NYSE:HNI

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

6 star dividend payer with adequate balance sheet.


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


Market Performance


7 Day Return

-3.1%

NYSE:HNI

-0.4%

US Commercial Services

-1.0%

US Market


1 Year Return

-27.5%

NYSE:HNI

5.9%

US Commercial Services

-0.4%

US Market

HNI underperformed the Commercial Services industry which returned 5.9% over the past year.

HNI underperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

HNIIndustryMarket
7 Day-3.1%-0.4%-1.0%
30 Day-8.4%-1.4%-3.3%
90 Day-12.3%3.7%0.8%
1 Year-25.0%-27.5%9.9%5.9%1.9%-0.4%
3 Year-36.4%-41.8%64.2%53.2%39.4%30.4%
5 Year-6.9%-18.8%96.4%76.7%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?

15.22x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

HNI's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

HNI's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

HNI is good value based on earnings compared to the US Commercial Services industry average.

HNI is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

HNI is poor value based on expected growth next year.


Price Based on Value of Assets

HNI is overvalued based on assets compared to the US Commercial Services industry average.


Next Steps

Future Growth

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

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

HNI's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).

HNI's earnings are expected to grow by 10.4% yearly, however this is not considered high growth (20% yearly).

HNI's revenue growth is positive but not above the United States of America market average.

HNI's earnings growth is positive but not above the United States of America market average.

HNI's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

HNI is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has HNI performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

HNI's year on year earnings growth rate has been positive over the past 5 years.

HNI's 1-year earnings growth is negative, it can't be compared to the 5-year average.

HNI's 1-year earnings growth is negative, it can't be compared to the US Commercial Services industry average.


Return on Equity

HNI has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

HNI used its assets more efficiently than the US Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

HNI's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is HNI's financial position?


Financial Position Analysis

HNI is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

HNI's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

HNI's level of debt (54.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (42.4% vs 54.1% today).

Debt is well covered by operating cash flow (59.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 15.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.8x debt.


Next Steps

Dividend

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

4.27%

Expected Dividend Yield


Dividend Yield and Payments Analysis

HNI's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

HNI's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

What is the CEO of HNI's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Jeff Lorenger (53yo)

1.2yrs

Tenure

US$2,720,377

Compensation

Mr. Jeffrey D. Lorenger, also known as Jeff, has been President of HNI Corporation since April 20, 2018 and also has been its Director since 2018. He has been Chief Executive Officer of HNI Corporation sin ...


CEO Compensation Analysis

Jeff's remuneration is lower than average for companies of similar size in United States of America.

Jeff's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

2.1yrs

Average Tenure

49yo

Average Age

The tenure for the HNI management team is about average.


Board Age and Tenure

13.9yrs

Average Tenure

62yo

Average Age

The average tenure for the HNI board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Jeff Lorenger (53yo)

    President

    • Tenure: 1.2yrs
    • Compensation: $2.72m
  • Kurt Tjaden (55yo)

    Senior Vice President

    • Tenure: 11.0yrs
    • Compensation: $1.38m
  • Steven Bradford (61yo)

    Senior VP

    • Tenure: 11.6yrs
  • Marshall Bridges (49yo)

    Senior VP & CFO

    • Tenure: 2.6yrs
    • Compensation: $1.14m
  • Vincent Berger (46yo)

    Executive Vice President

    • Tenure: 1.5yrs
    • Compensation: $1.29m
  • Julie Abramowski (43yo)

    VP & Corporate Controller

    • Tenure: 4.6yrs
  • Brandon Bullock (41yo)

    President of The HON Company

    • Tenure: 1.6yrs
  • Kris Yates

    President of Allsteel

    • Tenure: 0.1yrs
  • Jack Herring

    Director of Finance & Investor Relations and Treasurer

  • Woody Brooks

    President of maxon


Board Members

  • Jeff Lorenger (53yo)

    President

    • Tenure: 1.6yrs
    • Compensation: $2.72m
  • Brian Stern (71yo)

    Independent Director

    • Tenure: 21.6yrs
    • Compensation: $187.21k
  • Larry Porcellato (61yo)

    Chairman

    • Tenure: 0.6yrs
    • Compensation: $196.84k
  • Abbie Smith (66yo)

    Independent Director

    • Tenure: 19.1yrs
    • Compensation: $177.21k
  • John Hartnett (59yo)

    Independent Director

    • Tenure: 3.0yrs
    • Compensation: $177.21k
  • Ronald Waters (67yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: $192.56k
  • Cheryl Francis (65yo)

    Independent Director

    • Tenure: 20.3yrs
    • Compensation: $192.21k
  • Mary K. Jones (51yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: $177.21k
  • Miguel Calado (63yo)

    Independent Director

    • Tenure: 15.0yrs
    • Compensation: $177.21k
  • Mary Bell (58yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: $177.21k

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$1.335b
  • Shares outstanding: 42.87m
  • Website: Click here

Number of Employees


Location

  • HNI Corporation
  • 600 East Second Street
  • PO Box 1109
  • Muscatine
  • Iowa
  • 52761
  • 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, Singapore, and Taiwan. 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 Analysis2019/08/18 00:00
End of Day Share Price2019/08/16 00:00
Earnings2019/06/29
Annual Earnings2018/12/29


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.