Brief Commentary On HNI Corporation’s (NYSE:HNI) Fundamentals

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Attractive stocks have exceptional fundamentals. In the case of HNI Corporation (NYSE:HNI), there’s is a highly-regarded dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on HNI here.

Established dividend payer and good value

HNI’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if HNI’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the commercial services industry, HNI is also trading below its peers, relative to earnings generated. This supports the theory that HNI is potentially underpriced.

NYSE:HNI Intrinsic value, June 5th 2019
NYSE:HNI Intrinsic value, June 5th 2019

Income investors would also be happy to know that HNI is a great dividend company, with a current yield standing at 3.5%. HNI has also been regularly increasing its dividend payments to shareholders over the past decade.

NYSE:HNI Historical Dividend Yield, June 5th 2019
NYSE:HNI Historical Dividend Yield, June 5th 2019

Next Steps:

For HNI, I’ve compiled three fundamental factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for HNI’s future growth? Take a look at our free research report of analyst consensus for HNI’s outlook.
  2. Historical Performance: What has HNI’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HNI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.