HIGHWOODS PROPERTIES INC (HIW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HIW - US4312841087 - REIT
27.54 USD
+0.34 (+1.25%)
27.5 USD
-0.04 (-0.15%)
Taking everything into account, HIW scores 4 out of 10 in our fundamental rating. HIW was compared to 125 industry peers in the Diversified REITs industry. HIW has an average financial health and profitability rating. HIW is valued correctly, 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.
- HIW had positive earnings in each of the past 5 years.
- HIW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of HIW (2.03%) is better than 64.29% of its industry peers.
- The Return On Equity of HIW (5.24%) is better than 65.08% of its industry peers.
- HIW has a Return On Invested Capital (2.80%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for HIW is in line with the industry average of 3.07%.
| 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 has a Profit Margin of 15.45%. This is in the better half of the industry: HIW outperforms 62.70% of its industry peers.
- HIW's Profit Margin has declined in the last couple of years.
- HIW's Operating Margin of 25.78% is in line compared to the rest of the industry. HIW outperforms 56.35% 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 48.41% 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
- 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
- HIW has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, HIW has a worse debt to assets ratio.
2.2 Solvency
- HIW has an Altman-Z score of 0.56. 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 0.56 is in line compared to the rest of the industry. HIW outperforms 50.79% of its industry peers.
- The Debt to FCF ratio of HIW is 12.30, which is on the high side as it means it would take HIW, 12.30 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 12.30, HIW belongs to the best of the industry, outperforming 87.30% of the companies in the same industry.
- HIW has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.43, HIW is in line with its industry, outperforming 46.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 12.3 | ||
| Altman-Z | 0.56 |
ROIC/WACC0.44
WACC6.34%
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 69.05% of the companies in the same industry.
- A Quick Ratio of 1.39 indicates that HIW should not have too much problems paying its short term obligations.
- The Quick ratio of HIW (1.39) is better than 66.67% of its industry peers.
| 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.
- The Earnings Per Share has been decreasing by -2.09% on average over the past years.
- HIW shows a decrease in Revenue. In the last year, the revenue decreased by -2.29%.
- The Revenue has been growing slightly by 2.33% on average over the past years.
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
- The Earnings Per Share is expected to decrease by -14.66% 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 3.55% yearly.
EPS Next Y17.69%
EPS Next 2Y-19.94%
EPS Next 3Y-14.66%
EPS Next 5YN/A
Revenue Next Year-1.63%
Revenue Next 2Y1.97%
Revenue Next 3Y2.71%
Revenue Next 5Y3.55%
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 19.81 indicates a rather expensive valuation of HIW.
- Based on the Price/Earnings ratio, HIW is valued cheaper than 84.13% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.38. HIW is valued slightly cheaper when compared to this.
- HIW is valuated quite expensively with a Price/Forward Earnings ratio of 36.72.
- HIW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HIW is cheaper than 70.63% of the companies in the same industry.
- HIW's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.81 | ||
| Fwd PE | 36.72 |
4.2 Price Multiples
- HIW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HIW is cheaper than 69.05% of the companies in the same industry.
- 86.51% 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 | 10.93 | ||
| EV/EBITDA | 12.85 |
4.3 Compensation for Growth
- HIW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A cheap valuation may be justified as HIW's earnings are expected to decrease with -14.66% in the coming years.
PEG (NY)1.12
PEG (5Y)N/A
EPS Next 2Y-19.94%
EPS Next 3Y-14.66%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.35%, HIW is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 6.59, HIW pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.85, HIW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.35% |
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
- 174.24% 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.
DP174.24%
EPS Next 2Y-19.94%
EPS Next 3Y-14.66%
27.54
+0.34 (+1.25%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)10-28 2025-10-28/amc
Earnings (Next)02-10 2026-02-10/amc
Inst Owners108.41%
Inst Owner Change0.04%
Ins Owners1.86%
Ins Owner Change-0.19%
Market Cap3.03B
Revenue(TTM)808.28M
Net Income(TTM)124.87M
Analysts69.33
Price Target30.19 (9.62%)
Short Float %5.29%
Short Ratio4.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.35% |
Yearly Dividend2.01
Dividend Growth(5Y)0.93%
DP174.24%
Div Incr Years0
Div Non Decr Years20
Ex-DateN/A
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)-3.9%
PT rev (3m)-4.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.84%
EPS NY rev (1m)0%
EPS NY rev (3m)9.95%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)-0.27%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.81 | ||
| Fwd PE | 36.72 | ||
| P/S | 3.74 | ||
| P/FCF | 10.93 | ||
| P/OCF | 8.33 | ||
| P/B | 1.27 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 12.85 |
EPS(TTM)1.39
EY5.05%
EPS(NY)0.75
Fwd EY2.72%
FCF(TTM)2.52
FCFY9.15%
OCF(TTM)3.31
OCFY12.01%
SpS7.36
BVpS21.67
TBVpS21.67
PEG (NY)1.12
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 | 0.56 |
F-Score3
WACC6.34%
ROIC/WACC0.44
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-1.63%
Revenue Next 2Y1.97%
Revenue Next 3Y2.71%
Revenue Next 5Y3.55%
EBIT growth 1Y0.25%
EBIT growth 3Y-2.82%
EBIT growth 5Y2.42%
EBIT Next Year125.53%
EBIT Next 3Y35.04%
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.
Can you provide the valuation status for HIGHWOODS PROPERTIES INC?
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.
How financially healthy is HIGHWOODS PROPERTIES INC?
The financial health rating of HIGHWOODS PROPERTIES INC (HIW) is 4 / 10.
Can you provide the dividend sustainability for HIW stock?
The dividend rating of HIGHWOODS PROPERTIES INC (HIW) is 6 / 10 and the dividend payout ratio is 174.24%.