HNI CORP (HNI) Stock Fundamental Analysis
NYSE:HNI - New York Stock Exchange, Inc. - US4042511000 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to HNI. HNI was compared to 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. Finally HNI also has an excellent dividend rating. These ratings could make HNI a good candidate for 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.
In the past 5 years HNI has always been profitable.
Each year in the past 5 years HNI had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.48%, HNI is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
The Return On Equity of HNI (14.64%) is better than 75.61% of its industry peers.
With an excellent Return On Invested Capital value of 12.85%, HNI belongs to the best of the industry, outperforming 81.71% of the companies in the same industry.
HNI had an Average Return On Invested Capital over the past 3 years of 9.10%. This is in line with the industry average of 10.07%.
The last Return On Invested Capital (12.85%) for HNI is above the 3 year average (9.10%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.48% | ||
| ROE | 14.64% | ||
| ROIC | 12.85% |
ROA(3y)5.1%
ROA(5y)5.17%
ROE(3y)12.23%
ROE(5y)12.54%
ROIC(3y)9.1%
ROIC(5y)9.75%
1.3 Margins
With a decent Profit Margin value of 4.83%, HNI is doing good in the industry, outperforming 67.07% of the companies in the same industry.
HNI's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 8.74%, HNI is doing good in the industry, outperforming 62.20% of the companies in the same industry.
In the last couple of years the Operating Margin of HNI has grown nicely.
HNI has a better Gross Margin (40.90%) than 69.51% of its industry peers.
HNI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.74% | ||
| PM (TTM) | 4.83% | ||
| GM | 40.9% |
OM growth 3Y9.8%
OM growth 5Y2.59%
PM growth 3Y-1.93%
PM growth 5Y-13.34%
GM growth 3Y1.85%
GM growth 5Y1.05%
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.
Compared to 5 years ago, HNI has more shares outstanding
The debt/assets ratio for HNI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.52 indicates that HNI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.52, HNI is doing good in the industry, outperforming 69.51% of the companies in the same industry.
HNI has a debt to FCF ratio of 1.63. This is a very positive value and a sign of high solvency as it would only need 1.63 years to pay back of all of its debts.
HNI has a better Debt to FCF ratio (1.63) than 80.49% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that HNI is not too dependend on debt financing.
The Debt to Equity ratio of HNI (0.36) is better than 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 3.52 |
ROIC/WACC1.46
WACC8.82%
2.3 Liquidity
A Current Ratio of 1.09 indicates that HNI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.09, HNI is not doing good in the industry: 71.95% of the companies in the same industry are doing better.
HNI has a Quick Ratio of 1.09. This is a bad value and indicates that HNI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.68, HNI is doing worse than 86.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.52% over the past year.
The Earnings Per Share has been growing slightly by 1.45% on average over the past years.
HNI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.36%.
Measured over the past years, HNI shows a small growth in Revenue. The Revenue has been growing by 1.51% on average per year.
EPS 1Y (TTM)41.52%
EPS 3Y13.32%
EPS 5Y1.45%
EPS Q2Q%10.75%
Revenue 1Y (TTM)10.36%
Revenue growth 3Y7.57%
Revenue growth 5Y1.51%
Sales Q2Q%-5.54%
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 15.73% on average per year.
The Revenue is expected to grow by 3.49% on average over the next years.
EPS Next Y14.16%
EPS Next 2Y16.45%
EPS Next 3Y15.73%
EPS Next 5YN/A
Revenue Next Year4.18%
Revenue Next 2Y3.45%
Revenue Next 3Y3.49%
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.
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
A Price/Earnings ratio of 14.96 indicates a correct valuation of HNI.
HNI's Price/Earnings ratio is a bit cheaper when compared to the industry. HNI is cheaper than 78.05% of the companies in the same industry.
When comparing the Price/Earnings ratio of HNI to the average of the S&P500 Index (28.36), we can say HNI is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.50, HNI is valued correctly.
HNI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HNI is cheaper than 79.27% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.49. HNI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 13.5 |
4.2 Price Multiples
HNI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HNI is cheaper than 78.05% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HNI is valued cheaper than 82.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.25 | ||
| EV/EBITDA | 8.15 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of HNI may justify a higher PE ratio.
A more expensive valuation may be justified as HNI's earnings are expected to grow with 15.73% in the coming years.
PEG (NY)1.06
PEG (5Y)10.31
EPS Next 2Y16.45%
EPS Next 3Y15.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.61%, HNI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.06, HNI pays a better dividend. On top of this HNI pays more dividend than 87.80% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, HNI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
5.2 History
The dividend of HNI has a limited annual growth rate of 4.81%.
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)4.81%
Div Incr Years14
Div Non Decr Years26
5.3 Sustainability
50.77% 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.
DP50.77%
EPS Next 2Y16.45%
EPS Next 3Y15.73%
HNI CORP
NYSE:HNI (2/3/2025, 7:32:57 PM)
After market: 47.42 0 (0%)47.42
-2.43 (-4.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.67%
Inst Owner Change3.14%
Ins Owners1.45%
Ins Owner Change0.04%
Market Cap2.27B
Analysts80
Price Target62.22 (31.21%)
Short Float %3.04%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
Yearly Dividend1.33
Dividend Growth(5Y)4.81%
DP50.77%
Div Incr Years14
Div Non Decr Years26
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.02%
Min EPS beat(2)4.33%
Max EPS beat(2)27.7%
EPS beat(4)4
Avg EPS beat(4)37.59%
Min EPS beat(4)4.33%
Max EPS beat(4)100.73%
EPS beat(8)8
Avg EPS beat(8)114.06%
EPS beat(12)12
Avg EPS beat(12)85.01%
EPS beat(16)15
Avg EPS beat(16)87.08%
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)-2.55%
Min Revenue beat(4)-6.61%
Max Revenue beat(4)1.33%
Revenue beat(8)3
Avg Revenue beat(8)-1.14%
Revenue beat(12)6
Avg Revenue beat(12)-1.16%
Revenue beat(16)8
Avg Revenue beat(16)-0.73%
PT rev (1m)0%
PT rev (3m)-2.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 13.5 | ||
| P/S | 0.88 | ||
| P/FCF | 10.25 | ||
| P/OCF | 8.08 | ||
| P/B | 2.68 | ||
| P/tB | 10.54 | ||
| EV/EBITDA | 8.15 |
EPS(TTM)3.17
EY6.68%
EPS(NY)3.51
Fwd EY7.41%
FCF(TTM)4.63
FCFY9.75%
OCF(TTM)5.87
OCFY12.38%
SpS53.63
BVpS17.71
TBVpS4.5
PEG (NY)1.06
PEG (5Y)10.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.48% | ||
| ROE | 14.64% | ||
| ROCE | 16.01% | ||
| ROIC | 12.85% | ||
| ROICexc | 13.23% | ||
| ROICexgc | 24.72% | ||
| OM | 8.74% | ||
| PM (TTM) | 4.83% | ||
| GM | 40.9% | ||
| FCFM | 8.62% |
ROA(3y)5.1%
ROA(5y)5.17%
ROE(3y)12.23%
ROE(5y)12.54%
ROIC(3y)9.1%
ROIC(5y)9.75%
ROICexc(3y)9.39%
ROICexc(5y)10.31%
ROICexgc(3y)17.58%
ROICexgc(5y)20.02%
ROCE(3y)11.33%
ROCE(5y)12.14%
ROICexcg growth 3Y-5.23%
ROICexcg growth 5Y-7.69%
ROICexc growth 3Y-0.27%
ROICexc growth 5Y-5.3%
OM growth 3Y9.8%
OM growth 5Y2.59%
PM growth 3Y-1.93%
PM growth 5Y-13.34%
GM growth 3Y1.85%
GM growth 5Y1.05%
F-Score7
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 1.63 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 55.76% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.85% | ||
| Profit Quality | 178.45% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 3.52 |
F-Score7
WACC8.82%
ROIC/WACC1.46
Cap/Depr(3y)81.54%
Cap/Depr(5y)76.97%
Cap/Sales(3y)3.06%
Cap/Sales(5y)2.86%
Profit Quality(3y)167.4%
Profit Quality(5y)210.48%
High Growth Momentum
Growth
EPS 1Y (TTM)41.52%
EPS 3Y13.32%
EPS 5Y1.45%
EPS Q2Q%10.75%
EPS Next Y14.16%
EPS Next 2Y16.45%
EPS Next 3Y15.73%
EPS Next 5YN/A
Revenue 1Y (TTM)10.36%
Revenue growth 3Y7.57%
Revenue growth 5Y1.51%
Sales Q2Q%-5.54%
Revenue Next Year4.18%
Revenue Next 2Y3.45%
Revenue Next 3Y3.49%
Revenue Next 5YN/A
EBIT growth 1Y49.63%
EBIT growth 3Y18.11%
EBIT growth 5Y4.14%
EBIT Next Year110.49%
EBIT Next 3Y34.79%
EBIT Next 5YN/A
FCF growth 1Y2203.12%
FCF growth 3Y2.94%
FCF growth 5Y8.96%
OCF growth 1Y264.42%
OCF growth 3Y7.64%
OCF growth 5Y7.49%