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HNI Corporation (HNI)
NYSE:HNI
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HNI
(NYSE:HNI)
55Neutral
HNI (HNI) vs. S&P 500 (SPY)
Market Cap
$2.04B
Dividend Yield2.77%
Average Volume (3M)281.46K
Price to Earnings (P/E)15.0
Beta (1Y)0.91
Revenue Growth-0.18%
EPS Growth107.68%
CountryUS
Employees7,600
SectorIndustrials
Sector Strength82
IndustryBusiness Equipment & Supplies
Share Statistics
EPS (TTM)0.44
Shares Outstanding46,895,900
10 Day Avg. Volume214,759
30 Day Avg. Volume281,456
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.44
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.84
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$61.50Price Target Upside29.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
HNI Business Overview & Revenue Model
Company DescriptionHNI Corporation is a prominent provider of workplace furnishings and residential building products. The company operates primarily in two segments: office furniture and hearth products. Its office furniture segment designs and manufactures a broad range of office furniture solutions, including workstations, seating, and storage products, catering to various business environments. In the hearth products segment, HNI specializes in the production of fireplaces, stoves, and related accessories, serving residential and commercial markets.
How the Company Makes MoneyHNI Corporation generates revenue through the sale of its office furniture and hearth products. The office furniture segment contributes significantly to the company's earnings by selling products to businesses, government entities, and educational institutions. This segment capitalizes on its extensive distribution network and brand portfolio to reach a diverse customer base. The hearth products segment adds to the company's revenue by selling fireplaces and related accessories to residential and commercial clients. HNI's earnings are supported by its manufacturing capabilities, strategic acquisitions, and partnerships with dealers and distributors, which help expand its market reach and customer base.
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.45
Neutral
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.55
Neutral
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.30
Negative
| 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
Positive
47.56
Price Trends
43.43
Positive
46.37
Positive
49.38
Negative
Market Momentum
0.57
Negative
71.14
Negative
82.09
Negative
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 47.56 is above the 20-day moving average (MA) of 42.64, above the 50-day MA of 43.43, and below the 200-day MA of 49.38, indicating a neutral trend. The MACD of 0.57 indicates Negative momentum. The RSI at 71.14 is Negative, neither overbought nor oversold. The STOCH value of 82.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HNI.
HNI Risk Analysis
HNI disclosed 29 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.29B | 14.58 | 37.08% | 0.61% | 27.43% | 67.93% | |
71 Outperform | $1.13B | 9.82 | 12.70% | 3.82% | 0.20% | 50.50% | |
70 Outperform | $13.30B | 19.67 | 31.95% | 2.04% | 3.57% | 26.92% | |
64 Neutral | $4.30B | 11.84 | 5.23% | 249.82% | 4.10% | -10.59% | |
57 Neutral | $321.65M | ― | -15.90% | 8.04% | -9.19% | -337.72% | |
55 Neutral | $2.04B | 15.01 | 17.23% | 2.77% | -0.18% | 107.68% | |
54 Neutral | $1.97B | 282.19 | 46.74% | ― | -8.59% | ― |
* Industrials Sector Average
Performance Comparison
HNI
HNI
47.56
2.98
6.68%
ACCO
ACCO Brands
3.73
-1.11
-22.93%
AVY
Avery Dennison
172.20
-49.06
-22.17%
POWL
Powell Industries
174.77
15.22
9.54%
SCS
Steelcase
10.46
-2.29
-17.96%
TGI
Triumph Group
25.59
10.95
74.80%
HNI Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 9.48%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a generally positive sentiment, with strong growth in non-GAAP EPS, revenue, and profitability in key segments, alongside challenges such as SMB revenue decline, tariff-related pressures, and uncertainties in the housing market. The balance between highlights and lowlights suggests cautious optimism for the future.Q1-2025 Updates
Positive Updates
Non-GAAP EPS Growth
Non-GAAP EPS increased nearly 20% year-over-year, exceeding expectations, with both segments showing revenue growth.
Segment Revenue Growth
Residential Building Products revenue grew 7% year-over-year, and Workplace Furnishings revenue increased slightly compared to the same period in 2024.
Profitability and Margin Expansion
Consolidated non-GAAP gross and operating margins expanded year-on-year to 40% and 5.3%, respectively, with operating margin reaching the highest first quarter level since 2007.
Strong Contract Customer Growth
Contract customer orders increased 4% year-over-year, with a 15% increase excluding hospitality.
Residential Building Products Profit Growth
Operating profit grew 16% year-over-year, with segment EBIT margin expanding 130 basis points to 15.7%.
Order Backlog Increase
Workplace Furnishings segment backlog is up 19% year-over-year.
Returns to Office Opportunities
Elevated levels of nonviable office space present a positive indicator for future furniture demand.
Strong Balance Sheet and Cash Flow
Quarter-ending gross debt leverage was 1.3x, with $40 million in stock repurchases, demonstrating confidence in future earnings and cash flow generation.
Negative Updates
SMB Revenue Decline
Shipments to small and medium-sized customers declined approximately 5% versus the same period of 2024, with continued soft transactional purchase activity.
Workplace Furnishings Margin Compression
Non-GAAP EBIT margin in the Workplace Furnishings segment compressed 20 basis points year-over-year due to higher discounts on large projects.
Tariff and Inflation Concerns
Tariff uncertainty and rising inflation expectations are expected to cause ongoing demand volatility and temporary margin pressure.
Challenges in New Construction Orders
New construction orders declined slightly, with the housing market facing challenges such as elevated interest rates and weaker consumer confidence.
Temporary Price Cost Pressure
Second quarter price cost margin pressure related to tariffs is expected to total $3 million to $5 million.
Company Guidance
During the HNI Corporation's First Quarter Fiscal 2025 Results Conference Call, several key metrics were highlighted. Non-GAAP EPS increased nearly 20% year-over-year, reaching $0.44, with revenue growth in both segments. Workplace Furnishings revenue rose slightly compared to the same period in 2024, while Residential Building Products revenue grew 7% year-over-year. Consolidated non-GAAP gross and operating margins expanded to 40% and 5.3%, respectively. Despite a 5% decline in shipments to small and medium-sized businesses, revenue from contract customers increased by 4% year-over-year. In the Residential segment, operating profit grew 16%, and segment EBIT margin expanded 130 basis points to 15.7%. The company maintains its earnings guidance with expectations for double-digit non-GAAP EPS growth for a fourth consecutive year, driven by operational efficiencies and strategic investments.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.