HBI Stock Overview
Hanesbrands Inc., a consumer goods company, designs, manufactures, sources, and sells a range of basic apparel for men, women, and children.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$11.20|
|52 Week High||US$20.74|
|52 Week Low||US$9.58|
|1 Month Change||3.99%|
|3 Month Change||-11.11%|
|1 Year Change||-43.55%|
|3 Year Change||-25.68%|
|5 Year Change||-53.20%|
|Change since IPO||129.74%|
Recent News & Updates
Why Hanesbrands Is A Compelling Dividend Buy
Hanesbrands has plenty of upside potential as it grows its Champion brand internationally and continues to return cash to shareholders. It has its own manufacturing facilities, which makes it better positioned than rivals in face of supply chain disruptions. The dividend and stock price appear to be attractive at the current valuation. Who says you should take emotions out of investing? As a buy and hold type of investor, I take pride in ownership, especially in companies whose products I use on a regular basis. This brings me to Hanesbrands (HBI), whose namesake and Champion clothing I have worn for many years, and recently, I became a shareholder in the company. In this article, I highlight why HBI is currently trading at an appealing price for income and growth, so let's get started. Why HBI? Hanesbrands is a consumer goods company that produces a range of basic apparel for men, women, and children. It operates through the business segments of Innerwear, Activewear, and International, and over the last 12 months, generated $6.9 billion in total revenue. Hanesbrands' stock has seen plenty of pain over the past year, posting a 37% decline since the same time last year as the initial exuberance over work-from-home trends have worn off. Moreover, inflationary pressures and general concerns around supply chain disruptions and economic recession have further piled on the pressure. Plus, a strong dollar doesn't help when the company translates its international sales back to the USD. It would seem as if the company is doing horribly based on the stock price performance, but that doesn't appear to be the case. This is considering the modest but respectable 5% YoY revenue increase (7% on a constant currency basis) during the first quarter, driven by strong Champion brand sales of 6% YoY (constant currency). While U.S. Innerwear sales increased by just 1.5% YoY, it's worth noting that sales have held up well against a difficult comparable last year, when many consumers worked from home and loaded up on the company's products. Notably, sales on a 2-year stacked basis grew by an impressive 37%. Looking forward, management expects strong growth for the Champion brand, and is guiding for $3.2 billion in annual sales by 2024, up from $2 billion last year. This includes seeking to grow its market share through expanded product offerings for younger female consumers in this brand. It also leads with product innovation, which includes its X-Temp technology, providing cooling and wicking benefits that especially help during hot summertime weather. HBI also has key competitive advantages in its supply chain, through ownership of its own manufacturing facilities. This operating flexibility enabled HBI to simultaneously launch recent products in both the U.S. and Australia, with coordinated support from regional marketing campaigns. This strength was noted by Morningstar in its recent analyst report: Another key strategy for Hanes is to improve the efficiency of its supply chain. It has already made progress in this area, having achieved a 15% increase in manufacturing output over the past four years. Hanes, unlike many rivals, primarily operates its own manufacturing facilities. More than 70% of the more than 2 billion apparel units sold by the company each year are manufactured in its own plants or those of dedicated contractors. We believe the combination of strong pricing and production efficiencies should allow Hanes to maintain operating margins around 20% for its American innerwear business despite somewhat inconsistent sales. Moreover, it appears that HBI has plenty of greenfield opportunities internationally, as noted by management during the recent conference call: Looking specifically at Champion, we continued our expansion in China adding new stores in the quarter through our partners. In Europe, we continue to reach new consumers with new styles and silhouettes for kids. And we doubled our spring summer footwear sales driven by an expanded product offerings across channels and geographies.
Hanesbrands (NYSE:HBI) Has A Somewhat Strained Balance Sheet
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
At US$10.19, Is Hanesbrands Inc. (NYSE:HBI) Worth Looking At Closely?
While Hanesbrands Inc. ( NYSE:HBI ) might not be the most widely known stock at the moment, it received a lot of...
Wolverine World Wide divest Champion trademarks to Hanesbrands for $90M
Wolverine World Wide (NYSE:WWW) said on Thursday that Keds, its wholly-owned subsidiary, has sold the Champion trademarks for footwear in the United States and Canada to its longtime licensee, HanesBrands (NYSE:HBI) for $90M in cash. The transaction includes a perpetual license for the company to continue using the trademarks on its Keds Champion footwear. The deal also successfully resolves outstanding litigation between the parties.
|HBI||US Luxury||US Market|
Return vs Industry: HBI underperformed the US Luxury industry which returned -32.7% over the past year.
Return vs Market: HBI underperformed the US Market which returned -12.8% over the past year.
|HBI Average Weekly Movement||6.3%|
|Luxury Industry Average Movement||7.3%|
|Market Average Movement||7.9%|
|10% most volatile stocks in US Market||17.1%|
|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
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
|HBI fundamental statistics|
Is HBI overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|HBI income statement (TTM)|
|Cost of Revenue||US$4.23b|
Last Reported Earnings
Apr 02, 2022
Next Earnings Date
Aug 11, 2022
|Earnings per share (EPS)||1.45|
|Net Profit Margin||7.38%|
How did HBI perform over the long term?See historical performance and comparison
5.4%Current Dividend Yield
Is HBI undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is HBI's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does HBI's PE Ratio compare to its peers?
|HBI PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
UAA Under Armour
COLM Columbia Sportswear
Price-To-Earnings vs Peers: HBI is good value based on its Price-To-Earnings Ratio (7.7x) compared to the peer average (10.4x).
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 (7.7x) compared to the US Luxury industry average (10x)
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.
|Current PE Ratio||7.7x|
|Fair PE Ratio||12.3x|
Price-To-Earnings vs Fair Ratio: HBI is good value based on its Price-To-Earnings Ratio (7.7x) compared to the estimated Fair Price-To-Earnings Ratio (12.3x).
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 ($11.2) is trading below our estimate of fair value ($29.43)
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 more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
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How is Hanesbrands forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HBI's forecast earnings growth (7.7% per year) is above the savings rate (1.9%).
Earnings vs Market: HBI's earnings (7.7% per year) are forecast to grow slower than the US market (12.8% per year).
High Growth Earnings: HBI's earnings are forecast to grow, but not significantly.
Revenue vs Market: HBI's revenue (2.6% per year) is forecast to grow slower than the US market (7.9% per year).
High Growth Revenue: HBI's revenue (2.6% 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 (54.1%).
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How has Hanesbrands performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HBI has high quality earnings.
Growing Profit Margin: HBI's current net profit margins (7.4%) are higher than last year (1.4%).
Past Earnings Growth Analysis
Earnings Trend: HBI's earnings have declined by 4.9% per year over the past 5 years.
Accelerating Growth: HBI's earnings growth over the past year (465.3%) exceeds its 5-year average (-4.9% per year).
Earnings vs Industry: HBI earnings growth over the past year (465.3%) exceeded the Luxury industry 54.4%.
Return on Equity
High ROE: Whilst HBI's Return on Equity (65.02%) is outstanding, this metric is skewed due to their high level of debt.
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How is Hanesbrands's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: HBI's short term assets ($3.3B) exceed its short term liabilities ($2.1B).
Long Term Liabilities: HBI's short term assets ($3.3B) do not cover its long term liabilities ($4.0B).
Debt to Equity History and Analysis
Debt Level: HBI's net debt to equity ratio (399.8%) is considered high.
Reducing Debt: HBI's debt to equity ratio has increased from 431.1% to 447.2% over the past 5 years.
Debt Coverage: HBI's debt is not well covered by operating cash flow (10.8%).
Interest Coverage: HBI's interest payments on its debt are well covered by EBIT (5.9x coverage).
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What is Hanesbrands's current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HBI's dividend (5.36%) is higher than the bottom 25% of dividend payers in the US market (1.52%).
High Dividend: HBI's dividend (5.36%) is in the top 25% of dividend payers in the US market (4.09%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, HBI has been paying a dividend for less than 10 years.
Growing Dividend: HBI's dividend payments have increased, but the company has only paid a dividend for 9 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (41.5%), HBI's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (68.7%), HBI's dividend payments are covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Steve Bratspies (54 yo)
Mr. Stephen B. Bratspies, also known as Steve, serves as Chief Executive Officer and Director at Hanesbrands Inc. since August 03, 2020. Mr. Bratspies served as Executive Vice President and Chief Merchandi...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD11.03M) is above average for companies of similar size in the US market ($USD6.58M).
Compensation vs Earnings: Insufficient data to compare Steve's compensation with company performance.
Experienced Management: HBI's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Experienced Board: HBI's board of directors are considered experienced (8.3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Hanesbrands Inc.'s employee growth, exchange listings and data sources
- Name: Hanesbrands Inc.
- Ticker: HBI
- Exchange: NYSE
- Founded: 1901
- Industry: Apparel, Accessories and Luxury Goods
- Sector: Consumer Durables
- Implied Market Cap: US$3.906b
- Shares outstanding: 348.78m
- Website: https://www.hanes.com
Number of Employees
- Hanesbrands Inc.
- 1000 East Hanes Mill Road
- North Carolina
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/06 00:00|
|End of Day Share Price||2022/08/05 00:00|
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.