HIGHWOODS PROPERTIES INC (HIW) Stock Fundamental Analysis
USA - NYSE:HIW - US4312841087 - REIT
29.36 USD
+0.62 (+2.16%)
29.25 USD
-0.11 (-0.37%)
We assign a fundamental rating of 4 out of 10 to HIW. HIW was compared to 128 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 does not seem to be growing, but still is valued expensively.
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.
HIW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HIW (2.02%) is better than 65.35% of its industry peers.
HIW has a better Return On Equity (5.22%) than 66.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 5.22% | ||
| ROIC | N/A |
ROA(3y)2.22%
ROA(5y)3.75%
ROE(3y)5.52%
ROE(5y)8.77%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 15.37%, HIW is in the better half of the industry, outperforming 65.35% of the companies in the same industry.
In the last couple of years the Profit Margin of HIW has declined.
HIW has a Operating Margin (25.71%) which is in line with its industry peers.
HIW's Operating Margin has been stable in the last couple of years.
The Gross Margin of HIW (67.08%) 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 | 25.71% | ||
| PM (TTM) | 15.37% | ||
| GM | 67.08% |
OM growth 3Y-5.11%
OM growth 5Y0.11%
PM growth 3Y-33.12%
PM growth 5Y-7.89%
GM growth 3Y-1.06%
GM growth 5Y0.24%
2. Health
2.1 Basic Checks
HIW does not have a ROIC to compare to the WACC, probably because it is not profitable.
HIW has more shares outstanding than it did 1 year ago.
HIW has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HIW is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of HIW is 20.39, which is on the high side as it means it would take HIW, 20.39 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HIW (20.39) is better than 74.02% 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 (1.43) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 20.39 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.27%
2.3 Liquidity
A Current Ratio of 1.40 indicates that HIW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.40, HIW is in the better half of the industry, outperforming 65.35% of the companies in the same industry.
A Quick Ratio of 1.22 indicates that HIW should not have too much problems paying its short term obligations.
The Quick ratio of HIW (1.22) is better than 61.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.22 |
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.
HIW shows a decrease in Revenue. In the last year, the revenue decreased by -2.26%.
Measured over the past years, HIW shows a small growth in Revenue. The Revenue has been growing by 2.33% on average per year.
EPS 1Y (TTM)3.73%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)-2.26%
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 -14.14% on average per year.
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-0.75%
Revenue Next 2Y2.18%
Revenue Next 3Y2.26%
Revenue Next 5Y3.28%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.12, HIW is valued on the expensive side.
Based on the Price/Earnings ratio, HIW is valued cheaply inside the industry as 82.68% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.06. HIW is around the same levels.
HIW is valuated quite expensively with a Price/Forward Earnings ratio of 39.42.
HIW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HIW is cheaper than 64.57% of the companies in the same industry.
HIW's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 39.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HIW is valued a bit cheaper than 65.35% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HIW indicates a somewhat cheap valuation: HIW is cheaper than 77.17% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19 | ||
| EV/EBITDA | 13.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A cheap valuation may be justified as HIW's earnings are expected to decrease with -14.14% in the coming years.
PEG (NY)3
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 6.96%, HIW is a good candidate for dividend investing.
HIW's Dividend Yield is a higher than the industry average which is at 6.31.
HIW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.96% |
5.2 History
The dividend of HIW has a limited annual growth rate of 0.88%.
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)0.88%
Div Incr Years0
Div Non Decr Years20
5.3 Sustainability
HIW pays out 175.42% 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.
DP175.42%
EPS Next 2Y-20.21%
EPS Next 3Y-14.14%
29.36
+0.62 (+2.16%)
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 Change0.3%
Ins Owners1.89%
Ins Owner Change0.6%
Market Cap3.17B
Revenue(TTM)808.51M
Net Income(TTM)124.27M
Analysts69.33
Price Target32.03 (9.09%)
Short Float %4.65%
Short Ratio4.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.96% |
Yearly Dividend2.01
Dividend Growth(5Y)0.88%
DP175.42%
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)1.29%
PT rev (3m)1.65%
EPS NQ rev (1m)-11.48%
EPS NQ rev (3m)-15.62%
EPS NY rev (1m)0%
EPS NY rev (3m)16.71%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 39.42 | ||
| P/S | 3.92 | ||
| P/FCF | 19 | ||
| P/OCF | 8.72 | ||
| P/B | 1.33 | ||
| P/tB | 1.33 | ||
| EV/EBITDA | 13.16 |
EPS(TTM)1.39
EY4.73%
EPS(NY)0.74
Fwd EY2.54%
FCF(TTM)1.55
FCFY5.26%
OCF(TTM)3.37
OCFY11.47%
SpS7.48
BVpS22.03
TBVpS22.03
PEG (NY)3
PEG (5Y)N/A
Graham Number26.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.02% | ||
| ROE | 5.22% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 25.71% | ||
| PM (TTM) | 15.37% | ||
| GM | 67.08% | ||
| FCFM | 20.66% |
ROA(3y)2.22%
ROA(5y)3.75%
ROE(3y)5.52%
ROE(5y)8.77%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)3.92%
ROCE(5y)4.16%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-5.11%
OM growth 5Y0.11%
PM growth 3Y-33.12%
PM growth 5Y-7.89%
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 | 20.39 | ||
| Debt/EBITDA | 6.81 | ||
| Cap/Depr | 67.47% | ||
| Cap/Sales | 24.37% | ||
| Interest Coverage | 1.44 | ||
| Cash Conversion | 72.81% | ||
| Profit Quality | 134.39% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | N/A |
F-Score3
WACC6.27%
ROIC/WACCN/A
Cap/Depr(3y)72.47%
Cap/Depr(5y)90.31%
Cap/Sales(3y)25.73%
Cap/Sales(5y)30.96%
Profit Quality(3y)149.09%
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)-2.26%
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 1Y0.01%
EBIT growth 3Y-2.78%
EBIT growth 5Y2.44%
EBIT Next Year123.3%
EBIT Next 3Y33.78%
EBIT Next 5Y23.56%
FCF growth 1Y10.89%
FCF growth 3Y3.36%
FCF growth 5Y30.36%
OCF growth 1Y-4.13%
OCF growth 3Y-0.86%
OCF growth 5Y2.01%
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 3 / 10 to HIGHWOODS PROPERTIES INC (HIW). This can be considered as Overvalued.
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 21.12 and the Price/Book (PB) ratio is 1.33.
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.