HNI (NYSE:HNI) - Share price, News & Analysis

HNI fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	1/6
Financial Health	6/6
Dividends	3/6

HNI Stock Overview

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

Rewards

Trading at 62.9% below our estimate of its fair value

Earnings are forecast to grow 20.17% per year

Risk Analysis

Dividend of 3.7% is not well covered by earnings or forecast to be in the next 3 years

Profit margins (2.6%) are lower than last year (4.1%)

Significant insider selling over the past 3 months

HNI Competitors

Price History & Performance

Summary of all time highs, changes and price drops for HNI
Historical stock prices
Current Share Price	US$34.64
52 Week High	US$45.46
52 Week Low	US$32.91
Beta	0.88
1 Month Change	-6.48%
3 Month Change	-5.12%
1 Year Change	-22.97%
3 Year Change	-1.23%
5 Year Change	-13.31%
Change since IPO	269.49%

Recent News & Updates

May 20

HNI's (NYSE:HNI) Shareholders Will Receive A Bigger Dividend Than Last Year

HNI Corporation ( NYSE:HNI ) will increase its dividend on the 8th of June to US$0.32, which is 3.2% higher than last...

May 18

HNI (NYSE:HNI) Seems To Use Debt Quite Sensibly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

May 16

HNI Corporation's Outperformance Should Continue

HNI’s Workplace Furnishing segment should benefit from offices reopening. Residential remodeling demand is expected to remain strong in the near future according to the LIRA (Leading Indicator of Remodeling Activity) index. The company’s price increases and other initiatives will help improve margins. The stock is currently trading at an attractive valuation and has a dividend yield of ~3.4%.

Shareholder Returns

	HNI	US Commercial Services	US Market
7D	4.4%	4.3%	4.0%
1Y	-23.0%	-9.6%	-20.5%

Return vs Industry: HNI underperformed the US Commercial Services industry which returned -10.6% over the past year.

Return vs Market: HNI underperformed the US Market which returned -20.8% over the past year.

Price Volatility

Is HNI's price volatile compared to industry and market?
HNI volatility
HNI Average Weekly Movement	5.5%
Commercial Services Industry Average Movement	7.3%
Market Average Movement	7.9%
10% most volatile stocks in US Market	16.5%
10% least volatile stocks in US Market	3.1%

Stable Share Price: HNI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: HNI's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1944	7,900	Jeff Lorenger	https://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 Cap	US$1.47b
Earnings (TTM)	US$58.97m
Revenue (TTM)	US$2.27b

24.9x

P/E Ratio

0.6x

P/S Ratio

Is HNI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HNI income statement (TTM)
Revenue	US$2.27b
Cost of Revenue	US$1.50b
Gross Profit	US$774.32m
Other Expenses	US$715.35m
Earnings	US$58.97m

Last Reported Earnings

Apr 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.39
Gross Margin	34.07%
Net Profit Margin	2.60%
Debt/Equity Ratio	41.8%

How did HNI perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

91%

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

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

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.

The above table shows the n/a ratio for HNI. This is calculated by dividing HNI's market cap by their current preferred multiple.
What is HNI's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$1.47b

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/Revenue	0.8x
Enterprise Value/EBITDA	11.9x
PEG Ratio	1.2x

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.
Company	PE	Estimated Growth	Market Cap
Peer Average	22x

Forward PE

Price-To-Earnings vs Peers: HNI is expensive based on its Price-To-Earnings Ratio (24.9x) compared to the peer average (22x).

Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: HNI is expensive based on its Price-To-Earnings Ratio (24.9x) compared to the US Commercial Services industry average (20x)

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 Ratio	24.9x
Fair PE Ratio	24.1x

Price-To-Earnings vs Fair Ratio: HNI is expensive based on its Price-To-Earnings Ratio (24.9x) compared to the estimated Fair Price-To-Earnings Ratio (24.1x).

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 ($34.64) is trading below our estimate of fair value ($93.37)

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

Price to Earnings Growth Ratio

PEG Ratio: HNI is poor value based on its PEG Ratio (1.2x)

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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

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

20.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: HNI's forecast earnings growth (20.2% per year) is above the savings rate (1.9%).

Earnings vs Market: HNI's earnings (20.2% per year) are forecast to grow faster than the US market (13.8% per year).

High Growth Earnings: HNI's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HNI's revenue (6.2% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: HNI's revenue (6.2% 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 high in 3 years time (24.1%)

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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

-4.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HNI has high quality earnings.

Growing Profit Margin: HNI's current net profit margins (2.6%) are lower than last year (4.1%).

Past Earnings Growth Analysis

Earnings Trend: HNI's earnings have declined by 4.1% 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 (-26.7%) over the past year, making it difficult to compare to the Commercial Services industry average (25.7%).

Return on Equity

High ROE: HNI's Return on Equity (10.1%) is considered low.

Discover strong past performing companies

Financial Health

How is HNI's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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 ($532.9M) exceed its short term liabilities ($462.9M).

Long Term Liabilities: HNI's short term assets ($532.9M) exceed its long term liabilities ($480.1M).

Debt to Equity History and Analysis

Debt Level: HNI's net debt to equity ratio (37.5%) is considered satisfactory.

Reducing Debt: HNI's debt to equity ratio has reduced from 58.4% to 41.8% over the past 5 years.

Debt Coverage: HNI's debt is well covered by operating cash flow (37.4%).

Interest Coverage: HNI's interest payments on its debt are well covered by EBIT (12.3x coverage).

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.70%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HNI's dividend (3.7%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: HNI's dividend (3.7%) is low compared to the top 25% of dividend payers in the US market (4.34%).

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 high payout ratio (90.9%), HNI's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (215.5%), 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?

4.3yrs

Average management tenure

CEO

Jeff Lorenger (55 yo)

4.17yrs

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

Compensation vs Market: Jeff's total compensation ($USD9.13M) is above average for companies of similar size in the US market ($USD5.57M).

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 (4.3 years average tenure).

Board Members

Experienced Board: HNI's board of directors are seasoned and experienced ( 15.6 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: HNI insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/23 00:00
End of Day Share Price	2022/06/23 00:00
Earnings	2022/04/02
Annual Earnings	2022/01/01