HIGHWOODS PROPERTIES INC (HIW) Stock Fundamental Analysis
NYSE:HIW - New York Stock Exchange, Inc. - US4312841087 - REIT - Currency: USD
HIW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 129 industry peers in the Diversified REITs industry. HIW has only an average score on both its financial health and profitability. 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 Return On Assets of 2.82%. This is in the better half of the industry: HIW outperforms 75.97% of its industry peers.
With an excellent Return On Equity value of 7.10%, HIW belongs to the best of the industry, outperforming 82.17% of the companies in the same industry.
HIW has a Return On Invested Capital (2.84%) which is in line with 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 3.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 7.1% | ||
| ROIC | 2.84% |
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 21.00% is fine compared to the rest of the industry. HIW outperforms 77.52% of its industry peers.
HIW's Profit Margin has declined in the last couple of years.
The Operating Margin of HIW (25.71%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HIW has remained more or less at the same level.
HIW's Gross Margin of 67.27% is in line compared to the rest of the industry. HIW outperforms 52.71% 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 | 25.71% | ||
| PM (TTM) | 21% | ||
| GM | 67.27% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HIW 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 0.65. This is a bad value and indicates that HIW is not financially healthy and even has some risk of bankruptcy.
HIW has a Altman-Z score of 0.65. This is comparable to the rest of the industry: HIW outperforms 57.36% of its industry peers.
HIW has a debt to FCF ratio of 17.31. This is a negative value and a sign of low solvency as HIW would need 17.31 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 17.31, HIW belongs to the best of the industry, outperforming 82.95% of the companies in the same industry.
HIW has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of HIW (1.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 17.31 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.42
WACC6.68%
2.3 Liquidity
A Current Ratio of 1.49 indicates that HIW should not have too much problems paying its short term obligations.
HIW has a better Current ratio (1.49) than 69.77% of its industry peers.
A Quick Ratio of 1.49 indicates that HIW should not have too much problems paying its short term obligations.
HIW has a Quick ratio of 1.49. This is in the better half of the industry: HIW outperforms 70.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 50.00% over the past year.
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 -2.11% in the last year.
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)50%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%264%
Revenue 1Y (TTM)-2.11%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-5.16%
3.2 Future
The Earnings Per Share is expected to decrease by -13.23% 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 3.27% yearly.
EPS Next Y-8.28%
EPS Next 2Y-20.21%
EPS Next 3Y-13.23%
EPS Next 5YN/A
Revenue Next Year-0.42%
Revenue Next 2Y2.33%
Revenue Next 3Y2.14%
Revenue Next 5Y3.27%
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 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 17.19.
HIW's Price/Earnings ratio is rather cheap when compared to the industry. HIW is cheaper than 88.37% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, HIW is valued a bit cheaper.
With a Price/Forward Earnings ratio of 42.24, HIW can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, HIW is valued a bit cheaper than 62.02% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, HIW is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 42.24 |
4.2 Price Multiples
HIW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HIW is cheaper than 60.47% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HIW is valued cheaply inside the industry as 82.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.59 | ||
| EV/EBITDA | 13.22 |
4.3 Compensation for Growth
HIW has a very decent profitability rating, which may justify a higher PE ratio.
HIW's earnings are expected to decrease with -13.23% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-20.21%
EPS Next 3Y-13.23%
5. Dividend
5.1 Amount
HIW has a Yearly Dividend Yield of 6.38%, which is a nice return.
HIW's Dividend Yield is comparable with the industry average which is at 6.43.
Compared to an average S&P500 Dividend Yield of 2.37, HIW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.38% |
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 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
HIW pays out 126.08% 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.
DP126.08%
EPS Next 2Y-20.21%
EPS Next 3Y-13.23%
31.46
+0.16 (+0.51%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners108.64%
Inst Owner Change0%
Ins Owners1.9%
Ins Owner Change0.78%
Market Cap3.39B
Analysts71.43
Price Target31.05 (-1.3%)
Short Float %5.71%
Short Ratio6.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.38% |
Yearly Dividend2.01
Dividend Growth(5Y)0.93%
DP126.08%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)192.63%
Min EPS beat(2)71.02%
Max EPS beat(2)314.25%
EPS beat(4)3
Avg EPS beat(4)116.52%
Min EPS beat(4)-35.53%
Max EPS beat(4)314.25%
EPS beat(8)6
Avg EPS beat(8)71.25%
EPS beat(12)8
Avg EPS beat(12)50.12%
EPS beat(16)12
Avg EPS beat(16)52.75%
Revenue beat(2)0
Avg Revenue beat(2)-1.26%
Min Revenue beat(2)-2.25%
Max Revenue beat(2)-0.27%
Revenue beat(4)0
Avg Revenue beat(4)-1.24%
Min Revenue beat(4)-2.25%
Max Revenue beat(4)-0.27%
Revenue beat(8)1
Avg Revenue beat(8)-1.1%
Revenue beat(12)1
Avg Revenue beat(12)-1.05%
Revenue beat(16)3
Avg Revenue beat(16)-0.73%
PT rev (1m)-1.08%
PT rev (3m)-1.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.55%
EPS NY rev (1m)0%
EPS NY rev (3m)52.33%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.41%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 42.24 | ||
| P/S | 4.16 | ||
| P/FCF | 17.59 | ||
| P/OCF | 8.98 | ||
| P/B | 1.41 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 13.22 |
EPS(TTM)1.83
EY5.82%
EPS(NY)0.74
Fwd EY2.37%
FCF(TTM)1.79
FCFY5.68%
OCF(TTM)3.5
OCFY11.13%
SpS7.56
BVpS22.36
TBVpS22.36
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 7.1% | ||
| ROCE | 3.59% | ||
| ROIC | 2.84% | ||
| ROICexc | 2.85% | ||
| ROICexgc | 2.85% | ||
| OM | 25.71% | ||
| PM (TTM) | 21% | ||
| GM | 67.27% | ||
| FCFM | 23.66% |
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%
ROICexcg growth 3Y-5.82%
ROICexcg 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-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 17.31 | ||
| Debt/EBITDA | 6.59 | ||
| Cap/Depr | 62.23% | ||
| Cap/Sales | 22.66% | ||
| Interest Coverage | 1.42 | ||
| Cash Conversion | 74.55% | ||
| Profit Quality | 112.66% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 0.65 |
F-Score5
WACC6.68%
ROIC/WACC0.42
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)50%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%264%
EPS Next Y-8.28%
EPS Next 2Y-20.21%
EPS Next 3Y-13.23%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.11%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-5.16%
Revenue Next Year-0.42%
Revenue Next 2Y2.33%
Revenue Next 3Y2.14%
Revenue Next 5Y3.27%
EBIT growth 1Y-1.94%
EBIT growth 3Y-2.82%
EBIT growth 5Y2.42%
EBIT Next Year121.4%
EBIT Next 3Y34%
EBIT Next 5Y25.48%
FCF growth 1Y15.11%
FCF growth 3Y3.3%
FCF growth 5Y30.32%
OCF growth 1Y-7.25%
OCF growth 3Y-0.89%
OCF growth 5Y1.99%