HNI (HNI:NYS) Fundamental Valuation Report

HNI (HNI:NYS) Fundamental Valuation Report

Fundamental Valuation Report


Industrials:Business Equipment & Supplies

This Report was generated using the valuation tools available on For a free 30 day trial click here.

Close Price/Date
$45.62 (USD) 05/28/2021

Weighted Valuation
$47.75 (USD)

Overall Rating
Fairly valued to slightly Undervalued by 4.7%

Valuation Models Comparables: $50.27 (USD)
(in order of importance) Adjusted Book Value: $47.68 (USD)
Multiples: $40.32 (USD)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Undervalued on a Comparable Valuation
Asset: Fairly valued on an Asset Valuation
According to Analyst consensus at $54.00 this stock is Undervalued

Company Overview (HNI:NYS USD)

Price 45.62
Range 45.13 – 46.43
52 week 25.31 – 46.05
Open 46.43
Vol / Avg. 114339/190466
Mkt cap 1.99B
P/E 24.27
Div/yield 1.22/0.03
EPS 0.98
Shares 43.55M
Beta 1.11

Company Description

HNI Corp is a provider of office furniture and hearth products. The company generates the bulk of its revenue from its office furniture segment, which consists of products such as panel-based and freestanding furniture systems and complementary products. These products are sold primarily through a national system of dealers, wholesalers, and office product distributors but also directly to end-user customers and federal, state, and local governments. The hearth segment consists of products including gas-, wood-, and pellet-burning fireplaces, inserts, stoves, facings, and accessories. The company has operations in the United States, Canada, mainland China, Hong Kong, India, and Taiwan.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for HNI:NYS

Using a discounted cash flow model we generated an intrinsic value of $69.23 (USD) for HNI:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

HNI:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $69.23 1% 5% 1% 5%
WACC (or Ke) 9.48 $83.07 $59.09
Terminal Growth Rate 3.00 $60.23 $81.50
Tax Rate 0.23 $74.09 $64.37
Cash Flow 300,493,759 $65.54 $72.91
Capital Expenditures 6,891,400 $69.31 $69.15
Long Term Debt 236,891,000 $69.50 $68.96

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $50.27 (USD) for HNI:NYS. We also generated a valuation of $28.81 (USD) using other metrics and comparables.
The comparable companies were Pitney Bowes (PBI:NYS), Steelcase (SCS:NYS), ACCO Brands (ACCO:NYS), Knoll (KNL:NYS) and Ennis (EBF:NYS).

Company HNI:NYS End Date Value
Earnings/Share $1.88 (USD)
Book Value/Share $14.18 (USD)
Sales/Share $45.63 (USD)
Cash Flow/Share $5.78 (USD)
EBITDA/Share $3.22 (USD)
Price Based on Comps Adjustment Factor (%)
$71.20 (USD) 14.5
$27.70 (USD) -64.0
$38.16 (USD) -5.0
$65.52 (USD) 4.6
$54.10 (USD) 1.4
24.27 PE Ratio 37.87 0.00 65.77 25.31 0.00 22.54
3.22 PB Ratio 16.91 76.74 1.74 1.23 3.03 1.82
1.00 PS Ratio 0.84 0.39 0.64 0.52 1.11 1.52
7.90 PCF Ratio 12.38 3.31 25.72 8.53 14.01 10.32
11.54 EV to EBITDA 16.81 12.86 13.83 13.09 34.70 9.56


Using a multiples approach we generated a valuation of  $40.32 (USD) for HNI:NYS

Company HNI:NYS End Date Value
Earnings/Share $1.88 (USD)
Book Value/Share $14.18 (USD)
Sales/Share $45.63 (USD)
Cash Flow/Share $5.78 (USD)
EBITDA/Share $3.22 (USD)
Price Based on Comps Adjustment Factor
$37.33 (USD) 0
$43.48 (USD) 0
$35.20 (USD) 0
$52.69 (USD) 0
$32.92 (USD) 0
Ratios Ratio Average
PE Ratio 19.86
PB Ratio 3.07
PS Ratio 0.77
PCF Ratio 9.12
EV to EBITDA 10.23

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  HNI:NYS for the last 10 years was  3.31

We ran the Adjusted Book Value for  HNI:NYS and generated a book value of  $14.39 (USD)
By multiplying these we get an adjusted valuation of  $47.68 (USD)

Analyst Data

In the Stockcalc database there are 1 analysts that provide a valuation for HNI:NYS. The 1 analysts have a concensus valuation for HNI:NYS for 2021 of $54.00 (USD).


Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
1 0 0 5.0000 Buy 2021-5-27

Current Price: 45.62 USD

Analyst Consensus
USD Millions 2021 2022
Mean EPS 1.99 2.69
# EPS Analysts 2 2
Mean Revenue 2,130.20 2,223.70
# Revenue Analysts 1 1
Mean Target Price 54.00
Mean Cash Flow 4.05 4.56
Mean EBITDA 224.60 244.60
Mean Net Income 104.60 119.90
Mean Debt Outstanding
Mean Tax Rate 22.90 23.00
Mean Growth Rate
Mean Capital Expenditure 64.80 64.80

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

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