HNI (HNI) AI Stock Analysis

• Market Cap: $2.02B
• Dividend Yield: 3.05%
• Average Volume (3M): 449.08K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.96
• Revenue Growth: -0.83%
• EPS Growth: 28.96%
• Country: US
• Employees: 7,600
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Business Equipment & Supplies
• EPS (TTM): 1.11
• Shares Outstanding: 45,840,320
• 10 Day Avg. Volume: 828,210
• 30 Day Avg. Volume: 449,081
• PEG Ratio: 0.10
• Price to Book (P/B): 2.87
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 13.87
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 1.51
• Enterprise Value/Gross Profit: 3.71
• Enterprise Value/Ebitda: 12.65
• 1Y Price Target: $65.00
• Price Target Upside: 47.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: $51.00 ▲(15.54% Upside)

HNI earns a strong overall score due to robust financial performance and a positive outlook from recent earnings and strategic corporate events. Technical analysis suggests caution, but valuation remains reasonable. The merger with Steelcase Inc. and leadership changes further bolster future growth potential.

Positive Factors

Financial Performance

HNI Corporation reported strong results as revenue, EBITDA, and EPS exceeded consensus estimates, driven by internal initiatives and improved margins.

Growth Opportunities

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.

Negative Factors

Economic Conditions

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

Market Demand

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 is a leading provider of office furniture and hearth products, serving a wide range of commercial and residential customers. Headquartered in Muscatine, Iowa, the company operates through two main segments: the Office Furniture segment and the Hearth Products segment. HNI's Office Furniture segment offers a diverse portfolio of products, including seating, workstations, and storage solutions, catering to the needs of businesses, educational institutions, and government entities. The Hearth Products segment focuses on designing and manufacturing a variety of fireplace systems, stoves, and inserts, enhancing living spaces for residential consumers.

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 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	1.91B	2.53B	2.43B	2.36B	2.18B	1.96B
Gross Profit	777.60M	1.03B	948.30M	834.90M	757.36M	721.12M
EBITDA	228.10M	314.30M	185.20M	195.70M	167.60M	177.88M
Net Income	161.70M	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	41.50M	173.80M	188.50M	12.80M	65.08M	172.67M
Operating Cash Flow	96.50M	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: 44.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 44.14 is below the 20-day moving average (MA) of 50.06, below the 50-day MA of 49.09, and below the 200-day MA of 48.29, indicating a bearish trend. The MACD of -1.20 indicates Positive momentum. The RSI at 24.99 is Positive, neither overbought nor oversold. The STOCH value of 29.56 is Neutral, 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	78 Outperform	$2.85B	16.41	34.00%	0.46%	14.32%	33.76%
HNI	73 Outperform	$2.02B	14.35	18.50%	3.05%	-0.83%	28.96%
SCS	71 Outperform	$1.83B	15.47	12.87%	2.50%	2.64%	37.59%
AVY	71 Outperform	$13.11B	18.85	31.68%	2.11%	1.66%	14.38%
Sector *	67 Neutral	¥265.09B	13.26	6.53%	2.53%	5.21%	-14.31%
ACCO	59 Neutral	$319.07M	7.34	7.32%	8.38%	-8.80%	―

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.