HNI CORP (HNI) Stock Fundamental Analysis
NYSE:HNI - New York Stock Exchange, Inc. - US4042511000 - Common Stock - Currency: USD
Taking everything into account, HNI scores 6 out of 10 in our fundamental rating. HNI was compared to 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 is valued quite cheap, while showing a decent growth score. This is a good combination! Finally HNI also has an excellent dividend rating. These ratings could make HNI a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
HNI had positive earnings in the past year.
In the past year HNI had a positive cash flow from operations.
Each year in the past 5 years HNI has been profitable.
HNI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HNI's Return On Assets of 7.44% is fine compared to the rest of the industry. HNI outperforms 75.90% of its industry peers.
HNI has a better Return On Equity (16.61%) than 77.11% of its industry peers.
HNI's Return On Invested Capital of 11.84% is fine compared to the rest of the industry. HNI outperforms 78.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HNI is in line with the industry average of 10.74%.
The last Return On Invested Capital (11.84%) for HNI is above the 3 year average (10.01%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.44% | ||
| ROE | 16.61% | ||
| ROIC | 11.84% |
ROA(3y)6.25%
ROA(5y)5.14%
ROE(3y)14.39%
ROE(5y)12.08%
ROIC(3y)10.01%
ROIC(5y)9.25%
1.3 Margins
HNI's Profit Margin of 5.52% is fine compared to the rest of the industry. HNI outperforms 68.67% of its industry peers.
In the last couple of years the Profit Margin of HNI has grown nicely.
HNI has a Operating Margin of 8.52%. This is in the better half of the industry: HNI outperforms 62.65% of its industry peers.
In the last couple of years the Operating Margin of HNI has grown nicely.
Looking at the Gross Margin, with a value of 41.00%, HNI is in the better half of the industry, outperforming 68.67% of the companies in the same industry.
In the last couple of years the Gross Margin of HNI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.52% | ||
| PM (TTM) | 5.52% | ||
| GM | 41% |
OM growth 3Y22.23%
OM growth 5Y4.24%
PM growth 3Y26.35%
PM growth 5Y2.34%
GM growth 3Y5.31%
GM growth 5Y1.97%
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.
Compared to 5 years ago, HNI has more shares outstanding
The debt/assets ratio for HNI has been reduced compared to a year ago.
2.2 Solvency
HNI has an Altman-Z score of 3.31. This indicates that HNI is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.31, HNI is doing good in the industry, outperforming 67.47% of the companies in the same industry.
The Debt to FCF ratio of HNI is 2.08, which is a good value as it means it would take HNI, 2.08 years of fcf income to pay off all of its debts.
HNI's Debt to FCF ratio of 2.08 is fine compared to the rest of the industry. HNI outperforms 79.52% of its industry peers.
HNI has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.36, HNI is in line with its industry, outperforming 57.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.08 | ||
| Altman-Z | 3.31 |
ROIC/WACC1.41
WACC8.42%
2.3 Liquidity
A Current Ratio of 1.10 indicates that HNI should not have too much problems paying its short term obligations.
HNI has a Current ratio of 1.10. This is in the lower half of the industry: HNI underperforms 72.29% of its industry peers.
A Quick Ratio of 0.69 indicates that HNI may have some problems paying its short term obligations.
HNI's Quick ratio of 0.69 is on the low side compared to the rest of the industry. HNI is outperformed by 83.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.15% 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.
Looking at the last year, HNI shows a small growth in Revenue. The Revenue has grown by 3.80% in the last year.
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)18.15%
EPS 3Y23.61%
EPS 5Y3.47%
EPS Q2Q%-11.22%
Revenue 1Y (TTM)3.8%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%-5.49%
3.2 Future
HNI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.68% yearly.
HNI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.82% yearly.
EPS Next Y12.22%
EPS Next 2Y13.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.91%
Revenue Next 2Y2.82%
Revenue Next 3YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.46, HNI is valued correctly.
HNI's Price/Earnings ratio is a bit cheaper when compared to the industry. HNI is cheaper than 78.31% of the companies in the same industry.
When comparing the Price/Earnings ratio of HNI to the average of the S&P500 Index (28.33), we can say HNI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.99, the valuation of HNI can be described as reasonable.
Based on the Price/Forward Earnings ratio, HNI is valued cheaper than 80.72% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.37, HNI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.46 | ||
| Fwd PE | 11.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HNI indicates a somewhat cheap valuation: HNI is cheaper than 78.31% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HNI is valued a bit cheaper than 75.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.12 | ||
| EV/EBITDA | 6.89 |
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 13.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)3.88
EPS Next 2Y13.68%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.20%, HNI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.57, HNI pays a better dividend. On top of this HNI pays more dividend than 87.95% of the companies listed in the same industry.
HNI's Dividend Yield is a higher than the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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 45.59% 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.
DP45.59%
EPS Next 2Y13.68%
EPS Next 3YN/A
41.19
+0.68 (+1.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners81.84%
Inst Owner Change0%
Ins Owners1.54%
Ins Owner Change4.33%
Market Cap1.93B
Analysts80
Price Target62.9 (52.71%)
Short Float %2.68%
Short Ratio3.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Yearly Dividend1.35
Dividend Growth(5Y)3.58%
DP45.59%
Div Incr Years14
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.56%
Min EPS beat(2)4.33%
Max EPS beat(2)16.8%
EPS beat(4)4
Avg EPS beat(4)37.39%
Min EPS beat(4)4.33%
Max EPS beat(4)100.73%
EPS beat(8)8
Avg EPS beat(8)112.33%
EPS beat(12)12
Avg EPS beat(12)86.02%
EPS beat(16)15
Avg EPS beat(16)87.54%
Revenue beat(2)0
Avg Revenue beat(2)-4.89%
Min Revenue beat(2)-6.61%
Max Revenue beat(2)-3.18%
Revenue beat(4)1
Avg Revenue beat(4)-2.91%
Min Revenue beat(4)-6.61%
Max Revenue beat(4)1.33%
Revenue beat(8)2
Avg Revenue beat(8)-1.63%
Revenue beat(12)5
Avg Revenue beat(12)-1.43%
Revenue beat(16)8
Avg Revenue beat(16)-0.75%
PT rev (1m)0%
PT rev (3m)1.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.26%
EPS NY rev (1m)-2.23%
EPS NY rev (3m)-2.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.46 | ||
| Fwd PE | 11.99 | ||
| P/S | 0.76 | ||
| P/FCF | 11.12 | ||
| P/OCF | 8.52 | ||
| P/B | 2.3 | ||
| P/tB | 8.95 | ||
| EV/EBITDA | 6.89 |
EPS(TTM)3.06
EY7.43%
EPS(NY)3.43
Fwd EY8.34%
FCF(TTM)3.71
FCFY9%
OCF(TTM)4.83
OCFY11.74%
SpS53.87
BVpS17.91
TBVpS4.6
PEG (NY)1.1
PEG (5Y)3.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.44% | ||
| ROE | 16.61% | ||
| ROCE | 15.41% | ||
| ROIC | 11.84% | ||
| ROICexc | 12.09% | ||
| ROICexgc | 22.23% | ||
| OM | 8.52% | ||
| PM (TTM) | 5.52% | ||
| GM | 41% | ||
| FCFM | 6.88% |
ROA(3y)6.25%
ROA(5y)5.14%
ROE(3y)14.39%
ROE(5y)12.08%
ROIC(3y)10.01%
ROIC(5y)9.25%
ROICexc(3y)10.22%
ROICexc(5y)9.69%
ROICexgc(3y)18.62%
ROICexgc(5y)18.58%
ROCE(3y)13.02%
ROCE(5y)12.03%
ROICexcg growth 3Y9.78%
ROICexcg growth 5Y-2.46%
ROICexc growth 3Y13.11%
ROICexc growth 5Y-1.42%
OM growth 3Y22.23%
OM growth 5Y4.24%
PM growth 3Y26.35%
PM growth 5Y2.34%
GM growth 3Y5.31%
GM growth 5Y1.97%
F-Score8
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.08 | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 49.07% | ||
| Cap/Sales | 2.09% | ||
| Interest Coverage | 7.5 | ||
| Cash Conversion | 70.16% | ||
| Profit Quality | 124.59% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 3.31 |
F-Score8
WACC8.42%
ROIC/WACC1.41
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)18.15%
EPS 3Y23.61%
EPS 5Y3.47%
EPS Q2Q%-11.22%
EPS Next Y12.22%
EPS Next 2Y13.68%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)3.8%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%-5.49%
Revenue Next Year1.91%
Revenue Next 2Y2.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y21.78%
EBIT growth 3Y28.31%
EBIT growth 5Y6.71%
EBIT Next Year63.79%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-7.75%
FCF growth 3Y38.73%
FCF growth 5Y2.65%
OCF growth 1Y-15.25%
OCF growth 3Y19.88%
OCF growth 5Y0.66%