HAVERTY FURNITURE (HVT) Stock Fundamental Analysis
NYSE:HVT - New York Stock Exchange, Inc. - US4195961010 - Common Stock - Currency: USD
HVT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 121 industry peers in the Specialty Retail industry. HVT is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. HVT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally HVT also has an excellent dividend rating. These ratings would make HVT suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
HVT had positive earnings in the past year.
In the past year HVT had a positive cash flow from operations.
In the past 5 years HVT has always been profitable.
HVT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.32%, HVT is in the better half of the industry, outperforming 60.33% of the companies in the same industry.
The Return On Equity of HVT (6.99%) is better than 64.46% of its industry peers.
HVT's Return On Invested Capital of 3.36% is in line compared to the rest of the industry. HVT outperforms 50.41% of its industry peers.
HVT had an Average Return On Invested Capital over the past 3 years of 10.44%. This is below the industry average of 13.07%.
The 3 year average ROIC (10.44%) for HVT is well above the current ROIC(3.36%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 6.99% | ||
| ROIC | 3.36% |
ROA(3y)8.49%
ROA(5y)9.48%
ROE(3y)18.55%
ROE(5y)22.89%
ROIC(3y)10.44%
ROIC(5y)12.56%
1.3 Margins
HVT's Profit Margin of 2.96% is fine compared to the rest of the industry. HVT outperforms 67.77% of its industry peers.
In the last couple of years the Profit Margin of HVT has remained more or less at the same level.
With a Operating Margin value of 3.12%, HVT perfoms like the industry average, outperforming 56.20% of the companies in the same industry.
In the last couple of years the Operating Margin of HVT has declined.
HVT has a better Gross Margin (60.95%) than 90.08% of its industry peers.
HVT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.12% | ||
| PM (TTM) | 2.96% | ||
| GM | 60.95% |
OM growth 3Y-38.05%
OM growth 5Y-4.06%
PM growth 3Y-32.47%
PM growth 5Y0.23%
GM growth 3Y2.3%
GM growth 5Y2.32%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HVT is creating some value.
Compared to 1 year ago, HVT has more shares outstanding
The number of shares outstanding for HVT has been reduced compared to 5 years ago.
HVT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
HVT has an Altman-Z score of 2.92. This is not the best score and indicates that HVT is in the grey zone with still only limited risk for bankruptcy at the moment.
HVT's Altman-Z score of 2.92 is fine compared to the rest of the industry. HVT outperforms 67.77% of its industry peers.
There is no outstanding debt for HVT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.92 |
ROIC/WACC0.35
WACC9.48%
2.3 Liquidity
HVT has a Current Ratio of 1.81. This is a normal value and indicates that HVT is financially healthy and should not expect problems in meeting its short term obligations.
HVT has a Current ratio of 1.81. This is in the better half of the industry: HVT outperforms 77.69% of its industry peers.
A Quick Ratio of 1.12 indicates that HVT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.12, HVT is in the better half of the industry, outperforming 79.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
HVT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.99%.
Measured over the past 5 years, HVT shows a small growth in Earnings Per Share. The EPS has been growing by 0.17% on average per year.
HVT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.28%.
Measured over the past years, HVT shows a decrease in Revenue. The Revenue has been decreasing by -2.06% on average per year.
EPS 1Y (TTM)-53.99%
EPS 3Y-37.83%
EPS 5Y0.17%
EPS Q2Q%64.29%
Revenue 1Y (TTM)-12.28%
Revenue growth 3Y-10.63%
Revenue growth 5Y-2.06%
Sales Q2Q%-1.32%
3.2 Future
HVT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.66% yearly.
Based on estimates for the next years, HVT will show a small growth in Revenue. The Revenue will grow by 6.41% on average per year.
EPS Next Y11.27%
EPS Next 2Y44.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.58%
Revenue Next 2Y6.41%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.03 indicates a rather expensive valuation of HVT.
74.38% of the companies in the same industry are more expensive than HVT, based on the Price/Earnings ratio.
HVT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
With a Price/Forward Earnings ratio of 8.76, the valuation of HVT can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HVT indicates a rather cheap valuation: HVT is cheaper than 85.95% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HVT to the average of the S&P500 Index (21.70), we can say HVT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.03 | ||
| Fwd PE | 8.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HVT indicates a rather cheap valuation: HVT is cheaper than 83.47% of the companies listed in the same industry.
81.82% of the companies in the same industry are more expensive than HVT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.6 | ||
| EV/EBITDA | 4.81 |
4.3 Compensation for Growth
HVT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of HVT may justify a higher PE ratio.
HVT's earnings are expected to grow with 44.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.51
PEG (5Y)99.97
EPS Next 2Y44.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HVT has a Yearly Dividend Yield of 6.24%, which is a nice return.
Compared to an average industry Dividend Yield of 5.27, HVT pays a better dividend. On top of this HVT pays more dividend than 93.39% of the companies listed in the same industry.
HVT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.24% |
5.2 History
On average, the dividend of HVT grows each year by 10.67%, which is quite nice.
HVT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.67%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
HVT pays out 97.45% of its income as dividend. This is not a sustainable payout ratio.
HVT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP97.45%
EPS Next 2Y44.66%
EPS Next 3YN/A
21.63
+1.28 (+6.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners87.37%
Inst Owner Change-2.56%
Ins Owners10.92%
Ins Owner Change1.34%
Market Cap349.32M
Analysts80
Price Target23.46 (8.46%)
Short Float %7.31%
Short Ratio7.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.24% |
Yearly Dividend1.27
Dividend Growth(5Y)10.67%
DP97.45%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)143.05%
Min EPS beat(2)62.66%
Max EPS beat(2)223.43%
EPS beat(4)3
Avg EPS beat(4)75.48%
Min EPS beat(4)-41.43%
Max EPS beat(4)223.43%
EPS beat(8)4
Avg EPS beat(8)27.87%
EPS beat(12)7
Avg EPS beat(12)28.99%
EPS beat(16)11
Avg EPS beat(16)28.73%
Revenue beat(2)2
Avg Revenue beat(2)1.33%
Min Revenue beat(2)1.16%
Max Revenue beat(2)1.49%
Revenue beat(4)2
Avg Revenue beat(4)-3%
Min Revenue beat(4)-10.52%
Max Revenue beat(4)1.49%
Revenue beat(8)2
Avg Revenue beat(8)-5.38%
Revenue beat(12)5
Avg Revenue beat(12)-2.08%
Revenue beat(16)8
Avg Revenue beat(16)-0.67%
PT rev (1m)0%
PT rev (3m)-23.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-38.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.03 | ||
| Fwd PE | 8.76 | ||
| P/S | 0.48 | ||
| P/FCF | 11.6 | ||
| P/OCF | 5.64 | ||
| P/B | 1.14 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 4.81 |
EPS(TTM)1.27
EY5.87%
EPS(NY)2.47
Fwd EY11.42%
FCF(TTM)1.86
FCFY8.62%
OCF(TTM)3.83
OCFY17.73%
SpS44.61
BVpS18.91
TBVpS18.91
PEG (NY)1.51
PEG (5Y)99.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 6.99% | ||
| ROCE | 4.37% | ||
| ROIC | 3.36% | ||
| ROICexc | 4.3% | ||
| ROICexgc | 4.3% | ||
| OM | 3.12% | ||
| PM (TTM) | 2.96% | ||
| GM | 60.95% | ||
| FCFM | 4.18% |
ROA(3y)8.49%
ROA(5y)9.48%
ROE(3y)18.55%
ROE(5y)22.89%
ROIC(3y)10.44%
ROIC(5y)12.56%
ROICexc(3y)13.79%
ROICexc(5y)18.41%
ROICexgc(3y)13.79%
ROICexgc(5y)18.41%
ROCE(3y)13.58%
ROCE(5y)16.34%
ROICexcg growth 3Y-49.04%
ROICexcg growth 5Y-8%
ROICexc growth 3Y-49.04%
ROICexc growth 5Y-8%
OM growth 3Y-38.05%
OM growth 5Y-4.06%
PM growth 3Y-32.47%
PM growth 5Y0.23%
GM growth 3Y2.3%
GM growth 5Y2.32%
F-Score4
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 141.05% | ||
| Cap/Sales | 4.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 137.53% | ||
| Profit Quality | 141.08% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.92 |
F-Score4
WACC9.48%
ROIC/WACC0.35
Cap/Depr(3y)200.69%
Cap/Depr(5y)174.23%
Cap/Sales(3y)4.44%
Cap/Sales(5y)3.63%
Profit Quality(3y)79.31%
Profit Quality(5y)101.86%
High Growth Momentum
Growth
EPS 1Y (TTM)-53.99%
EPS 3Y-37.83%
EPS 5Y0.17%
EPS Q2Q%64.29%
EPS Next Y11.27%
EPS Next 2Y44.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-12.28%
Revenue growth 3Y-10.63%
Revenue growth 5Y-2.06%
Sales Q2Q%-1.32%
Revenue Next Year4.58%
Revenue Next 2Y6.41%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-58.72%
EBIT growth 3Y-44.64%
EBIT growth 5Y-6.04%
EBIT Next Year375.13%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y123.02%
FCF growth 3Y-24.82%
FCF growth 5Y-10.46%
OCF growth 1Y49.22%
OCF growth 3Y-15.37%
OCF growth 5Y-1.46%