HIGHWOODS PROPERTIES INC (HIW) Stock Fundamental Analysis
USA - NYSE:HIW - US4312841087 - REIT
31.81 USD
-0.39 (-1.21%)
31.81 USD
0 (0%)
Taking everything into account, HIW scores 4 out of 10 in our fundamental rating. 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
HIW had positive earnings in the past year.
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
HIW has a better Return On Assets (2.09%) than 66.92% of its industry peers.
The Return On Equity of HIW (5.33%) is better than 68.46% of its industry peers.
HIW's Return On Invested Capital of 2.79% is in line compared to the rest of the industry. HIW outperforms 51.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HIW is in line with the industry average of 3.05%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 5.33% | ||
| ROIC | 2.79% |
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
The Profit Margin of HIW (15.61%) is better than 66.15% of its industry peers.
HIW's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 25.21%, HIW perfoms like the industry average, outperforming 56.15% of the companies in the same industry.
HIW's Operating Margin has been stable in the last couple of years.
HIW has a Gross Margin (67.21%) 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 | 25.21% | ||
| PM (TTM) | 15.61% | ||
| GM | 67.21% |
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.
HIW has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HIW has more shares outstanding
Compared to 1 year ago, HIW has a worse debt to assets ratio.
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.
The Altman-Z score of HIW (0.65) is comparable to the rest of the industry.
The Debt to FCF ratio of HIW is 18.77, which is on the high side as it means it would take HIW, 18.77 years of fcf income to pay off all of its debts.
HIW has a Debt to FCF ratio of 18.77. This is in the better half of the industry: HIW outperforms 77.69% of its industry peers.
A Debt/Equity ratio of 1.41 is on the high side and indicates that HIW has dependencies on debt financing.
The Debt to Equity ratio of HIW (1.41) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 18.77 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.43
WACC6.54%
2.3 Liquidity
HIW has a Current Ratio of 1.36. 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 Current ratio of 1.36. This is in the better half of the industry: HIW outperforms 60.77% of its industry peers.
HIW has a Quick Ratio of 1.36. This is a normal value and indicates that HIW is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of HIW (1.36) is better than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
HIW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.00%.
The Earnings Per Share has been decreasing by -2.09% on average over the past years.
Looking at the last year, HIW shows a decrease in Revenue. The Revenue has decreased by -2.31% in the last year.
HIW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.33% yearly.
EPS 1Y (TTM)0%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%-71.19%
Revenue 1Y (TTM)-2.31%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-2.02%
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 -12.73% on average per year.
Based on estimates for the next years, HIW will show a small growth in Revenue. The Revenue will grow by 3.27% on average per year.
EPS Next Y7.04%
EPS Next 2Y-18.74%
EPS Next 3Y-12.73%
EPS Next 5YN/A
Revenue Next Year-0.76%
Revenue Next 2Y2.23%
Revenue Next 3Y2.22%
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
A Price/Earnings ratio of 22.56 indicates a rather expensive valuation of HIW.
Based on the Price/Earnings ratio, HIW is valued cheaper than 83.85% of the companies in the same industry.
HIW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.20.
The Price/Forward Earnings ratio is 41.17, which means the current valuation is very expensive for HIW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HIW indicates a somewhat cheap valuation: HIW is cheaper than 65.38% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, HIW is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 41.17 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HIW.
Based on the Price/Free Cash Flow ratio, HIW is valued a bit cheaper than 78.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.35 | ||
| EV/EBITDA | 13.53 |
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 -12.73% in the coming years.
PEG (NY)3.2
PEG (5Y)N/A
EPS Next 2Y-18.74%
EPS Next 3Y-12.73%
5. Dividend
5.1 Amount
HIW has a Yearly Dividend Yield of 6.19%, which is a nice return.
HIW's Dividend Yield is comparable with the industry average which is at 6.66.
HIW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
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 171.21% 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.
DP171.21%
EPS Next 2Y-18.74%
EPS Next 3Y-12.73%
31.81
-0.39 (-1.21%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners107.58%
Inst Owner Change2.28%
Ins Owners1.9%
Ins Owner Change0.78%
Market Cap3.44B
Analysts70
Price Target31.62 (-0.6%)
Short Float %5.07%
Short Ratio4.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
Yearly Dividend2.01
Dividend Growth(5Y)0.93%
DP171.21%
Div Incr Years0
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)154.54%
Min EPS beat(2)-5.17%
Max EPS beat(2)314.25%
EPS beat(4)2
Avg EPS beat(4)86.14%
Min EPS beat(4)-35.53%
Max EPS beat(4)314.25%
EPS beat(8)5
Avg EPS beat(8)65.84%
EPS beat(12)8
Avg EPS beat(12)50.42%
EPS beat(16)11
Avg EPS beat(16)48.1%
Revenue beat(2)0
Avg Revenue beat(2)-2.3%
Min Revenue beat(2)-2.36%
Max Revenue beat(2)-2.25%
Revenue beat(4)0
Avg Revenue beat(4)-1.54%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)-0.27%
Revenue beat(8)1
Avg Revenue beat(8)-1.06%
Revenue beat(12)1
Avg Revenue beat(12)-1.1%
Revenue beat(16)3
Avg Revenue beat(16)-0.87%
PT rev (1m)0.36%
PT rev (3m)1.82%
EPS NQ rev (1m)-4.17%
EPS NQ rev (3m)-1.43%
EPS NY rev (1m)16.71%
EPS NY rev (3m)16.71%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.56 | ||
| Fwd PE | 41.17 | ||
| P/S | 4.24 | ||
| P/FCF | 19.35 | ||
| P/OCF | 9.44 | ||
| P/B | 1.45 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 13.53 |
EPS(TTM)1.41
EY4.43%
EPS(NY)0.77
Fwd EY2.43%
FCF(TTM)1.64
FCFY5.17%
OCF(TTM)3.37
OCFY10.59%
SpS7.5
BVpS21.95
TBVpS21.95
PEG (NY)3.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 5.33% | ||
| ROCE | 3.53% | ||
| ROIC | 2.79% | ||
| ROICexc | 2.8% | ||
| ROICexgc | 2.8% | ||
| OM | 25.21% | ||
| PM (TTM) | 15.61% | ||
| GM | 67.21% | ||
| FCFM | 21.91% |
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 Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.41 | ||
| Debt/FCF | 18.77 | ||
| Debt/EBITDA | 6.64 | ||
| Cap/Depr | 62.62% | ||
| Cap/Sales | 22.99% | ||
| Interest Coverage | 1.37 | ||
| Cash Conversion | 72.5% | ||
| Profit Quality | 140.37% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 0.65 |
F-Score3
WACC6.54%
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)0%
EPS 3Y-26.69%
EPS 5Y-2.09%
EPS Q2Q%-71.19%
EPS Next Y7.04%
EPS Next 2Y-18.74%
EPS Next 3Y-12.73%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.31%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-2.02%
Revenue Next Year-0.76%
Revenue Next 2Y2.23%
Revenue Next 3Y2.22%
Revenue Next 5Y3.27%
EBIT growth 1Y-4.55%
EBIT growth 3Y-2.82%
EBIT growth 5Y2.42%
EBIT Next Year128.89%
EBIT Next 3Y33.97%
EBIT Next 5Y25.03%
FCF growth 1Y14.61%
FCF growth 3Y3.3%
FCF growth 5Y30.32%
OCF growth 1Y-7.74%
OCF growth 3Y-0.89%
OCF growth 5Y1.99%