Hanesbrands (HBI) AI Stock Analysis

• Market Cap: $2.29B
• Dividend Yield: N/A
• Average Volume (3M): 10.83M
• Price to Earnings (P/E): 14.0
• Beta (1Y): 1.31
• Revenue Growth: -27.88%
• EPS Growth: N/A
• Country: US
• Employees: 38,000
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.24
• Shares Outstanding: 353,774,140
• 10 Day Avg. Volume: 23,064,209
• 30 Day Avg. Volume: 10,829,281
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.75
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 2.72
• Enterprise Value/Ebitda: 8.91
• 1Y Price Target: $6.75
• Price Target Upside: 9.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 55 Neutral
• Price Target: $6.50 ▲(5.01% Upside)

Hanesbrands' overall stock score is driven primarily by its financial challenges, including high leverage and weak cash flow, despite operational improvements. The strong earnings call performance and strategic merger announcement provide positive momentum, but technical indicators suggest caution due to overbought conditions.

Positive Factors

Acquisition

Gildan Activewear is in advanced talks to acquire Hanesbrands, which could result in synergies from their complementary strengths in innerwear and activewear.

Financial Performance

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

Negative Factors

Debt and Growth Challenges

Hanesbrands has faced difficulty generating value in the public markets as a standalone entity due to muted top-line growth prospects and a heavy debt load.

Leadership Changes

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

Market Sentiment

Despite a strong 4Q, HBI is viewed much more favorably post its strong 2024 move, but is now added to the 'not good enough' basket this EPS season.

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 significant challenges with declining revenues and profitability, alongside high leverage and equity concerns. While cash flow management shows some strength, the overall financial health indicates potential risk due to ongoing financial pressures.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.49B	3.51B	3.64B	3.86B	6.80B	6.13B
Gross Profit	1.47B	1.36B	1.29B	1.35B	2.65B	2.27B
EBITDA	449.63M	230.56M	333.55M	365.34M	860.71M	156.26M
Net Income	89.23M	-320.43M	-17.73M	-127.20M	77.22M	-75.58M
Balance Sheet
Total Assets	4.02B	3.84B	5.64B	6.50B	7.07B	7.70B
Cash, Cash Equivalents and Short-Term Investments	220.34M	214.85M	205.50M	238.41M	536.28M	900.62M
Total Debt	2.66B	2.55B	3.77B	4.30B	3.74B	4.47B
Total Liabilities	3.85B	3.81B	5.22B	6.11B	6.37B	6.88B
Stockholders Equity	166.36M	34.01M	419.35M	398.26M	702.49M	813.96M
Cash Flow
Free Cash Flow	57.67M	226.35M	517.69M	-573.92M	554.14M	394.73M
Operating Cash Flow	87.78M	264.24M	561.75M	-358.80M	623.41M	448.47M
Investing Cash Flow	843.65M	813.03M	-23.48M	-216.43M	-52.45M	-41.08M
Financing Cash Flow	-939.53M	-1.05B	-580.08M	295.83M	-888.02M	142.17M

Hanesbrands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• 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 6.19 is above the 20-day moving average (MA) of 5.17, above the 50-day MA of 4.83, and below the 200-day MA of 6.20, indicating a neutral trend. The MACD of 0.50 indicates Negative momentum. The RSI at 71.83 is Negative, neither overbought nor oversold. The STOCH value of 78.41 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
LEVI	78 Outperform	$8.26B	20.63	20.93%	2.55%	2.90%	182.72%
COLM	67 Neutral	$2.98B	13.86	12.93%	2.22%	0.81%	4.86%
Sector *	60 Neutral	C$4.76B	7.23	23.69%	3.62%	3.22%	5.88%
HBI	55 Neutral	$2.29B	14.03	154.00%	―	-27.88%	―
VFC	54 Neutral	$5.12B	60.36	7.83%	2.80%	-7.41%	―
UA	47 Neutral	$2.16B	21.81	5.50%	―	-8.02%	―
UAA	46 Neutral	$2.16B	22.25	5.50%	―	-8.02%	―

Hanesbrands Corporate Events

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.

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.

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.