|HNI Overview
HNI

HNI CORP

Industrials • CIK: 0000048287

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Market Cap
$2.04B
P/E (TTM)
37.4x
Rev Growth (TTM)
+12.4%
Net Margin (TTM)
1.9%
FCF Yield (TTM)
10.2%
FCF Margin (TTM)
7.3%

LATEST EARNINGS

Q4 FY2025
9 days ago
View source
Revenue
$888.40M
+38.3%
Net Income
$-49.20M
-228.7%
EPS
$-0.94
-219.0%
Gross
40.9% +0.4%
Operating
-3.5% -12.0%
Net
-5.5% -11.5%
  • Full-year 2025 consolidated net sales increased 12.4% to $2.8 billion, with organic net sales up 5.6%.
  • Non-GAAP diluted EPS increased 13.1% to $3.46 for the full year, marking the fourth consecutive year of double-digit growth.
  • Residential Building Products segment operating income margin expanded 60 bps to 18.0% (GAAP) and 18.1% (non-GAAP) for the full year.
  • Workplace Furnishings segment orders were up 5% in Q4 and 8% in Residential Building Products, indicating positive demand trends.

Cash Flow Health

Free Cash Flow6/8 positive
TTM$208M
Q4 '26
$60M-55%
Q3 '26
$136M+742%
FCF Margin
TTM7.3%
Q4 '266.8%-66%
Sector: 5.4%Above Avg
OCF Margin9.7%
OCF/NI5.11x
CapEx Coverage4.1x
FCF Yield10.2%
FCF Growth (2Y)+44%
Cash Conversion Cycle
52 days
DSO: 0+DIO: 52DPO: 0

Capital Allocation & Returns

Shareholder Friendly
Total Shareholder YieldTTM
TTM7.3%
Div Yield3.2%
+
Buyback (TTM)4.1%

Strong capital returns to shareholders

Dividend & Payout Metrics
Dividend Yield (TTM)3.2%
FCF Payout Ratio31.0%
Free Cash Flow (TTM)$208.4M
Stock Repurchases (TTM)$83.6M
Capital Return / FCF70.4%
Est. Dividends Paid (TTM)$64.7M
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
4.9%
Moderate
-0.1% YoY-8.2%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
2.6%
8Q: 5.4%
Asset Turnover
1.26x
8Q: 1.33x
Leverage (1+D/E)
1.70x
D/E: 0.70x
DuPont: 5.7%4.9% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
4.77x
8Q:4.69x
+39.6%
Invested Cap Turn
1.85x
8Q:1.94x
Flat
CapEx Intensity
4.4%
8Q:4.5%
CapEx/Depreciation
0.63x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2026Q3 2026Q2 2026Q1 2026Q4 2025Q3 2025Q2 2025Q1 2025
Revenue
$2.8B
$888.4M29.9%
$683.8M2.5%
$667.1M11.2%
$599.8M6.6%
$642.5M4.4%
$672.2M7.8%
$623.7M6.1%
$588.0M
Operating Income
$126.0M
$-31.2M148.3%
$64.6M5.3%
$68.2M179.5%
$24.4M55.3%
$54.6M
$0100.0%
$68.9M29.0%
$53.4M
Net Income
$54.1M
$-49.2M219.4%
$41.2M14.5%
$48.2M246.8%
$13.9M63.7%
$38.3M19.4%
$47.5M31.9%
$36.0M103.4%
$17.7M
Operating Cash Flow
$276.3M
$77.4M50.1%
$155.2M399.0%
$31.1M146.8%
$12.6M75.4%
$51.2M60.2%
$128.5M150.5%
$51.3M1293.0%
$-4.3M
Free Cash Flow
$208.4M
$60.4M55.5%
$135.6M742.2%
$16.1M535.1%
$-3.7M108.9%
$41.5M
$0100.0%
$114.0M237.3%
$33.8M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
37.4x
Volatile
8Q: 55.9x-8923%
High PEG ratio (3.0x) suggests expensive for growth
Valuation Lenses
Earnings
37.4x
vs sector
Cash Flow
11.9x
EV/FCF vs
Growth-Adj
3.0xPEG
Expensive for growth
Quality-Adj
7.6P/E per %ROIC
ROIC: 4.9%
Shareholder Returns
Dividend
3.2%
Buyback
4.1%
Total Yield
7.3%
Market Cap$2.04B
EV$2.48B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
58/100
Average

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Below Avg
5.7%
8Q:
Return on Invested Capital (ROIC)Top 25%
4.9%
8Q:
-8.2%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 2.6%
Asset Turnover: 1.26x

Earnings Quality

Cash Conversion

5.11x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin41.4%

Capital Efficiency

Invested Capital Turnover1.85x

Working Capital

Cash Conversion Cycle52 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
72/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
12.4%
OpInc Growth YoY
-157.1%
EPS Growth YoY
-61.6%
FCF 3Y CAGR
43.9%

Growth Quality Analysis

Efficient Growth: Free cash flow growing faster than revenue
Sustainability Index: 7.5/10 - Highly sustainable growth

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
41.4%
Operating
4.4%
Below Avg in sector
Net
1.9%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+5.4 pts
FCF: 7.3% | Net: 1.9%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $1.07B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.70x
Balance sheet risk & solvency analysis