HIGHWOODS PROPERTIES INC (HIW)
US4312841087 - REIT
We assign a fundamental rating of 4 out of 10 to HIW. HIW was compared to 130 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 is valued expensive and 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.
Each year in the past 5 years HIW has been profitable.
Each year in the past 5 years HIW had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HIW (2.35%) is better than 71.09% of its industry peers.
HIW has a Return On Equity of 5.99%. This is in the better half of the industry: HIW outperforms 75.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.85%, HIW is in line with its industry, outperforming 55.47% 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 3.08%.
| 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
HIW has a better Profit Margin (17.10%) than 70.31% of its industry peers.
HIW's Profit Margin has declined in the last couple of years.
HIW has a Operating Margin (25.08%) which is in line with its industry peers.
In the last couple of years the Operating Margin of HIW has declined.
HIW has a Gross Margin (67.33%) which is in line with its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HIW is destroying value.
The number of shares outstanding for HIW has been increased compared to 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 0.63, we must say that HIW is in the distress zone and has some risk of bankruptcy.
HIW has a Altman-Z score (0.63) which is in line with its industry peers.
The Debt to FCF ratio of HIW is 15.89, which is on the high side as it means it would take HIW, 15.89 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 15.89, HIW is doing good in the industry, outperforming 78.91% 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's Debt to Equity ratio of 1.40 is in line compared to the rest of the industry. HIW outperforms 42.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 15.89 | ||
| Altman-Z | 0.63 |
ROIC/WACC0.46
WACC6.2%
2.3 Liquidity
HIW has a Current Ratio of 1.58. 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 Current ratio of 1.58 is fine compared to the rest of the industry. HIW outperforms 64.84% of its industry peers.
HIW has a Quick Ratio of 1.58. 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 1.58. This is in the better half of the industry: HIW outperforms 67.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
HIW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.56%, which is quite good.
Measured over the past years, HIW shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.72% on average per year.
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
Based on estimates for the next years, HIW will show a very negative growth in Earnings Per Share. The EPS will decrease by -30.43% on average per year.
The Revenue is expected to grow by 2.67% on average over the next years.
EPS Next Y-13.6%
EPS Next 2Y-44.53%
EPS Next 3Y-30.43%
EPS Next 5YN/A
Revenue Next Year-1.32%
Revenue Next 2Y-0.63%
Revenue Next 3Y0.67%
Revenue Next 5Y2.67%
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 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 22.45, HIW is valued on the expensive side.
HIW's Price/Earnings ratio is a bit cheaper when compared to the industry. HIW is cheaper than 78.91% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. HIW is around the same levels.
Based on the Price/Forward Earnings ratio of 76.36, 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.
HIW is valuated expensively when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.45 | ||
| Fwd PE | 76.36 |
4.2 Price Multiples
HIW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HIW is cheaper than 68.75% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HIW indicates a rather cheap valuation: HIW is cheaper than 81.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.38 | ||
| EV/EBITDA | 12.59 |
4.3 Compensation for Growth
HIW's earnings are expected to decrease with -30.43% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-44.53%
EPS Next 3Y-30.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.81%, HIW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 15.49, HIW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, HIW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.81% |
5.2 History
The dividend of HIW has a limited annual growth rate of 1.56%.
HIW has been paying a dividend for at least 10 years, so it has 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 Years20
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-44.53%
EPS Next 3Y-30.43%
HIGHWOODS PROPERTIES INC
NYSE:HIW (12/20/2024, 8:16:44 PM)
After market: 30.08 0 (0%)30.08
+0.71 (+2.42%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners106.62%
Inst Owner Change2.95%
Ins Owners1.71%
Ins Owner Change-0.27%
Market Cap3.19B
Analysts68.57
Price Target32.64 (8.51%)
Short Float %4.11%
Short Ratio4.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.81% |
Dividend Growth(5Y)1.56%
DP151.42%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)40.41%
Min EPS beat(2)-35.53%
Max EPS beat(2)116.36%
EPS beat(4)3
Avg EPS beat(4)37.28%
Min EPS beat(4)-35.53%
Max EPS beat(4)116.36%
EPS beat(8)5
Avg EPS beat(8)26.55%
EPS beat(12)8
Avg EPS beat(12)24.21%
EPS beat(16)12
Avg EPS beat(16)41.27%
Revenue beat(2)0
Avg Revenue beat(2)-1.21%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)-1.15%
Revenue beat(4)1
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-1.45%
Max Revenue beat(4)1.16%
Revenue beat(8)1
Avg Revenue beat(8)-1.03%
Revenue beat(12)3
Avg Revenue beat(12)-0.75%
Revenue beat(16)4
Avg Revenue beat(16)-0.62%
PT rev (1m)1.99%
PT rev (3m)12.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-60.49%
EPS NY rev (1m)1.39%
EPS NY rev (3m)-6.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)3.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.45 | ||
| Fwd PE | 76.36 | ||
| P/S | 3.86 | ||
| P/FCF | 15.38 | ||
| P/OCF | 7.92 | ||
| P/B | 1.35 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 12.59 |
EPS(TTM)1.34
EY4.45%
EPS(NY)0.39
Fwd EY1.31%
FCF(TTM)1.96
FCFY6.5%
OCF(TTM)3.8
OCFY12.63%
SpS7.8
BVpS22.27
TBVpS22.27
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.35% | ||
| ROE | 5.99% | ||
| ROCE | 3.61% | ||
| ROIC | 2.85% | ||
| ROICexc | 2.86% | ||
| ROICexgc | 2.86% | ||
| OM | 25.08% | ||
| PM (TTM) | 17.1% | ||
| GM | 67.33% | ||
| FCFM | 25.07% |
ROA(3y)3.49%
ROA(5y)3.94%
ROE(3y)8.29%
ROE(5y)9.18%
ROIC(3y)3.29%
ROIC(5y)3.31%
ROICexc(3y)3.3%
ROICexc(5y)3.34%
ROICexgc(3y)3.3%
ROICexgc(5y)3.34%
ROCE(3y)4.16%
ROCE(5y)4.19%
ROICexcg growth 3Y-6.06%
ROICexcg growth 5Y-3.29%
ROICexc growth 3Y-6.06%
ROICexc growth 5Y-3.29%
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%
F-Score5
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 15.89 | ||
| Debt/EBITDA | 6.42 | ||
| Cap/Depr | 63.89% | ||
| Cap/Sales | 23.6% | ||
| Interest Coverage | 1.51 | ||
| Cash Conversion | 78.48% | ||
| Profit Quality | 146.6% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 0.63 |
F-Score5
WACC6.2%
ROIC/WACC0.46
Cap/Depr(3y)79.69%
Cap/Depr(5y)101.94%
Cap/Sales(3y)27.67%
Cap/Sales(5y)34.78%
Profit Quality(3y)98.04%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.56%
EPS 3Y-27.29%
EPS 5Y-4.72%
EPS Q2Q%-33.33%
EPS Next Y-13.6%
EPS Next 2Y-44.53%
EPS Next 3Y-30.43%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.4%
Revenue growth 3Y4.21%
Revenue growth 5Y2.98%
Sales Q2Q%-1.34%
Revenue Next Year-1.32%
Revenue Next 2Y-0.63%
Revenue Next 3Y0.67%
Revenue Next 5Y2.67%
EBIT growth 1Y-11.45%
EBIT growth 3Y0.07%
EBIT growth 5Y1.44%
EBIT Next Year119.82%
EBIT Next 3Y30.23%
EBIT Next 5Y22.4%
FCF growth 1Y-1.7%
FCF growth 3YN/A
FCF growth 5Y55.85%
OCF growth 1Y-5.33%
OCF growth 3Y2.04%
OCF growth 5Y1.2%