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.

Rewards

Trading at 24.1% below its fair value

Earnings are forecast to grow 2.82% per year

Earnings grew by 12.5% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Solid track record, good value and pays a dividend.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.0%

HBI

2.2%

US Luxury

1.5%

US Market


1 Year Return

-23.8%

HBI

11.7%

US Luxury

20.1%

US Market

Return vs Industry: HBI underperformed the US Luxury industry which returned 11.7% over the past year.

Return vs Market: HBI underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

HBIIndustryMarket
7 Day3.0%2.2%1.5%
30 Day-0.1%-2.8%1.4%
90 Day-4.5%6.1%8.7%
1 Year-20.8%-23.8%13.9%11.7%22.7%20.1%
3 Year-24.7%-32.0%69.4%61.7%50.1%40.5%
5 Year-46.7%-53.4%53.3%42.9%73.1%54.1%

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?

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HBI ($14.3) is trading below our estimate of fair value ($18.85)

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


Price To Earnings Ratio

PE vs Industry: HBI is good value based on its PE Ratio (8.7x) compared to the Luxury industry average (17.9x).

PE vs Market: HBI is good value based on its PE Ratio (8.7x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: HBI is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: HBI is overvalued based on its PB Ratio (4.2x) compared to the US Luxury industry average (1.2x).


Next Steps

Future Growth

How is Hanesbrands forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HBI's forecast earnings growth (2.8% per year) is above the savings rate (1.7%).

Earnings vs Market: HBI's earnings (2.8% 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 (0.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: HBI's revenue (0.3% 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 (35.1%)


Next Steps

Past Performance

How has Hanesbrands performed over the past 5 years?

0.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HBI has high quality earnings.

Growing Profit Margin: HBI's current net profit margins (8.6%) are higher than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: HBI's earnings have grown by 0.9% per year over the past 5 years.

Accelerating Growth: HBI's earnings growth over the past year (12.5%) exceeds its 5-year average (0.9% per year).

Earnings vs Industry: HBI earnings growth over the past year (12.5%) exceeded the Luxury industry 3.5%.


Return on Equity

High ROE: Whilst HBI's Return on Equity (48.58%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hanesbrands's financial position?


Financial Position Analysis

Short Term Liabilities: HBI's short term assets ($3.2B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: HBI's short term assets ($3.2B) do not cover its long term liabilities ($4.3B).


Debt to Equity History and Analysis

Debt Level: HBI's debt to equity ratio (272.7%) is considered high.

Reducing Debt: HBI's debt to equity ratio has increased from 143.8% to 272.7% over the past 5 years.

Debt Coverage: HBI's debt is well covered by operating cash flow (23.8%).

Interest Coverage: HBI's interest payments on its debt are well covered by EBIT (5.2x 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 1x debt).


Next Steps

Dividend

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

4.20%

Current Dividend Yield


Dividend Yield vs Market

company4.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: HBI's dividend (4.2%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: HBI's dividend (4.2%) is in the top 25% of dividend payers in the US market (3.69%)


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.4%), 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 (34.5% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Gerald Evans (60yo)

3.3yrs

Tenure

US$8,832,708

Compensation

Mr. Gerald W. Evans, Jr., has been an Independent Director of Valvoline Inc. since December 1, 2019. Mr. Evans has been the Chief Executive Officer of Hanesbrands Inc. since October 01, 2016. Mr. Evans ser ...


CEO Compensation Analysis

Compensation vs Market: Gerald's total compensation ($USD8.83M) is above average for companies of similar size in the US market ($USD6.26M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gerald Evans
CEO & Director3.3yrsUS$8.83m0.46% $24.0m
Joia Johnson
Chief Administrative Officer3.3yrsUS$2.16m0.12% $6.5m
Michael Faircloth
Group President of Global Operations2.1yrsUS$2.15m0.075% $3.9m
W. Upchurch
Group President of Innerwear Americas9.1yrsUS$2.26m0.11% $5.7m
Jonathan Ram
Group President of Global Activewear1.8yrsUS$3.41m0.0053% $276.8k
Markland Lewis
Chief Accounting Officer0.08yrsno data0.0080% $412.6k
Thomas Robillard
Chief Investor Relations Officer6.8yrsno datano data
David Bortolussi
Group President of Innerwear International0.8yrsno data0.029% $1.5m

2.7yrs

Average Tenure

53yo

Average Age

Experienced Management: HBI's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gerald Evans
CEO & Director3.3yrsUS$8.83m0.46% $24.0m
Robert Moran
Independent Director6.6yrsUS$265.01k0.0025% $129.6k
Ronald Nelson
Independent Chairman0.8yrsUS$270.01k0.043% $2.2m
David Singer
Independent Director5.3yrsUS$245.01k0.011% $582.1k
Ann Ziegler
Independent Director11.2yrsUS$260.01k0.0049% $251.4k
Bobby Griffin
Independent Director13.4yrsUS$245.01kno data
Franck Moison
Independent Director5.1yrsUS$245.01k0.0063% $327.1k
James Johnson
Independent Director13.4yrsUS$260.01k0.0069% $356.1k
Geralyn Breig
Independent Director1.6yrsUS$262.50k0.0029% $150.8k

5.3yrs

Average Tenure

65yo

Average Age

Experienced Board: HBI's board of directors are considered experienced (5.3 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.


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$5.183b
  • Shares outstanding: 362.46m
  • 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: Innerwear, Activewear, and International. It sells men’s underwear, women’s panties, children’s underwear, activewear, socks, and hosiery, as well as intimate apparel, such as bras and shapewears; home goods; and T-shirts, fleece, sport shirts, performance T-shirts and shorts, sports bras, and thermals, as well as licensed logo apparel in collegiate bookstores, mass retailers, and other channels. The company licenses its Champion name for footwear and sports accessories. Hanesbrands Inc. provides its products primarily under the Hanes, Champion, Maidenform, Bali, JMS/Just My Size, Polo Ralph Lauren, Playtex, DKNY, Donna Karan, Alternative, Gear for Sports, Hanes Beefy-T, Bonds, DIM, Sheridan, Bras N Things, Nur Die/Nur Der, Lovable, Wonderbra, Berlei, Abanderado, Shock Absorber, Zorba, Explorer, Sol y Oro, and Bellinda brand names. The company markets its products through retailers, wholesalers, and third party embellishers, as well as directly to consumers through Internet. As of December 29, 2018, it operated 243 retail and direct outlet stores in the United States and the Commonwealth of Puerto Rico, as well as 690 retail and outlet stores internationally. The company also sells its products in Europe, Australia, Asia, Latin America, Canada, the Middle East, Africa, Mexico, and Brazil. Hanesbrands Inc. was founded in 1901 and is headquartered in Winston-Salem, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:05
End of Day Share Price2020/02/14 00:00
Earnings2019/12/28
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.