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Hanesbrands Inc HBI

Morningstar Rating
$5.52 +0.02 (0.36%)
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Company Report

Hanesbrands' Actions Are Supporting Its Innerwear Brands and Financial Health Despite a Weak Market

Narrow-moat Hanesbrands is the market leader in basic innerwear in multiple countries. We believe its key innerwear brands like Hanes and Bonds (in Australia) achieve premium pricing. While the firm faces challenges from inflation, slowing demand for apparel, higher interest rates, and a highly competitive athleisure market, we think Hanes' share leadership in replenishment apparel categories puts it in position for improving results in the coming years. In May 2021, the firm unveiled its Full Potential plan to bring growth back to innerwear, improve connections to consumers (through greater marketing and enhanced e-commerce, for example), and streamline its portfolio.

Price vs Fair Value

HBI is trading at a 299% premium.
Price
$5.49
Fair Value
$93.40
Uncertainty
Very High
1-Star Price
$28.99
5-Star Price
$9.10
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Champion’s poor results have hurt Hanes’ sales growth and profitability. The sale of the brand will allow management to focus on its core innerwear.

Bears

Hanes competes in very competitive categories with low barriers to entry. The competitiveness of the women’s intimates category especially has increased.

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News

Trading Information

Previous Close Price
$5.50
Day Range
$5.485.69
52-Week Range
$3.555.86
Bid/Ask
$5.52 / $5.53
Market Cap
$1.94 Bil
Volume/Avg
12.7 Mil / 6.5 Mil

Key Statistics

Price/Earnings (Normalized)
55.03
Price/Sales
0.36
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Hanesbrands manufactures basic and athletic apparel under brands including Hanes, Playtex, Maidenform, Bali, Berlei, and Bonds. The company sells wholesale to discount, midmarket, and department store retailers as well as direct to consumers through stores and e-commerce. Hanesbrands is vertically integrated as it produces more than 70% of its products in company-controlled factories in more than three dozen nations. Hanesbrands distributes products in the Americas and Asia-Pacific. The company was founded in 1901 and is based in Winston-Salem, North Carolina.
Sector
Consumer Cyclical
Industry
Apparel Manufacturing
Stock Style Box
Small Value
Total Number of Employees
48,000

Competitors

Valuation

Metric
HBI
PVH
BBWI
Price/Earnings (Normalized)
55.039.4911.87
Price/Book Value
5.711.17
Price/Sales
0.360.701.21
Price/Cash Flow
70.217.068.46
Price/Earnings
HBI
PVH
BBWI

Financial Strength

Metric
HBI
PVH
BBWI
Quick Ratio
0.510.650.80
Current Ratio
1.591.551.57
Interest Coverage
0.889.614.04
Quick Ratio
HBI
PVH
BBWI

Profitability

Metric
HBI
PVH
BBWI
Return on Assets (Normalized)
0.57%5.93%14.31%
Return on Equity (Normalized)
9.87%13.11%
Return on Invested Capital (Normalized)
5.22%8.37%27.81%
Return on Assets
HBI
PVH
BBWI
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