Hanesbrands (HBI) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): N/A
• Revenue Growth: -19.47%
• EPS Growth: N/A
• Country: US
• Employees: N/A
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: N/A
• EPS (TTM): 0.15
• Shares Outstanding: N/A
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• 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: N/A
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $6.50 ▲(0.46% Upside)

Hanesbrands' overall stock score is primarily impacted by its challenging financial performance, with high leverage and cash flow issues posing significant risks. The legal challenges in the merger with Gildan further contribute to uncertainty. While the stock's valuation appears attractive, the technical indicators suggest caution. Investors should be aware of the potential risks and uncertainties before making investment decisions.

Positive Factors

Merger Completion

The merger with Gildan represents a strategic shift, potentially enhancing market position and operational efficiencies, which can drive long-term growth.

Gross Profit Margin

A strong gross profit margin indicates efficient production and sales processes, which can support profitability and competitive pricing strategies.

Strategic Partnerships

Strategic partnerships and licensing agreements expand product offerings and market reach, supporting revenue growth and brand strength.

Negative Factors

High Leverage

High leverage poses financial risks, limiting flexibility and potentially impacting future growth and stability due to increased debt servicing costs.

Negative Free Cash Flow

Negative free cash flow indicates cash management issues, which can affect liquidity and the ability to invest in growth opportunities.

Revenue Decline

Declining revenue trends can signal weakening market demand or competitive pressures, impacting long-term growth prospects.

Hanesbrands Business Overview & Revenue Model

Company Description

Hanesbrands Inc. (HBI) is a leading global apparel company specializing in the design, manufacture, and marketing of branded consumer goods under well-known labels such as Hanes, Champion, Playtex, and Bali. The company operates primarily in the activewear, underwear, and hosiery sectors, catering to a wide range of consumers with a focus on comfort, quality, and sustainability. Hanesbrands sells its products through various channels, including department stores, mass retailers, and e-commerce platforms, reaching customers worldwide.

How the Company Makes Money

Hanesbrands generates revenue primarily through the sale of its branded apparel products. The company employs a multi-channel distribution strategy, selling directly to consumers via e-commerce, as well as through wholesale partnerships with major retailers and department stores. Key revenue streams include sales of activewear and underwear, which are significant contributors to its earnings. Additionally, Hanesbrands benefits from strategic partnerships and licensing agreements that expand its product offerings and market reach. The company also focuses on cost management and operational efficiencies, which help enhance its profitability. Seasonal promotions and marketing campaigns further drive sales, particularly during key shopping periods.

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: Neutral
• Last Price: 6.47
• 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 Neutral. The current price of 6.47 is below the 20-day moving average (MA) of 6.52, below the 50-day MA of 6.66, and above the 200-day MA of 5.64, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 44.30 is Neutral, neither overbought nor oversold. The STOCH value of 35.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HBI.

Hanesbrands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COLM	69 Neutral	$2.90B	16.20	10.84%	2.15%	2.76%	-7.83%
PVH	66 Neutral	$3.60B	11.23	6.70%	0.20%	0.52%	-45.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VFC	60 Neutral	$7.04B	79.64	6.39%	1.88%	-4.56%	―
HBI	49 Neutral	―	―	140.06%	―	-19.47%	―
UA	47 Neutral	$1.88B	18.65	-4.56%	―	-6.35%	-565.47%
UAA	47 Neutral	$1.79B	―	-4.56%	―	-6.35%	-565.47%

Hanesbrands Corporate Events

Hanesbrands Completes Merger with Gildan, Delists from NYSE

Hanesbrands has completed significant financial and structural changes as part of a merger with Gildan. The company repaid and terminated its existing credit facilities, delisted its common stock from the NYSE, and converted its corporate structure to a limited liability company. Additionally, Hanesbrands announced the redemption of its 9.000% Senior Notes due 2031, marking a strategic shift in its financial operations.

Hanesbrands Stockholders Approve Merger Proposals

On November 25, 2025, Hanesbrands Inc. held a special meeting of stockholders where they approved several merger-related proposals, including the merger of Helios Merger Sub, Inc. with Hanesbrands and the conversion of Hanesbrands into a Maryland limited liability company. The meeting also saw the approval of compensation plans for executives related to these transactions. The expiration of the Hart-Scott-Rodino Antitrust Improvements Act waiting period on November 20, 2025, marked a significant step towards completing these transactions, although other regulatory consents and approvals are still pending.

Hanesbrands Faces Legal Challenges in Gildan Merger

On August 13, 2025, Hanesbrands Inc. entered into a merger agreement with Gildan Activewear Inc., which involves Gildan acquiring all outstanding shares of Hanesbrands. The merger will be executed through a series of transactions, with Hanesbrands shareholders receiving Gildan shares and cash. A special meeting for Hanesbrands stockholders is scheduled for November 25, 2025, to vote on the merger proposal. The merger has faced legal challenges, with lawsuits filed alleging deficiencies in the merger disclosures. In response, Hanesbrands and Gildan have voluntarily provided supplemental disclosures to address these claims and avoid potential disruptions.