Hni Corp

HNI

Office Furniture (No Wood)

Mkt Cap

$2.12B

PE

32.46

Debt

$485.8M

Cash

$27M

EV

$2.578B

FCF

$175.6M

Market Cap

$2.12B

P/E Ratio

32.46

Debt

$485.8M

Cash

$27M

EV

$2.578B

FCF

$175.6M

Charts data: {"Earnings":[{"time":"2015-01-02","value":61155000},{"time":"2016-01-01","value":105406000},{"time":"2016-12-30","value":85577000},{"time":"2017-12-29","value":89795000},{"time":"2018-12-28","value":93326000},{"time":"2019-12-27","value":110503000},{"time":"2021-01-01","value":41917000},{"time":"2021-12-31","value":59811000},{"time":"2022-12-30","value":123900000},{"time":"2023-12-29","value":49200000}],"Sales":[{"time":"2015-01-02","value":2222695000},{"time":"2016-01-01","value":2304419000},{"time":"2016-12-30","value":2203489000},{"time":"2017-12-29","value":2175882000},{"time":"2018-12-28","value":2257895000},{"time":"2019-12-27","value":2246947000},{"time":"2021-01-01","value":1955363000},{"time":"2021-12-31","value":2184408000},{"time":"2022-12-30","value":2361800000},{"time":"2023-12-29","value":2434000000}],"Net Margins":[{"time":"2015-01-02","value":0.027513896418536955},{"time":"2016-01-01","value":0.045740813628077186},{"time":"2016-12-30","value":0.03883704434195043},{"time":"2017-12-29","value":0.04126832245498607},{"time":"2018-12-28","value":0.04133318865580552},{"time":"2019-12-27","value":0.04917917512073049},{"time":"2021-01-01","value":0.021436940353274557},{"time":"2021-12-31","value":0.027380873902677523},{"time":"2022-12-30","value":0.05245998814463545},{"time":"2023-12-29","value":0.020213640098603124}],"Assets":[{"time":"2015-01-02","value":1239334000},{"time":"2016-01-01","value":1263925000},{"time":"2016-12-30","value":1330234000},{"time":"2017-12-29","value":1391550000},{"time":"2018-12-28","value":1401844000},{"time":"2019-12-27","value":1452512000},{"time":"2021-01-01","value":1418032000},{"time":"2021-12-31","value":1497897000},{"time":"2022-12-30","value":1414500000},{"time":"2023-12-29","value":1928800000}],"Stockholders Equity":[{"time":"2015-01-02","value":414587000},{"time":"2016-01-01","value":477299000},{"time":"2016-12-30","value":501009000},{"time":"2017-12-29","value":514577000},{"time":"2018-12-28","value":563259000},{"time":"2019-12-27","value":584368000},{"time":"2021-01-01","value":590745000},{"time":"2021-12-31","value":589967000},{"time":"2022-12-30","value":616800000},{"time":"2023-12-29","value":761800000}],"ROE":[{"time":"2015-01-02","value":0.14750824314317623},{"time":"2016-01-01","value":0.22083851003249536},{"time":"2016-12-30","value":0.17080930681883957},{"time":"2017-12-29","value":0.17450255258202368},{"time":"2018-12-28","value":0.1656893187680978},{"time":"2019-12-27","value":0.18909830791556007},{"time":"2021-01-01","value":0.07095616551980974},{"time":"2021-12-31","value":0.10138024669176411},{"time":"2022-12-30","value":0.20087548638132297},{"time":"2023-12-29","value":0.06458388028353898}],"ROA":[{"time":"2015-01-02","value":0.09139344196156968},{"time":"2016-01-01","value":0.129810708705026},{"time":"2016-12-30","value":0.1007319013045825},{"time":"2017-12-29","value":0.05532463799360426},{"time":"2018-12-28","value":0.09184474164029664},{"time":"2019-12-27","value":0.10419328721552731},{"time":"2021-01-01","value":0.04328886795220418},{"time":"2021-12-31","value":0.057026617985081754},{"time":"2022-12-30","value":0.10972074938140686},{"time":"2023-12-29","value":0.04681667357942762}]}

HNI Corporation, together with its subsidiaries, manufactures, sells, and markets workplace furnishings and residential building products primarily in the United States and Canada. The company operates through two segments, Workplace Furnishings and Residential Building Products. The Workplace Furnishings segment offers a range of commercial and home office furniture, including panel-based and freestanding furniture systems, seating, storage, benching, tables, and architectural products, as well as social collaborative items under the HON, Allsteel, Beyond, Gunlocke, HBF Textiles, HBF, OFM, Respawn, and HNI India brands. This segment sells its products through independent office products dealers, wholesalers, office product distributors, e-commerce focused resellers, and wholesalers, as well as directly to end-user customers and governments. The Residential Building Products segment provides various gas, wood, electric, and pellet-fueled fireplaces; inserts; stoves; facings; outdoor fire pits and fire tables; and accessories. This segment sells its products primarily for home use under the Heatilator, Heat & Glo, Majestic, Monessen, Quadra-Fire, Harman, Vermont Castings, PelPro, SimpliFire, The Outdoor GreatRoom Company, and Stellar brand names through independent dealers and distributors, and corporation-owned distribution and retail outlets. The company was incorporated in 1944 and is headquartered in Muscatine, Iowa.

Sector

10-Q
9/30/23
10-Q
7/1/23
10-Q
4/1/23
10-K
12/31/22
10-Q
10/1/22
10-Q
7/2/22
10-Q
4/2/22
10-K
1/1/22
10-Q
10/2/21
10-Q
7/3/21
10-Q
4/3/21
10-K
1/2/21
10-Q
9/26/20
10-Q
6/27/20
10-Q
3/28/20
10-K
12/28/19
10-Q
9/28/19
10-Q
6/29/19
10-Q
3/30/19
10-K
12/29/18
10-Q
9/29/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/30/17

DCF

Discounted Cash Flow Valuation of Hni Corp

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$175.6M	$169.6M	$163.9M	$158.3M	$152.9M	$147.7M	$142.7M	$137.8M	$133.1M	$128.6M	$124.2M	$1.242B
DCF		$147.5M	$123.9M	$104.1M	$87.42M	$73.43M	$61.68M	$51.81M	$43.52M	$36.56M	$30.71M	$307.1M
Value	$1.068B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -3.6%

Earnings Stability 13%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	01-2016	12-2016	12-2017	12-2018	12-2019	01-2021	12-2021	12-2022	12-2023	TTM
Net Margin	4.6%	3.9%	4.1%	4.1%	4.9%	2.1%	2.7%	5.2%	2%	2.6%
ROA	13%	10%	5.5%	9.2%	10%	4.3%	5.7%	11%	4.7%	5.9%
ROE	22%	17%	17%	17%	19%	7.1%	10%	20%	6.5%	8.5%

What is the average Net Margin?

The average Net Margin over the past 5 years is +3.53%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.26%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +7.55%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.56%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +13.21%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -1.26%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	01-2016	12-2016	12-2017	12-2018	12-2019	01-2021	12-2021	12-2022	12-2023	TTM
Debt FCF	2.16	2.39	54.41	2.04	1.15	1.02	2.78	14.95	2.35	2.77
Debt Equity	0.41	0.50	0.61	0.45	0.30	0.30	0.31	0.31	0.58	0.63
MIN
Graham Stability	-	-	100%	100%	100%	43%	73%	100%	65%	43%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 2.77.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 1.28.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.43.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	01-2021	12-2022	Trend
Revenue	1.4%	1.5%	7.6%	3.1%	0.74%
Net Income	-7.6%	-12%	5.5%	-60%	-2.4%
Stockholders Equity	6.2%	6.2%	8.8%	24%	0.3%
FCF	8.9%	8.9%	2.9%	1.4K%	54%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +1.51%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.74%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -12.02%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -2.39%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +6.22%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.3%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +8.95%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +54.35%.