HIGHWOODS PROPERTIES INC (HIW) Stock Fundamental Analysis
NYSE:HIW - New York Stock Exchange, Inc. - US4312841087 - REIT - Currency: USD
Overall HIW gets a fundamental rating of 4 out of 10. We evaluated HIW against 130 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 expensive valuation and it also scores bad on growth.
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.
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
With a decent Return On Assets value of 1.65%, HIW is doing good in the industry, outperforming 63.08% of the companies in the same industry.
HIW has a Return On Equity of 4.23%. This is in the better half of the industry: HIW outperforms 66.92% of its industry peers.
The Return On Invested Capital of HIW (2.93%) 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 3.20%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 4.23% | ||
| ROIC | 2.93% |
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 12.08% is fine compared to the rest of the industry. HIW outperforms 66.15% of its industry peers.
In the last couple of years the Profit Margin of HIW has declined.
With a Operating Margin value of 25.76%, HIW perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
In the last couple of years the Operating Margin of HIW has remained more or less at the same level.
The Gross Margin of HIW (67.04%) 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 | 25.76% | ||
| PM (TTM) | 12.08% | ||
| GM | 67.04% |
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
The debt/assets ratio for HIW is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.58, we must say that HIW is in the distress zone and has some risk of bankruptcy.
HIW has a Altman-Z score (0.58) which is in line with its industry peers.
HIW has a debt to FCF ratio of 15.35. This is a negative value and a sign of low solvency as HIW would need 15.35 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.35, HIW belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
HIW has a Debt/Equity ratio of 1.39. This is a high value indicating a heavy dependency on external financing.
HIW's Debt to Equity ratio of 1.39 is in line compared to the rest of the industry. HIW outperforms 44.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 15.35 | ||
| Altman-Z | 0.58 |
ROIC/WACC0.43
WACC6.75%
2.3 Liquidity
HIW has a Current Ratio of 1.44. 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 better Current ratio (1.44) than 62.31% of its industry peers.
A Quick Ratio of 1.25 indicates that HIW should not have too much problems paying its short term obligations.
The Quick ratio of HIW (1.25) is better than 60.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The earnings per share for HIW have decreased by -8.59% in the last year.
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 -0.98%.
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)-8.59%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%-47.22%
Revenue 1Y (TTM)-0.98%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-0.64%
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 -10.34% yearly.
HIW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.35% yearly.
EPS Next Y-39.79%
EPS Next 2Y-19.67%
EPS Next 3Y-10.34%
EPS Next 5YN/A
Revenue Next Year-0.32%
Revenue Next 2Y2.4%
Revenue Next 3Y2.07%
Revenue Next 5Y3.35%
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
A Price/Earnings ratio of 23.56 indicates a rather expensive valuation of HIW.
Based on the Price/Earnings ratio, HIW is valued a bit cheaper than the industry average as 70.77% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.29. HIW is around the same levels.
A Price/Forward Earnings ratio of 39.14 indicates a quite expensive valuation of HIW.
HIW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HIW is cheaper than 66.92% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HIW to the average of the S&P500 Index (21.08), we can say HIW is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.56 | ||
| Fwd PE | 39.14 |
4.2 Price Multiples
66.92% of the companies in the same industry are more expensive than HIW, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HIW indicates a somewhat cheap valuation: HIW is cheaper than 78.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.85 | ||
| EV/EBITDA | 12.2 |
4.3 Compensation for Growth
A cheap valuation may be justified as HIW's earnings are expected to decrease with -10.34% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.67%
EPS Next 3Y-10.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.25%, HIW is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 28.61, HIW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.52, HIW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.25% |
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
215.35% 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.
DP215.35%
EPS Next 2Y-19.67%
EPS Next 3Y-10.34%
27.57
+0.28 (+1.03%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners104.59%
Inst Owner Change0.02%
Ins Owners1.67%
Ins Owner Change-0.26%
Market Cap2.97B
Analysts71.43
Price Target31.62 (14.69%)
Short Float %3.69%
Short Ratio3.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.25% |
Yearly Dividend2.01
Dividend Growth(5Y)0.93%
DP215.35%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.74%
Min EPS beat(2)-35.53%
Max EPS beat(2)71.02%
EPS beat(4)3
Avg EPS beat(4)46.41%
Min EPS beat(4)-35.53%
Max EPS beat(4)116.36%
EPS beat(8)6
Avg EPS beat(8)36.15%
EPS beat(12)8
Avg EPS beat(12)24.82%
EPS beat(16)12
Avg EPS beat(16)38.25%
Revenue beat(2)0
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-1.28%
Max Revenue beat(2)-0.27%
Revenue beat(4)1
Avg Revenue beat(4)-0.38%
Min Revenue beat(4)-1.28%
Max Revenue beat(4)1.16%
Revenue beat(8)1
Avg Revenue beat(8)-1.02%
Revenue beat(12)2
Avg Revenue beat(12)-0.82%
Revenue beat(16)4
Avg Revenue beat(16)-0.56%
PT rev (1m)-1.2%
PT rev (3m)-2.79%
EPS NQ rev (1m)-2.61%
EPS NQ rev (3m)210.71%
EPS NY rev (1m)25.3%
EPS NY rev (3m)78.85%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.56 | ||
| Fwd PE | 39.14 | ||
| P/S | 3.6 | ||
| P/FCF | 13.85 | ||
| P/OCF | 7.36 | ||
| P/B | 1.26 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 12.2 |
EPS(TTM)1.17
EY4.24%
EPS(NY)0.7
Fwd EY2.56%
FCF(TTM)1.99
FCFY7.22%
OCF(TTM)3.74
OCFY13.58%
SpS7.66
BVpS21.9
TBVpS21.9
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 4.23% | ||
| ROCE | 3.71% | ||
| ROIC | 2.93% | ||
| ROICexc | 2.94% | ||
| ROICexgc | 2.94% | ||
| OM | 25.76% | ||
| PM (TTM) | 12.08% | ||
| GM | 67.04% | ||
| FCFM | 25.99% |
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-Score3
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 15.35 | ||
| Debt/EBITDA | 6.44 | ||
| Cap/Depr | 63.19% | ||
| Cap/Sales | 22.88% | ||
| Interest Coverage | 1.59 | ||
| Cash Conversion | 78.86% | ||
| Profit Quality | 215.12% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 0.58 |
F-Score3
WACC6.75%
ROIC/WACC0.43
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)-8.59%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%-47.22%
EPS Next Y-39.79%
EPS Next 2Y-19.67%
EPS Next 3Y-10.34%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.98%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-0.64%
Revenue Next Year-0.32%
Revenue Next 2Y2.4%
Revenue Next 3Y2.07%
Revenue Next 5Y3.35%
EBIT growth 1Y-4.61%
EBIT growth 3Y-2.82%
EBIT growth 5Y2.42%
EBIT Next Year120.66%
EBIT Next 3Y33.89%
EBIT Next 5Y25.05%
FCF growth 1Y26.15%
FCF growth 3Y3.3%
FCF growth 5Y30.32%
OCF growth 1Y6.05%
OCF growth 3Y-0.89%
OCF growth 5Y1.99%