One-glance verdict
Within fair range
$52.14 our estimate vs market $47.57
Wall Street consensus: $71.00 (36.2% higher than our fair-value estimate)
9% below our estimate
Fundamentals snapshot
HNI Corporation
HNI · NYQ · Consumer Cyclical · Furnishings, Fixtures & Appliances
Current price
$47.57
52-week range
$28.93 - $52.79
Market cap
$3.43B
Balance sheet
Watch
6.72x Adequate
Net debt $1.54B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 54.7% last year.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 389.8% over 3 years.
- Risk Insider ownership is only 2.1% (peer median: 2.4%).
What this company does
HNI Corporation
HNI Corporation makes two main types of products: furniture for offices, like desks and chairs, and hearth products for homes, like fireplaces and stoves. Since the company earns most of its money from office furniture, its financial health is often tied to businesses spending on new or renovated workspaces, which can be influenced by the overall economy.
How the company got here
HNI Corporation started in 1944 in a backyard in Muscatine, Iowa, with the goal of creating a business that treated its employees with fairness and respect, especially for veterans returning from the war. Initially named Home-O-Nize Co., its first successful product was an aluminum card file box often used for recipes. The company later shifted its focus to office furniture, became HON Industries, and eventually HNI Corporation in 2004 to reflect its growing family of brands. A major turning point was in 1981 when it entered the fireplace business, which has since become a significant part of the company. More recently, HNI has expanded its office furniture business by acquiring other companies, including Kimball International in 2023.
What it actually does
HNI Corporation makes products for two different areas of your life: where you work and where you live. For workplaces, it manufactures a wide range of office furniture, including desks, chairs, storage cabinets, and panel systems to divide spaces. For homes, it is a leading producer of hearth products, which includes fireplaces, stoves, and inserts that can be fueled by gas, wood, or electricity. The company sells its products through a network of dealers and distributors, as well as directly to businesses and government organizations.
Workplace Furnishings
This is HNI's largest business area, making up about three-quarters of its sales. It designs and sells all kinds of furniture for offices, hospitals, schools, and hotels under brand names like HON, Allsteel, and Gunlocke. Customers, ranging from small businesses to large corporations and government agencies, buy these products through independent dealers and distributors. This part of the business is influenced by how much companies are spending on their office spaces.
Residential Building Products
This segment focuses on making homes cozier and more inviting by manufacturing fireplaces, stoves, and inserts. It is the nation's leading maker of these hearth products, which come in a variety of fuel types like gas, wood, and electric. These products are sold under well-known brands such as Heat & Glo and Heatilator to homebuilders and homeowners through a network of independent dealers and retail outlets. This business is closely tied to the housing market, including new home construction and remodeling projects.
What management is betting on now
The company's current focus is on making its Workplace Furnishings business more profitable. A key part of this strategy is successfully integrating Kimball International, a company it recently acquired, to expand its product offerings and reduce costs. Management is also concentrating on improving its supply chain (the process of getting products made and delivered to customers) to be more reliable. For its fireplace business, the priority is to continue creating new products and supporting its network of dealers to navigate the ups and downs of the housing market.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$114.00M
FY2025 Q4
$41.50M
FY2026 Q1
$-3.70M
FY2026 Q2
$28.70M
FY2026 Q3
$135.60M
FY2026 Q4
$47.90M
FY2027 Q1
$-207.50M
Revenue
$1.47B
Net income
$51.10M
Diluted EPS
0.70
Operating cash flow
$139.80M
Free cash flow
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Sources
Revenue
$1.35B
Net income
$-38.80M
Diluted EPS
-0.55
Operating cash flow
$-171.80M
Free cash flow
$-207.50M
Fetching…
Sources
Revenue
$888.30M
Net income
$-49.10M
Diluted EPS
-1.08
Operating cash flow
$64.80M
Free cash flow
$47.90M
Fetching…
Sources
Revenue
$683.80M
Net income
$41.20M
Diluted EPS
0.88
Operating cash flow
$155.20M
Free cash flow
$135.60M
Fetching…
Sources
Revenue
$667.10M
Net income
$48.20M
Diluted EPS
1.02
Operating cash flow
$43.70M
Free cash flow
$28.70M
Fetching…
Sources
Revenue
$599.80M
Net income
$13.90M
Diluted EPS
0.29
Operating cash flow
$12.60M
Free cash flow
$-3.70M
Fetching…
Sources
Revenue
$642.50M
Net income
$38.30M
Diluted EPS
0.78
Operating cash flow
$51.20M
Free cash flow
$41.50M
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Sources
Revenue
$672.20M
Net income
$47.50M
Diluted EPS
0.98
Operating cash flow
$128.50M
Free cash flow
$114.00M
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Sources
Is it cheap or expensive?
Fair value $52.14 vs current price $47.57
Wall Street consensus is the average analyst price target: $71.00 (36.2% higher than our fair-value estimate).
Our most-likely fair value is $52.14 a share — about 9.6% away from today's price of $47.57, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $1.5B. Interest coverage 6.7x.
Net debt
$1.54B
Interest coverage
6.72x
HNI Corporation's profit covers its interest bill about 6.7 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
HNI
BASELINE
HNI Corporation
Total debt $1.64B Interest coverage 6.72x This is the baseline the peer rows are being compared against.
Total debt $1.82B Interest coverage 3.01x -55% vs HNI Carries about 2.2x less debt cushion than HNI.
Total debt $2.80B Interest coverage 5.39x -20% vs HNI Carries about 1.2x less debt cushion than HNI.
Total debt $408.40M Interest coverage 33.62x +401% vs HNI Carries about 5.0x more debt cushion than HNI.
Total debt $541.51M Interest coverage 284.68x +4,139% vs HNI Carries about 42.4x more debt cushion than HNI.
What you should know
The case for and against HNI
3 Rewards
2 Risks
Rewards
-
Revenue grew 54.7% last year.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 2.9% with 37-year payout history.
Risks
-
Net debt grew 389.8% over 3 years.
-
Insider ownership is only 2.1% (peer median: 2.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
9.96x
P/B
1.90x
P/S
0.78x
EV/EBITDA
11.08x
PEG ratio
0.67x
Profitability
How much profit each dollar creates
Gross margin
41.9%
Operating margin
8.2%
Net margin
0.1%
ROE
0.3%
ROA
5.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.91x
Current ratio
1.36x
Quick ratio
0.72x
Total debt
$1.64B
Total cash
$108.20M
Growth
How the business has been compounding
Revenue TTM
$4.39B
Revenue 5Y CAGR
6.8%
EPS TTM
-0.03
EPS 5Y CAGR
-27.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$188.00M
Free CF TTM
$208.50M
FCF margin
4.7%
Dividend
Shareholder payout
Yield
2.9%
Payout ratio
503.7%
Last ex-div date
2026-08-28