📊 HNI Key Takeaways
Is HNI a Good Investment? Thesis Analysis
HNI exhibits concerning margin compression with revenue growing 12.4% while net income remains flat, indicating cost inflation outpacing sales growth. Abysmal capital efficiency (ROE 3.0%, ROA 1.1%) and net margins of only 1.9% reflect fundamental profitability challenges in a cyclical industry, despite moderate financial stability.
Why Buy HNI? Key Strengths
- Strong revenue growth of 12.4% year-over-year demonstrates market demand
- Solid free cash flow generation of 208.5M provides financial flexibility
- Strong interest coverage ratio of 17.6x indicates no debt service distress
HNI Investment Risks to Consider
- Severe margin compression with operating margin of only 4.4% and net margin of 1.9%, among the lowest for manufacturing
- Net income flat despite 12.4% revenue growth, signaling deteriorating unit economics and profitability
- Diluted EPS down 61.5% year-over-year despite flat net income indicates significant shareholder value destruction through dilution
- Extremely weak return on equity (3.0%) and return on assets (1.1%) suggest capital is not generating adequate returns
- Quick ratio of 0.82x indicates tight short-term liquidity without inventory support
Key Metrics to Watch
- Operating margin trend and gross margin sustainability amid cost pressures
- Free cash flow conversion and capital deployment efficiency
- Debt levels and refinancing needs relative to operating cash flow
HNI Financial Metrics
💡 AI Analyst Insight
HNI CORP presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
HNI Profitability Ratios
HNI vs Default Sector
How HNI CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is HNI Overvalued or Undervalued?
Based on fundamental analysis, HNI CORP shows some fundamental concerns relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
HNI Balance Sheet & Liquidity
HNI 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: HNI CORP's revenue has grown significantly by 26% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.09 reflects profitable operations.
HNI Growth Metrics (YoY)
HNI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $672.2M | $41.2M | $0.88 |
| Q2 2025 | $623.7M | $36.0M | $0.75 |
| Q1 2025 | $588.0M | $13.9M | $0.29 |
| Q3 2024 | $672.2M | $26.5M | $0.60 |
| Q2 2024 | $563.5M | -$11.3M | $-0.27 |
| Q1 2024 | $479.1M | $1.6M | $0.04 |
| Q3 2023 | $598.8M | $26.5M | $0.60 |
| Q2 2023 | $563.5M | -$11.3M | $-0.27 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
HNI Capital Allocation
HNI SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for HNI CORP (CIK: 0000048287)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HNI
What is the AI rating for HNI?
HNI CORP (HNI) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are HNI's key strengths?
Claude: Strong revenue growth of 12.4% year-over-year demonstrates market demand. Solid free cash flow generation of 208.5M provides financial flexibility.
What are the risks of investing in HNI?
Claude: Severe margin compression with operating margin of only 4.4% and net margin of 1.9%, among the lowest for manufacturing. Net income flat despite 12.4% revenue growth, signaling deteriorating unit economics and profitability.
What is HNI's revenue and growth?
HNI CORP reported revenue of $2.8B.
Does HNI pay dividends?
HNI CORP pays dividends, with $63.1M distributed to shareholders in the trailing twelve months.
Where can I find HNI SEC filings?
Official SEC filings for HNI CORP (CIK: 0000048287) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HNI's EPS?
HNI CORP has a diluted EPS of $1.11.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HNI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, HNI CORP has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is HNI stock overvalued or undervalued?
Valuation metrics for HNI: ROE of 3.0% (sector avg: 15%), net margin of 1.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy HNI stock in 2026?
Our dual AI analysis gives HNI CORP a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HNI's free cash flow?
HNI CORP's operating cash flow is $276.3M, with capital expenditures of $67.8M. FCF margin is 7.3%.
How does HNI compare to other Default stocks?
Vs Default sector averages: Net margin 1.9% (avg: 12%), ROE 3.0% (avg: 15%), current ratio 1.24 (avg: 1.8).