HNI CORP (HNI) Stock Fundamental Analysis
USA - NYSE:HNI - US4042511000 - Common Stock
45.43 USD
+0.19 (+0.42%)
45.43 USD
0 (0%)
Overall HNI gets a fundamental rating of 7 out of 10. We evaluated HNI against 84 industry peers in the Commercial Services & Supplies industry. HNI scores excellent on profitability, but there are some minor concerns on its financial health. HNI may be a bit undervalued, certainly considering the very reasonable score on growth Finally HNI also has an excellent dividend rating. With these ratings, HNI could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
In the past year HNI was profitable.
HNI had a positive operating cash flow in the past year.
HNI had positive earnings in each of the past 5 years.
HNI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HNI has a Return On Assets of 7.74%. This is amongst the best in the industry. HNI outperforms 80.95% of its industry peers.
With an excellent Return On Equity value of 18.24%, HNI belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
HNI has a Return On Invested Capital of 11.95%. This is amongst the best in the industry. HNI outperforms 84.52% 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 10.60%.
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 Profit Margin of 5.73%. This is in the better half of the industry: HNI outperforms 70.24% of its industry peers.
HNI's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 9.04%, HNI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
HNI's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 41.37%, HNI is doing good in the industry, outperforming 70.24% of the companies in the same industry.
HNI's Gross Margin has improved in the last couple of years.
| 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
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.
The number of shares outstanding for HNI has been increased compared to 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 3.47. This indicates that HNI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.47, HNI is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
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 73.81% 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 47.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 3.47 |
ROIC/WACC1.43
WACC8.37%
2.3 Liquidity
HNI has a Current Ratio of 1.46. This is a normal value and indicates that HNI is financially healthy and should not expect problems in meeting its short term obligations.
HNI's Current ratio of 1.46 is in line compared to the rest of the industry. HNI outperforms 46.43% of its industry peers.
A Quick Ratio of 0.93 indicates that HNI may have some problems paying its short term obligations.
HNI's Quick ratio of 0.93 is on the low side compared to the rest of the industry. HNI is outperformed by 73.81% of its industry peers.
| 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.
HNI shows a decrease in Revenue. In the last year, the revenue decreased by -0.83%.
The Revenue has been growing slightly by 2.37% on average over the past years.
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
Based on estimates for the next years, HNI will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.14% on average per year.
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
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 13.17 indicates a correct valuation of HNI.
Compared to the rest of the industry, the Price/Earnings ratio of HNI indicates a rather cheap valuation: HNI is cheaper than 83.33% of the companies listed in the same industry.
HNI is valuated cheaply when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.09, the valuation of HNI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, HNI is valued cheaper than 88.10% of the companies in the same industry.
HNI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 11.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HNI is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HNI indicates a rather cheap valuation: HNI is cheaper than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.4 | ||
| EV/EBITDA | 7.37 |
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.
HNI's earnings are expected to grow with 17.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.75
PEG (5Y)3.79
EPS Next 2Y15.69%
EPS Next 3Y17.14%
5. Dividend
5.1 Amount
HNI has a Yearly Dividend Yield of 2.95%. Purely for dividend investing, there may be better candidates out there.
HNI's Dividend Yield is rather good when compared to the industry average which is at 2.27. HNI pays more dividend than 89.29% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, HNI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.58%
Div Incr Years14
Div Non Decr Years26
5.3 Sustainability
42.87% 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.
DP42.87%
EPS Next 2Y15.69%
EPS Next 3Y17.14%
45.43
+0.19 (+0.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners82.1%
Inst Owner Change0.01%
Ins Owners1.58%
Ins Owner Change0.83%
Market Cap2.08B
Analysts80
Price Target68.08 (49.86%)
Short Float %8.86%
Short Ratio6.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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)3.09%
PT rev (3m)4.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8%
EPS NY rev (1m)3.19%
EPS NY rev (3m)2.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 11.09 | ||
| P/S | 0.81 | ||
| P/FCF | 12.4 | ||
| P/OCF | 9.32 | ||
| P/B | 2.57 | ||
| P/tB | 10.39 | ||
| EV/EBITDA | 7.37 |
EPS(TTM)3.45
EY7.59%
EPS(NY)4.1
Fwd EY9.02%
FCF(TTM)3.66
FCFY8.07%
OCF(TTM)4.87
OCFY10.73%
SpS56.32
BVpS17.69
TBVpS4.37
PEG (NY)0.75
PEG (5Y)3.79
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 | 3.47 |
F-Score8
WACC8.37%
ROIC/WACC1.43
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 Year66.78%
EBIT Next 3Y26.22%
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%