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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HVT is cheap, but on the other hand it scores bad on growth. These ratings would make HVT suitable for value 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.
Of the past 5 years HVT 4 years were profitable.
Of the past 5 years HVT 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HVT (4.06%) is better than 62.81% of its industry peers.
Looking at the Return On Equity, with a value of 8.69%, HVT is in the better half of the industry, outperforming 64.46% of the companies in the same industry.
With a Return On Invested Capital value of 4.18%, HVT perfoms like the industry average, outperforming 50.41% of the companies in the same industry.
HVT had an Average Return On Invested Capital over the past 3 years of 15.66%. This is in line with the industry average of 14.13%.
The 3 year average ROIC (15.66%) for HVT is well above the current ROIC(4.18%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 8.69% | ||
| ROIC | 4.18% |
ROA(3y)11.87%
ROA(5y)9.64%
ROE(3y)28.21%
ROE(5y)23.28%
ROIC(3y)15.66%
ROIC(5y)12.81%
1.3 Margins
Looking at the Profit Margin, with a value of 3.57%, HVT is in the better half of the industry, outperforming 71.07% of the companies in the same industry.
HVT's Profit Margin has improved in the last couple of years.
HVT has a Operating Margin (3.82%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HVT has grown nicely.
With an excellent Gross Margin value of 60.90%, HVT belongs to the best of the industry, outperforming 90.08% of the companies in the same industry.
HVT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.82% | ||
| PM (TTM) | 3.57% | ||
| GM | 60.9% |
OM growth 3Y-8.68%
OM growth 5Y8.8%
PM growth 3Y-6.13%
PM growth 5Y12.01%
GM growth 3Y2.71%
GM growth 5Y2.13%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HVT is still creating some value.
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
An Altman-Z score of 2.85 indicates that HVT is not a great score, but indicates only limited risk for bankruptcy at the moment.
HVT's Altman-Z score of 2.85 is fine compared to the rest of the industry. HVT outperforms 69.42% of its industry peers.
HVT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.46
WACC9.18%
2.3 Liquidity
HVT has a Current Ratio of 1.82. This is a normal value and indicates that HVT is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.82, HVT is doing good in the industry, outperforming 77.69% of the companies in the same industry.
A Quick Ratio of 1.17 indicates that HVT should not have too much problems paying its short term obligations.
HVT has a better Quick ratio (1.17) than 79.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The earnings per share for HVT have decreased strongly by -64.88% in the last year.
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.
EPS 1Y (TTM)-64.88%
EPS 3Y-37.83%
EPS 5Y0.17%
EPS Q2Q%-45.56%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-12.52%
3.2 Future
HVT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.59% yearly.
Based on estimates for the next years, HVT will show a small growth in Revenue. The Revenue will grow by 6.48% on average per year.
EPS Next Y22.83%
EPS Next 2Y47.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.92%
Revenue Next 2Y6.48%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.72, the valuation of HVT can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of HVT indicates a somewhat cheap valuation: HVT is cheaper than 70.25% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HVT to the average of the S&P500 Index (27.63), we can say HVT is valued slightly cheaper.
With a Price/Forward Earnings ratio of 11.98, the valuation of HVT can be described as very reasonable.
HVT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HVT is cheaper than 72.73% of the companies in the same industry.
HVT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 11.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HVT is valued cheaply inside the industry as 88.43% of the companies are valued more expensively.
78.51% 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 | 9.8 | ||
| EV/EBITDA | 3.28 |
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.
HVT has a very decent profitability rating, which may justify a higher PE ratio.
HVT's earnings are expected to grow with 47.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)86.41
EPS Next 2Y47.59%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.23%, HVT is a good candidate for dividend investing.
In the last 3 months the price of HVT has falen by -24.18%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 5.62, HVT pays a better dividend. On top of this HVT pays more dividend than 94.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, HVT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.23% |
5.2 History
The dividend of HVT has a limited annual growth rate of 5.06%.
HVT has been paying a dividend for at least 10 years, so it has a reliable track record.
HVT has decreased its dividend recently.
Dividend Growth(5Y)5.06%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
135.40% of the earnings are spent on dividend by HVT. This is not a sustainable payout ratio.
The dividend of HVT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP135.4%
EPS Next 2Y47.59%
EPS Next 3YN/A
17.37
-0.34 (-1.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners89.16%
Inst Owner Change-2.47%
Ins Owners10.74%
Ins Owner Change2.81%
Market Cap282.26M
Analysts80
Price Target30.6 (76.17%)
Short Float %8.62%
Short Ratio8.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.23% |
Yearly Dividend2.18
Dividend Growth(5Y)5.06%
DP135.4%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.91%
Min EPS beat(2)-41.43%
Max EPS beat(2)57.25%
EPS beat(4)1
Avg EPS beat(4)-14.08%
Min EPS beat(4)-61.85%
Max EPS beat(4)57.25%
EPS beat(8)3
Avg EPS beat(8)-7.63%
EPS beat(12)7
Avg EPS beat(12)9.25%
EPS beat(16)11
Avg EPS beat(16)23.68%
Revenue beat(2)0
Avg Revenue beat(2)-7.32%
Min Revenue beat(2)-10.52%
Max Revenue beat(2)-4.12%
Revenue beat(4)0
Avg Revenue beat(4)-8.08%
Min Revenue beat(4)-10.52%
Max Revenue beat(4)-4.12%
Revenue beat(8)1
Avg Revenue beat(8)-5.74%
Revenue beat(12)5
Avg Revenue beat(12)-2.2%
Revenue beat(16)8
Avg Revenue beat(16)0.31%
PT rev (1m)-14.29%
PT rev (3m)-14.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 11.98 | ||
| P/S | 0.38 | ||
| P/FCF | 9.8 | ||
| P/OCF | 4.72 | ||
| P/B | 0.92 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 3.28 |
EPS(TTM)1.18
EY6.79%
EPS(NY)1.45
Fwd EY8.34%
FCF(TTM)1.77
FCFY10.2%
OCF(TTM)3.68
OCFY21.18%
SpS46.11
BVpS18.94
TBVpS18.94
PEG (NY)0.64
PEG (5Y)86.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 8.69% | ||
| ROCE | 5.49% | ||
| ROIC | 4.18% | ||
| ROICexc | 5.45% | ||
| ROICexgc | 5.45% | ||
| OM | 3.82% | ||
| PM (TTM) | 3.57% | ||
| GM | 60.9% | ||
| FCFM | 3.84% |
ROA(3y)11.87%
ROA(5y)9.64%
ROE(3y)28.21%
ROE(5y)23.28%
ROIC(3y)15.66%
ROIC(5y)12.81%
ROICexc(3y)22.06%
ROICexc(5y)18.62%
ROICexgc(3y)22.06%
ROICexgc(5y)18.62%
ROCE(3y)20.57%
ROCE(5y)16.83%
ROICexcg growth 3Y-15.04%
ROICexcg growth 5Y2.67%
ROICexc growth 3Y-15.04%
ROICexc growth 5Y2.67%
OM growth 3Y-8.68%
OM growth 5Y8.8%
PM growth 3Y-6.13%
PM growth 5Y12.01%
GM growth 3Y2.71%
GM growth 5Y2.13%
F-Score7
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 150.99% | ||
| Cap/Sales | 4.14% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 121.62% | ||
| Profit Quality | 107.59% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 2.85 |
F-Score7
WACC9.18%
ROIC/WACC0.46
Cap/Depr(3y)220.92%
Cap/Depr(5y)160.84%
Cap/Sales(3y)4.08%
Cap/Sales(5y)3.16%
Profit Quality(3y)57.69%
Profit Quality(5y)117.54%
High Growth Momentum
Growth
EPS 1Y (TTM)-64.88%
EPS 3Y-37.83%
EPS 5Y0.17%
EPS Q2Q%-45.56%
EPS Next Y22.83%
EPS Next 2Y47.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-12.52%
Revenue Next Year4.92%
Revenue Next 2Y6.48%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-65.12%
EBIT growth 3Y-4.27%
EBIT growth 5Y9.96%
EBIT Next Year-42.06%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y57.33%
FCF growth 3Y-28.24%
FCF growth 5Y-2.05%
OCF growth 1Y28.86%
OCF growth 3Y-9.28%
OCF growth 5Y6.66%