HIGHWOODS PROPERTIES INC (HIW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HIW - US4312841087 - REIT
25.62 USD
+0.09 (+0.35%)
25.62 USD
0 (0%)
Taking everything into account, HIW scores 4 out of 10 in our fundamental rating. HIW was compared to 128 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
HIW had positive earnings in the past year.
HIW had a positive operating cash flow in the past year.
Each year in the past 5 years HIW has 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 2.03%. This is in the better half of the industry: HIW outperforms 64.06% of its industry peers.
HIW's Return On Equity of 5.24% is fine compared to the rest of the industry. HIW outperforms 64.06% of its industry peers.
With a Return On Invested Capital value of 2.80%, HIW perfoms like the industry average, outperforming 51.56% of the companies in the same industry.
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 | 2.03% | ||
| 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
HIW's Profit Margin of 15.45% is fine compared to the rest of the industry. HIW outperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of HIW has declined.
HIW has a Operating Margin of 25.78%. This is comparable to the rest of the industry: HIW outperforms 56.25% of its industry peers.
In the last couple of years the Operating Margin of HIW has remained more or less at the same level.
With a Gross Margin value of 67.08%, HIW perfoms like the industry average, outperforming 48.44% of the companies in the same industry.
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
The number of shares outstanding for HIW has been increased compared to 5 years ago.
HIW has a worse debt/assets ratio than last year.
2.2 Solvency
HIW has an Altman-Z score of 0.52. This is a bad value and indicates that HIW is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.52, HIW is in line with its industry, outperforming 50.00% of the companies in the same 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.
With an excellent Debt to FCF ratio value of 12.30, HIW belongs to the best of the industry, outperforming 86.72% of the companies in the same industry.
A Debt/Equity ratio of 1.43 is on the high side and indicates that HIW has dependencies on debt 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 | 0.52 |
ROIC/WACC0.45
WACC6.25%
2.3 Liquidity
HIW has a Current Ratio of 1.42. 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 decent Current ratio value of 1.42, HIW is doing good in the industry, outperforming 67.19% of the companies in the same industry.
HIW has a Quick Ratio of 1.39. 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 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
The Earnings Per Share has been growing slightly by 3.73% 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.
The Revenue has decreased by -2.29% in the past 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)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
HIW is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -14.66% yearly.
HIW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.55% yearly.
EPS Next Y17.69%
EPS Next 2Y-19.94%
EPS Next 3Y-14.66%
EPS Next 5YN/A
Revenue Next Year-1.36%
Revenue Next 2Y2.04%
Revenue Next 3Y2.42%
Revenue Next 5Y3.55%
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.
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
HIW is valuated rather expensively with a Price/Earnings ratio of 18.43.
Compared to the rest of the industry, the Price/Earnings ratio of HIW indicates a rather cheap valuation: HIW is cheaper than 84.38% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. HIW is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 34.16 indicates a quite expensive valuation of HIW.
Based on the Price/Forward Earnings ratio, HIW is valued a bit cheaper than the industry average as 71.09% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.03. HIW is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.43 | ||
| Fwd PE | 34.16 |
4.2 Price Multiples
HIW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HIW is cheaper than 70.31% of the companies in the same industry.
86.72% 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 | 10.17 | ||
| EV/EBITDA | 12.43 |
4.3 Compensation for Growth
HIW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HIW's earnings are expected to decrease with -14.66% in the coming years. This may justify a cheaper valuation.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y-19.94%
EPS Next 3Y-14.66%
5. Dividend
5.1 Amount
HIW has a Yearly Dividend Yield of 7.84%, which is a nice return.
HIW's Dividend Yield is a higher than the industry average which is at 6.33.
HIW's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.84% |
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 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-19.94%
EPS Next 3Y-14.66%
25.62
+0.09 (+0.35%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners108.33%
Inst Owner Change-1.17%
Ins Owners1.86%
Ins Owner Change-0.18%
Market Cap2.82B
Revenue(TTM)808.28M
Net Income(TTM)124.87M
Analysts69.33
Price TargetN/A
Short Float %5.86%
Short Ratio5.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.84% |
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)-1.91%
PT rev (3m)-0.65%
EPS NQ rev (1m)19.64%
EPS NQ rev (3m)9.84%
EPS NY rev (1m)9.95%
EPS NY rev (3m)9.95%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.43 | ||
| Fwd PE | 34.16 | ||
| P/S | 3.48 | ||
| P/FCF | 10.17 | ||
| P/OCF | 7.74 | ||
| P/B | 1.18 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 12.43 |
EPS(TTM)1.39
EY5.43%
EPS(NY)0.75
Fwd EY2.93%
FCF(TTM)2.52
FCFY9.83%
OCF(TTM)3.31
OCFY12.91%
SpS7.36
BVpS21.67
TBVpS21.67
PEG (NY)1.04
PEG (5Y)N/A
Graham Number26.04
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 | 0.52 |
F-Score3
WACC6.25%
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 Y17.69%
EPS Next 2Y-19.94%
EPS Next 3Y-14.66%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.29%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-1.25%
Revenue Next Year-1.36%
Revenue Next 2Y2.04%
Revenue Next 3Y2.42%
Revenue Next 5Y3.55%
EBIT growth 1Y0.25%
EBIT growth 3Y-2.82%
EBIT growth 5Y2.42%
EBIT Next Year124.7%
EBIT Next 3Y34.56%
EBIT Next 5Y24.95%
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 5 / 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 18.43 and the Price/Book (PB) ratio is 1.18.
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 17.69% in the next year.