HNI CORP (HNI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HNI - US4042511000 - Common Stock
42.51 USD
+0.41 (+0.97%)
42.51 USD
0 (0%)
HNI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 80 industry peers in the Commercial Services & Supplies industry. Both the health and profitability get an excellent rating, making HNI a very profitable company, without any liquidiy or solvency issues. HNI scores decently on growth, while it is valued quite cheap. This could make an interesting combination. HNI also has an excellent dividend rating. This makes HNI very considerable for value and dividend and quality investing!
1. Profitability
1.1 Basic Checks
HNI had positive earnings in the past year.
HNI had a positive operating cash flow in the past year.
HNI had positive earnings in each of the past 5 years.
Each year in the past 5 years HNI had a positive operating cash flow.
1.2 Ratios
HNI has a Return On Assets of 7.68%. This is amongst the best in the industry. HNI outperforms 82.50% of its industry peers.
HNI has a Return On Equity of 16.94%. This is amongst the best in the industry. HNI outperforms 81.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.16%, HNI belongs to the top of the industry, outperforming 82.50% of the companies in the same industry.
HNI had an Average Return On Invested Capital over the past 3 years of 10.10%. This is in line with the industry average of 10.33%.
The last Return On Invested Capital (12.16%) for HNI is above the 3 year average (10.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.68% | ||
| ROE | 16.94% | ||
| ROIC | 12.16% |
ROA(3y)6.25%
ROA(5y)5.14%
ROE(3y)14.39%
ROE(5y)12.08%
ROIC(3y)10.1%
ROIC(5y)9.3%
1.3 Margins
Looking at the Profit Margin, with a value of 5.46%, HNI is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
HNI's Profit Margin has improved in the last couple of years.
HNI's Operating Margin of 8.75% is fine compared to the rest of the industry. HNI outperforms 66.25% of its industry peers.
In the last couple of years the Operating Margin of HNI has grown nicely.
With a decent Gross Margin value of 41.49%, HNI is doing good in the industry, outperforming 72.50% of the companies in the same industry.
HNI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.75% | ||
| PM (TTM) | 5.46% | ||
| GM | 41.49% |
OM growth 3Y23.18%
OM growth 5Y4.73%
PM growth 3Y26.35%
PM growth 5Y2.34%
GM growth 3Y5.48%
GM growth 5Y2.07%
2. Health
2.1 Basic Checks
HNI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
HNI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HNI has been increased compared to 5 years ago.
Compared to 1 year ago, HNI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.55 indicates that HNI is not in any danger for bankruptcy at the moment.
HNI has a Altman-Z score of 3.55. This is in the better half of the industry: HNI outperforms 72.50% of its industry peers.
The Debt to FCF ratio of HNI is 1.80, which is an excellent value as it means it would take HNI, only 1.80 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HNI (1.80) is better than 81.25% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that HNI is not too dependend on debt financing.
HNI has a Debt to Equity ratio (0.40) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 3.55 |
ROIC/WACC1.48
WACC8.24%
2.3 Liquidity
HNI has a Current Ratio of 1.33. This is a normal value and indicates that HNI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of HNI (1.33) is comparable to the rest of the industry.
A Quick Ratio of 0.85 indicates that HNI may have some problems paying its short term obligations.
HNI's Quick ratio of 0.85 is on the low side compared to the rest of the industry. HNI is outperformed by 72.50% of its industry peers.
HNI does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.04% over the past year.
Measured over the past 5 years, HNI shows a small growth in Earnings Per Share. The EPS has been growing by 3.47% on average per year.
HNI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.15%.
Measured over the past years, HNI shows a small growth in Revenue. The Revenue has been growing by 2.37% on average per year.
EPS 1Y (TTM)11.04%
EPS 3Y23.61%
EPS 5Y3.47%
EPS Q2Q%6.8%
Revenue 1Y (TTM)1.15%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%1.73%
3.2 Future
Based on estimates for the next years, HNI will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.64% on average per year.
The Revenue is expected to grow by 3.59% on average over the next years.
EPS Next Y17.17%
EPS Next 2Y15.62%
EPS Next 3Y15.64%
EPS Next 5YN/A
Revenue Next Year4.05%
Revenue Next 2Y3.79%
Revenue Next 3Y3.59%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
HNI is valuated correctly with a Price/Earnings ratio of 12.08.
85.00% of the companies in the same industry are more expensive than HNI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HNI to the average of the S&P500 Index (26.39), we can say HNI is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.39, the valuation of HNI can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HNI indicates a rather cheap valuation: HNI is cheaper than 88.75% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, HNI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 10.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HNI is valued cheaply inside the industry as 82.50% of the companies are valued more expensively.
HNI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HNI is cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.28 | ||
| EV/EBITDA | 6.77 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HNI has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HNI's earnings are expected to grow with 15.64% in the coming years.
PEG (NY)0.7
PEG (5Y)3.48
EPS Next 2Y15.62%
EPS Next 3Y15.64%
5. Dividend
5.1 Amount
HNI has a Yearly Dividend Yield of 3.16%. Purely for dividend investing, there may be better candidates out there.
HNI's Dividend Yield is rather good when compared to the industry average which is at 0.89. HNI pays more dividend than 88.75% of the companies in the same industry.
HNI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
5.2 History
The dividend of HNI has a limited annual growth rate of 3.58%.
HNI has been paying a dividend for at least 10 years, so it has a reliable track record.
HNI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.58%
Div Incr Years14
Div Non Decr Years26
5.3 Sustainability
HNI pays out 44.63% of its income as dividend. This is a bit on the high side, but may be sustainable.
HNI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP44.63%
EPS Next 2Y15.62%
EPS Next 3Y15.64%
42.51
+0.41 (+0.97%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners94.91%
Inst Owner Change13.41%
Ins Owners1.58%
Ins Owner Change-13.23%
Market Cap1.95B
Revenue(TTM)2.59B
Net Income(TTM)141.60M
Analysts80
Price Target68.34 (60.76%)
Short Float %13.65%
Short Ratio8.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
Yearly Dividend1.35
Dividend Growth(5Y)3.58%
DP44.63%
Div Incr Years14
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.18%
Min EPS beat(2)1.98%
Max EPS beat(2)28.39%
EPS beat(4)4
Avg EPS beat(4)18.82%
Min EPS beat(4)1.98%
Max EPS beat(4)28.39%
EPS beat(8)8
Avg EPS beat(8)28.21%
EPS beat(12)12
Avg EPS beat(12)82.31%
EPS beat(16)16
Avg EPS beat(16)68.46%
Revenue beat(2)1
Avg Revenue beat(2)0.2%
Min Revenue beat(2)-1.78%
Max Revenue beat(2)2.18%
Revenue beat(4)2
Avg Revenue beat(4)-0.12%
Min Revenue beat(4)-3.18%
Max Revenue beat(4)2.31%
Revenue beat(8)3
Avg Revenue beat(8)-1.33%
Revenue beat(12)5
Avg Revenue beat(12)-0.8%
Revenue beat(16)8
Avg Revenue beat(16)-0.9%
PT rev (1m)0.37%
PT rev (3m)0.37%
EPS NQ rev (1m)-0.98%
EPS NQ rev (3m)-5.73%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.08 | ||
| Fwd PE | 10.39 | ||
| P/S | 0.75 | ||
| P/FCF | 10.28 | ||
| P/OCF | 7.79 | ||
| P/B | 2.33 | ||
| P/tB | 8.4 | ||
| EV/EBITDA | 6.77 |
EPS(TTM)3.52
EY8.28%
EPS(NY)4.09
Fwd EY9.62%
FCF(TTM)4.13
FCFY9.72%
OCF(TTM)5.46
OCFY12.83%
SpS56.57
BVpS18.24
TBVpS5.06
PEG (NY)0.7
PEG (5Y)3.48
Graham Number38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.68% | ||
| ROE | 16.94% | ||
| ROCE | 15.82% | ||
| ROIC | 12.16% | ||
| ROICexc | 12.4% | ||
| ROICexgc | 21.74% | ||
| OM | 8.75% | ||
| PM (TTM) | 5.46% | ||
| GM | 41.49% | ||
| FCFM | 7.31% |
ROA(3y)6.25%
ROA(5y)5.14%
ROE(3y)14.39%
ROE(5y)12.08%
ROIC(3y)10.1%
ROIC(5y)9.3%
ROICexc(3y)10.32%
ROICexc(5y)9.75%
ROICexgc(3y)18.8%
ROICexgc(5y)18.69%
ROCE(3y)13.14%
ROCE(5y)12.1%
ROICexgc growth 3Y10.64%
ROICexgc growth 5Y-2.01%
ROICexc growth 3Y13.99%
ROICexc growth 5Y-0.96%
OM growth 3Y23.18%
OM growth 5Y4.73%
PM growth 3Y26.35%
PM growth 5Y2.34%
GM growth 3Y5.48%
GM growth 5Y2.07%
F-Score8
Asset Turnover1.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.8 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 58.78% | ||
| Cap/Sales | 2.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.81% | ||
| Profit Quality | 133.83% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 3.55 |
F-Score8
WACC8.24%
ROIC/WACC1.48
Cap/Depr(3y)71.22%
Cap/Depr(5y)69.5%
Cap/Sales(3y)2.75%
Cap/Sales(5y)2.68%
Profit Quality(3y)172.64%
Profit Quality(5y)207.79%
High Growth Momentum
Growth
EPS 1Y (TTM)11.04%
EPS 3Y23.61%
EPS 5Y3.47%
EPS Q2Q%6.8%
EPS Next Y17.17%
EPS Next 2Y15.62%
EPS Next 3Y15.64%
EPS Next 5YN/A
Revenue 1Y (TTM)1.15%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%1.73%
Revenue Next Year4.05%
Revenue Next 2Y3.79%
Revenue Next 3Y3.59%
Revenue Next 5YN/A
EBIT growth 1Y1.25%
EBIT growth 3Y29.3%
EBIT growth 5Y7.21%
EBIT Next Year65.47%
EBIT Next 3Y39.42%
EBIT Next 5YN/A
FCF growth 1Y48.86%
FCF growth 3Y38.73%
FCF growth 5Y2.65%
OCF growth 1Y19.21%
OCF growth 3Y19.88%
OCF growth 5Y0.66%
HNI CORP / HNI FAQ
What is the fundamental rating for HNI stock?
ChartMill assigns a fundamental rating of 7 / 10 to HNI.
What is the valuation status for HNI stock?
ChartMill assigns a valuation rating of 9 / 10 to HNI CORP (HNI). This can be considered as Undervalued.
What is the profitability of HNI stock?
HNI CORP (HNI) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for HNI stock?
The Price/Earnings (PE) ratio for HNI CORP (HNI) is 12.08 and the Price/Book (PB) ratio is 2.33.
What is the expected EPS growth for HNI CORP (HNI) stock?
The Earnings per Share (EPS) of HNI CORP (HNI) is expected to grow by 17.17% in the next year.