Hni Corporation Stock Fair Value Calculation – HNI CORPORATION Reports Q2 Earnings Results for FY2023, Ending June 30 2023
August 15, 2023
🌥️Earnings Overview
On August 8 2023, HNI CORPORATION ($NYSE:HNI) reported its Q2 FY2023 earnings results which covered the period ending June 30 2023. Its total revenue of USD 563.5 million for the period was a 9.4% decrease from that of the same period the prior year, and its net income was reported at USD -12.8 million, compared to the prior year’s result of USD 30.3 million.
Share Price
HNI CORPORATION, a leading provider of office furniture and hearth products, announced their financial results for the second quarter of fiscal year 2023 (ending June 30, 2023) on Tuesday. The stock opened at $29.5, and closed at $29.1, up by 1.9% from prior closing price of 28.5. HNI CORPORATION’s management attributed its weaker performance to reduced demand due to the ongoing pandemic situation.
However, they are optimistic about the future and are planning to invest in new product development, marketing, and technology initiatives to improve their competitive position in the industry. Overall, HNI CORPORATION’s second quarter earnings result for FY2023 shows mixed results due to the pandemic situation and declining demand in some of its segments. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hni Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 2.21k | 68.1 | 1.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hni Corporation. More…
| Operations | Investing | Financing |
| 146.2 | -378.7 | 230.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hni Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.08k | 1.36k | 15.36 |
Key Ratios Snapshot
Some of the financial key ratios for Hni Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.3% | -22.0% | 4.9% |
| FCF Margin | ROE | ROA |
| 3.2% | 10.1% | 3.2% |
Analysis – Hni Corporation Stock Fair Value Calculation
At GoodWhale, we have conducted an analysis of HNI CORPORATION‘s fundamentals and have determined its fair value to be around $26.2 through our proprietary Valuation Line. We consider this fair value to be a reliable indicator of the company’s actual worth. Currently, HNI CORPORATION stocks are being traded at $29.1, which is an 11.2% overvaluation. Therefore, we recommend investors to exercise caution when considering investing in the company at the present time. We suggest investors consider waiting for a more appropriate time prior to purchasing the shares. More…
Peers
The company’s competition includes Okamura Corp, Aurora Corp, and Steelcase Inc.
– Okamura Corp ($TSE:7994)
Okamura Corporation is a publicly traded company with a market capitalization of 144.55 billion as of 2022. The company has a return on equity of 10.02%, which is considered to be good. Okamura Corporation is a Japanese company that manufactures and sells office furniture. The company is headquartered in Tokyo, Japan.
– Aurora Corp ($TWSE:2373)
Aurora Corp is a leading provider of integrated software solutions that enable organizations to manage their finances and operations. The company’s market cap is $17.47B as of 2022 and its ROE is 16.94%. Aurora’s software solutions are used by organizations of all sizes, from small businesses to large enterprises. The company’s products are designed to help organizations streamline their financial and operational processes, improve their decision-making, and optimize their performance. Aurora’s products are used by organizations in a variety of industries, including healthcare, government, manufacturing, retail, and financial services.
– Steelcase Inc ($NYSE:SCS)
Casey Inc is an American company that manufactures and sells office furniture, architectural and technology products. It is headquartered in Grand Rapids, Michigan. The company has a market cap of 951.9 million as of 2022 and a return on equity of 3.73%. The company’s products include office chairs, desks, files, and storage cabinets.
Summary
Investors should take a closer look at HNI CORPORATION, as the company reported a decline in total revenue for the second quarter of FY2023. Year-over-year, revenue dropped by 9.4%, while net income fell from USD 30.3 million to USD -12.8 million. HNI CORPORATION’s performance in the quarter is concerning but investors should consider the potential opportunities for gain in the long run. HNI CORPORATION might have had a weak quarter, but its balance sheet remains solid and its market position is strong.
The company has well-diversified sources of revenue and plenty of cash reserves to maintain its operations. With careful analysis, an investor may want to consider investing in HNI CORPORATION for the long term.
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