Highwoods Properties, Inc.
Highwoods Properties, Inc. Fundamental Analysis
Highwoods Properties, Inc. (HIW) shows weak financial fundamentals with a PE ratio of 16.04, profit margin of 19.80%, and ROE of 6.69%. The company generates $0.8B in annual revenue with weak year-over-year growth of -0.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HIW's fundamental strength across five key dimensions:
Efficiency Score
WeakHIW struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHIW trades at attractive valuation levels.
Growth Score
WeakHIW faces weak or negative growth trends.
Financial Health Score
ModerateHIW shows balanced financial health with some risks.
Profitability Score
ModerateHIW maintains healthy but balanced margins.
Key Financial Metrics
Is HIW Expensive or Cheap?
P/E Ratio
HIW trades at 16.04 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HIW's PEG of 0.65 indicates potential undervaluation.
Price to Book
The market values Highwoods Properties, Inc. at 1.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.72 times EBITDA. This is generally considered low.
How Well Does HIW Make Money?
Net Profit Margin
For every $100 in sales, Highwoods Properties, Inc. keeps $19.80 as profit after all expenses.
Operating Margin
Core operations generate 25.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.69 in profit for every $100 of shareholder equity.
ROA
Highwoods Properties, Inc. generates $2.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Highwoods Properties, Inc. generates strong operating cash flow of $361.11M, reflecting robust business health.
Free Cash Flow
Highwoods Properties, Inc. generates strong free cash flow of $301.17M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.74 in free cash annually.
FCF Yield
HIW converts 11.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.65
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.18
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
42.45
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How HIW Stacks Against Its Sector Peers
| Metric | HIW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.04 | 24.23 | Better (Cheaper) |
| ROE | 6.69% | 659.00% | Weak |
| Net Margin | 19.80% | 4497.00% | Weak |
| Debt/Equity | 1.53 | -22.14 (disorted) | Distorted |
| Current Ratio | 42.45 | 13.87 | Strong Liquidity |
| ROA | 2.54% | -1390.00% (disorted) | Weak |
HIW outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Highwoods Properties, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
10.15%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-29.52%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
7.76%
Industry Style: Income, Inflation Hedge, REIT
Growing