HNI (HNI) AI Stock Analysis

• Market Cap: $3.30B
• Dividend Yield: 3.2%
• Average Volume (3M): 898.07K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.74
• 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: 71,498,000
• 10 Day Avg. Volume: 443,844
• 30 Day Avg. Volume: 898,068
• PEG Ratio: 0.10
• Price to Book (P/B): 2.87
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 13.69
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 2.45
• Enterprise Value/Ebitda: 7.28
• 1Y Price Target: $75.00
• Price Target Upside: 58.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 4.06
• Revenue Forecast (FY): $2.76B

• Rating: 75 Outperform
• Price Target: $48.00 ▲(1.72% Upside)

The score is driven primarily by strong revenue growth and improving profitability, supported by a solid balance sheet, but constrained by weak free cash flow generation. Valuation is favorable (moderate P/E and a 3.14% yield), while technicals are modestly positive rather than strongly bullish. Earnings call guidance and Steelcase-related events add upside, offset by residential end-market softness, tariff volatility, and restructuring execution risk.

Positive Factors

Revenue and Margin Improvement

Sustained high revenue growth paired with materially higher gross and net margins indicates durable demand and improved pricing or cost structure. This strengthens competitive positioning, funds reinvestment, and supports long-term profitability even as integration work continues.

Balance Sheet Strength

Moderate leverage and a high ROE reflect disciplined capital structure and effective use of equity to generate returns. This financial flexibility supports acquisitions, network optimization, and buffer against cyclical slowdowns without jeopardizing long-term solvency.

Strategic Steelcase Acquisition

Combining two industry leaders materially expands scale, product breadth and distribution, creating structural synergies. Realizing $120M of cost and revenue opportunities can sustainably lower unit costs and strengthen market leadership in commercial furnishings.

Negative Factors

Weak Cash Conversion

Very poor conversion of earnings into cash constrains the firm's ability to fund capex, pay down acquisition-related debt, or sustain dividends. Persistent negative FCF trends increase refinancing and liquidity risk over the medium term if not corrected.

Restructuring and Execution Risk

Planned plant closures and consolidation deliver cost savings but carry execution risk, restructuring charges, workforce disruption and possible short-term capacity or quality impacts. Failure to execute smoothly could erode customer service and offset expected long-term benefits.

Residential & Tariff Headwinds

Stagnation in residential sales and tariff exposure create a structural earnings drag for the Hearth/residential end-market. Prolonged weakness or policy-driven cost volatility reduces diversification resilience and pressure margins in non-office segments.

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 office furniture and hearth products. The Office Furniture group comprises the bulk of the company's income, with sales driven by both direct sales to customers and distribution through a network of independent dealers. The company benefits from long-term relationships with major corporations and government agencies, providing tailored solutions for workspace design. In the Hearth Products segment, revenue is generated through retail sales and partnerships with builders and contractors, as well as distribution through home improvement stores. Additionally, HNI engages in strategic partnerships and collaborations that enhance product offerings, further driving revenue. The company's focus on innovation and sustainability in product design also positions it favorably in the market, contributing to its overall earnings.

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 2021	Dec 2020
Income Statement
Total Revenue	2.59B	2.53B	2.43B	2.36B	2.18B	1.96B
Gross Profit	1.05B	1.01B	949.20M	812.80M	727.20M	696.86M
EBITDA	354.80M	313.80M	185.20M	239.50M	167.60M	138.78M
Net Income	141.60M	139.50M	49.20M	123.90M	59.80M	41.90M
Balance Sheet
Total Assets	1.84B	1.88B	1.93B	1.41B	1.50B	1.42B
Cash, Cash Equivalents and Short-Term Investments	28.10M	28.90M	34.50M	19.40M	53.70M	117.81M
Total Debt	459.40M	496.80M	578.00M	300.70M	274.60M	254.69M
Total Liabilities	1.01B	1.03B	1.17B	797.70M	907.90M	827.29M
Stockholders Equity	835.90M	840.10M	761.40M	616.50M	589.60M	590.42M
Cash Flow
Free Cash Flow	191.20M	176.10M	189.40M	21.20M	78.17M	182.17M
Operating Cash Flow	250.20M	226.70M	267.50M	81.20M	131.63M	214.47M
Investing Cash Flow	-47.40M	-51.00M	-444.80M	-10.70M	-111.01M	-100.37M
Financing Cash Flow	-216.30M	-182.20M	188.80M	-105.40M	-84.48M	-50.05M

HNI Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 47.19 is above the 20-day moving average (MA) of 43.48, above the 50-day MA of 41.75, and above the 200-day MA of 44.69, indicating a bullish trend. The MACD of 1.12 indicates Negative momentum. The RSI at 78.02 is Negative, neither overbought nor oversold. The STOCH value of 95.71 is Negative, 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
HNI	75 Outperform	$3.30B	15.46	16.83%	3.20%	1.15%	16.20%
AVY	73 Outperform	$14.62B	21.48	30.21%	2.04%	1.03%	5.52%
TRIP	67 Neutral	$1.64B	20.96	9.57%	―	4.24%	159.81%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLKN	61 Neutral	$1.33B	-50.16	-1.95%	4.16%	4.34%	-141.36%
PZZA	57 Neutral	$1.24B	33.43	―	4.72%	-0.64%	-60.71%

HNI Corporate Events

HNI launches operational improvement and manufacturing consolidation plan

On January 8, 2026, HNI Corporation announced an operational improvement plan that includes exiting its Wayland, New York, manufacturing facility in 2027 and consolidating production into other North American plants in its workplace furnishings network. The move, positioned as part of a broader network optimization effort and enabled in part by the integration of Kimball International, is expected to preserve the current product portfolio and maintain the Gunlocke brand while aiming to enhance productivity, capacity utilization, and customer experience. HNI estimates that the consolidation will ultimately generate annual cost savings of about $7.5 million to $8.0 million, but it will also trigger approximately $14.9 million in pre-tax charges spread across 2026 and 2027 and result in the termination of around 135 jobs in Wayland, highlighting both the financial benefits and the human impact of the restructuring on stakeholders.

The most recent analyst rating on (HNI) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on HNI stock, see the HNI Stock Forecast page.

HNI Completes Acquisition of Steelcase Inc.

On December 10, 2025, HNI Corporation completed its acquisition of Steelcase Inc., combining two industry leaders to address the evolving needs of the workplace. The merger, supported by shareholders of both companies, aims to leverage synergies to enhance operational capabilities and customer experiences. The combined entity is expected to have annual revenues of $5.8 billion, with HNI maintaining its headquarters in Muscatine, Iowa, and Steelcase in Grand Rapids, Michigan. The board of directors of HNI has expanded to include two former Steelcase board members, strengthening the company’s governance.

The most recent analyst rating on (HNI) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on HNI stock, see the HNI Stock Forecast page.

HNI Shareholders Approve Steelcase Acquisition

On December 5, 2025, HNI Corporation and Steelcase Inc. announced that their shareholders approved the proposed acquisition of Steelcase by HNI, with the transaction expected to close on December 10, 2025, pending customary closing conditions. The merger will result in Steelcase becoming a wholly owned subsidiary of HNI, potentially enhancing HNI’s market position in the commercial furnishings sector. The approval marks a significant milestone in the merger process, with a high percentage of shareholders from both companies voting in favor of the proposals, indicating strong support for the strategic move.

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 Sets Deadline for Steelcase Merger Consideration

On November 25, 2025, HNI Corporation and Steelcase Inc. announced the deadline for Steelcase shareholders to elect their preferred form of merger consideration in HNI’s acquisition of Steelcase, set for December 4, 2025. The completion of the transaction is pending shareholder approval and other customary conditions, with the merger consideration determined by the average closing price of HNI stock over a specified period. This merger aims to enhance HNI’s market position and operational capabilities, although it carries risks such as integration challenges and potential market fluctuations.

The most recent analyst rating on (HNI) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on HNI stock, see the HNI Stock Forecast page.

HNI Amends Credit Agreement with Wells Fargo

On November 5, 2025, HNI Corporation amended its existing credit agreement with Wells Fargo Bank and other lenders. The amendment introduces a threshold of $105 million for the springing maturity dates applicable to various loan facilities, potentially impacting the company’s financial management and obligations.

The most recent analyst rating on (HNI) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on HNI stock, see the HNI Stock Forecast page.

HNI Advances Merger with Steelcase After HSR Expiry

HNI Corporation announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act for its merger with Steelcase Inc. expired on October 31, 2025, which is a key step towards finalizing the merger. The completion of the transaction is contingent upon satisfying other customary conditions, including shareholder approvals, and carries potential risks such as regulatory hurdles and integration challenges that could impact the anticipated benefits of the merger.

The most recent analyst rating on (HNI) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on HNI stock, see the HNI Stock Forecast page.

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.