NYSE:HNI

Stock Analysis Report

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Executive Summary

HNI Corporation manufactures and sells office furniture and hearth products in the United States, Canada, China, Hong Kong, India, Mexico, Dubai, Taiwan, and Singapore. More Details


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has HNI's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HNI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: HNI's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

2.1%

HNI

0.1%

US Commercial Services

2.8%

US Market


1 Year Return

-2.7%

HNI

11.5%

US Commercial Services

19.7%

US Market

Return vs Industry: HNI underperformed the US Commercial Services industry which returned 11.5% over the past year.

Return vs Market: HNI underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

HNIIndustryMarket
7 Day2.1%0.1%2.8%
30 Day13.1%6.9%8.0%
90 Day19.8%6.9%6.8%
1 Year1.2%-2.7%13.3%11.5%22.4%19.7%
3 Year22.6%10.6%55.4%45.5%47.3%37.5%
5 Year7.8%-7.9%120.8%98.6%93.6%72.3%

Long-Term Price Volatility Vs. Market

How volatile is HNI's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

24.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HNI ($38.7) is trading above our estimate of fair value ($33.88)

Significantly Below Fair Value: HNI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HNI is good value based on its PE Ratio (24.7x) compared to the US Commercial Services industry average (26.8x).

PE vs Market: HNI is poor value based on its PE Ratio (24.7x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: HNI is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: HNI is overvalued based on its PB Ratio (3x) compared to the US Commercial Services industry average (1.9x).


Next Steps

Future Growth

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

28.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HNI's forecast earnings growth (28.1% per year) is above the savings rate (2.2%).

Earnings vs Market: HNI's earnings (28.1% per year) are forecast to grow faster than the US market (22% per year).

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

Revenue vs Market: HNI's revenue (2.7% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: HNI's revenue (2.7% 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 (14.8%).


Next Steps

Past Performance

How has HNI performed over the past 5 years?

-2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HNI has a large one-off loss of $38.8M impacting its September 26 2020 financial results.

Growing Profit Margin: HNI's current net profit margins (3.3%) are lower than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: HNI's earnings have declined by 2.3% 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 (-29.7%) over the past year, making it difficult to compare to the Commercial Services industry average (-5.9%).


Return on Equity

High ROE: HNI's Return on Equity (11.7%) is considered low.


Next Steps

Financial Health

How is HNI's financial position?


Financial Position Analysis

Short Term Liabilities: HNI's short term assets ($500.4M) exceed its short term liabilities ($417.2M).

Long Term Liabilities: HNI's short term assets ($500.4M) exceed its long term liabilities ($383.9M).


Debt to Equity History and Analysis

Debt Level: HNI's debt to equity ratio (30.4%) is considered satisfactory.

Reducing Debt: HNI's debt to equity ratio has reduced from 53.4% to 30.4% over the past 5 years.

Debt Coverage: HNI's debt is well covered by operating cash flow (141.6%).

Interest Coverage: HNI's interest payments on its debt are well covered by EBIT (18.6x coverage).


Balance Sheet


Next Steps

Dividend

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

3.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HNI's dividend (3.15%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: HNI's dividend (3.15%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.8%), HNI's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Jeff Lorenger (54 yo)

2.42yrs

Tenure

US$4,207,042

Compensation

Mr. Jeffrey D. Lorenger, also known as Jeff, is Chairman of the Board at HNI Corporation since February 12, 2020. Mr. Lorenger has been President of HNI Corporation since April 20, 2018 and also has been i...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD4.21M) is about average for companies of similar size in the US market ($USD4.15M).

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

NamePositionTenureCompensationOwnership
Jeffrey Lorenger
President2.42yrsUS$4.21m0.082%
$ 1.4m
Marshall Bridges
Senior VP & CFO3.83yrsUS$1.40m0.032%
$ 523.4k
Kurt Tjaden
Senior VP & President of HNI International12.25yrsUS$1.37m0.11%
$ 1.7m
Vincent Berger
Executive VP and President of Hearth & Home Technologies2.75yrsUS$1.30m0.026%
$ 426.7k
Brandon Bullock
President of The HON Company2yrsUS$1.12mno data
Jack Herring
VP of Corporate Finance & Treasurerno datano datano data
Matthew McCall
Vice President of Investor Relations & Corporate Developmentno datano datano data
Steven Bradford
Senior VP12.83yrsno data0.075%
$ 1.2m
Woody Brooks
President of maxonno datano datano data
Julie Abramowski
VP & Corporate Controller5.83yrsno data0.0018%
$ 29.6k
Kristin Yates
President of Allsteel1.33yrsno data0.015%
$ 247.3k
Gary Carlson
Vice President of Community Relations13.83yrsno datano data

3.8yrs

Average Tenure

54yo

Average Age

Experienced Management: HNI's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Lorenger
President2.42yrsUS$4.21m0.082%
$ 1.4m
Miguel Calado
Independent Director16.25yrsUS$177.21k0.10%
$ 1.7m
Ronald Waters
Independent Director18yrsUS$192.56k0.045%
$ 735.9k
Mary Bell
Independent Director14yrsUS$177.21k0.074%
$ 1.2m
Cheryl Francis
Independent Director21.5yrsUS$192.21k0.16%
$ 2.7m
Abbie Smith
Independent Director20.33yrsUS$177.21k0.042%
$ 694.8k
Larry Porcellato
Independent Lead Director0.75yrUS$339.62k0.064%
$ 1.1m
Mary K. Jones
Independent Director4.75yrsUS$177.21k0.044%
$ 723.5k
John Hartnett
Independent Director4.25yrsUS$177.21k0.049%
$ 802.6k
Dhanusha Sivajee
Independent Director1.33yrsno data0.019%
$ 314.4k

9.4yrs

Average Tenure

61yo

Average Age

Experienced Board: HNI's board of directors are considered experienced (9.4 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.


Top Shareholders

Company Information

HNI Corporation's company bio, 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
  • Market Cap: US$1.653b
  • Shares outstanding: 42.71m
  • 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

Biography

HNI Corporation manufactures and sells office furniture and hearth products in the United States, Canada, China, Hong Kong, India, Mexico, Dubai, Taiwan, and Singapore. Its Office Furniture segment offers ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 23:33
End of Day Share Price2020/11/25 00:00
Earnings2020/09/26
Annual Earnings2019/12/28


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.