HNI CORP (HNI)
US4042511000 - Common Stock
Overall HNI gets a fundamental rating of 6 out of 10. We evaluated HNI against 83 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 has a decent growth rate and is not valued too expensively. Finally HNI also has an excellent dividend rating. This makes HNI very considerable 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.
In the past 5 years HNI has always been profitable.
HNI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HNI (6.48%) is better than 74.39% of its industry peers.
HNI has a better Return On Equity (14.64%) 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 82.93% 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 9.94%.
The 3 year average ROIC (9.10%) for HNI is below the current ROIC(12.85%), indicating increased profibility in the last year.
| 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
HNI's Profit Margin of 4.83% is fine compared to the rest of the industry. HNI outperforms 67.07% of its industry peers.
In the last couple of years the Profit Margin of HNI has declined.
HNI has a better Operating Margin (8.74%) than 62.20% of its industry peers.
HNI's Operating Margin has improved in the last couple of years.
The Gross Margin of HNI (40.90%) is better than 69.51% of its industry peers.
In the last couple of years the Gross Margin of HNI has remained more or less at the same level.
| 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
HNI has an Altman-Z score of 3.53. This indicates that HNI is financially healthy and has little risk of bankruptcy at the moment.
HNI has a better Altman-Z score (3.53) than 73.17% of its industry peers.
The Debt to FCF ratio of HNI is 1.63, which is an excellent value as it means it would take HNI, only 1.63 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HNI (1.63) is better than 80.49% 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 the better half of the industry, outperforming 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 3.53 |
ROIC/WACC1.41
WACC9.11%
2.3 Liquidity
A Current Ratio of 1.09 indicates that HNI should not have too much problems paying its short term obligations.
HNI has a Current ratio of 1.09. This is in the lower half of the industry: HNI underperforms 74.39% of its industry peers.
A Quick Ratio of 0.68 indicates that HNI may have some problems paying its short term obligations.
HNI's Quick ratio of 0.68 is on the low side compared to the rest of the industry. HNI is outperformed by 87.80% of its industry peers.
| 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.
HNI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.45% yearly.
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
HNI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.73% yearly.
Based on estimates for the next years, HNI will show a small growth in Revenue. The Revenue will grow by 3.49% on average per year.
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
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
Based on the Price/Earnings ratio of 15.61, the valuation of HNI can be described as correct.
Based on the Price/Earnings ratio, HNI is valued a bit cheaper than the industry average as 76.83% of the companies are valued more expensively.
HNI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.17.
With a Price/Forward Earnings ratio of 14.09, HNI is valued correctly.
Based on the Price/Forward Earnings ratio, HNI is valued cheaper than 81.71% of the companies in the same industry.
HNI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 14.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HNI is valued a bit cheaper than 74.39% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HNI is valued cheaper than 81.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.7 | ||
| EV/EBITDA | 8.23 |
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 a very decent profitability rating, which may justify a higher PE ratio.
HNI's earnings are expected to grow with 15.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)10.76
EPS Next 2Y16.45%
EPS Next 3Y15.73%
5. Dividend
5.1 Amount
HNI has a Yearly Dividend Yield of 2.56%.
Compared to an average industry Dividend Yield of 2.08, HNI pays a better dividend. On top of this HNI pays more dividend than 86.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, HNI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
The dividend of HNI has a limited annual growth rate of 4.81%.
HNI has been paying a dividend for at least 10 years, so it has 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
HNI pays out 50.77% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of HNI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.77%
EPS Next 2Y16.45%
EPS Next 3Y15.73%
HNI CORP
NYSE:HNI (1/2/2025, 1:38:21 PM)
49.49
-0.88 (-1.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners80.67%
Inst Owner Change2.48%
Ins Owners1.45%
Ins Owner Change-0.28%
Market Cap2.37B
Analysts80
Price Target62.22 (25.72%)
Short Float %2.13%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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)-8.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.61 | ||
| Fwd PE | 14.09 | ||
| P/S | 0.92 | ||
| P/FCF | 10.7 | ||
| P/OCF | 8.43 | ||
| P/B | 2.79 | ||
| P/tB | 11 | ||
| EV/EBITDA | 8.23 |
EPS(TTM)3.17
EY6.41%
EPS(NY)3.51
Fwd EY7.1%
FCF(TTM)4.63
FCFY9.35%
OCF(TTM)5.87
OCFY11.86%
SpS53.63
BVpS17.71
TBVpS4.5
PEG (NY)1.1
PEG (5Y)10.76
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 | 3.53 |
F-Score7
WACC9.11%
ROIC/WACC1.41
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%