HNI Corp. (HNI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Tempur Sealy International, Inc.

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Hooker Furnishings Corp.

Leggett & Platt, Inc.

Arhaus, Inc.

Ethan Allen Interiors, Inc.

Helen of Troy Ltd.

HNI Corp.

MasterBrand, Inc.

Sleep Number Corp.

Why is HNI Corp. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 11.47

Poor long term growth as Net Sales has grown by an annual rate of 3.94% and Operating profit at 9.29% over the last 5 years

Positive results in Jun 25

ROCE(HY) Highest at 18.5%
RAW MATERIAL COST(Y) Fallen by -2.95% (YoY)
DIVIDEND PER SHARE(HY) Highest at USD 9.33

With ROCE of 17.94%, it has a fair valuation with a 2.13 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -22.46%, its profits have risen by 1.4% ; the PEG ratio of the company is 13.3

Below par performance in long term as well as near term

Along with generating -22.46% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is HNI Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

HNI Corp.

-31.83%

-0.16

30.32%

S&P 500

22.99%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.74%

EBIT Growth (5y)

19.03%

EBIT to Interest (avg)

11.47

Debt to EBITDA (avg)

1.19

Net Debt to Equity (avg)

0.51

Sales to Capital Employed (avg)

1.91

Tax Ratio

22.99%

Dividend Payout Ratio

121.80%

Pledged Shares

Institutional Holding

88.76%

ROCE (avg)

14.53%

ROE (avg)

16.32%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.33

EV to EBIT

15.02

EV to EBITDA

10.38

EV to Capital Employed

1.21

EV to Sales

1.27

PEG Ratio

0.96

Dividend Yield

1.98%

ROCE (Latest)

8.03%

ROE (Latest)

8.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

NET SALES(Q)

Highest at USD 1,347.5 MM

CASH AND EQV(HY)

Highest at USD 293.9 MM

DIVIDEND PER SHARE(HY)

Highest at USD 9.05

-40What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 92 MM

ROCE(HY)

Lowest at 0.11%

INTEREST COVERAGE RATIO(Q)

Lowest at 299.05

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 10.47% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 93 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.32 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.05 times

INTEREST(Q)

Highest at USD 21 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.66 %

PRE-TAX PROFIT(Q)

Lowest at USD -31.6 MM

NET PROFIT(Q)

Lowest at USD -14.8 MM

Here's what is working for HNI Corp.

Net Sales

At USD 1,347.5 MM has Grown at 89.85%

over average net sales of the previous four periods of USD 709.77 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (USD MM)

Net Sales

Highest at USD 1,347.5 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 293.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at USD 9.05

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Depreciation

Highest at USD 75.2 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Depreciation

At USD 75.2 MM has Grown at 137.22%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for HNI Corp.

Pre-Tax Profit

At USD -31.6 MM has Fallen at -161.51%

over average net sales of the previous four periods of USD 51.37 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -14.8 MM has Fallen at -136.19%

over average net sales of the previous four periods of USD 40.9 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 92 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

At USD 21 MM has Grown at 27.27%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 299.05

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 21 MM

in the last five periods and Increased by 27.27% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit Margin

Lowest at 4.66 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -31.6 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -14.8 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 93 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 6.32 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 9.05 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 10.47% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales