NYSE:HBI

Stock Analysis Report

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.

Snowflake

Fundamentals

Average dividend payer with acceptable track record.


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


Market Performance


7 Day Return

5.5%

HBI

1.7%

US Luxury

0.07%

US Market


1 Year Return

-2.2%

HBI

16.6%

US Luxury

8.9%

US Market

Return vs Industry: HBI underperformed the US Luxury industry which returned 16.6% over the past year.

Return vs Market: HBI underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

HBIIndustryMarket
7 Day5.5%1.7%0.07%
30 Day13.8%8.7%-0.3%
90 Day-1.5%4.0%-1.6%
1 Year1.4%-2.2%19.0%16.6%11.3%8.9%
3 Year-25.0%-31.6%61.7%54.4%46.3%36.8%
5 Year-33.1%-40.8%53.0%43.0%62.1%44.3%

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?

10.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HBI ($16.31) is trading above our estimate of fair value ($14.25)

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 (10.5x) compared to the Luxury industry average (17.5x).

PE vs Market: HBI is good value based on its PE Ratio (10.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: HBI is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: HBI is overvalued based on its PB Ratio (5.2x) 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 11 analysts?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HBI's forecast earnings growth (5.9% per year) is above the savings rate (2.7%).

Earnings vs Market: HBI's earnings (5.9% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: HBI's revenue (0.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: HBI's revenue (0.7% 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 high in 3 years time (34.9%)


Next Steps

Past Performance

How has Hanesbrands performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HBI's earnings have declined by -2.7% per year over the past 5 years.

Accelerating Growth: HBI's earnings growth over the past year (1347.6%) exceeds its 5-year average (-2.7% per year).

Earnings vs Industry: HBI earnings growth over the past year (1347.6%) exceeded the Luxury industry 23.4%.


Return on Equity

High ROE: Whilst HBI's Return on Equity (49.92%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: HBI has a higher Return on Assets than the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: HBI's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Hanesbrands's financial position?


Financial Position Analysis

Short Term Liabilities: HBI's short term assets ($3.7B) exceeds its short term liabilities ($2.1B)

Long Term Liabilities: HBI's short term assets (3.7B) do not cover its long term liabilities (4.7B)


Debt to Equity History and Analysis

Debt Level: HBI's debt to equity ratio (354.4%) is considered high

Reducing Debt: HBI's debt to equity ratio has increased from 130.4% to 354.4% over the past 5 years.

Debt Coverage: HBI's debt is not well covered by operating cash flow (16.2%).

Interest Coverage: HBI's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet

Inventory Level: HBI has a high level of physical assets or inventory.

Debt Coverage by Assets: HBI's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

3.68%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years4.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HBI's dividend (3.68%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: HBI's dividend (3.68%) is in the top 25% of dividend payers in the US market (3.68%)

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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.6%), 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 (38.9% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Gerald Evans (60yo)

3yrs

Tenure

US$8,832,708

Compensation

Mr. Gerald W. Evans, Jr., has been the Chief Executive Officer of Hanesbrands Inc. since October 01, 2016. Mr. Evans served as the Chief Operating Officer of Hanesbrands Inc. since August 01, 2013 until Oc ...


CEO Compensation Analysis

Compensation vs. Market: Gerald's total compensation ($USD8.83M) is about average for companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: Gerald's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.7yrs

Average Tenure

53yo

Average Age

Experienced Management: HBI's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

65yo

Average Age

Experienced Board: HBI's board of directors are considered experienced (5 years average tenure).


Insider Trading

Insider Buying: HBI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$99,17815 Aug 19
Joia Johnson
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares7,100
Max PriceUS$13.97
BuyUS$147,35008 Aug 19
Gerald Evans
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares10,000
Max PriceUS$14.74
BuyUS$175,60009 May 19
Barry Hytinen
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares10,000
Max PriceUS$17.56
SellUS$203,59417 Dec 18
Jessica Mathews
EntityIndividual
Shares15,000
Max PriceUS$13.57
BuyUS$147,34021 Nov 18
Barry Hytinen
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares10,100
Max PriceUS$14.59
BuyUS$97,37020 Nov 18
Gerald Evans
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares6,500
Max PriceUS$14.98
BuyUS$296,60020 Nov 18
Ronald Nelson
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares20,000
Max PriceUS$14.83
SellUS$34,98213 Nov 18
Jessica Mathews
EntityIndividual
Shares2,115
Max PriceUS$16.54
BuyUS$398,75006 Nov 18
Ronald Nelson
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares25,000
Max PriceUS$15.95
SellUS$330,32206 Nov 18
Joia Johnson
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares20,000
Max PriceUS$16.52

Ownership Breakdown


Management Team

  • Joia Johnson (59yo)

    Chief Administrative Officer

    • Tenure: 3yrs
    • Compensation: US$2.16m
  • Thomas Robillard

    Chief Investor Relations Officer

    • Tenure: 6.5yrs
  • W. Upchurch (54yo)

    Group President of Innerwear Americas

    • Tenure: 8.8yrs
    • Compensation: US$2.26m
  • Gerald Evans (60yo)

    CEO & Director

    • Tenure: 3yrs
    • Compensation: US$8.83m
  • Barry Hytinen (44yo)

    Chief Financial Officer

    • Tenure: 2yrs
    • Compensation: US$2.68m
  • Jon Ram (51yo)

    Group President of Global Activewear

    • Tenure: 1.4yrs
    • Compensation: US$3.41m
  • Michael Faircloth (53yo)

    Group President of Global Supply Chain

    • Tenure: 1.8yrs
    • Compensation: US$2.15m
  • Markland Lewis (48yo)

    Chief Accounting Officer & Controller

    • Tenure: 4.4yrs
  • Tomohiko Hirano

    VP & MD of Commercial Asia

    • Tenure: 9.8yrs
  • Susan Hennike

    President of Champion North America

    • Tenure: 13.8yrs

Board Members

  • Bob Moran (68yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$265.01k
  • Ron Nelson (66yo)

    Independent Chairman

    • Tenure: 0.5yrs
    • Compensation: US$270.01k
  • Dave Singer (63yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$245.01k
  • Ann Ziegler (61yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$260.01k
  • Bobby Griffin (70yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$245.01k
  • Franck Moison (65yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$245.01k
  • James Johnson (66yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$260.01k
  • Gerald Evans (60yo)

    CEO & Director

    • Tenure: 3yrs
    • Compensation: US$8.83m
  • Geralyn Breig (57yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$262.50k

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$5.897b
  • Shares outstanding: 361.54m
  • 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

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 Analysis2019/10/22 23:55
End of Day Share Price2019/10/22 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.