HIGHWOODS PROPERTIES INC (HIW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HIW - US4312841087 - REIT
27.29 USD
+0.11 (+0.4%)
27.29 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to HIW. HIW was compared to 128 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 is valued correctly, but 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.
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
HIW's Return On Assets of 2.03% is fine compared to the rest of the industry. HIW outperforms 67.19% of its industry peers.
HIW has a Return On Equity of 5.24%. This is in the better half of the industry: HIW outperforms 67.19% of its industry peers.
The Return On Invested Capital of HIW (2.80%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for HIW is in line with the industry average of 3.04%.
| 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
The Profit Margin of HIW (15.45%) is better than 66.41% of its industry peers.
HIW's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 25.78%, HIW perfoms like the industry average, outperforming 56.25% 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.
HIW has a Gross Margin (67.08%) 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 | 25.78% | ||
| 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
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.
HIW has more shares outstanding than it did 5 years ago.
HIW has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.54, we must say that HIW is in the distress zone and has some risk of bankruptcy.
HIW has a Altman-Z score (0.54) which is comparable to the rest of the 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.
The Debt to FCF ratio of HIW (12.30) is better than 86.72% of its industry peers.
A Debt/Equity ratio of 1.43 is on the high side and indicates that HIW has dependencies on debt financing.
HIW's Debt to Equity ratio of 1.43 is in line compared to the rest of the industry. HIW outperforms 45.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 12.3 | ||
| Altman-Z | 0.54 |
ROIC/WACC0.45
WACC6.18%
2.3 Liquidity
A Current Ratio of 1.42 indicates that HIW should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.42, HIW is doing good in the industry, outperforming 64.06% 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.
The Quick ratio of HIW (1.39) is better than 64.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
HIW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.73%.
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 -2.29% in the last year.
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)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 -14.14% on average over the next years. This is quite bad
The Revenue is expected to grow by 3.28% on average over the next years.
EPS Next Y7.04%
EPS Next 2Y-20.21%
EPS Next 3Y-14.14%
EPS Next 5YN/A
Revenue Next Year-0.75%
Revenue Next 2Y2.18%
Revenue Next 3Y2.26%
Revenue Next 5Y3.28%
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 19.63.
HIW's Price/Earnings ratio is rather cheap when compared to the industry. HIW is cheaper than 85.16% of the companies in the same industry.
HIW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.45.
With a Price/Forward Earnings ratio of 36.64, HIW can be considered very expensive at the moment.
69.53% of the companies in the same industry are more expensive than HIW, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HIW to the average of the S&P500 Index (34.46), we can say HIW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.63 | ||
| Fwd PE | 36.64 |
4.2 Price Multiples
67.19% of the companies in the same industry are more expensive than HIW, based on the Enterprise Value to EBITDA ratio.
HIW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HIW is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.65 | ||
| EV/EBITDA | 12.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HIW does not grow enough to justify the current Price/Earnings ratio.
A cheap valuation may be justified as HIW's earnings are expected to decrease with -14.14% in the coming years.
PEG (NY)2.79
PEG (5Y)N/A
EPS Next 2Y-20.21%
EPS Next 3Y-14.14%
5. Dividend
5.1 Amount
HIW has a Yearly Dividend Yield of 7.36%, which is a nice return.
HIW's Dividend Yield is a higher than the industry average which is at 6.59.
HIW's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.36% |
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 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-20.21%
EPS Next 3Y-14.14%
27.29
+0.11 (+0.4%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners110.25%
Inst Owner Change-1.24%
Ins Owners1.89%
Ins Owner Change-0.18%
Market Cap2.95B
Revenue(TTM)808.28M
Net Income(TTM)124.87M
Analysts69.33
Price Target31.93 (17%)
Short Float %4.88%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.36% |
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)0.97%
PT rev (3m)1.7%
EPS NQ rev (1m)-5.08%
EPS NQ rev (3m)-8.2%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.63 | ||
| Fwd PE | 36.64 | ||
| P/S | 3.65 | ||
| P/FCF | 10.65 | ||
| P/OCF | 8.11 | ||
| P/B | 1.24 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 12.7 |
EPS(TTM)1.39
EY5.09%
EPS(NY)0.74
Fwd EY2.73%
FCF(TTM)2.56
FCFY9.39%
OCF(TTM)3.36
OCFY12.33%
SpS7.48
BVpS22.04
TBVpS22.04
PEG (NY)2.79
PEG (5Y)N/A
Graham Number26.25
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 | 0.54 |
F-Score3
WACC6.18%
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 Y7.04%
EPS Next 2Y-20.21%
EPS Next 3Y-14.14%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.29%
Revenue growth 3Y2.45%
Revenue growth 5Y2.33%
Sales Q2Q%-1.25%
Revenue Next Year-0.75%
Revenue Next 2Y2.18%
Revenue Next 3Y2.26%
Revenue Next 5Y3.28%
EBIT growth 1Y0.25%
EBIT growth 3Y-2.82%
EBIT growth 5Y2.42%
EBIT Next Year123.3%
EBIT Next 3Y33.78%
EBIT Next 5Y23.56%
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 4 / 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 19.63 and the Price/Book (PB) ratio is 1.24.
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 7.04% in the next year.