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HNI

HNI NYSE:HNI Stock Report

Last Price

US$27.14

Market Cap

US$1.1b

7D

-4.1%

1Y

-26.1%

Updated

29 Sep, 2022

Data

Company Financials +
HNI fundamental analysis
Snowflake Score
Valuation6/6
Future Growth1/6
Past Performance1/6
Financial Health5/6
Dividends5/6

HNI Stock Overview

HNI Corporation, together with its subsidiaries, manufactures and sells workplace furnishings and residential building products primarily in the United States.

HNI Competitors

Price History & Performance

Summary of all time highs, changes and price drops for HNI
Historical stock prices
Current Share PriceUS$27.14
52 Week HighUS$44.50
52 Week LowUS$26.55
Beta0.88
1 Month Change-17.93%
3 Month Change-21.47%
1 Year Change-26.09%
3 Year Change-20.36%
5 Year Change-34.95%
Change since IPO189.49%

Recent News & Updates

Aug 29

HNI Corporation: Near-Term Headwinds, But Long-Term Prospects Look Good

Summary The company’s revenue should benefit from the elevated backlog levels, pricing actions, and growth initiatives taken by the company in 2H FY22. The company’s margin should benefit from the restructuring actions and divestitures of low-profit businesses. Valuations are cheap. Investment Thesis HNI Corporation (HNI) experienced strong demand for its products in the second quarter of FY22, resulting in elevated backlogs at the end of the quarter. However, demand started to moderate later in the quarter due to concerns related to the softening of the economy. Despite this, the company's 2H FY22 is expected to grow in the low teen digits due to the elevated backlog levels, higher price realization, and growth initiatives taken by the company. The company's growth initiatives include investing in plant and operations, acquisition of hearth products installing distributors, and advancing digital efforts. In the long term, the fundamentals of the commercial as well as housing industry remain strong with the economy reopening, favorable trends in demographics, the low housing inventory, and record high home equity levels. The company is simplifying its business by restructuring one of its eCommerce businesses and has announced the sale of Lamex, a furniture business in China and Hong Kong. This should benefit the profitability of the company in the long term. HNI Q2 FY22 Earnings HNI Corporation reported better-than-expected second quarter FY22 financial results. The net sales in the quarter increased 21.8% Y/Y to $621.8 mn (vs. the consensus estimate of $606.65 mn). The adjusted EPS in the quarter was up 30% Y/Y to $0.52 (vs. the consensus estimate of $0.34). Net sales increased due to the higher volume and price realization in the Workplace Furnishing and Residential Building Products segments. The adjusted operating margin was flat Y/Y at 5% due to the pressure on gross margin from price-cost dilution and lower net productivity. However, the adjusted EPS in the quarter improved Y/Y due to the solid organic volume growth and the slightly lower share count. Revenue outlook Both the Workplace Furnishings and Residential Building Products segments generated double-digit Y/Y revenue growth in the last quarter. The sales of the Workplace Furnishing segment grew 18.2% Y/Y due to the higher price realization and increased volume. In the Residential Building Products segment, pricing, volume, and lead time improvement drove the revenue growth by 21% organically. The RBP segment's backlog levels remained elevated at the end of the quarter. Sales in the remodel and retrofit grew faster than the new construction. In the Workplace Furnishings segment, orders in the second quarter increased 4% Y/Y against a tough comp of 41% in Q2 FY21. The company started experiencing softening order growth later in the quarter, especially from small-to-medium-sized customers. SMB customers react more quickly compared to large customers to any changes in the economy. These customers are pulling back in response to recessionary concerns and declining confidence metrics. The company's strategic accounts business, which targets the largest customers, grew 60% Y/Y in the last quarter. The company has reduced its guidance for the Workplace Furnishings segment to the low teens for FY22, which is 700 bps to 900 bps lower than the previous guidance. Slightly more than half of the reduction is due to the slower volume growth in 2H FY22 and the rest is due to the sale of Lamex, a China and Hong Kong office furniture business which was sold for $75 mn in July. In Residential Building Products, segment orders in the second quarter increased 14% Y/Y against a tough comp of 40% in Q2 FY21. New Construction order rates outperformed remodel retrofit activity orders. The order rates in the segment have moderated due to the negative trends in single-family housing, primarily driven by affordability. However, the revenue in 2H FY22 should be driven by the pricing actions, inorganic revenue, elevated backlog levels, and growth initiatives taken by the company within the segment. This should fuel the growth rate for the segment in the high teens for FY22 with a 7% contribution from acquisitions, 10% from higher price realization, and low single-digit volume growth from the elevated backlog levels. HNI is maintaining its focus on long-term strategies by investing in organic and inorganic growth opportunities and divesting businesses that are affecting its profitability. The company invested a total of $5 mn in the second quarter to make its operations more productive and resilient. The company is also investing in its go-to-market capabilities, including advancing its digital efforts, enhancing its connection with end users, and developing new products. During the last quarter, the company acquired a hearth product installing distributor located in Raleigh, North Carolina. The acquisition will strengthen HNI's presence in the region. This is the sixth hearth installing distributor acquired by the company in the past three years. The company now owns 27 installing distributors - this has enhanced its service capability and improved connections with its homebuyers, homeowners, and homebuilders. The company's unique vertically integrated business model has an unmatched product and channel reach with the regional distribution infrastructure, offering unparalleled customer service. More than 25% of the RBP segment's revenue comes from this vertically integrated Residential Building Products model. Inorganic growth is expected to remain a part of the RBP segment's long-term strategy. The company has a Debt-to-EBITDA ratio of 1.7x at the end of Q2 FY22 and plans to further lower debt levels in 2H FY22 from the proceeds it will receive from the sale of Lamex. This should give the flexibility to invest in strategic acquisitions and within its business. The long-term opportunities in the housing and repair and remodel industry remain strong due to the favorable demographic trends, lower housing inventory, and record high home equity levels. This should benefit the RBP segment revenue growth. Margins The gross margin in Q2 FY22 declined 130 bps Y/Y to 35.5% due to the price/cost dilution and lower net productivity, partially offset by higher volume. This led to a flattish Y/Y adjusted operating margin. However, both the gross margin and adjusted operating margin improved sequentially due to higher volume and recovering the inflationary pressure through price hikes. In the first quarter, price/cost was ~$2 mn favorable, and in the second quarter, it was ~$8 mn favorable. In the third and fourth quarters, it is expected to be $25 mn and $30 mn due to more price realization and less incremental inflation compared to 2H FY22. The price/cost is expected to be in the range of $60 mn to $70 mn for FY22, recovering the losses experienced by the company in the previous year. I believe the company's adjusted operating margin should improve in 2H FY22 due to higher price realization.

Aug 28
Does HNI (NYSE:HNI) Have A Healthy Balance Sheet?

Does HNI (NYSE:HNI) Have A Healthy Balance Sheet?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Aug 16

HNI declares $0.32 dividend

HNI (NYSE:HNI) declares $0.32/share quarterly dividend, in line with previous. Forward yield 3.55% Payable Sept. 8; for shareholders of record Aug. 26; ex-div Aug. 25. See HNI Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

HNIUS Commercial ServicesUS Market
7D-4.1%-1.9%-3.1%
1Y-26.1%-7.6%-21.5%

Return vs Industry: HNI underperformed the US Commercial Services industry which returned -7.4% over the past year.

Return vs Market: HNI underperformed the US Market which returned -20.3% over the past year.

Price Volatility

Is HNI's price volatile compared to industry and market?
HNI volatility
HNI Average Weekly Movement4.1%
Commercial Services Industry Average Movement6.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: HNI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HNI's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19447,900Jeff Lorengerhttps://www.hnicorp.com

HNI Corporation, together with its subsidiaries, manufactures and sells workplace furnishings and residential building products primarily in the United States. The company operates through two segments, Workplace Furnishings and Residential Building Products. The Workplace Furnishings segment offers a range of commercial and home office furniture, including panel-based and freestanding furniture systems, seating, storage, tables, and architectural products under the HON, Allsteel, Beyond, Gunlocke, Maxon, HBF, OFM, Respawn, Lamex, and HNI India brands.

HNI Fundamentals Summary

How do HNI's earnings and revenue compare to its market cap?
HNI fundamental statistics
Market CapUS$1.12b
Earnings (TTM)US$71.91m
Revenue (TTM)US$2.38b

15.6x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HNI income statement (TTM)
RevenueUS$2.38b
Cost of RevenueUS$1.58b
Gross ProfitUS$807.06m
Other ExpensesUS$735.15m
EarningsUS$71.91m

Last Reported Earnings

Jul 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.74
Gross Margin33.86%
Net Profit Margin3.02%
Debt/Equity Ratio55.2%

How did HNI perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

74%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is HNI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HNI?

Other financial metrics that can be useful for relative valuation.

HNI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA9.7x
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

How does HNI's PE Ratio compare to its peers?

HNI PE Ratio vs Peers
The above table shows the PE ratio for HNI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18.8x
SCS Steelcase
50.7x64.7%US$765.8m
TILE Interface
8.6x16.1%US$535.3m
ACCO ACCO Brands
4.3x8.8%US$470.4m
PBI Pitney Bowes
11.6x53.7%US$410.3m
HNI HNI
15.6x8.2%US$1.1b

Price-To-Earnings vs Peers: HNI is good value based on its Price-To-Earnings Ratio (15.6x) compared to the peer average (18.8x).


Price to Earnings Ratio vs Industry

How does HNI's PE Ratio compare vs other companies in the US Commercial Services Industry?

Price-To-Earnings vs Industry: HNI is good value based on its Price-To-Earnings Ratio (15.6x) compared to the US Commercial Services industry average (16x)


Price to Earnings Ratio vs Fair Ratio

What is HNI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HNI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.6x
Fair PE Ratio17.4x

Price-To-Earnings vs Fair Ratio: HNI is good value based on its Price-To-Earnings Ratio (15.6x) compared to the estimated Fair Price-To-Earnings Ratio (17.4x).


Share Price vs Fair Value

What is the Fair Price of HNI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HNI ($27.14) is trading below our estimate of fair value ($53.63)

Significantly Below Fair Value: HNI is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is HNI forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HNI's forecast earnings growth (8.2% per year) is above the savings rate (1.9%).

Earnings vs Market: HNI's earnings (8.2% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: HNI's earnings are forecast to grow, but not significantly.

Revenue vs Market: HNI's revenue (4% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: HNI's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HNI's Return on Equity is forecast to be low in 3 years time (18.9%).


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Past Performance

How has HNI performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-4.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HNI has high quality earnings.

Growing Profit Margin: HNI's current net profit margins (3%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: HNI's earnings have declined by 4.8% per year over the past 5 years.

Accelerating Growth: HNI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HNI had negative earnings growth (-16%) over the past year, making it difficult to compare to the Commercial Services industry average (23.6%).


Return on Equity

High ROE: HNI's Return on Equity (12.8%) is considered low.


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Financial Health

How is HNI's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: HNI's short term assets ($624.7M) exceed its short term liabilities ($492.1M).

Long Term Liabilities: HNI's short term assets ($624.7M) exceed its long term liabilities ($532.6M).


Debt to Equity History and Analysis

Debt Level: HNI's net debt to equity ratio (51.6%) is considered high.

Reducing Debt: HNI's debt to equity ratio has reduced from 67.3% to 55.2% over the past 5 years.

Debt Coverage: HNI's debt is well covered by operating cash flow (22.3%).

Interest Coverage: HNI's interest payments on its debt are well covered by EBIT (12.7x coverage).


Balance Sheet


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Dividend

What is HNI current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.72%

Current Dividend Yield

Dividend Yield vs Market

HNI Dividend Yield vs Market
How does HNI dividend yield compare to the market?
SegmentDividend Yield
Company (HNI)4.7%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Commercial Services)1.4%
Analyst forecast in 3 Years (HNI)5.1%

Notable Dividend: HNI's dividend (4.72%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: HNI's dividend (4.72%) is in the top 25% of dividend payers in the US market (4.61%)


Stability and Growth of Payments

Stable Dividend: HNI's dividends per share have been stable in the past 10 years.

Growing Dividend: HNI's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (74.3%), HNI's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (3141.7%), HNI's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Jeff Lorenger (56 yo)

4.42yrs

Tenure

US$9,132,815

Compensation

Mr. Jeffrey D. Lorenger, also known as Jeff, is Chairman of the Board at HNI Corporation since February 12, 2020. Mr. Lorenger serves as a Director at HNI Corporation since April 2018 and also serves as th...


CEO Compensation Analysis

Jeff Lorenger's Compensation vs HNI Earnings
How has Jeff Lorenger's remuneration changed compared to HNI's earnings?
DateTotal Comp.SalaryCompany Earnings
Jul 02 2022n/an/a

US$72m

Apr 02 2022n/an/a

US$59m

Jan 01 2022US$9mUS$973k

US$60m

Oct 02 2021n/an/a

US$74m

Jul 03 2021n/an/a

US$86m

Apr 03 2021n/an/a

US$81m

Jan 02 2021US$5mUS$891k

US$42m

Sep 26 2020n/an/a

US$67m

Jun 27 2020n/an/a

US$82m

Mar 28 2020n/an/a

US$86m

Dec 28 2019US$4mUS$923k

US$111m

Sep 28 2019n/an/a

US$95m

Jun 29 2019n/an/a

US$89m

Mar 30 2019n/an/a

US$92m

Dec 29 2018US$3mUS$779k

US$93m

Sep 29 2018n/an/a

US$95m

Jun 30 2018n/an/a

US$92m

Mar 31 2018n/an/a

US$87m

Dec 30 2017US$1mUS$546k

US$90m

Sep 30 2017n/an/a

US$67m

Jul 01 2017n/an/a

US$63m

Apr 01 2017n/an/a

US$79m

Dec 31 2016US$2mUS$465k

US$86m

Oct 01 2016n/an/a

US$107m

Jul 02 2016n/an/a

US$114m

Apr 02 2016n/an/a

US$109m

Jan 02 2016US$2mUS$445k

US$105m

Compensation vs Market: Jeff's total compensation ($USD9.13M) is above average for companies of similar size in the US market ($USD4.03M).

Compensation vs Earnings: Jeff's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: HNI's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: HNI's board of directors are seasoned and experienced ( 15.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NYSE:HNI Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
06 Apr 22SellUS$52,800Larry PorcellatoIndividual1,500US$35.20

Ownership Breakdown

What is the ownership structure of HNI?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders546,4111.3%
General Public8,471,20320.5%
Institutions32,315,15978.2%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 69.96% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
16.17%
BlackRock, Inc.
6,682,108$181.4m-3.95%no data
11.36%
The Vanguard Group, Inc.
4,694,756$127.4m-0.76%no data
9.75%
State Farm Insurance Companies, Asset Management Arm
4,029,600$109.4m0%0.13%
5.26%
Northern Trust Global Investments
2,172,211$59.0m-0.51%0.01%
3.78%
State Street Global Advisors, Inc.
1,563,881$42.4m-1.69%no data
3.67%
FMR LLC
1,517,872$41.2m0.65%no data
2.78%
Charles Schwab Investment Management, Inc.
1,147,674$31.1m6.72%0.01%
2.77%
Dimensional Fund Advisors LP
1,146,936$31.1m1.44%0.01%
1.73%
Geode Capital Management, LLC
715,617$19.4m-4.92%no data
1.49%
BNY Mellon Asset Management
617,077$16.7m-5.75%no data
1.42%
Frontier Capital Management Co LLC
586,664$15.9m1.14%0.16%
1.23%
Crawford Investment Counsel, Inc.
508,178$13.8m11.64%0.32%
1.15%
Principal Global Investors, LLC
475,812$12.9m-14.71%0.01%
1.14%
Columbia Management Investment Advisers, LLC
470,179$12.8m-10.15%no data
0.99%
Norges Bank Investment Management
410,796$11.1m0%no data
0.89%
Victory Capital Management Inc.
369,358$10.0m29.71%0.01%
0.88%
Systematic Financial Management LP
362,638$9.8m-0.65%0.32%
0.8%
Eaton Vance Management
329,938$9.0m-19.42%no data
0.55%
ProShare Advisors LLC
227,668$6.2m-16.44%0.02%
0.42%
Citadel Advisors LLC
175,562$4.8m1192.7%0.01%
0.42%
Invesco Capital Management LLC
171,673$4.7m8.91%no data
0.35%
Morgan Stanley, Investment Banking and Brokerage Investments
143,479$3.9m-12.31%no data
0.34%
Clifford Capital Partners, LLC
141,462$3.8m47.68%1.7%
0.31%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
129,142$3.5m-20.39%no data
0.31%
J.P. Morgan Asset Management, Inc.
126,259$3.4m-40.66%no data

Company Information

HNI Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: HNI Corporation
  • Ticker: HNI
  • Exchange: NYSE
  • Founded: 1944
  • Industry: Office Services and Supplies
  • Sector: Commercial Services
  • Implied Market Cap: US$1.122b
  • Shares outstanding: 41.33m
  • Website: https://www.hnicorp.com

Number of Employees


Location

  • HNI Corporation
  • 600 East Second Street
  • PO Box 1109
  • Muscatine
  • Iowa
  • 52761-0071
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HNINYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1980
HO9DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/29 00:00
End of Day Share Price2022/09/29 00:00
Earnings2022/07/02
Annual Earnings2022/01/01


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.