HIGHWOODS PROPERTIES INC (HIW) Stock Fundamental Analysis
NYSE:HIW - New York Stock Exchange, Inc. - US4312841087 - REIT - Currency: USD
We assign a fundamental rating of 4 out of 10 to HIW. HIW was compared to 129 industry peers in the Diversified REITs industry. HIW has a medium profitability rating, but doesn't score so well on its financial health evaluation. HIW does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
HIW had positive earnings in the past year.
HIW had a positive operating cash flow in the past year.
In the past 5 years HIW has always been profitable.
In the past 5 years HIW always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HIW (1.65%) is better than 61.90% of its industry peers.
With a decent Return On Equity value of 4.23%, HIW is doing good in the industry, outperforming 65.87% of the companies in the same industry.
HIW has a Return On Invested Capital (2.93%) 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 3.11%.
| 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
With a decent Profit Margin value of 12.08%, HIW is doing good in the industry, outperforming 61.90% of the companies in the same industry.
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 57.14% of the companies in the same industry.
HIW's Operating Margin has been stable in the last couple of years.
HIW's Gross Margin of 67.04% is in line compared to the rest of the industry. HIW outperforms 50.00% 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 | 25.76% | ||
| 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
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.
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 0.61. This is a bad value and indicates that HIW is not financially healthy and even has some risk of bankruptcy.
HIW's Altman-Z score of 0.61 is in line compared to the rest of the industry. HIW outperforms 50.00% of its industry peers.
The Debt to FCF ratio of HIW is 15.35, which is on the high side as it means it would take HIW, 15.35 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HIW (15.35) is better than 79.37% of its industry peers.
HIW has a Debt/Equity ratio of 1.39. This is a high value indicating a heavy dependency on external financing.
HIW has a Debt to Equity ratio (1.39) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 15.35 | ||
| Altman-Z | 0.61 |
ROIC/WACC0.44
WACC6.65%
2.3 Liquidity
A Current Ratio of 1.44 indicates that HIW should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.44, HIW is doing good in the industry, outperforming 60.32% of the companies in the same industry.
HIW has a Quick Ratio of 1.25. This is a normal value and indicates that HIW is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.25, HIW perfoms like the industry average, outperforming 58.73% of the companies in the same industry.
| 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.
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.
HIW shows a decrease in Revenue. In the last year, the revenue decreased by -0.98%.
HIW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.33% yearly.
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
Based on estimates for the next years, HIW will show a very negative growth in Earnings Per Share. The EPS will decrease by -15.86% on average per year.
The Revenue is expected to grow by 3.92% on average over the next years.
EPS Next Y-51.95%
EPS Next 2Y-30.06%
EPS Next 3Y-15.86%
EPS Next 5YN/A
Revenue Next Year-0.57%
Revenue Next 2Y2.34%
Revenue Next 3Y1.96%
Revenue Next 5Y3.92%
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
With a Price/Earnings ratio of 24.97, HIW is valued on the expensive side.
Based on the Price/Earnings ratio, HIW is valued a bit cheaper than the industry average as 74.60% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HIW to the average of the S&P500 Index (29.63), we can say HIW is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 51.97, the valuation of HIW can be described as expensive.
HIW's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of HIW to the average of the S&P500 Index (22.68), we can say HIW is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.97 | ||
| Fwd PE | 51.97 |
4.2 Price Multiples
HIW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HIW is cheaper than 65.08% of the companies in the same industry.
82.54% of the companies in the same industry are more expensive than HIW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.65 | ||
| EV/EBITDA | 12.58 |
4.3 Compensation for Growth
A cheap valuation may be justified as HIW's earnings are expected to decrease with -15.86% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-30.06%
EPS Next 3Y-15.86%
5. Dividend
5.1 Amount
HIW has a Yearly Dividend Yield of 6.93%, which is a nice return.
Compared to an average industry Dividend Yield of 18.48, HIW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, HIW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.93% |
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.
HIW's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP215.35%
EPS Next 2Y-30.06%
EPS Next 3Y-15.86%
29.22
-0.23 (-0.78%)
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 Change-3.91%
Ins Owners1.71%
Ins Owner Change-0.26%
Market Cap3.14B
Analysts69.23
Price Target32 (9.51%)
Short Float %4.18%
Short Ratio4.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.93% |
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)-1.22%
PT rev (3m)0.4%
EPS NQ rev (1m)3.12%
EPS NQ rev (3m)15.79%
EPS NY rev (1m)-0.91%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)0.48%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.97 | ||
| Fwd PE | 51.97 | ||
| P/S | 3.81 | ||
| P/FCF | 14.65 | ||
| P/OCF | 7.79 | ||
| P/B | 1.33 | ||
| P/tB | 1.33 | ||
| EV/EBITDA | 12.58 |
EPS(TTM)1.17
EY4%
EPS(NY)0.56
Fwd EY1.92%
FCF(TTM)1.99
FCFY6.82%
OCF(TTM)3.75
OCFY12.83%
SpS7.67
BVpS21.94
TBVpS21.94
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 | 0.61 |
F-Score3
WACC6.65%
ROIC/WACC0.44
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-51.95%
EPS Next 2Y-30.06%
EPS Next 3Y-15.86%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.98%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-0.64%
Revenue Next Year-0.57%
Revenue Next 2Y2.34%
Revenue Next 3Y1.96%
Revenue Next 5Y3.92%
EBIT growth 1Y-4.61%
EBIT growth 3Y-2.82%
EBIT growth 5Y2.42%
EBIT Next Year121.85%
EBIT Next 3Y33.19%
EBIT Next 5YN/A
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%