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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Hanesbrands Inc. (XNYS:HBI) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
HBI
Name:
HANESBRANDS INC. (XNYS:HBI)
Sector:
- 250526.00K
Industry:
Apparel Manufacturing
CEO:
Mr. Gerald Evans
Total Employees:
59,000
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -130.78% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF HANESBRANDS INC.(HBI) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND APPAREL MANUFACTURING INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
8.61
One Month Price Target:
$8.68
Six Month Price Target :
$9.05
Likely Price in One Year's Time:
Ticker:
$9.48
Likely Trading Range Today Under (Normal Volatility)
$8.56
Price Upper limit ($) :
$8.65
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$8.03
This week:
$7.32
This month :
$6.04
Other Primary facts
Market Cap:
2.94B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
348.94M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
24.91%
-18.57%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$11.28
$10.07
$5.94
$7.15
Medium risk (<10%) entry points
Buy Call
Sell Call
$9.68
Buy Put:
Sell Put:
$9.42
$7.54
$7.80
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
HBI
Sharpe Ratio:
-1.16%
Comparison:
HBI, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is 29.03% higher than the industry
& is -150.73% lower than the market/S&P 500 average
Average Returns/Yield of
HBI
Daily returns:
-0.03%
Weekly returns:
-0.14%
Monthly returns:
-0.57%
Yearly returns:
-3.61%
Comparison of returns:
Average annual returns/yield (last 3 years) is 90.47% above industry average
Classification:
HBI, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.8
Statistical test of Returns:
HBI has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
3.24%
Weekly Volatility:
7.24%
Monthly Volatility:
14.49%
Yearly Volatility:
50.19%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.57%
Volatility in last five trading days has been -82.46% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-6.68%
Weekly VaR:
-14.94%
Monthly VaR:
-29.88%
How Much Can the price of
HBI
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-27%
Worst case (decline):
>85%
This translates to price declining to:
$6.31
This translates to price declining to:
$1.29
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
HBI is a 110.92% riskier investment compared to the market/S&P 500 & is 80.69% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -9.85% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
HBI
Beta in relation to market/S&P 500--1.51
Expected beta in 1 year's time:
0.84
Expected beta in 3 year's time:
1.188
Unlevered (debt free) Beta:
0.299
Beta in relation to Nasdaq (XNAS):
0.76
Beta in relation to all global stocks::
0.735
Beta Comparison & Analysis
Beta of competitors/peers::
1.244
Beta is 21.36% higher than peers
Average Industry Beta:
1.537
Beta is -1.74% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
-
-
Alpha provided | Alpha Analysis
Alpha provided:
-0.204
Alpha is 17.82% above industry average alpha yield
Alpha is -1296% below the market average
Analysis of Cost of Capital of
HBI
Equity cost of capital:
0.135
Equity cost of capital is -1.34% below industry mean WACC
Unlevered (without debt) cost of capital:
2.67%
Before-tax cost of debt:
3.90%
After-tax cost of debt:
3.08%
Overall debt rating:
Lower BB medium grade (Fifth highest grade)
Weighted average cost of capital (WACC):
3.08%
WACC is -16.92% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$19.69
Revenue growth rate per share of (3Y):
3.85
Annual revenue growth rate is -85.98% below industry average
EPS:
$1.30
Expected Annual growth rate of EPS (3Y):
-3.78%
Expected future EPS growth rate is -120.46% lower than the Apparel Manufacturing industry
Free cash flow (FCF) per share:
$0.87
Balance sheet equity growth per share: -0.28%
Equity growth rate per share is -101.29% lower than the industry
Debt per share
$10.27
EBITDA per share
$2.25
Valuation Analysis Today of
HBI
P/E Ratio:
6.78
P/E Ratio of Competitors/Peers:
10.58
P/E ratio is -35.97% lower than main peers & is -70.64% lower than the industry
Stock price/value with industry average P/E ratio: $30.00
HBI is -71.30% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $14.22
Present value of the expected future dividends only: $4.45
P/S (Price to Sales ratio):
0.44
Price to sales ratio is -77.56% below the industry mean
P/B (Price to book value ratio):
3.85
Price to free cash flow: 9.87
-
Net income growth rate (3Y):
-206.62%
Net income growth rate is -83.16% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 11.39%
Dividend yeild: 6.97%
Previous Dividend: $0.15
Previous adjusted dividend: $0.15
Previous Dividend: $0.60
-
-
Average dividend payment (long-term): $0.15
Average dividend increase/decrease (growth rate) % per period: 0.00%
Expected next dividend payment date: 29/08/2022
Expected next dividend record date: 08/08/2022
Expected next dividend declaration date: 25/07/2022
Previous dividend payment date: 31/05/2022
Previous dividend record date: 05/10/2022
Previous dividend declaration date: 26/04/2022
Dividend History:
2022-05-09--$0.15
2021-11-08--$0.15
2021-05-20--$0.15
2022-02-14--$0.15
2021-08-09--$0.15
2021-02-18--$0.15
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
459.79%
Net debt to equity ratio:
448.09%
Debt to assets ratio:
52.24%
Net debt to assets ratio:
50.91%
Debt-to-asset ratio is -7.65% below industry average
Ability to repay debt:
Interest coverage ratio:
5.22
Interest coverage ratio is -97.33% less than industry average
Looking forward:
Debt growth rate:
18.75%
Annual debt growth is -31% lower than industry average debt growth rate
Debt repayment rate in last quarter: 7.52%
Analysis of Key Statistics
Correlation of price movement with the market:
0.513
Statistical significance of correlation:
HBI has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.577
Stock price is -10.97% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.577
Correlation of price movement with Nasdaq (^IXIC):
-0.002
Covariance of price movement with the market:
-0.004
Kurtosis
9.39
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.672
Returns are right (positive) skewed; mean returns are greater than median and mode returns
Fundamental Analysis & Dupont Analysis of
HBI
Gross Profit Margin Ratio:
153%
Operating Profit Margin Ratio:
11.33%
Operating profit margin is 91.66% higher than the industry
Net Profit Margin Ratio:
153%
Effective Tax Rate:
11.95%
Effective tax rate is -63.08% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
58.91%
Return on equity (ROE) is 286.37% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
6.69%
Return on assets (ROA) is 25.00% higher than the industry
Financial Leverage:
2.1x
Current Ratio:
1.6
Current ratio is -30.38% below industry average
Cash Conversion Cycle (days):
-24.5
Cash conversion cycle is -136.13% below industry average
The remaining useful life of property plant & equipment is: 3.8 years
Stock based compensation to net income ratio:
-
In-depth Efficiency Analysis
Revenue generated per employee:
116.4K
Each employee generates -79% less revenue than industry average revenue per employee
EBITDA generated per employee:
13.3K
Each employee generates -79% less EBITDA than industry average revenue per employee
Profit generated per employee:
7.8K
Each employee generates -81% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 4.2K
Each employee generates -64% less free cash flow than industry average revenue per employee
Assets/Capital per employee
60.4K
Each employee generates -64% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- -100.00%
Growth rate in R&D investment/expenditure is -554.05% lower than the industry
Competitors/Peer firms of
HBI
THOR INDUSTRIES, INC. (XNYS:THO)
ARAD LTD. (XTAE:ARD)
INTERNATIONAL GAME TECHNOLOGY PLC (XNYS:IGT)
VIPSHOP HOLDINGS LIMITED (XNYS:VIPS)
GRAPHIC PACKAGING HOLDING COMPANY (XNYS:GPK)
HARLEY-DAVIDSON, INC. (XNYS:HOG)
LEGGETT & PLATT, INCORPORATED (XNYS:LEG)
CHARGEPOINT HOLDINGS, INC. (XNYS:CHPT)
Ardagh Metal Packaging SA (XNYS:AMBP)
Current Analyst Ratings
Strong buy�13%
Buy�17%
Hold�33%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
4/2/22
Revenue:
6.87B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
4.24B
2.63B
-
-
1.86B
-
-
1.86B
-
150.57M
107.14M
785.70M
778.12M
459.19M
575.54M
68.80M
459.19M
Statement of Cash Flow
Date:
Period:
26.29M
Differed Income Tax :
-
Stock Based Compensation :
-
Change in Working Capital :
- 378289.00K
Accounts Receivables:
- 6090.00K
Other Working Capital:
24.00K
Other Non-Cash Items:
2.11M
Net Cash Provided by Operating Activities:
- 231189.00K
Investments in PP&E:
-
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
4/2/22
2022
Q1
369.21M
-
369.21M
898.42M
1.82B
209.97M
3.30B
793.99M
1.14B
1.24B
-
326.68M
67.52M
3.56B
-
6.86B
1.20B
277.97M
-
-
583.87M
2.07B
3.58B
430.56M
4.01B
-
6.08B
3.49M
976.94M
- 516691.0K
315.68M
April 2, 2022 at 6:00:00 AM
6.09B
779.42M
6.86B
-
3.86B
3.5B
-
- 29590.00K
- 29590.00K
- 291463.00K
-
- 25018.00K
- 52297.00K
436.35M
67.57M
1.79M
- 191419.00K
369.21M
560.63M
- 231189.00K
- 19337.00K
- 250526.00K
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
HBI
2023
2024
2025
2026
2027
$11.35
$12.51
$13.77
$15.17
$16.71