HIGHWOODS PROPERTIES INC (HIW) Stock Fundamental Analysis
USA - NYSE:HIW - US4312841087 - REIT
29.73 USD
+0.09 (+0.3%)
29.73 USD
0 (0%)
Overall HIW gets a fundamental rating of 4 out of 10. We evaluated HIW against 127 industry peers in the Diversified REITs industry. There are concerns on the financial health of HIW while its profitability can be described as average. HIW has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year HIW was profitable.
In the past year HIW had a positive cash flow from operations.
In the past 5 years HIW has always been profitable.
HIW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HIW has a better Return On Assets (2.09%) than 66.14% of its industry peers.
Looking at the Return On Equity, with a value of 5.33%, HIW is in the better half of the industry, outperforming 67.72% of the companies in the same industry.
HIW's Return On Invested Capital of 2.79% is in line compared to the rest of the industry. HIW outperforms 51.18% 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 3.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 5.33% | ||
| ROIC | 2.79% |
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's Profit Margin of 15.61% is fine compared to the rest of the industry. HIW outperforms 65.35% of its industry peers.
HIW's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 25.21%, HIW perfoms like the industry average, outperforming 55.91% of the companies in the same industry.
HIW's Operating Margin has been stable in the last couple of years.
HIW has a Gross Margin of 67.21%. This is comparable to the rest of the industry: HIW outperforms 51.18% of its industry peers.
In the last couple of years the Gross Margin of HIW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.21% | ||
| PM (TTM) | 15.61% | ||
| GM | 67.21% |
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
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.
HIW has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.60, we must say that HIW is in the distress zone and has some risk of bankruptcy.
HIW has a Altman-Z score (0.60) which is in line with its industry peers.
HIW has a debt to FCF ratio of 18.77. This is a negative value and a sign of low solvency as HIW would need 18.77 years to pay back of all of its debts.
The Debt to FCF ratio of HIW (18.77) is better than 76.38% of its industry peers.
A Debt/Equity ratio of 1.41 is on the high side and indicates that HIW has dependencies on debt financing.
HIW has a Debt to Equity ratio of 1.41. This is comparable to the rest of the industry: HIW outperforms 44.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 18.77 | ||
| Altman-Z | 0.6 |
ROIC/WACC0.44
WACC6.28%
2.3 Liquidity
A Current Ratio of 1.36 indicates that HIW should not have too much problems paying its short term obligations.
HIW's Current ratio of 1.36 is fine compared to the rest of the industry. HIW outperforms 61.42% of its industry peers.
HIW has a Quick Ratio of 1.36. This is a normal value and indicates that HIW is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of HIW (1.36) is better than 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.00% over the past year.
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 -2.31% in the past year.
The Revenue has been growing slightly by 2.33% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%-71.19%
Revenue 1Y (TTM)-2.31%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-2.02%
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 -14.14% yearly.
HIW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.28% yearly.
EPS Next Y7.04%
EPS Next 2Y-20.21%
EPS Next 3Y-14.14%
EPS Next 5YN/A
Revenue Next Year-0.68%
Revenue Next 2Y2.28%
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
A Price/Earnings ratio of 21.09 indicates a rather expensive valuation of HIW.
81.10% of the companies in the same industry are more expensive than HIW, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.89, HIW is valued a bit cheaper.
A Price/Forward Earnings ratio of 39.91 indicates a quite expensive valuation of HIW.
Based on the Price/Forward Earnings ratio, HIW is valued a bit cheaper than 64.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HIW to the average of the S&P500 Index (22.99), we can say HIW is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.09 | ||
| Fwd PE | 39.91 |
4.2 Price Multiples
HIW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HIW is cheaper than 67.72% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HIW is valued a bit cheaper than 79.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.09 | ||
| EV/EBITDA | 13 |
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.
HIW's earnings are expected to decrease with -14.14% in the coming years. This may justify a cheaper valuation.
PEG (NY)2.99
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 6.75%, HIW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.15, HIW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, HIW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.75% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.93%
Div Incr Years0
Div Non Decr Years20
5.3 Sustainability
171.21% 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.
DP171.21%
EPS Next 2Y-20.21%
EPS Next 3Y-14.14%
29.73
+0.09 (+0.3%)
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 Change0.03%
Ins Owners1.89%
Ins Owner Change0.6%
Market Cap3.21B
Revenue(TTM)810.83M
Net Income(TTM)126.55M
Analysts70
Price Target31.62 (6.36%)
Short Float %4.56%
Short Ratio4.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.75% |
Yearly Dividend2.01
Dividend Growth(5Y)0.93%
DP171.21%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)154.54%
Min EPS beat(2)-5.17%
Max EPS beat(2)314.25%
EPS beat(4)2
Avg EPS beat(4)86.14%
Min EPS beat(4)-35.53%
Max EPS beat(4)314.25%
EPS beat(8)5
Avg EPS beat(8)65.84%
EPS beat(12)8
Avg EPS beat(12)50.42%
EPS beat(16)11
Avg EPS beat(16)48.1%
Revenue beat(2)0
Avg Revenue beat(2)-2.3%
Min Revenue beat(2)-2.36%
Max Revenue beat(2)-2.25%
Revenue beat(4)0
Avg Revenue beat(4)-1.54%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)-0.27%
Revenue beat(8)1
Avg Revenue beat(8)-1.06%
Revenue beat(12)1
Avg Revenue beat(12)-1.1%
Revenue beat(16)3
Avg Revenue beat(16)-0.87%
PT rev (1m)0%
PT rev (3m)0.72%
EPS NQ rev (1m)-2.9%
EPS NQ rev (3m)-4.29%
EPS NY rev (1m)0%
EPS NY rev (3m)16.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.09 | ||
| Fwd PE | 39.91 | ||
| P/S | 3.96 | ||
| P/FCF | 18.09 | ||
| P/OCF | 8.82 | ||
| P/B | 1.35 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 13 |
EPS(TTM)1.41
EY4.74%
EPS(NY)0.74
Fwd EY2.51%
FCF(TTM)1.64
FCFY5.53%
OCF(TTM)3.37
OCFY11.33%
SpS7.5
BVpS21.95
TBVpS21.95
PEG (NY)2.99
PEG (5Y)N/A
Graham Number26.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 5.33% | ||
| ROCE | 3.53% | ||
| ROIC | 2.79% | ||
| ROICexc | 2.8% | ||
| ROICexgc | 2.8% | ||
| OM | 25.21% | ||
| PM (TTM) | 15.61% | ||
| GM | 67.21% | ||
| FCFM | 21.91% |
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 | 1.41 | ||
| Debt/FCF | 18.77 | ||
| Debt/EBITDA | 6.64 | ||
| Cap/Depr | 62.62% | ||
| Cap/Sales | 22.99% | ||
| Interest Coverage | 1.37 | ||
| Cash Conversion | 72.5% | ||
| Profit Quality | 140.37% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 0.6 |
F-Score3
WACC6.28%
ROIC/WACC0.44
Cap/Depr(3y)72.48%
Cap/Depr(5y)90.32%
Cap/Sales(3y)25.75%
Cap/Sales(5y)30.97%
Profit Quality(3y)148.86%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%-71.19%
EPS Next Y7.04%
EPS Next 2Y-20.21%
EPS Next 3Y-14.14%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.31%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-2.02%
Revenue Next Year-0.68%
Revenue Next 2Y2.28%
Revenue Next 3Y2.26%
Revenue Next 5Y3.28%
EBIT growth 1Y-4.55%
EBIT growth 3Y-2.82%
EBIT growth 5Y2.42%
EBIT Next Year123.3%
EBIT Next 3Y33.78%
EBIT Next 5Y25.03%
FCF growth 1Y14.61%
FCF growth 3Y3.3%
FCF growth 5Y30.32%
OCF growth 1Y-7.74%
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 21.09 and the Price/Book (PB) ratio is 1.35.
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.