HNI (HNI) AI Stock Analysis

• Market Cap: $1.82B
• Dividend Yield: 3.37%
• Average Volume (3M): 579.68K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.80
• Revenue Growth: 1.15%
• EPS Growth: 16.20%
• Country: US
• Employees: 7,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Business Equipment & Supplies
• EPS (TTM): 1.10
• Shares Outstanding: 45,843,685
• 10 Day Avg. Volume: 713,605
• 30 Day Avg. Volume: 579,679
• PEG Ratio: 0.10
• Price to Book (P/B): 2.87
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 13.87
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 2.45
• Enterprise Value/Ebitda: 7.28
• 1Y Price Target: $60.00
• Price Target Upside: 52.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.58
• Revenue Forecast (FY): $2.65B

• Rating: 72 Outperform
• Price Target: $50.00 ▲(26.71% Upside)

HNI's overall stock score is driven by strong financial performance and a positive earnings call outlook, particularly in the Workplace Furnishings segment. However, technical indicators suggest a bearish trend, and cash flow challenges pose risks to financial flexibility.

Positive Factors

Revenue Growth

Strong revenue growth reflects increased market demand and effective sales strategies, enhancing HNI's competitive position in the industry.

Operating Margin Improvement

Improved operating margins indicate efficient cost management and operational effectiveness, contributing to long-term profitability.

Positive Outlook for Office Space Demand

Rising demand for office space supports sustained growth in the Workplace Furnishings segment, driven by return-to-office trends.

Negative Factors

Cash Flow Challenges

Cash flow difficulties could limit HNI's ability to invest in growth opportunities and manage debt, impacting financial flexibility.

Residential Building Products Revenue Stagnation

Stagnant revenue in this segment may hinder overall growth, especially if housing market challenges persist.

Tariff-Driven Volatility

Tariff-related uncertainties can disrupt supply chains and increase costs, affecting profitability and market stability.

HNI Business Overview & Revenue Model

Company Description

HNI Corporation, together with its subsidiaries, manufactures and sells workplace furnishings and residential building products primarily in the United States. The company operates through two segments, Workplace Furnishings and Residential Building Products. The Workplace Furnishings segment offers a range of commercial and home office furniture, including panel-based and freestanding furniture systems, seating, storage, tables, and architectural products under the HON, Allsteel, Beyond, Gunlocke, Maxon, HBF, OFM, Respawn, Lamex, and HNI India brands. This segment sells its products through independent dealers, wholesalers, office product distributors, e-commerce retailers, and wholesalers, as well as directly to end-user customers; and federal, state, and local governments. The Residential Building Products segment provides various gas, wood, electric, and pellet-fueled fireplaces; inserts; stoves; facings; and accessories primarily for home use under the Heatilator, Heat & Glo, Majestic, Monessen, Quadra-Fire, Harman, Vermont Castings, PelPro, SimpliFire, The Outdoor GreatRoom Company, and Stellar brand names. This segment markets its products through independent dealers and distributors, and corporation-owned distribution and retail outlets. The company was incorporated in 1944 and is headquartered in Muscatine, Iowa.

How the Company Makes Money

HNI generates revenue primarily through the sale of its office furniture and hearth products. The Workplace Furnishings segment constitutes a significant portion of its income, driven by sales to businesses looking to furnish their offices. Revenue is also bolstered by government contracts and partnerships with distributors and retailers. In addition to traditional sales, HNI has been expanding its reach through online channels and direct-to-consumer initiatives. The Residential Building Products segment contributes to the company’s earnings by offering a range of fireplace and heating solutions, appealing to homeowners and builders alike. Seasonal demand influences revenue in this segment, particularly in colder climates. Strategic partnerships with contractors and builders help enhance sales in the residential sector, while a focus on innovation and sustainability drives customer loyalty and repeat business.

HNI Financial Statement Overview

Summary

HNI demonstrates strong revenue growth and improved profitability, supported by efficient cost management. The balance sheet remains stable with moderate leverage and strong return on equity. However, cash flow challenges, particularly in free cash flow generation, could impact future financial flexibility.

Income Statement

HNI's income statement shows strong revenue growth with a TTM growth rate of 44.9%, indicating robust sales performance. The gross profit margin has improved to 41.1% in TTM, reflecting efficient cost management. The net profit margin also increased to 8.3%, showcasing enhanced profitability. However, the EBIT margin slightly decreased to 7.7%, suggesting potential pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.55 in TTM, indicating moderate leverage. Return on equity improved to 19.2%, demonstrating effective use of equity to generate profits. The equity ratio stands at 45.4%, suggesting a solid capital structure. However, the total debt has increased over time, which could pose a risk if not managed carefully.

Cash Flow

Cash flow analysis reveals challenges with a negative free cash flow growth rate of -124.7% in TTM, highlighting cash management issues. The operating cash flow to net income ratio is low at 0.04, indicating limited cash generation relative to net income. The free cash flow to net income ratio is negative, suggesting difficulties in converting profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2019	Dec 2018
Income Statement
Total Revenue	2.59B	2.53B	2.43B	2.36B	2.25B	2.26B
Gross Profit	1.05B	1.01B	949.20M	812.80M	833.76M	835.04M
EBITDA	354.80M	313.80M	185.20M	239.50M	228.77M	202.96M
Net Income	141.60M	139.50M	49.20M	123.90M	110.50M	93.38M
Balance Sheet
Total Assets	1.84B	1.88B	1.93B	1.41B	1.45B	1.40B
Cash, Cash Equivalents and Short-Term Investments	28.10M	28.90M	34.50M	19.40M	53.17M	78.15M
Total Debt	459.40M	496.80M	578.00M	300.70M	257.82M	250.03M
Total Liabilities	1.01B	1.03B	1.17B	797.70M	868.14M	838.59M
Stockholders Equity	835.90M	840.10M	761.40M	616.50M	584.04M	562.93M
Cash Flow
Free Cash Flow	191.20M	176.10M	189.40M	21.20M	152.50M	122.73M
Operating Cash Flow	250.20M	226.70M	267.50M	81.20M	219.38M	186.43M
Investing Cash Flow	-47.40M	-51.00M	-444.80M	-10.70M	-62.90M	-41.22M
Financing Cash Flow	-216.30M	-182.20M	188.80M	-105.40M	-181.23M	-91.74M

HNI Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HNI, the sentiment is Negative. The current price of 39.46 is below the 20-day moving average (MA) of 42.86, below the 50-day MA of 44.54, and below the 200-day MA of 45.61, indicating a bearish trend. The MACD of -1.44 indicates Positive momentum. The RSI at 23.53 is Positive, neither overbought nor oversold. The STOCH value of 8.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HNI.

HNI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCS	73 Outperform	$1.81B	19.86	9.46%	2.54%	3.92%	-24.47%
AVY	73 Outperform	$13.29B	19.53	30.21%	2.00%	1.03%	5.52%
HNI	72 Outperform	$1.82B	13.33	16.83%	3.37%	1.15%	16.20%
TRIP	63 Neutral	$1.79B	24.33	9.57%	―	4.24%	159.81%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	55 Neutral	$995.52M	―	-1.18%	4.39%	5.37%	-127.27%
PZZA	55 Neutral	$1.35B	18.19	―	3.62%	-0.64%	-60.71%

HNI Corporate Events

HNI Corporation Reports Strong Q3 2025 Results

HNI Corporation is a leading manufacturer in the workplace furnishings and residential building products sectors, known for its innovative designs and diverse brand portfolio. In its third quarter of 2025, HNI Corporation reported net sales of $683.8 million, marking a 1.7% increase from the previous year, with a net income of $41.2 million. The company achieved a non-GAAP diluted EPS of $1.10, reflecting a 7% year-over-year growth, despite a 10% decline in GAAP diluted EPS. Key performance drivers included productivity gains, operating expense control, and strategic initiatives, such as the anticipated acquisition of Steelcase, which is expected to close by the end of 2025. The Workplace Furnishings segment saw a 2.3% increase in net sales, while the Residential Building Products segment remained stable. HNI’s strategic focus on profit transformation and synergy benefits from past acquisitions contributed to its robust financial performance. Looking ahead, HNI Corporation maintains a positive outlook, expecting continued revenue growth and margin expansion through 2026, supported by its strategic acquisitions and operational efficiencies.

HNI Corp’s Earnings Call Highlights Growth Amid Challenges

HNI Corporation’s recent earnings call conveyed a generally optimistic sentiment, particularly highlighting the robust performance of its Workplace Furnishings segment. The company is buoyed by a positive outlook for office space demand, driven by a return to office trends and strategic acquisitions. However, challenges persist in the Residential Building Products segment, with stagnant revenue and tariff-driven volatility affecting the hospitality business.

HNI Extends Note Exchange Offer Amid Steelcase Acquisition

On October 27, 2025, HNI Corporation announced an extension of the expiration date for its offer to exchange outstanding Steelcase notes for new HNI notes and the related solicitation of consents. This extension is part of HNI’s pending acquisition of Steelcase, with the expiration date moved from October 27, 2025, to December 5, 2025. The exchange offer and consent solicitation are contingent on the acquisition’s completion, and HNI may further extend the expiration date if necessary. The announcement reflects HNI’s strategic efforts to integrate Steelcase, potentially impacting liquidity for existing note holders and altering the company’s market positioning.

The most recent analyst rating on (HNI) stock is a Buy with a $51.00 price target. To see the full list of analyst forecasts on HNI stock, see the HNI Stock Forecast page.

HNI Announces Early Results of Exchange Offer

On October 10, 2025, HNI Corporation announced the early participation results of its Exchange Offer and Consent Solicitation related to its acquisition of Steelcase, Inc. HNI received consents from holders representing 77.83% of the principal amount of the Existing Steelcase Notes, allowing them to amend the Steelcase indenture to eliminate certain covenants and restrictive provisions. The settlement date for the Exchange Offer is expected within five business days after the expiration date of October 27, 2025. This move is part of HNI’s strategic acquisition of Steelcase, which involves exchanging outstanding Steelcase notes for new HNI notes. The acquisition and exchange offer are significant for HNI’s market positioning, as they aim to integrate Steelcase’s operations and potentially enhance their competitive edge in the industry.

The most recent analyst rating on (HNI) stock is a Buy with a $51.00 price target. To see the full list of analyst forecasts on HNI stock, see the HNI Stock Forecast page.

HNI Announces Exchange Offer for Steelcase Acquisition

On September 26, 2025, HNI Corporation announced the commencement of an exchange offer and consent solicitation related to its pending acquisition of Steelcase Inc. This strategic move involves exchanging existing Steelcase notes for new HNI notes, which will be guaranteed by certain subsidiaries of the combined company. The acquisition aims to enhance customer reach and accelerate strategic initiatives, with the combined company expected to achieve approximately $5.7 billion in net sales on a pro forma basis for the year ended December 28, 2024. The acquisition is anticipated to close in the fourth quarter of 2025, subject to customary closing conditions.

The most recent analyst rating on (HNI) stock is a Buy with a $52.00 price target. To see the full list of analyst forecasts on HNI stock, see the HNI Stock Forecast page.

HNI Secures $1.725 Billion Credit for Steelcase Merger

On September 5, 2025, HNI Corporation entered into a Credit Agreement with several financial institutions, including Wells Fargo and JPMorgan Chase, to establish a senior secured revolving credit facility and term loan facilities. These facilities, amounting to a total of up to $1.725 billion, are intended to support HNI’s proposed merger with Steelcase Inc., a Michigan corporation. The agreement outlines specific terms for borrowing, repayment, and interest rates, and includes customary covenants and events of default. The credit facilities are structured to facilitate the merger process, repay existing debts, and cover associated fees and expenses, thereby potentially enhancing HNI’s strategic positioning in the market.

The most recent analyst rating on (HNI) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on HNI stock, see the HNI Stock Forecast page.

HNI Announces Merger Agreement with Steelcase Inc.

On August 3, 2025, HNI Corporation announced a merger agreement to acquire Steelcase Inc. in a cash and stock transaction valued at approximately $2.2 billion. This strategic acquisition aims to combine the complementary brand portfolios, dealer networks, and industry segments of both companies to enhance customer reach and accelerate strategic initiatives. The merger is expected to create a combined company with a strong financial profile, including pro forma annual revenue of approximately $5.8 billion and annual run-rate synergies of $120 million. The transaction is anticipated to close by the end of 2025, pending shareholder and regulatory approvals.

The most recent analyst rating on (HNI) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on HNI stock, see the HNI Stock Forecast page.