HNI (HNI) AI Stock Analysis

• Market Cap: $2.15B
• Dividend Yield: 2.85%
• Average Volume (3M): 733.07K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.93
• Revenue Growth: -0.83%
• EPS Growth: 28.96%
• Country: US
• Employees: 7,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Business Equipment & Supplies
• EPS (TTM): 1.11
• Shares Outstanding: 45,840,320
• 10 Day Avg. Volume: 734,993
• 30 Day Avg. Volume: 733,073
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 1.12
• Enterprise Value/Gross Profit: 2.71
• Enterprise Value/Ebitda: 8.99
• 1Y Price Target: $56.00
• Price Target Upside: 19.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: $52.00 ▲(10.78% Upside)

HNI's overall stock score reflects strong earnings growth and profitability, supported by a positive earnings call that highlighted record margins and optimistic future projections. While the technical analysis indicates a neutral trend, the valuation remains attractive with a reasonable P/E ratio and solid dividend yield. The main concern is the decline in free cash flow growth, which needs to be addressed to maintain financial flexibility.

Positive Factors

EPS Growth

Substantial EPS growth indicates strong profitability and effective cost management, supporting long-term financial health and shareholder value.

Operating Margin Expansion

Record operating margins reflect efficient operations and pricing power, enhancing the company's ability to invest in growth and withstand competitive pressures.

Workplace Furnishings Growth

Strong growth in the Workplace Furnishings segment underscores market demand and competitive positioning, driving sustained revenue and profit growth.

Negative Factors

Free Cash Flow Decline

A significant decline in free cash flow growth can limit the company's ability to fund new projects and manage debt, potentially impacting long-term growth.

Rising Debt Levels

Rising debt levels may strain financial flexibility and increase risk, necessitating careful management to maintain a stable financial position.

Residential Building Products Order Decline

Declining orders in the Residential Building Products segment could signal weakening demand, potentially impacting future revenue and profitability.

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 its office furniture and hearth products. The Workplace Furnishings segment constitutes a significant portion of its income, driven by sales to businesses looking to furnish their offices. Revenue is also bolstered by government contracts and partnerships with distributors and retailers. In addition to traditional sales, HNI has been expanding its reach through online channels and direct-to-consumer initiatives. The Residential Building Products segment contributes to the company’s earnings by offering a range of fireplace and heating solutions, appealing to homeowners and builders alike. Seasonal demand influences revenue in this segment, particularly in colder climates. Strategic partnerships with contractors and builders help enhance sales in the residential sector, while a focus on innovation and sustainability drives customer loyalty and repeat business.

HNI Financial Statement Overview

Summary

HNI demonstrates strong profitability with a healthy gross profit margin of 41.21% and a net profit margin of 5.73%. However, the decline in free cash flow growth by 77.52% and increased debt levels are concerns that need monitoring.

Income Statement

HNI's income statement shows a consistent revenue growth trend with a TTM revenue growth rate of 1.71%. The company maintains a healthy gross profit margin of 41.21% and a net profit margin of 5.73%, indicating strong profitability. EBIT and EBITDA margins are also solid at 8.37% and 12.44% respectively, reflecting efficient operational management. However, the growth rate has slowed compared to previous years, which could be a concern if the trend continues.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.73, suggesting a balanced approach to leveraging. Return on equity is strong at 17.92%, indicating effective use of equity to generate profits. The equity ratio stands at 42.42%, showing a stable financial structure. However, the increase in total debt over the past year could pose a risk if not managed carefully.

Cash Flow

HNI's cash flow statement reveals a significant decline in free cash flow growth by 77.52% TTM, which is a potential red flag. The operating cash flow to net income ratio is 0.54, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is 0.19, which is relatively low and suggests limited cash available after capital expenditures. This could impact future investments or debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.58B	2.53B	2.43B	2.36B	2.18B	1.96B
Gross Profit	1.06B	1.03B	948.30M	834.90M	757.36M	721.12M
EBITDA	321.20M	314.30M	185.20M	195.70M	167.60M	177.88M
Net Income	147.90M	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	41.80M	173.80M	188.50M	12.80M	65.08M	172.67M
Operating Cash Flow	223.30M	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: Positive
• Last Price: 46.94
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 46.94 is above the 20-day moving average (MA) of 45.82, above the 50-day MA of 45.77, and above the 200-day MA of 46.34, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 57.54 is Neutral, neither overbought nor oversold. The STOCH value of 87.88 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	74 Outperform	$2.15B	15.26	18.50%	2.85%	-0.83%	28.96%
SCS	72 Outperform	$1.97B	21.69	9.46%	2.32%	3.92%	-24.47%
TRIP	63 Neutral	$1.84B	33.38	8.76%	―	3.03%	187.03%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AVY	61 Neutral	$12.75B	18.32	31.68%	2.23%	1.66%	14.38%
PZZA	60 Neutral	$1.55B	20.86	-20.16%	3.89%	-1.46%	8.10%
MLKN	53 Neutral	$1.20B	45.68	-1.18%	4.29%	5.37%	-127.27%

HNI Corporate Events

HNI Secures $1.725 Billion Credit for Steelcase Merger

On September 5, 2025, HNI Corporation entered into a Credit Agreement with several financial institutions, including Wells Fargo and JPMorgan Chase, to establish a senior secured revolving credit facility and term loan facilities. These facilities, amounting to a total of up to $1.725 billion, are intended to support HNI’s proposed merger with Steelcase Inc., a Michigan corporation. The agreement outlines specific terms for borrowing, repayment, and interest rates, and includes customary covenants and events of default. The credit facilities are structured to facilitate the merger process, repay existing debts, and cover associated fees and expenses, thereby potentially enhancing HNI’s strategic positioning in the market.

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.

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.