%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for HIW is in line with the industry average of 3.08%.
| 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
With a decent Profit Margin value of 17.10%, HIW is doing good in the industry, outperforming 71.65% of the companies in the same industry.
HIW's Profit Margin has declined in the last couple of years.
HIW's Operating Margin of 25.08% is in line compared to the rest of the industry. HIW outperforms 55.91% 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 comparable to the rest of the industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HIW is destroying value.
HIW has more shares outstanding than it did 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
Based on the Altman-Z score of 0.66, 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 0.66, HIW is in line with its industry, outperforming 51.18% of the companies in the same industry.
HIW has a debt to FCF ratio of 15.89. This is a negative value and a sign of low solvency as HIW would need 15.89 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.89, HIW is in the better half of the industry, outperforming 77.17% of the companies in the same industry.
HIW has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
HIW has a Debt to Equity ratio of 1.40. This is comparable to the rest of the industry: HIW outperforms 44.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 15.89 | ||
| Altman-Z | 0.66 |
ROIC/WACC0.46
WACC6.2%
2.3 Liquidity
A Current Ratio of 1.58 indicates that HIW should not have too much problems paying its short term obligations.
The Current ratio of HIW (1.58) is better than 68.50% of its industry peers.
A Quick Ratio of 1.58 indicates that HIW should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.58, HIW is in the better half of the industry, outperforming 70.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.56% over the past year.
HIW shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.72% yearly.
HIW shows a decrease in Revenue. In the last year, the revenue decreased by -1.40%.
Measured over the past years, HIW shows a small growth in Revenue. The Revenue has been growing by 2.98% on average per year.
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
The Earnings Per Share is expected to decrease by -32.20% on average over the next years. This is quite bad
HIW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.49% yearly.
EPS Next Y-14.78%
EPS Next 2Y-47.45%
EPS Next 3Y-32.2%
EPS Next 5YN/A
Revenue Next Year-1.07%
Revenue Next 2Y-0.49%
Revenue Next 3Y0.57%
Revenue Next 5Y2.49%
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
With a Price/Earnings ratio of 23.80, HIW is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of HIW indicates a somewhat cheap valuation: HIW is cheaper than 79.53% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, HIW is valued at the same level.
Based on the Price/Forward Earnings ratio of 90.21, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, HIW is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.8 | ||
| Fwd PE | 90.21 |
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 69.29% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HIW is valued cheaply inside the industry as 81.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.3 | ||
| EV/EBITDA | 12.97 |
4.3 Compensation for Growth
A cheap valuation may be justified as HIW's earnings are expected to decrease with -32.20% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-47.45%
EPS Next 3Y-32.2%
5. Dividend
5.1 Amount
HIW has a Yearly Dividend Yield of 6.29%, which is a nice return.
HIW's Dividend Yield is a higher than the industry average which is at 6.55.
Compared to an average S&P500 Dividend Yield of 2.23, HIW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.29% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.56%
Div Incr Years0
Div Non Decr Years19
5.3 Sustainability
HIW pays out 151.42% of its income as dividend. This is not a sustainable payout ratio.
HIW's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP151.42%
EPS Next 2Y-47.45%
EPS Next 3Y-32.2%
HIGHWOODS PROPERTIES INC
NYSE:HIW (11/21/2024, 8:04:00 PM)
Premarket: 31.74 -0.15 (-0.47%)31.89
+0.28 (+0.89%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.29% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.8 | ||
| Fwd PE | 90.21 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.35% | ||
| ROE | 5.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.08% | ||
| PM (TTM) | 17.1% | ||
| GM | 67.33% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)13.56%
EPS 3Y-27.29%
EPS 5Y
EPS Q2Q%
EPS Next Y-14.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.4%
Revenue growth 3Y4.21%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y