HIGHWOODS PROPERTIES INC (HIW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HIW - US4312841087 - REIT
27.29 USD
+0.11 (+0.4%)
27.29 USD
0 (0%)
Overall HIW gets a fundamental rating of 4 out of 10. We evaluated HIW against 128 industry peers in the Diversified REITs industry. Both the profitability and the financial health of HIW get a neutral evaluation. Nothing too spectacular is happening here. HIW has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year HIW was profitable.
HIW had a positive operating cash flow in the past year.
In the past 5 years HIW has always been profitable.
Each year in the past 5 years HIW had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.03%, HIW is in the better half of the industry, outperforming 67.19% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.24%, HIW is in the better half of the industry, outperforming 67.19% of the companies in the same industry.
HIW has a Return On Invested Capital (2.80%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for HIW is in line with the industry average of 3.06%.
| 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
With a decent Profit Margin value of 15.45%, HIW is doing good in the industry, outperforming 66.41% of the companies in the same industry.
In the last couple of years the Profit Margin of HIW has declined.
HIW's Operating Margin of 25.78% is in line compared to the rest of the industry. HIW outperforms 56.25% of its industry peers.
HIW's Operating Margin has been stable in the last couple of years.
HIW has a Gross Margin of 67.08%. This is comparable to the rest of the industry: HIW outperforms 51.56% of its industry peers.
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.
Compared to 1 year ago, HIW has more shares outstanding
Compared to 5 years ago, HIW has more shares outstanding
HIW has a worse debt/assets ratio than last year.
2.2 Solvency
HIW has an Altman-Z score of 0.54. 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 (0.54) 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 has a better Debt to FCF ratio (12.30) than 86.72% 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.
With a Debt to Equity ratio value of 1.43, HIW perfoms like the industry average, outperforming 45.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 12.3 | ||
| Altman-Z | 0.54 |
ROIC/WACC0.45
WACC6.18%
2.3 Liquidity
A Current Ratio of 1.42 indicates that HIW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.42, HIW is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
A Quick Ratio of 1.39 indicates that HIW should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.39, HIW is doing good in the industry, outperforming 64.84% of the companies in the same industry.
| 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.
Looking at the last year, HIW shows a decrease in Revenue. The Revenue has decreased by -2.29% in the last year.
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
The Earnings Per Share is expected to decrease by -14.14% on average over the next years. This is quite bad
Based on estimates for the next years, HIW will show a small growth in Revenue. The Revenue will grow by 3.28% on average per year.
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
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
HIW is valuated rather expensively with a Price/Earnings ratio of 19.63.
Based on the Price/Earnings ratio, HIW is valued cheaply inside the industry as 85.16% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.47. HIW is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 36.64 indicates a quite expensive valuation of HIW.
Based on the Price/Forward Earnings ratio, HIW is valued a bit cheaper than 69.53% of the companies in the same industry.
HIW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.63 | ||
| Fwd PE | 36.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HIW is valued a bit cheaper than the industry average as 67.19% of the companies are valued more expensively.
HIW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HIW is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.65 | ||
| EV/EBITDA | 12.7 |
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)2.79
PEG (5Y)N/A
EPS Next 2Y-20.21%
EPS Next 3Y-14.14%
5. Dividend
5.1 Amount
HIW has a Yearly Dividend Yield of 7.36%, which is a nice return.
HIW's Dividend Yield is a higher than the industry average which is at 6.59.
HIW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.36% |
5.2 History
The dividend of HIW has a limited annual growth rate of 0.93%.
HIW has been paying a dividend for at least 10 years, so it has 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
HIW pays out 174.24% 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.
DP174.24%
EPS Next 2Y-20.21%
EPS Next 3Y-14.14%
27.29
+0.11 (+0.4%)
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 Change-1.24%
Ins Owners1.89%
Ins Owner Change-0.18%
Market Cap2.95B
Revenue(TTM)808.28M
Net Income(TTM)124.87M
Analysts69.33
Price Target31.93 (17%)
Short Float %4.88%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.36% |
Yearly Dividend2.01
Dividend Growth(5Y)0.93%
DP174.24%
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)0.97%
PT rev (3m)1.7%
EPS NQ rev (1m)-5.08%
EPS NQ rev (3m)-8.2%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.63 | ||
| Fwd PE | 36.64 | ||
| P/S | 3.65 | ||
| P/FCF | 10.65 | ||
| P/OCF | 8.11 | ||
| P/B | 1.24 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 12.7 |
EPS(TTM)1.39
EY5.09%
EPS(NY)0.74
Fwd EY2.73%
FCF(TTM)2.56
FCFY9.39%
OCF(TTM)3.36
OCFY12.33%
SpS7.48
BVpS22.04
TBVpS22.04
PEG (NY)2.79
PEG (5Y)N/A
Graham Number26.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 5.24% | ||
| ROCE | 3.55% | ||
| ROIC | 2.8% | ||
| ROICexc | 2.8% | ||
| ROICexgc | 2.8% | ||
| OM | 25.78% | ||
| PM (TTM) | 15.45% | ||
| GM | 67.08% | ||
| FCFM | 34.24% |
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 | 1.43 | ||
| Debt/FCF | 12.3 | ||
| Debt/EBITDA | 6.8 | ||
| Cap/Depr | 29.7% | ||
| Cap/Sales | 10.73% | ||
| Interest Coverage | 1.44 | ||
| Cash Conversion | 72.65% | ||
| Profit Quality | 221.67% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 0.54 |
F-Score3
WACC6.18%
ROIC/WACC0.45
Cap/Depr(3y)43.95%
Cap/Depr(5y)73.2%
Cap/Sales(3y)15.46%
Cap/Sales(5y)24.79%
Profit Quality(3y)222.52%
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)-2.29%
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 1Y0.25%
EBIT growth 3Y-2.82%
EBIT growth 5Y2.42%
EBIT Next Year123.3%
EBIT Next 3Y33.78%
EBIT Next 5Y23.56%
FCF growth 1Y83.8%
FCF growth 3Y22.56%
FCF growth 5Y44.4%
OCF growth 1Y-4.26%
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 19.63 and the Price/Book (PB) ratio is 1.24.
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.