Hanesbrands (HBI) AI Stock Analysis

• Market Cap: $1.45B
• Dividend Yield: N/A
• Average Volume (3M): 4.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: -33.72%
• EPS Growth: -892.32%
• Country: US
• Employees: 38,000
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.07
• Shares Outstanding: 353,639,600
• 10 Day Avg. Volume: 4,396,747
• 30 Day Avg. Volume: 4,437,741
• PEG Ratio: -0.62
• Price to Book (P/B): 36.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.65
• Enterprise Value/Market Cap: 2.79
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: 4.31
• 1Y Price Target: $5.13
• Price Target Upside: 26.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 50 Neutral
• Price Target: $4.00 ▼(-1.72%Downside)

Hanesbrands faces significant financial challenges with declining revenues and profitability, which heavily impact its score. Technical indicators suggest bearish momentum, further weighing on the evaluation. Despite a positive earnings call and corporate developments, the overall risk profile remains concerning due to financial instability and market headwinds.

Positive Factors

Financial Performance

HBI delivered solid top and bottom line performance in the 4Q, with all regions returning to growth, including a positive inflection in the US and accelerated growth internationally.

Free Cash Flow

HBI expects to see an additional ~$100M in free cash flow growth driven by margin expansion, lower cash interest, and benefits from lapping of one-time costs.

Negative Factors

Leadership Changes

The respected CEO Bratspies announced he will depart by 2025 end, creating concerns around the sustainability of HBI's recent successes.

Hanesbrands Business Overview & Revenue Model

Company Description

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. The company licenses its Champion name for footwear and sports accessories. Hanesbrands Inc. provides its products primarily under the Hanes, Champion, Maidenform, JMS/Just My Size, Bali, Polo Ralph Lauren, Playtex, DKNY, Alternative, Gear for Sports, Comfortwash, Hanes Beefy-T, Bonds, DIM, Sheridan, Bras N Things, Lovable, Wonderbra, Berlei, Abanderado, Shock Absorber, Zorba, Explorer, Sol y Oro, Maidenform, Rinbros, and Bellinda brand names. The company markets its products through retailers, wholesalers, and third-party embellishers. As of January 2, 2022, it operated 216 retail and direct outlet stores in the United States and the Commonwealth of Puerto Rico, as well as 626 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.

How the Company Makes Money

Hanesbrands Inc. generates revenue primarily through the sale of its apparel products across multiple channels, including wholesale distribution to major retailers, direct-to-consumer sales via company-owned retail stores and e-commerce platforms, and through partnerships and licensing agreements. The company's key revenue streams are driven by its diverse portfolio of brands, which cater to various consumer segments and market demands. Additionally, Hanesbrands benefits from economies of scale in manufacturing and distribution, allowing it to maintain competitive pricing while optimizing profitability. Strategic partnerships and collaborations also play a role in expanding market reach and enhancing brand visibility.

Hanesbrands Financial Statement Overview

Summary

Hanesbrands is experiencing declining revenues and profitability issues, compounded by a high debt-to-equity ratio and negative net income. While cash flow management is somewhat positive, the overall financial health reflects significant challenges and potential risks.

Income Statement

Hanesbrands shows a declining revenue trend over the years, with the latest TTM revenue of $3.49 billion compared to $6.80 billion in 2022. Gross profit margins have also decreased, indicating rising costs or pricing pressure. Net income has been negative in recent periods, reflecting profitability challenges. The EBIT margin improved slightly in the TTM period, but the overall profitability remains weak.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, driven by substantial total debt relative to a low equity base. Stockholders' equity has been decreasing, indicating financial strain. The equity ratio is low, which raises concerns about financial stability. These factors suggest high leverage and potential risk in managing liabilities.

Cash Flow

Operating cash flow has declined in the TTM period, but free cash flow remains positive, indicating some ability to generate cash. The free cash flow to net income ratio is favorable, suggesting efficient cash management despite reported net losses. However, the declining trend in cash flow metrics is a concern for future liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.51B	3.64B	3.86B	6.80B	6.13B
Gross Profit	1.36B	1.29B	1.35B	2.65B	2.27B
EBITDA	230.56M	333.55M	365.34M	860.71M	156.26M
Net Income	-320.43M	-17.73M	-127.20M	77.22M	-75.58M
Balance Sheet
Total Assets	3.84B	5.64B	6.50B	7.07B	7.70B
Cash, Cash Equivalents and Short-Term Investments	214.85M	205.50M	238.41M	536.28M	909.44M
Total Debt	2.55B	3.77B	4.30B	3.74B	4.51B
Total Liabilities	3.81B	5.22B	6.11B	6.37B	6.88B
Stockholders Equity	34.01M	419.35M	398.26M	702.49M	813.96M
Cash Flow
Free Cash Flow	226.35M	517.69M	-573.92M	554.14M	394.73M
Operating Cash Flow	264.24M	561.75M	-358.80M	623.41M	448.47M
Investing Cash Flow	813.03M	-23.48M	-216.43M	-52.45M	-41.08M
Financing Cash Flow	-1.05B	-580.08M	295.83M	-888.02M	142.17M

Hanesbrands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HBI, the sentiment is Negative. The current price of 4.07 is below the 20-day moving average (MA) of 4.52, below the 50-day MA of 4.69, and below the 200-day MA of 6.33, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 31.64 is Neutral, neither overbought nor oversold. The STOCH value of 6.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HBI.

Hanesbrands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEVI	78 Outperform	$7.79B	19.45	20.93%	2.69%	2.90%	182.72%
Sector *	67 Neutral	¥261.79B	13.64	6.45%	2.57%	5.11%	-13.15%
COLM	66 Neutral	$3.25B	15.16	12.34%	2.12%	-1.69%	-4.01%
UA	62 Neutral	$2.76B	―	-9.95%	―	-7.47%	-131.70%
HBI	50 Neutral	$1.45B	―	-23.24%	―	-33.72%	-892.32%
VFC	49 Neutral	$4.83B	―	7.83%	3.07%	-7.41%	―
UAA	47 Neutral	$2.76B	―	-9.95%	―	-7.47%	-131.70%

Hanesbrands Corporate Events

Hanesbrands Reports Strong Q1 2025 Financial Results

HanesBrands Inc. reported better-than-expected financial results for the first quarter of 2025, with net sales of $760 million, marking a 2.1% increase over the previous year. The company saw significant improvements in gross and operating margins due to cost-saving initiatives and lower input costs. Despite challenges such as U.S. tariffs, HanesBrands reiterated its full-year guidance, expecting to mitigate cost headwinds through strategic actions. The company also completed refinancing of its 2026 maturities, reducing leverage and positioning itself advantageously for future growth.

Hanesbrands Increases Shares Under Incentive Plan

On April 29, 2025, Hanesbrands Inc. held its Annual Meeting of Stockholders, where the stockholders approved an amendment to increase the number of shares reserved under the 2020 Omnibus Incentive Plan by 16,210,000 shares. Additionally, the stockholders elected the proposed directors, ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025, and approved executive officer compensation, reflecting strong support for the company’s governance and strategic initiatives.