HNI Corporation Fundamental Analysis (NYSE: HNI)
HNI Corporation Fundamental Analysis (NYSE: HNI)
HNI Corporation (NYSE: HNI) shows weak financial fundamentals with a PE ratio of 111.36, profit margin of 1.00%, and ROE of 2.92%. The company generates $5.3B in annual revenue with strong year-over-year growth of 12.37%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HNI's fundamental strength across five key dimensions:
Efficiency Score
WeakHNI struggles to generate sufficient returns from assets.
Valuation Score
ModerateHNI shows balanced valuation metrics.
Growth Score
ModerateHNI shows steady but slowing expansion.
Financial Health Score
ExcellentHNI maintains a strong and stable balance sheet.
Profitability Score
WeakHNI struggles to sustain strong margins.
Key Financial Metrics
Is HNI Expensive or Cheap?
P/E Ratio
HNI trades at 111.36 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HNI's PEG of -1.30 indicates potential undervaluation.
Price to Book
The market values HNI Corporation at 1.90 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.38 times EBITDA. This is generally considered low.
How Well Does HNI Make Money?
Net Profit Margin
For every $100 in sales, HNI Corporation keeps $1.00 as profit after all expenses.
Operating Margin
Core operations generate 5.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.92 in profit for every $100 of shareholder equity.
ROA
HNI Corporation generates $1.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
HNI Corporation generates limited operating cash flow of $68.87M, signaling weaker underlying cash strength.
Free Cash Flow
HNI Corporation generates weak or negative free cash flow of $-70.07M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.97 in free cash annually.
FCF Yield
HNI converts -1.99% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
111.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.89
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How HNI Stacks Against Its Sector Peers
| Metric | HNI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 111.36 | 24.94 | Worse (Expensive) |
| ROE | 2.92% | 965.00% | Weak |
| Net Margin | 1.00% | -2081.00% (disorted) | Weak |
| Debt/Equity | 0.89 | 0.71 | Weak (High Leverage) |
| Current Ratio | 1.33 | 2.36 | Neutral |
| ROA | 1.07% | 364.00% | Weak |
HNI outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews HNI Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.40%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
15.28%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
14.77%
Industry Style: Cyclical, Growth, Discretionary
High Growth