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 84 industry peers in the Commercial Services & Supplies industry. While HNI has a great profitability rating, there are some minor concerns on its financial health. HNI is not valued too expensively and it also shows a decent growth rate. HNI also has an excellent dividend rating. These ratings would make HNI suitable for 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.
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
With a decent Return On Assets value of 7.44%, HNI is doing good in the industry, outperforming 76.19% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.61%, HNI is in the better half of the industry, outperforming 79.76% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.84%, HNI belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
HNI had an Average Return On Invested Capital over the past 3 years of 10.01%. This is in line with the industry average of 10.07%.
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
With a decent Profit Margin value of 5.52%, HNI is doing good in the industry, outperforming 69.05% of the companies in the same industry.
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 63.10% of its industry peers.
In the last couple of years the Operating Margin of HNI has grown nicely.
The Gross Margin of HNI (41.00%) is better than 70.24% of its industry peers.
HNI's Gross Margin has improved in the last couple of years.
| 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
HNI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for HNI has been increased compared to 1 year ago.
HNI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HNI has been reduced compared to a year ago.
2.2 Solvency
HNI has an Altman-Z score of 3.45. This indicates that HNI is financially healthy and has little risk of bankruptcy at the moment.
HNI has a better Altman-Z score (3.45) than 73.81% of its industry peers.
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 has a Debt to FCF ratio of 2.08. This is amongst the best in the industry. HNI outperforms 80.95% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that HNI is not too dependend on debt financing.
HNI's Debt to Equity ratio of 0.36 is fine compared to the rest of the industry. HNI outperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.08 | ||
| Altman-Z | 3.45 |
ROIC/WACC1.41
WACC8.39%
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 worse Current ratio (1.10) than 71.43% of its industry peers.
HNI has a Quick Ratio of 1.10. This is a bad value and indicates that HNI is not financially healthy enough and could expect problems in meeting its short term obligations.
HNI has a worse Quick ratio (0.69) than 82.14% 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 | 1.1 | ||
| 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.
The Revenue has been growing slightly by 2.37% on average over the past years.
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
Based on estimates for the next years, HNI will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.54% on average per year.
The Revenue is expected to grow by 3.15% on average over the next years.
EPS Next Y14.78%
EPS Next 2Y14.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.73%
Revenue Next 2Y3.15%
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.
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
The Price/Earnings ratio is 14.71, which indicates a correct valuation of HNI.
76.19% of the companies in the same industry are more expensive than HNI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.35, HNI is valued a bit cheaper.
HNI is valuated correctly with a Price/Forward Earnings ratio of 12.82.
HNI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HNI is cheaper than 79.76% of the companies in the same industry.
HNI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 12.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HNI is valued a bit cheaper than 78.57% of the companies in the same industry.
HNI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HNI is cheaper than 73.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.38 | ||
| EV/EBITDA | 7.65 |
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.
The excellent profitability rating of HNI may justify a higher PE ratio.
HNI's earnings are expected to grow with 14.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1
PEG (5Y)4.24
EPS Next 2Y14.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.94%, 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 2.36. HNI pays more dividend than 88.10% of the companies in the same industry.
HNI's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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
45.59% 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.
DP45.59%
EPS Next 2Y14.54%
EPS Next 3YN/A
45.01
+0.14 (+0.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners81.84%
Inst Owner Change4.05%
Ins Owners1.54%
Ins Owner Change4.44%
Market Cap2.12B
Analysts80
Price Target62.9 (39.75%)
Short Float %2.44%
Short Ratio3.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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)0%
EPS NQ rev (1m)-12.26%
EPS NQ rev (3m)-12.26%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 12.82 | ||
| P/S | 0.85 | ||
| P/FCF | 12.38 | ||
| P/OCF | 9.49 | ||
| P/B | 2.56 | ||
| P/tB | 9.97 | ||
| EV/EBITDA | 7.65 |
EPS(TTM)3.06
EY6.8%
EPS(NY)3.51
Fwd EY7.8%
FCF(TTM)3.64
FCFY8.08%
OCF(TTM)4.74
OCFY10.54%
SpS52.85
BVpS17.58
TBVpS4.51
PEG (NY)1
PEG (5Y)4.24
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 | 3.45 |
F-Score8
WACC8.39%
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 Y14.78%
EPS Next 2Y14.54%
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 Year2.73%
Revenue Next 2Y3.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y21.78%
EBIT growth 3Y28.31%
EBIT growth 5Y6.71%
EBIT Next Year67.34%
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%