HNI (HNI) AI Stock Analysis

• Market Cap: $2.17B
• Dividend Yield: 2.85%
• Average Volume (3M): 291.52K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.89
• Revenue Growth: -0.18%
• EPS Growth: 107.68%
• Country: US
• Employees: 7,600
• Sector: Industrials
• Sector Strength: 92
• Industry: Business Equipment & Supplies
• EPS (TTM): 0.44
• Shares Outstanding: 46,552,670
• 10 Day Avg. Volume: 206,020
• 30 Day Avg. Volume: 291,524
• PEG Ratio: 1.37
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.73
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 2.64
• Enterprise Value/Ebitda: 2.25
• 1Y Price Target: $66.50
• Price Target Upside: 42.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: $52.00 ▲(11.37%Upside)

HNI's solid financial performance, strong earnings growth, and positive corporate events are the primary drivers of its score. While technical analysis shows positive momentum, valuation is fair, and challenges highlighted in the earnings call temper the overall outlook.

Positive Factors

Acquisition and Expansion

A recent acquisition of a key competitor is providing a strong synergies opportunity, coinciding with HNI's opening of a large Mexican plant, expected to deliver significant incremental earnings.

Financial Performance

HNI Corporation posted solid 4Q24 results with strong beats for EBITDA and EPS despite a topline miss.

Market Trends

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

Negative Factors

Economic Uncertainty

Economic uncertainty continues to weigh on end markets, with small to medium-sized businesses hesitant to spend due to tariff and interest rate uncertainty.

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 Corporation generates revenue primarily through the sale of its office furniture and hearth products. The Office Furniture segment contributes significantly to its earnings by manufacturing and distributing a wide array of furniture solutions tailored for offices, educational institutions, and government facilities. This segment capitalizes on both direct sales and a network of independent dealers and distributors to reach its customers. Meanwhile, the Hearth Products segment earns revenue by offering fireplaces, stoves, and related products, targeting homeowners and builders. HNI leverages its well-established brands, such as HON and Heatilator, to maintain a competitive edge in the market. Additionally, the company benefits from strategic partnerships and collaborations that enhance its distribution capabilities and expand its product offerings, further bolstering its revenue streams.

HNI Financial Statement Overview

Summary

HNI's financial performance is concerning, with the latest year showing zero revenue, significantly impacting profitability and sustainability. Previous years indicated stable growth, but the recent financials highlight urgent needs for strategic adjustments to improve operational health.

Income Statement

The income statement shows a concerning trend for HNI, with total revenue dropping to 0 in the latest year, significantly impacting gross profit and net income calculations. Previous periods indicate fluctuating revenue growth, with the most recent complete data showing a modest revenue growth of 3.06% from 2022 to 2023. EBIT and EBITDA margins were strong in 2023, but the current lack of revenue is alarming.

Balance Sheet

The balance sheet reflects an increase in total debt to $499.1 million in the latest year, while stockholders' equity increased to $840.1 million, resulting in a debt-to-equity ratio that suggests moderate leverage. Historical trends show a stable equity base, but the latest figures raise concerns about sustainability without revenue generation.

Cash Flow

Cash flow analysis reveals a negative free cash flow of -$69.7 million in the latest year, with operating cash flow also negative. This indicates potential liquidity issues, as the company is not generating sufficient cash from operations. Prior periods showed positive free cash flow, highlighting recent operational challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement		Total Revenue
2.53B	2.43B	2.36B	2.18B	1.96B
	Gross Profit
1.03B	948.30M	834.90M	757.36M	721.12M
	EBIT
206.50M	90.30M	111.50M	85.42M	100.19M
	EBITDA
313.80M	185.20M	195.70M	167.60M	177.88M
	Net Income Common Stockholders
139.50M	49.20M	123.90M	59.80M	41.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
28.90M	34.50M	19.40M	53.66M	117.81M
	Total Assets
1.88B	1.93B	1.41B	1.50B	1.42B
	Total Debt
496.80M	578.00M	300.70M	274.52M	254.69M
	Net Debt
474.30M	549.10M	283.30M	222.25M	138.57M
	Total Liabilities
1.03B	1.17B	797.70M	907.93M	827.29M
	Stockholders Equity
840.10M	761.40M	616.50M	589.64M	590.42M
Cash Flow		Free Cash Flow
173.80M	188.50M	12.80M	65.08M	172.67M
	Operating Cash Flow
226.70M	267.50M	81.20M	131.63M	214.47M
	Investing Cash Flow
-51.00M	-444.80M	-10.70M	-111.01M	-100.37M
	Financing Cash Flow
-182.20M	188.80M	-105.40M	-84.50M	-50.05M

HNI Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 46.69 is below the 20-day moving average (MA) of 46.93, above the 50-day MA of 44.21, and below the 200-day MA of 48.70, indicating a neutral trend. The MACD of 0.66 indicates Positive momentum. The RSI at 55.22 is Neutral, neither overbought nor oversold. The STOCH value of 56.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HNI.

HNI Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POWL	80 Outperform	$2.30B	13.43	37.08%	0.56%	27.43%	67.93%
HNI	74 Outperform	$2.17B	16.68	17.23%	2.85%	-0.18%	107.68%
AVY	71 Outperform	$14.06B	20.70	31.95%	1.96%	3.57%	26.92%
SCS	71 Outperform	$1.19B	10.20	12.70%	3.86%	0.20%	50.50%
Sector *	66 Neutral	$4.50B	12.28	5.32%	248.52%	4.13%	-12.36%
ACCO	57 Neutral	$337.87M	―	-15.90%	8.00%	-9.19%	-337.72%
TGI	54 Neutral	$2.01B	56.58	46.74%	―	-8.59%	―

HNI Corporate Events

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.