HNI (HNI) AI Stock Analysis

• Market Cap: $2.06B
• Dividend Yield: 2.98%
• Average Volume (3M): 745.49K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.92
• Revenue Growth: -0.83%
• EPS Growth: 28.96%
• Country: US
• Employees: 7,600
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Business Equipment & Supplies
• EPS (TTM): 1.11
• Shares Outstanding: 45,840,320
• 10 Day Avg. Volume: 718,103
• 30 Day Avg. Volume: 745,491
• 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: 1.40
• Enterprise Value/Revenue: 1.12
• Enterprise Value/Gross Profit: 2.71
• Enterprise Value/Ebitda: 8.99
• 1Y Price Target: $55.50
• Price Target Upside: 23.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: $51.00 ▲(13.48% Upside)

HNI's strong earnings performance and strategic corporate events are the primary drivers of its stock score. While financial performance is solid, the decline in cash flow and increased debt levels are concerns. The lack of technical indicators limits the technical analysis score.

Positive Factors

Earnings Growth

Internal initiatives and synergies are projected to lead the company to a consecutive year of double-digit EPS growth.

Market Position

HNI's Workplace Furnishings business is well positioned to benefit from the return-to-the-office trend, presenting a substantial volume growth opportunity.

Synergy and Accretion

The transaction offers synergy and accretion upside, with targeted run-rate cost synergies focusing on sourcing, logistics, and corporate overlap.

Negative Factors

Initial Stock Reaction

The initial stock reaction, with a significant decline in stock price, is seen as severely misconstruing the opportunities and risks associated with the transaction.

Tariffs Impact

Tariffs have caused a pause in Hospitality demand as many customers delayed projects due to trade uncertainties.

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 solid financial performance with consistent revenue growth and strong profitability margins. While the balance sheet reflects prudent financial management, rising debt levels need monitoring. Cash flow remains robust, supporting operational initiatives.

Income Statement

The company's income statement reflects solid performance with a consistent increase in revenue over the years, showing a TTM (Trailing-Twelve-Months) revenue of $2.54 billion, up from $2.52 billion the previous year. The gross profit margin remains robust at 40.6%, and net profit margin is healthy at 5.3%. EBIT and EBITDA margins are also strong at 8% and 12.2%, respectively. However, net income has slightly decreased from last year, indicating potential cost pressures or inefficiencies.

Balance Sheet

The balance sheet showcases a stable financial position with a debt-to-equity ratio of 0.69, indicating a reasonable level of leverage. The equity ratio stands at 43.2%, reflecting a solid capital structure. Return on equity (ROE) is at 16.9%, suggesting effective utilization of equity. Nonetheless, the increase in total debt from $496.8 million to $551.5 million warrants careful monitoring.

Cash Flow

Cash flow analysis reveals a strong operating cash flow of $243.5 million with a free cash flow of $185.6 million, showing a 6.8% growth from the previous period. The operating cash flow to net income ratio is 1.79, indicating effective cash generation relative to net income. The company maintains a stable free cash flow to net income ratio of 1.37, reflecting efficient management of capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.58B	2.53B	2.43B	2.36B	2.18B	1.96B
Gross Profit	1.06B	1.03B	948.30M	834.90M	757.36M	721.12M
EBITDA	321.20M	314.30M	185.20M	195.70M	167.60M	177.88M
Net Income	147.90M	139.50M	49.20M	123.90M	59.80M	41.90M
Balance Sheet
Total Assets	1.91B	1.88B	1.93B	1.41B	1.50B	1.42B
Cash, Cash Equivalents and Short-Term Investments	38.20M	28.90M	34.50M	19.40M	53.66M	117.81M
Total Debt	590.70M	496.80M	578.00M	300.70M	274.52M	254.69M
Total Liabilities	1.10B	1.03B	1.17B	797.70M	907.93M	827.29M
Stockholders Equity	811.00M	840.10M	761.40M	616.50M	589.64M	590.42M
Cash Flow
Free Cash Flow	41.80M	173.80M	188.50M	12.80M	65.08M	172.67M
Operating Cash Flow	223.30M	226.70M	267.50M	81.20M	131.63M	214.47M
Investing Cash Flow	-42.50M	-51.00M	-444.80M	-10.70M	-111.01M	-100.37M
Financing Cash Flow	-177.20M	-182.20M	188.80M	-105.40M	-84.50M	-50.05M

HNI Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 44.94 is above the 20-day moving average (MA) of 44.05, below the 50-day MA of 47.87, and below the 200-day MA of 47.38, indicating a neutral trend. The MACD of -0.89 indicates Negative momentum. The RSI at 45.50 is Neutral, neither overbought nor oversold. The STOCH value of 86.01 is Negative, 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
POWL	80 Outperform	$3.21B	18.48	34.00%	0.40%	14.32%	33.76%
HNI	76 Outperform	$2.06B	14.63	18.50%	2.98%	-0.83%	28.96%
SCS	75 Outperform	$1.92B	16.22	12.87%	2.39%	2.64%	37.59%
AVY	70 Outperform	$13.39B	19.24	31.68%	2.09%	1.66%	14.38%
ACCO	67 Neutral	$362.33M	8.25	7.32%	7.46%	-8.80%	―
Sector *	61 Neutral	$17.64B	14.17	-5.23%	3.04%	1.43%	-15.09%
TGI	58 Neutral		―		―	-4.74%	―

HNI Corporate Events

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.

HNI Appoints New Chief Operating Officer

On June 16, 2025, HNI Corporation appointed B. Brandon Bullock III as Chief Operating Officer, marking a significant leadership change. Mr. Bullock, who has been with HNI for six years and served as President of The HON Company LLC, will see an increase in his base salary and long-term incentive award target, reflecting the company’s confidence in his leadership capabilities.

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.

HNI Shareholders Approve Key Proposals at Annual Meeting

At the HNI Corporation’s annual meeting of shareholders on May 15, 2025, key proposals were voted on, including the election of directors, ratification of KPMG LLP as the independent auditor for fiscal 2025, and approval of executive compensation. Shareholders elected Jeffrey D. Lorenger, Larry B. Porcellato, and David M. Roberts to the Board of Directors, ratified KPMG LLP as the auditor, and approved the executive compensation package, reflecting continued confidence in the company’s leadership and strategic direction.

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.