HNI CORP (HNI) Stock Fundamental Analysis
USA - NYSE:HNI - US4042511000 - Common Stock
44.62 USD
+0.58 (+1.32%)
44.62 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to HNI. HNI was compared to 82 industry peers in the Commercial Services & Supplies industry. While HNI has a great profitability rating, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on HNI. Finally HNI also has an excellent dividend rating. This makes HNI very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year HNI was profitable.
In the past year HNI had a positive cash flow from operations.
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
HNI has a Return On Assets of 7.74%. This is amongst the best in the industry. HNI outperforms 82.93% of its industry peers.
Looking at the Return On Equity, with a value of 18.24%, HNI belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
HNI's Return On Invested Capital of 11.95% is amongst the best of the industry. HNI outperforms 84.15% 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 10.38%.
The last Return On Invested Capital (11.95%) for HNI is above the 3 year average (10.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.74% | ||
| ROE | 18.24% | ||
| ROIC | 11.95% |
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
HNI has a better Profit Margin (5.73%) than 70.73% of its industry peers.
HNI's Profit Margin has improved in the last couple of years.
HNI has a better Operating Margin (9.04%) than 68.29% of its industry peers.
HNI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 41.37%, HNI is in the better half of the industry, outperforming 71.95% 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 | 9.04% | ||
| PM (TTM) | 5.73% | ||
| GM | 41.37% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HNI is still creating some value.
The number of shares outstanding for HNI has been increased compared to 1 year ago.
Compared to 5 years ago, HNI has more shares outstanding
HNI has a better debt/assets ratio than last year.
2.2 Solvency
HNI has an Altman-Z score of 3.45. This indicates that HNI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HNI (3.45) is better than 69.51% of its industry peers.
The Debt to FCF ratio of HNI is 2.74, which is a good value as it means it would take HNI, 2.74 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HNI (2.74) is better than 74.39% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that HNI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, HNI perfoms like the industry average, outperforming 47.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 3.45 |
ROIC/WACC1.47
WACC8.12%
2.3 Liquidity
A Current Ratio of 1.46 indicates that HNI should not have too much problems paying its short term obligations.
HNI has a Current ratio of 1.46. This is comparable to the rest of the industry: HNI outperforms 47.56% of its industry peers.
HNI has a Quick Ratio of 1.46. This is a bad value and indicates that HNI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.93, HNI is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
HNI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.38%, which is quite good.
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 decrease in Revenue. The Revenue has decreased by -0.83% 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)12.38%
EPS 3Y23.61%
EPS 5Y3.47%
EPS Q2Q%40.51%
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%6.96%
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 17.14% yearly.
The Revenue is expected to grow by 35.00% on average over the next years. This is a very strong growth
EPS Next Y17.57%
EPS Next 2Y15.69%
EPS Next 3Y17.14%
EPS Next 5YN/A
Revenue Next Year4.17%
Revenue Next 2Y3.97%
Revenue Next 3Y35%
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 12.93, HNI is valued correctly.
Based on the Price/Earnings ratio, HNI is valued cheaper than 85.37% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.69. HNI is valued rather cheaply when compared to this.
HNI is valuated reasonably with a Price/Forward Earnings ratio of 10.89.
86.59% of the companies in the same industry are more expensive than HNI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, HNI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 10.89 |
4.2 Price Multiples
HNI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HNI is cheaper than 79.27% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HNI is valued cheaply inside the industry as 82.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.17 | ||
| EV/EBITDA | 7.26 |
4.3 Compensation for Growth
HNI's 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 17.14% in the coming years.
PEG (NY)0.74
PEG (5Y)3.73
EPS Next 2Y15.69%
EPS Next 3Y17.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.09%, HNI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.51, HNI pays a better dividend. On top of this HNI pays more dividend than 90.24% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, HNI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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 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 42.87% 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.
DP42.87%
EPS Next 2Y15.69%
EPS Next 3Y17.14%
44.62
+0.58 (+1.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners81.69%
Inst Owner Change0%
Ins Owners1.58%
Ins Owner Change0.83%
Market Cap2.05B
Analysts80
Price Target68.08 (52.58%)
Short Float %10.05%
Short Ratio5.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
Yearly Dividend1.35
Dividend Growth(5Y)3.58%
DP42.87%
Div Incr Years14
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28.26%
Min EPS beat(2)28.13%
Max EPS beat(2)28.39%
EPS beat(4)4
Avg EPS beat(4)19.41%
Min EPS beat(4)4.33%
Max EPS beat(4)28.39%
EPS beat(8)8
Avg EPS beat(8)33.73%
EPS beat(12)12
Avg EPS beat(12)82.9%
EPS beat(16)15
Avg EPS beat(16)68.28%
Revenue beat(2)2
Avg Revenue beat(2)2.24%
Min Revenue beat(2)2.18%
Max Revenue beat(2)2.31%
Revenue beat(4)2
Avg Revenue beat(4)-1.33%
Min Revenue beat(4)-6.61%
Max Revenue beat(4)2.31%
Revenue beat(8)3
Avg Revenue beat(8)-1.26%
Revenue beat(12)5
Avg Revenue beat(12)-1.29%
Revenue beat(16)8
Avg Revenue beat(16)-0.9%
PT rev (1m)0%
PT rev (3m)4.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8%
EPS NY rev (1m)0%
EPS NY rev (3m)3.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 10.89 | ||
| P/S | 0.79 | ||
| P/FCF | 12.17 | ||
| P/OCF | 9.16 | ||
| P/B | 2.52 | ||
| P/tB | 10.21 | ||
| EV/EBITDA | 7.26 |
EPS(TTM)3.45
EY7.73%
EPS(NY)4.1
Fwd EY9.18%
FCF(TTM)3.66
FCFY8.21%
OCF(TTM)4.87
OCFY10.92%
SpS56.32
BVpS17.69
TBVpS4.37
PEG (NY)0.74
PEG (5Y)3.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.74% | ||
| ROE | 18.24% | ||
| ROCE | 15.55% | ||
| ROIC | 11.95% | ||
| ROICexc | 12.26% | ||
| ROICexgc | 21.04% | ||
| OM | 9.04% | ||
| PM (TTM) | 5.73% | ||
| GM | 41.37% | ||
| FCFM | 6.51% |
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 Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.74 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 52.51% | ||
| Cap/Sales | 2.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.92% | ||
| Profit Quality | 113.59% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 3.45 |
F-Score8
WACC8.12%
ROIC/WACC1.47
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)12.38%
EPS 3Y23.61%
EPS 5Y3.47%
EPS Q2Q%40.51%
EPS Next Y17.57%
EPS Next 2Y15.69%
EPS Next 3Y17.14%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.83%
Revenue growth 3Y4.97%
Revenue growth 5Y2.37%
Sales Q2Q%6.96%
Revenue Next Year4.17%
Revenue Next 2Y3.97%
Revenue Next 3Y35%
Revenue Next 5YN/A
EBIT growth 1Y7.61%
EBIT growth 3Y29.3%
EBIT growth 5Y7.21%
EBIT Next Year66.47%
EBIT Next 3Y52.69%
EBIT Next 5YN/A
FCF growth 1Y120.47%
FCF growth 3Y38.73%
FCF growth 5Y2.65%
OCF growth 1Y46.49%
OCF growth 3Y19.88%
OCF growth 5Y0.66%