HNI (HNI) AI Stock Analysis

• Market Cap: $2.35B
• Dividend Yield: 2.69%
• Average Volume (3M): 278.69K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.95
• Revenue Growth: -0.18%
• EPS Growth: 107.68%
• Country: US
• Employees: 7,600
• Sector: Industrials
• Sector Strength: 89
• Industry: Business Equipment & Supplies
• EPS (TTM): 0.44
• Shares Outstanding: 46,552,670
• 10 Day Avg. Volume: 194,799
• 30 Day Avg. Volume: 278,689
• PEG Ratio: -6.53
• Price to Book (P/B): 2.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.81
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 2.79
• Enterprise Value/Ebitda: 2.29
• 1Y Price Target: $70.00
• Price Target Upside: 35.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: $57.00 ▲(10.29%Upside)

HNI's overall stock score is driven by robust financial health and positive earnings outlook, tempered by technical indicators suggesting caution due to potential overbought conditions and rising debt levels.

Positive Factors

Acquisition

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.

Workplace Furnishings

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 demonstrates strong financial health with consistent revenue growth, robust profitability margins, and effective cash flow management. However, the increase in total debt requires careful monitoring.

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	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
EBITDA	314.30M	185.20M	195.70M	167.60M	177.88M
Net Income	139.50M	49.20M	123.90M	59.80M	41.90M
Balance Sheet
Total Assets	1.88B	1.93B	1.41B	1.50B	1.42B
Cash, Cash Equivalents and Short-Term Investments	28.90M	34.50M	19.40M	53.66M	117.81M
Total Debt	496.80M	578.00M	300.70M	274.52M	254.69M
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: 51.68
• 50DMA: Positive
• 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 HNI, the sentiment is Positive. The current price of 51.68 is above the 20-day moving average (MA) of 49.96, above the 50-day MA of 47.98, and above the 200-day MA of 48.48, indicating a bullish trend. The MACD of 1.19 indicates Positive momentum. The RSI at 57.19 is Neutral, neither overbought nor oversold. The STOCH value of 36.53 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	77 Outperform	$2.55B	14.84	37.08%	0.51%	27.43%	67.93%
HNI	74 Outperform	$2.35B	18.04	17.23%	2.69%	-0.18%	107.68%
AVY	74 Outperform	$13.85B	20.39	31.95%	2.12%	3.57%	26.92%
SCS	71 Outperform	$1.16B	9.81	12.87%	3.95%	2.64%	37.59%
ACCO	60 Neutral	$331.56M	―	-15.90%	8.15%	-9.19%	-337.72%
Sector *	58 Neutral	HK$14.16B	4.53	-3.01%	6.82%	3.67%	-54.16%
TGI	55 Neutral	$2.01B	56.61	46.74%	―	-4.74%	―

HNI Corporate Events

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.