Hni Corp (HNI)
NYSE:HNI
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HNI
(NYSE:HNI)
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Rating:47Neutral
Price Target:
$32.00
▼(-11.75% Downside)
Action:Reiterated
Date:06/11/26
The score is held down primarily by weakening financial quality (TTM loss, sharply lower free cash flow, and higher leverage) and a very stretched P/E. A more positive earnings outlook with synergy-driven margin/EPS improvement and a supportive dividend partially offset this, but technicals remain below key longer-term averages.
Positive Factors
Steelcase integration synergies
Management's $120M synergy target from the Steelcase acquisition, with $1.20 per‑share accretion at maturity, represents a durable, structural cost advantage. Realized synergies should sustainably lift operating margins and EPS over multiple years, reducing reliance on volatile organic demand to restore profitability.
Negative Factors
Elevated leverage (debt/equity ~1.0)
Debt roughly equals equity, increasing financial risk if operating recovery underperforms. Elevated leverage raises interest and refinancing sensitivity, limits strategic flexibility, and makes the firm more vulnerable to cash flow volatility until earnings and free cash flow sustainably improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Steelcase integration synergies
Management's $120M synergy target from the Steelcase acquisition, with $1.20 per‑share accretion at maturity, represents a durable, structural cost advantage. Realized synergies should sustainably lift operating margins and EPS over multiple years, reducing reliance on volatile organic demand to restore profitability.
Read all positive factors
HNI (HNI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.51B
Dividend Yield3.2%
Average Volume (3M)704.80K
Price to Earnings (P/E)1150.4
Beta (1Y)0.86
Revenue Growth41.31%
EPS Growth-83.85%
CountryUS
Employees7,600
SectorConsumer Cyclical
Sector Strength84
IndustryBusiness Equipment & Supplies
Share Statistics
EPS (TTM)0.35
Shares Outstanding71,992,905
10 Day Avg. Volume573,248
30 Day Avg. Volume704,805
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)1.11
Price to Sales (P/S)0.72
P/FCF Ratio9.69
Enterprise Value/Market Cap1.36
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit2.45
Enterprise Value/Ebitda15.32
Forecast
1Y Price Target
$65.00Price Target Upside79.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)4.01
Revenue Forecast (FY)$6.01B
HNI Business Overview & Revenue Model
Company Description
Established in 1944 and headquartered in Muscatine, Iowa, HNI Corporation specializes in the production and distribution of office furnishings and residential heating goods, primarily across the United States. The company's operations are divided ...
How the Company Makes Money
HNI makes money primarily by selling manufactured products across two main segments: workplace furnishings and residential building products. In workplace furnishings, revenue is generated from the sale of office furniture systems and components (...
HNI Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive outlook driven by margin expansion, clear synergy targets from the Steelcase acquisition, outperformance in Residential Building Products (including 13% remodel/retrofit growth and a 190 bps margin expansion), and multi‑year EPS visibility. Near‑term challenges were acknowledged: a slower start to 2026 for legacy Workplace Furnishings (organic sales down ~3%–5%), Q2 non‑GAAP EPS pressure, and geopolitical/tariff headwinds. Management emphasized cost discipline, order momentum late in the quarter, and concrete savings/timing expectations that underpin the bullish full‑year and multi‑year earnings outlook.Positive Updates
Strong EPS Outlook and Multi-Year Earnings Visibility
Company expects a fifth straight year of double-digit non-GAAP EPS improvement in 2026 and projects double-digit non-GAAP EPS growth again in 2027; full-year 2026 non-GAAP EPS expected to grow by mid‑teens percent from 2025 full‑year non‑GAAP EPS of $3.53.
Negative Updates
Organic Sales Weakness in Legacy Workplace Furnishings
Legacy Workplace Furnishings organic net sales were reported down roughly 3%–5% year‑over‑year (management cited a slower start to the year driven by geopolitical uncertainty), with contract customer orders down mid‑single digits.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong EPS Outlook and Multi-Year Earnings Visibility
Company expects a fifth straight year of double-digit non-GAAP EPS improvement in 2026 and projects double-digit non-GAAP EPS growth again in 2027; full-year 2026 non-GAAP EPS expected to grow by mid‑teens percent from 2025 full‑year non‑GAAP EPS of $3.53.
Read all positive updates
Company Guidance
The company guided to modest full‑year revenue growth in both segments with legacy Workplace Furnishings revenue expected to increase low single digits for 2026 (with high‑single‑digit growth in the back half), Steelcase full‑year revenue to grow slightly, and RBP to produce modest price‑driven growth in H2 after a Q1 revenue increase of >2% (new construction down mid‑single digits; remodel/retrofit up 13% and segment margin up 190 bps to 17.6%). For Q2, legacy Workplace net sales are expected to increase low single digits while total Workplace (including Steelcase) is expected to grow ~155%–160% year‑over‑year; RBP Q2 sales are expected to decline low single digits. Q1 GAAP diluted EPS was $0.55 and non‑GAAP diluted EPS was $0.34 (excluding ~$88M of items); Q2 non‑GAAP EPS is expected to decline modestly, but full‑year non‑GAAP EPS is forecast to rise mid‑teens percent versus 2025’s $3.53 with accelerating double‑digit growth in H2 and another year of double‑digit growth projected for 2027. Integration and cost actions remain drivers: Workplace Furnishings non‑GAAP operating profit (including Steelcase) was nearly $49M in Q1, Steelcase synergies of $120M are on track with $1.20 of expected per‑share accretion at maturity, an additional $30M of legacy network savings is expected over three years, total savings >$70M in 2027 and >$150M when fully mature (excluding new cost saves), combined D&A of ~$150–155M (plus ~$105M purchase accounting), net interest $75–80M, tax rate ~25%, and leverage targeted to return to ~1.0x–1.5x within two years.HNI Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
49
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.59B | 2.84B | 2.53B | 2.43B | 2.36B | 2.18B |
| Gross Profit | 1.39B | 1.15B | 1.01B | 949.20M | 812.80M | 727.20M |
| EBITDA | 222.40M | 233.00M | 313.80M | 185.20M | 239.50M | 167.60M |
| Net Income | 1.40M | 54.20M | 139.50M | 49.20M | 123.90M | 59.80M |
Balance Sheet | ||||||
| Total Assets | 4.77B | 4.88B | 1.88B | 1.93B | 1.41B | 1.50B |
| Cash, Cash Equivalents and Short-Term Investments | 78.20M | 215.70M | 28.90M | 34.50M | 19.40M | 53.70M |
| Total Debt | 1.73B | 1.63B | 496.80M | 578.00M | 300.70M | 274.60M |
| Total Liabilities | 3.00B | 3.05B | 1.03B | 1.17B | 797.70M | 907.90M |
| Stockholders Equity | 1.77B | 1.84B | 840.10M | 761.40M | 616.50M | 589.60M |
Cash Flow | ||||||
| Free Cash Flow | 7.80M | 210.40M | 176.10M | 189.40M | 21.20M | 78.17M |
| Operating Cash Flow | 91.90M | 276.20M | 226.70M | 267.50M | 81.20M | 131.63M |
| Investing Cash Flow | -504.80M | -443.90M | -51.00M | -444.80M | -10.70M | -111.01M |
| Financing Cash Flow | 471.50M | 363.10M | -182.20M | 188.80M | -105.40M | -84.48M |
HNI Technical Analysis
Positive
36.26
Price Trends
33.33
Positive
37.76
Negative
40.09
Negative
Market Momentum
0.18
Negative
63.26
Neutral
69.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HNI, the sentiment is Positive. The current price of 36.26 is above the 20-day moving average (MA) of 31.69, above the 50-day MA of 33.33, and below the 200-day MA of 40.09, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 63.26 is Neutral, neither overbought nor oversold. The STOCH value of 69.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HNI.
HNI Risk Analysis
HNI disclosed 32 risk factors in its most recent earnings report. HNI reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
HNI Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $12.14B | 17.71 | 30.81% | 2.04% | 2.89% | 1.99% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $1.51B | 80.44 | 2.86% | ― | 2.03% | -64.68% | |
50 Neutral | $1.13B | 104.82 | 0.83% | 4.16% | 5.62% | -65.76% | |
50 Neutral | $1.20B | 42.06 | -6.47% | 4.72% | -2.41% | -64.77% | |
47 Neutral | $2.51B | 1,150.38 | 0.11% | 3.20% | 41.31% | -83.85% |
* Consumer Cyclical Sector Average
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HNI Corporate Events
Business Operations and StrategyPrivate Placements and Financing
HNI Refinances Term Loan Facility to Extend Maturities
Positive
Jun 10, 2026
On June 10, 2026, HNI Corporation entered into a third amendment to its existing credit agreement, creating a new $498.75 million tranche of term loans maturing in 2032 to replace all outstanding Initial Tranche B Term Loans. The replacement loans...
Executive/Board ChangesShareholder Meetings
HNI Updates CFO Agreement and Confirms Board Leadership
Positive
May 22, 2026
On May 18, 2026, HNI’s board approved a new 10‑year change‑in‑control employment agreement for Executive Vice President and Chief Financial Officer Vincent P. Berger II, effective June 1, 2026, replacing a similar pact set ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.