HNI CORP (HNI) Stock Fundamental Analysis
NYSE:HNI - New York Stock Exchange, Inc. - US4042511000 - Common Stock - Currency: USD
HNI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. HNI has an excellent profitability rating, but there are some minor concerns on its financial health. HNI has a decent growth rate and is not valued too expensively. HNI also has an excellent dividend rating. This makes HNI very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year HNI was profitable.
HNI had a positive operating cash flow in the past year.
Each year in the past 5 years HNI has been profitable.
In the past 5 years HNI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of HNI (7.30%) is better than 75.90% of its industry peers.
HNI has a Return On Equity of 16.89%. This is amongst the best in the industry. HNI outperforms 80.72% of its industry peers.
The Return On Invested Capital of HNI (11.88%) is better than 80.72% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HNI is in line with the industry average of 11.67%.
The last Return On Invested Capital (11.88%) for HNI is above the 3 year average (10.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 16.89% | ||
| ROIC | 11.89% |
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
The Profit Margin of HNI (5.35%) is better than 67.47% of its industry peers.
HNI's Profit Margin has improved in the last couple of years.
The Operating Margin of HNI (8.62%) is better than 62.65% of its industry peers.
In the last couple of years the Operating Margin of HNI has grown nicely.
HNI's Gross Margin of 41.12% is fine compared to the rest of the industry. HNI outperforms 69.88% of its industry peers.
In the last couple of years the Gross Margin of HNI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.62% | ||
| PM (TTM) | 5.35% | ||
| GM | 41.12% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HNI 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.
HNI has a better debt/assets ratio than last year.
2.2 Solvency
HNI has an Altman-Z score of 3.63. This indicates that HNI is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.63, HNI is doing good in the industry, outperforming 71.08% of the companies in the same industry.
HNI has a debt to FCF ratio of 2.28. This is a good value and a sign of high solvency as HNI would need 2.28 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.28, HNI is in the better half of the industry, outperforming 77.11% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that HNI is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.45, HNI perfoms like the industry average, outperforming 55.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.28 | ||
| Altman-Z | 3.63 |
ROIC/WACC1.39
WACC8.54%
2.3 Liquidity
HNI has a Current Ratio of 1.19. This is a normal value and indicates that HNI is financially healthy and should not expect problems in meeting its short term obligations.
HNI has a worse Current ratio (1.19) than 69.88% of its industry peers.
A Quick Ratio of 0.73 indicates that HNI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.73, HNI is doing worse than 81.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.60% over the past year.
HNI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.47% yearly.
HNI shows a decrease in Revenue. In the last year, the revenue decreased by -0.18%.
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)10.6%
EPS 3Y23.61%
EPS 5Y3.47%
EPS Q2Q%18.92%
Revenue 1Y (TTM)-0.18%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%2.01%
3.2 Future
The Earnings Per Share is expected to grow by 15.76% on average over the next years. This is quite good.
Based on estimates for the next years, HNI will show a small growth in Revenue. The Revenue will grow by 4.49% on average per year.
EPS Next Y13.94%
EPS Next 2Y14.64%
EPS Next 3Y15.76%
EPS Next 5YN/A
Revenue Next Year2.88%
Revenue Next 2Y3.18%
Revenue Next 3Y4.49%
Revenue Next 5YN/A
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 accelerating.
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 16.64, HNI is valued correctly.
Based on the Price/Earnings ratio, HNI is valued a bit cheaper than 72.29% of the companies in the same industry.
HNI is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.95, which indicates a correct valuation of HNI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HNI indicates a somewhat cheap valuation: HNI is cheaper than 79.52% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, HNI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.64 | ||
| Fwd PE | 12.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HNI is valued a bit cheaper than the industry average as 74.70% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HNI is valued a bit cheaper than the industry average as 79.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.11 | ||
| EV/EBITDA | 8.58 |
4.3 Compensation for Growth
HNI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HNI has an outstanding profitability rating, which may justify a higher PE ratio.
HNI's earnings are expected to grow with 15.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)4.79
EPS Next 2Y14.64%
EPS Next 3Y15.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.59%, HNI has a reasonable but not impressive dividend return.
HNI's Dividend Yield is rather good when compared to the industry average which is at 2.45. HNI pays more dividend than 85.54% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, HNI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
5.2 History
The dividend of HNI has a limited annual growth rate of 3.58%.
HNI has paid a dividend for at least 10 years, which is a reliable track record.
HNI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.58%
Div Incr Years14
Div Non Decr Years26
5.3 Sustainability
46.57% of the earnings are spent on dividend by HNI. 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.
DP46.57%
EPS Next 2Y14.64%
EPS Next 3Y15.76%
52.08
+0.42 (+0.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.44%
Inst Owner Change0%
Ins Owners1.57%
Ins Owner Change5.39%
Market Cap2.42B
Analysts80
Price Target65.28 (25.35%)
Short Float %1.89%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
Yearly Dividend1.35
Dividend Growth(5Y)3.58%
DP46.57%
Div Incr Years14
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.46%
Min EPS beat(2)16.8%
Max EPS beat(2)28.13%
EPS beat(4)4
Avg EPS beat(4)19.24%
Min EPS beat(4)4.33%
Max EPS beat(4)28.13%
EPS beat(8)8
Avg EPS beat(8)49.72%
EPS beat(12)12
Avg EPS beat(12)84.73%
EPS beat(16)15
Avg EPS beat(16)71.68%
Revenue beat(2)1
Avg Revenue beat(2)-0.44%
Min Revenue beat(2)-3.18%
Max Revenue beat(2)2.31%
Revenue beat(4)1
Avg Revenue beat(4)-2.67%
Min Revenue beat(4)-6.61%
Max Revenue beat(4)2.31%
Revenue beat(8)2
Avg Revenue beat(8)-1.67%
Revenue beat(12)5
Avg Revenue beat(12)-1.35%
Revenue beat(16)8
Avg Revenue beat(16)-0.89%
PT rev (1m)0%
PT rev (3m)3.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.17%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.64 | ||
| Fwd PE | 12.95 | ||
| P/S | 0.96 | ||
| P/FCF | 13.11 | ||
| P/OCF | 9.98 | ||
| P/B | 3.02 | ||
| P/tB | 13.03 | ||
| EV/EBITDA | 8.58 |
EPS(TTM)3.13
EY6.01%
EPS(NY)4.02
Fwd EY7.72%
FCF(TTM)3.97
FCFY7.63%
OCF(TTM)5.22
OCFY10.02%
SpS54.53
BVpS17.26
TBVpS4
PEG (NY)1.19
PEG (5Y)4.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.3% | ||
| ROE | 16.89% | ||
| ROCE | 15.46% | ||
| ROIC | 11.89% | ||
| ROICexc | 12.12% | ||
| ROICexgc | 21.85% | ||
| OM | 8.62% | ||
| PM (TTM) | 5.35% | ||
| GM | 41.12% | ||
| FCFM | 7.28% |
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%
ROICexcg growth 3Y10.64%
ROICexcg 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 Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.28 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 54.26% | ||
| Cap/Sales | 2.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.6% | ||
| Profit Quality | 136.26% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 3.63 |
F-Score8
WACC8.54%
ROIC/WACC1.39
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)10.6%
EPS 3Y23.61%
EPS 5Y3.47%
EPS Q2Q%18.92%
EPS Next Y13.94%
EPS Next 2Y14.64%
EPS Next 3Y15.76%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.18%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%2.01%
Revenue Next Year2.88%
Revenue Next 2Y3.18%
Revenue Next 3Y4.49%
Revenue Next 5YN/A
EBIT growth 1Y11.3%
EBIT growth 3Y29.3%
EBIT growth 5Y7.21%
EBIT Next Year61.09%
EBIT Next 3Y26.22%
EBIT Next 5YN/A
FCF growth 1Y174.74%
FCF growth 3Y38.73%
FCF growth 5Y2.65%
OCF growth 1Y76.53%
OCF growth 3Y19.88%
OCF growth 5Y0.66%