Hanesbrands (HBI) AI Stock Analysis

• Market Cap: $2.32B
• Dividend Yield: N/A
• Average Volume (3M): 6.18M
• Price to Earnings (P/E): 5.9
• Beta (1Y): 1.31
• Revenue Growth: -19.47%
• EPS Growth: N/A
• Country: US
• Employees: 38,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.15
• Shares Outstanding: 353,802,150
• 10 Day Avg. Volume: 6,019,965
• 30 Day Avg. Volume: 6,181,916
• PEG Ratio: >-0.01
• Price to Book (P/B): 85.21
• Price to Sales (P/S): 0.83
• P/FCF Ratio: 12.80
• Enterprise Value/Market Cap: 2.02
• Enterprise Value/Revenue: 1.36
• Enterprise Value/Gross Profit: 3.25
• Enterprise Value/Ebitda: 10.57
• 1Y Price Target: $7.00
• Price Target Upside: 6.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.66
• Revenue Forecast (FY): $3.52B

• Rating: 52 Neutral
• Price Target: $6.50 ▼(-0.91% Downside)

Hanesbrands' overall stock score is primarily impacted by its challenging financial performance, characterized by high leverage and cash flow issues. While the earnings call provided some optimism with better-than-expected results and debt reduction, technical indicators suggest bearish momentum. The valuation is moderate, reflecting a balance between potential growth and existing financial challenges.

Positive Factors

Debt Reduction

Significant debt reduction enhances financial flexibility and reduces interest burden, supporting long-term financial stability and growth.

Strategic Alliance with Infosys

The partnership with Infosys for digital transformation will enhance operational efficiency and agility, positioning Hanesbrands for future growth.

Operating Margin Improvement

Improved operating margins indicate better cost management and operational efficiency, contributing to sustainable profitability.

Negative Factors

High Leverage

High leverage poses financial risk, limiting flexibility and increasing vulnerability to economic downturns, potentially impacting long-term growth.

Cash Flow Issues

Negative cash flow growth indicates liquidity concerns, affecting the company's ability to invest in growth opportunities and manage debt.

Decline in Intimates Business

Declining performance in the intimates segment suggests challenges in product demand and market competition, impacting revenue diversity.

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 generates revenue primarily through the sale of its branded apparel products, which are distributed through various channels including department stores, specialty retailers, and e-commerce platforms. The company has a diversified revenue model that includes direct-to-consumer sales, wholesale distribution, and licensing agreements. Key revenue streams come from its strong portfolio of brands, particularly in the underwear and activewear segments. Additionally, Hanesbrands benefits from strategic partnerships with major retailers and online platforms that enhance its market reach. The company's ability to adapt to consumer trends and invest in marketing and brand positioning further contributes to its earnings, alongside its focus on cost efficiency and operational excellence.

Hanesbrands Financial Statement Overview

Summary

Hanesbrands faces a challenging financial landscape. While the income statement shows some profitability with a strong gross profit margin, declining revenue and high leverage on the balance sheet pose significant risks. Cash flow issues further exacerbate the situation, highlighting the need for strategic improvements in cash management and debt reduction to enhance financial stability and growth prospects.

Income Statement

Hanesbrands shows a mixed performance in its income statement. The TTM data reveals a gross profit margin of 42%, which is relatively strong, indicating efficient production and sales processes. However, the net profit margin is modest at 9.6%, and the company has experienced a revenue decline of 1.3% in the TTM period. The EBIT margin is 8.6%, and the EBITDA margin is 12.8%, reflecting moderate operational efficiency. Overall, while profitability metrics are decent, the declining revenue trend is a concern.

Balance Sheet

The balance sheet highlights significant leverage, with a debt-to-equity ratio of 5.51 in the TTM period, indicating high financial risk. The return on equity is low at 1.91%, suggesting limited returns for shareholders. The equity ratio stands at 10.4%, reflecting a low proportion of equity financing. The company's financial stability is challenged by high debt levels, which could impact future growth and flexibility.

Cash Flow

Cash flow analysis reveals challenges, with a negative free cash flow growth rate of -114.2% in the TTM period, indicating cash flow issues. The operating cash flow to net income ratio is low at 0.018, and the free cash flow to net income ratio is negative, reflecting insufficient cash generation relative to earnings. These metrics suggest potential liquidity concerns and the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.44B	3.51B	3.64B	3.86B	6.80B	6.13B
Gross Profit	1.44B	1.36B	1.29B	1.35B	2.65B	1.60B
EBITDA	443.84M	230.56M	333.55M	365.34M	860.71M	154.46M
Net Income	330.01M	-320.43M	-17.73M	-127.20M	77.22M	-75.58M
Balance Sheet
Total Assets	4.28B	3.84B	5.64B	6.50B	7.07B	7.72B
Cash, Cash Equivalents and Short-Term Investments	217.57M	214.85M	185.22M	238.41M	536.28M	900.62M
Total Debt	2.67B	2.55B	3.60B	4.30B	3.74B	4.47B
Total Liabilities	3.83B	3.81B	5.22B	6.11B	6.37B	6.91B
Stockholders Equity	446.44M	34.01M	419.35M	398.26M	702.49M	813.96M
Cash Flow
Free Cash Flow	-8.19M	226.35M	517.69M	-573.92M	554.14M	394.73M
Operating Cash Flow	23.16M	264.24M	561.75M	-358.80M	623.41M	448.47M
Investing Cash Flow	847.16M	813.03M	-23.48M	-216.43M	-52.45M	-41.08M
Financing Cash Flow	-966.16M	-1.05B	-580.08M	295.83M	-888.02M	142.17M

Hanesbrands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.56
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HBI, the sentiment is Positive. The current price of 6.56 is below the 20-day moving average (MA) of 6.57, below the 50-day MA of 6.64, and above the 200-day MA of 5.65, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 48.96 is Neutral, neither overbought nor oversold. The STOCH value of 44.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HBI.

Hanesbrands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COLM	67 Neutral	$2.87B	16.05	10.84%	2.25%	2.76%	-7.83%
PVH	64 Neutral	$3.69B	8.59	9.32%	0.19%	-1.14%	-29.30%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VFC	55 Neutral	$5.73B	64.80	6.39%	2.47%	-4.56%	―
HBI	52 Neutral	$2.32B	5.85	140.06%	―	-19.47%	―
UAA	47 Neutral	$1.78B	―	-4.56%	―	-6.35%	-565.47%
UA	46 Neutral	$1.88B	18.65	-4.56%	―	-6.35%	-565.47%

Hanesbrands Corporate Events

HanesBrands Inc. Reports Q3 2025 Earnings Amid Merger Plans

HanesBrands Inc. is a global leader in everyday iconic apparel, known for its well-recognized brands such as Hanes, Bonds, Maidenform, and Bali, and operates primarily in the apparel industry with a focus on ethical business practices and reducing environmental impact.

Hanesbrands Announces Merger with Gildan Activewear

On August 13, 2025, HanesBrands Inc. entered into a merger agreement with Gildan Activewear Inc., marking a significant step in the company’s strategic evolution. The merger involves a series of transactions that will result in HanesBrands becoming a wholly owned subsidiary of Gildan, with the aim of leveraging combined brand portfolios, innovation capabilities, and manufacturing expertise. The merger is expected to enhance the company’s market position and operational efficiency, with the transaction anticipated to close by late 2025 or early 2026, subject to shareholder and regulatory approvals.

The most recent analyst rating on (HBI) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Hanesbrands stock, see the HBI Stock Forecast page.

Hanesbrands Acquired by Gildan Activewear for $2.2 Billion

On August 13, 2025, HanesBrands Inc. announced its acquisition by Gildan Activewear Inc., a move that will create a global leader in basic apparel. The merger, valued at approximately $2.2 billion in equity and $4.4 billion in enterprise value, is expected to double Gildan’s revenues and enhance its market position. The combined entity aims to leverage operational synergies, achieving $200 million in annual cost savings within three years, and will maintain a strong presence in both Montréal and Winston-Salem. This strategic alignment is anticipated to enhance product diversification, market reach, and shareholder value.

The most recent analyst rating on (HBI) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Hanesbrands stock, see the HBI Stock Forecast page.

HanesBrands Inc. Reports Strong Q2 2025 Results

HanesBrands Inc., a global leader in everyday iconic apparel, is renowned for its diverse portfolio of well-known brands and its commitment to ethical business practices and environmental sustainability.

Hanesbrands Inc. Earnings Call: Strong Growth Amid Challenges

Hanesbrands Inc. recently held its earnings call, revealing a generally positive sentiment among its executives and stakeholders. The company reported strong financial performance, successfully reduced its debt, and experienced significant growth in new business segments. Despite facing challenges in the intimates business and softness in the U.S. innerwear market, the positives, such as improved margins, debt reduction, and growth in new segments, outweighed the negatives. This optimism was further reflected in the raised full-year guidance, indicating confidence in the company’s future performance.

Hanesbrands Reports Strong Q2 2025 Financial Results

HanesBrands Inc. announced better-than-expected financial results for the second quarter of 2025, with net sales increasing by 1.8% to $991 million and a significant rise in operating profit and earnings per share. The company raised its full-year outlook, citing benefits from cost savings, productivity initiatives, and a strengthened balance sheet, despite challenges in its Intimate Apparel business and international sales affected by foreign exchange rates.

The most recent analyst rating on (HBI) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Hanesbrands stock, see the HBI Stock Forecast page.