NYSE:HBI

Stock Analysis Report

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Executive Summary

Hanesbrands Inc., a consumer goods company, designs, manufactures, sources, and sells a range of basic apparel for men, women, and children in the United States. More Details


Snowflake Analysis

Mediocre balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HBI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.5%

HBI

-0.5%

US Luxury

-1.3%

US Market


1 Year Return

5.8%

HBI

18.6%

US Luxury

18.5%

US Market

Return vs Industry: HBI underperformed the US Luxury industry which returned 18.6% over the past year.

Return vs Market: HBI underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

HBIIndustryMarket
7 Day0.5%-0.5%-1.3%
30 Day11.9%12.0%5.3%
90 Day21.5%23.2%7.5%
1 Year11.0%5.8%20.0%18.6%21.3%18.5%
3 Year-15.7%-24.9%78.3%70.0%42.4%32.9%
5 Year-27.5%-38.0%61.5%50.9%84.2%63.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

11.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HBI ($17.11) is trading above our estimate of fair value ($11.11)

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


Price To Earnings Ratio

PE vs Industry: HBI is good value based on its PE Ratio (11.8x) compared to the US Luxury industry average (32.2x).

PE vs Market: HBI is good value based on its PE Ratio (11.8x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: HBI is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: HBI is overvalued based on its PB Ratio (5.5x) compared to the US Luxury industry average (1.6x).


Next Steps

Future Growth

How is Hanesbrands forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HBI's forecast earnings growth (8.5% per year) is above the savings rate (2.2%).

Earnings vs Market: HBI's earnings (8.5% per year) are forecast to grow slower than the US market (22.2% per year).

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

Revenue vs Market: HBI's revenue (3.1% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: HBI's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HBI's Return on Equity is forecast to be very high in 3 years time (42.8%).


Next Steps

Past Performance

How has Hanesbrands performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HBI has high quality earnings.

Growing Profit Margin: HBI's current net profit margins (7.8%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: HBI's earnings have grown by 2.8% per year over the past 5 years.

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

Earnings vs Industry: HBI had negative earnings growth (-4.9%) over the past year, making it difficult to compare to the Luxury industry average (-47.1%).


Return on Equity

High ROE: Whilst HBI's Return on Equity (48.49%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Hanesbrands's financial position?


Financial Position Analysis

Short Term Liabilities: HBI's short term assets ($4.0B) exceed its short term liabilities ($2.0B).

Long Term Liabilities: HBI's short term assets ($4.0B) do not cover its long term liabilities ($5.0B).


Debt to Equity History and Analysis

Debt Level: HBI's debt to equity ratio (380.5%) is considered high.

Reducing Debt: HBI's debt to equity ratio has increased from 178.1% to 380.5% over the past 5 years.

Debt Coverage: HBI's debt is well covered by operating cash flow (20.5%).

Interest Coverage: HBI's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet


Next Steps

Dividend

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

3.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HBI's dividend (3.51%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: HBI's dividend (3.51%) is low compared to the top 25% of dividend payers in the US market (4.68%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, HBI has been paying a dividend for less than 10 years.

Growing Dividend: HBI's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.2%), HBI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HBI's dividends in 3 years are forecast to be well covered by earnings (43.9% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Steve Bratspies (52 yo)

0.17

Tenure

Mr. Stephen Bratspies also known as Steve, serves as Chief Executive Officer and Director at Hanesbrands Inc. since August 3, 2020. Mr. Bratspies served as Executive Vice President and Chief Merchandising ...


Leadership Team

NamePositionTenureCompensationOwnership
Michael Faircloth
Group President of Global Operationsno dataUS$1.24m0.056%
$ 3.3m
Joia Johnson
Chief Administrative Officer4yrsUS$1.26m0.12%
$ 7.3m
Gerald Evans
0.17yrUS$3.96m0.36%
$ 21.7m
David Bortolussi
Group President of Innerwear International1.5yrsUS$1.38m0.014%
$ 818.5k
W. Upchurch
Group President of Innerwear Americas9.75yrsUS$1.31m0.086%
$ 5.1m
Stephen Bratspies
CEO & Director0.17yrno datano data
Markland Lewis
Chief Accounting Officer0.75yrno data0.0075%
$ 445.6k
Thomas Robillard
Chief Investor Relations Officer7.5yrsno datano data
Kristin Oliver
Chief Human Resources Officer0.083yrno datano data
Jonathan Ram
Group President of Global Activewear2.42yrsUS$3.41m0.0092%
$ 547.5k

1.5yrs

Average Tenure

52yo

Average Age

Experienced Management: HBI's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stephen Bratspies
CEO & Director0.17yrno datano data
Robert Moran
Independent Director7.25yrsUS$125.00k0.0053%
$ 315.7k
Ronald Nelson
Independent Chairman1.5yrsUS$220.22k0.045%
$ 2.7m
Ann Ziegler
Independent Director11.83yrsUS$120.00k0.0050%
$ 300.8k
Bobby Griffin
Independent Director14.08yrsUS$100.00kno data
Franck Moison
Independent Director5.75yrsUS$105.00k0.0066%
$ 391.4k
James Johnson
Independent Director14.08yrsUS$120.00k0.0072%
$ 426.5k
Geralyn Breig
Independent Director2.25yrsUS$105.00kno data

6.5yrs

Average Tenure

66.5yo

Average Age

Experienced Board: HBI's board of directors are considered experienced (6.5 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Hanesbrands Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hanesbrands Inc.
  • Ticker: HBI
  • Exchange: NYSE
  • Founded: 1901
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: US$5.957b
  • Shares outstanding: 348.16m
  • Website: https://www.hanes.com

Number of Employees


Location

  • Hanesbrands Inc.
  • 1000 East Hanes Mill Road
  • Winston-Salem
  • North Carolina
  • 27105
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HBINYSE (New York Stock Exchange)YesCommon SharesUSUSDAug 2006
HN9DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2006
0J2XLSE (London Stock Exchange)YesCommon SharesGBUSDAug 2006
H1BI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

Hanesbrands Inc., a consumer goods company, designs, manufactures, sources, and sells a range of basic apparel for men, women, and children in the United States. The company operates through three segments ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 00:17
End of Day Share Price2020/10/20 00:00
Earnings2020/06/27
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.