Hanesbrands (NYSE:HBI) - Share price, News & Analysis

Q: What is the Fair Price of HBI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

HBI ($10.57) is trading below our estimate of [[fair value]] ($27.71)

HBI fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	3/6
Past Performance	4/6
Financial Health	2/6
Dividends	3/6

HBI Stock Overview

Hanesbrands Inc., a consumer goods company, designs, manufactures, sources, and sells a range of basic apparel for men, women, and children.

Rewards

Trading at 61.9% below our estimate of its fair value

Earnings are forecast to grow 15.04% per year

Earnings grew by 341.9% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 5.68% is not well covered by earnings

Hanesbrands Competitors

Under Armour

NYSE:UAA

US$4.3b

PVH

NYSE:PVH

US$4.6b

Carter's

NYSE:CRI

US$3.3b

Columbia Sportswear

NasdaqGS:COLM

US$4.7b

Price History & Performance

Summary of all time highs, changes and price drops for Hanesbrands
Historical stock prices
Current Share Price	US$10.57
52 Week High	US$20.44
52 Week Low	US$9.58
Beta	1.46
1 Month Change	1.34%
3 Month Change	-19.07%
1 Year Change	-48.21%
3 Year Change	-22.39%
5 Year Change	-55.08%
Change since IPO	116.82%

Recent News & Updates

Aug 10

Hanesbrands Q2 2022 Earnings Preview

Hanesbrands (NYSE:HBI) is scheduled to announce Q2 earnings results on Thursday, August 11th, before market open. The consensus EPS Estimate is $0.31 (-34.0% Y/Y) and the consensus Revenue Estimate is $1.69B (-3.4% Y/Y). Over the last 2 years, HBI has beaten EPS estimates 100% of the time and has beaten revenue estimates 75% of the time. Over the last 3 months, EPS estimates have seen 0 upward revisions and 7 downward. Revenue estimates have seen 0 upward revisions and 5 downward.

Aug 09

Hanesbrands (NYSE:HBI) Has More To Do To Multiply In Value Going Forward

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven...

Shareholder Returns

	HBI	US Luxury	US Market
7D	-5.6%	2.3%	3.2%
1Y	-48.2%	-31.3%	-10.1%

Return vs Industry: HBI underperformed the US Luxury industry which returned -31.3% over the past year.

Return vs Market: HBI underperformed the US Market which returned -10.1% over the past year.

Price Volatility

Is HBI's price volatile compared to industry and market?
HBI volatility
HBI Average Weekly Movement	6.5%
Luxury Industry Average Movement	7.4%
Market Average Movement	7.7%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.2%

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

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

About the Company

Founded	Employees	CEO	Website
1901	58,000	Steve Bratspies	https://www.hanes.com

Hanesbrands Inc., a consumer goods company, designs, manufactures, sources, and sells a range of basic apparel for men, women, and children. The company operates through three segments: Innerwear, Activewear, and International. It sells men’s underwear, women’s panties, children’s underwear, activewear, and socks, as well as intimate apparel, such as bras and shapewears; home goods; and T-shirts, fleece, performance apparel, sport shirts, performance T-shirts and shorts, sports bras, teamwear, and thermals, as well as licensed logo apparel in collegiate bookstores, mass retailers, and other channels.

Hanesbrands Fundamentals Summary

How do Hanesbrands's earnings and revenue compare to its market cap?
HBI fundamental statistics
Market Cap	US$3.69b
Earnings (TTM)	US$451.54m
Revenue (TTM)	US$6.63b

8.2x

P/E Ratio

0.6x

P/S Ratio

Is HBI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HBI income statement (TTM)
Revenue	US$6.63b
Cost of Revenue	US$4.10b
Gross Profit	US$2.53b
Other Expenses	US$2.08b
Earnings	US$451.54m

Last Reported Earnings

Jul 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.29
Gross Margin	38.15%
Net Profit Margin	6.81%
Debt/Equity Ratio	527.5%

How did HBI perform over the long term?

See historical performance and comparison

Dividends

5.7%

Current Dividend Yield

47%

Payout Ratio

Does HBI pay a reliable dividends?

See HBI dividend history and benchmarks

When do you need to buy HBI by to receive an upcoming dividend?
Hanesbrands dividend dates
Ex Dividend Date	Aug 23 2022
Dividend Pay Date	Sep 14 2022
Days until Ex dividend	9 days
Days until Dividend pay date	31 days

Does HBI pay a reliable dividends?

See HBI dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is HBI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HBI?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for HBI. This is calculated by dividing HBI's market cap by their current preferred multiple.
What is HBI's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$3.69b

HBI 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	1.1x
Enterprise Value/EBITDA	8x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

How does HBI's PE Ratio compare to its peers?

HBI PE Ratio vs Peers

The above table shows the PE ratio for HBI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	10.8x
UAA Under Armour	12.7x	3.6%	US$4.3b
PVH PVH	4.7x	10.6%	US$4.6b
CRI Carter's	11.6x	2.1%	US$3.3b
COLM Columbia Sportswear	14.3x	7.7%	US$4.7b
HBI Hanesbrands	8.2x	15.0%	US$3.7b

Price-To-Earnings vs Peers: HBI is good value based on its Price-To-Earnings Ratio (8.2x) compared to the peer average (10.8x).

Price to Earnings Ratio vs Industry

How does HBI's PE Ratio compare vs other companies in the US Luxury Industry?

Price-To-Earnings vs Industry: HBI is good value based on its Price-To-Earnings Ratio (8.2x) compared to the US Luxury industry average (10.8x)

Price to Earnings Ratio vs Fair Ratio

What is HBI'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.

HBI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.2x
Fair PE Ratio	14.1x

Price-To-Earnings vs Fair Ratio: HBI is good value based on its Price-To-Earnings Ratio (8.2x) compared to the estimated Fair Price-To-Earnings Ratio (14.1x).

Share Price vs Fair Value

What is the Fair Price of HBI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HBI ($10.57) is trading below our estimate of fair value ($27.71)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is Hanesbrands forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

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

15.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: HBI's forecast earnings growth (15% per year) is above the savings rate (1.9%).

Earnings vs Market: HBI's earnings (15% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: HBI's revenue (4.2% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: HBI's revenue (4.2% 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 (55.4%).

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Past Performance

How has Hanesbrands performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-0.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HBI has high quality earnings.

Growing Profit Margin: HBI's current net profit margins (6.8%) are higher than last year (1.5%).

Past Earnings Growth Analysis

Earnings Trend: HBI's earnings have declined by 0.2% per year over the past 5 years.

Accelerating Growth: HBI's earnings growth over the past year (341.9%) exceeds its 5-year average (-0.2% per year).

Earnings vs Industry: HBI earnings growth over the past year (341.9%) exceeded the Luxury industry 54.4%.

Return on Equity

High ROE: Whilst HBI's Return on Equity (63.4%) is outstanding, this metric is skewed due to their high level of debt.

Discover strong past performing companies

Financial Health

How is Hanesbrands's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: HBI's short term assets ($3.5B) exceed its short term liabilities ($2.1B).

Long Term Liabilities: HBI's short term assets ($3.5B) do not cover its long term liabilities ($4.3B).

Debt to Equity History and Analysis

Debt Level: HBI's net debt to equity ratio (492.7%) is considered high.

Reducing Debt: HBI's debt to equity ratio has increased from 390.2% to 527.5% over the past 5 years.

Debt Coverage: HBI's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: HBI's interest payments on its debt are well covered by EBIT (5.9x coverage).

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

5.68%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: HBI's dividend (5.68%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: HBI's dividend (5.68%) is in the top 25% of dividend payers in the US market (3.96%)

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 9 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (46.6%), HBI's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: HBI is paying a dividend but the company has no free cash flows.

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Management

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

1.9yrs

Average management tenure

CEO

Steve Bratspies (54 yo)

2yrs

Tenure

US$11,031,249

Compensation

Mr. Stephen B. Bratspies, also known as Steve, serves as Chief Executive Officer and Director at Hanesbrands Inc. since August 03, 2020. Mr. Bratspies served as Executive Vice President and Chief Merchandi...

CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD11.03M) is above average for companies of similar size in the US market ($USD6.55M).

Compensation vs Earnings: Insufficient data to compare Steve's compensation with company performance.

Leadership Team

Experienced Management: HBI's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.

Board Members

Experienced Board: HBI's board of directors are considered experienced (8.3 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.

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	2022/08/13 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/07/02
Annual Earnings	2022/01/01