One-glance verdict
Within fair range
$37.53 our estimate vs market $34.12
Wall Street consensus: $69.00 (83.8% higher than our fair-value estimate)
9% below our estimate
Fundamentals snapshot
HNI Corporation
HNI · NYQ · Consumer Cyclical · Furnishings, Fixtures & Appliances
Current price
$34.12
52-week range
$28.93 - $53.29
Market cap
$2.46B
Balance sheet
Watch
6.72x Adequate
Net debt $1.65B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 26.3% last year.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 389.8% over 3 years.
- Risk Stock trades 388.7% above its 5-year average P/E.
What this company does
HNI Corporation
HNI Corporation earns money in two main ways, primarily in the U.S. and Canada, by selling office furniture to businesses and fireplaces to homeowners. This means the company's success is tied to two different parts of the economy: corporate spending on office spaces and the strength of the housing market.
How the company got here
HNI Corporation started in 1944 in Muscatine, Iowa, with the goal of providing jobs for veterans returning from World War II. Initially named Home-O-Nize Co., the company first made aluminum card file boxes often used for recipes. It later expanded into office furniture, becoming known as HON Industries, and eventually grew into a major manufacturer in that space. A key turning point was in 1981 when it acquired its first fireplace company, entering the residential products market. To reflect its broader business portfolio beyond just office furniture, the company changed its name to HNI Corporation in 2004.
What it actually does
HNI Corporation makes and sells products for two main areas of life: where you work and where you live. For workplaces, it produces a wide range of office furniture, including desks, chairs, storage cabinets, and panel systems to divide spaces. For homes, the company is a leading manufacturer of hearth products, which includes things like gas, wood, and electric fireplaces, as well as stoves and fireplace inserts. You would find their office furniture in corporate offices, government buildings, and schools, and their hearth products in newly built or remodeled homes.
Workplace Furnishings
This is HNI's largest business area, making up the majority of its sales. This segment designs and manufactures a wide variety of furniture for offices and other commercial spaces, such as seating, desks, storage solutions, and tables. It sells these products under several different brand names, including HON, Allsteel, and Gunlocke, to cater to different customer needs and price points. The customers for this segment are typically businesses of all sizes, government agencies, and educational institutions, who buy the furniture through independent dealers and wholesalers.
Residential Building Products
This part of the company focuses on making homes cozier and more inviting. It is a leading manufacturer of hearth products, which includes a full range of fireplaces (gas, electric, and wood-burning), inserts, stoves, and accessories. These products are sold under well-known brand names like Heatilator and Heat & Glo. The primary customers are homebuilders for new construction projects and homeowners who are remodeling, who purchase these items through dealers, distributors, and retail outlets.
What management is betting on now
The company is focused on growing by improving its existing businesses and making strategic acquisitions (buying other companies). A major recent move was the acquisition of Kimball International, which significantly expanded its workplace furnishings business. Management is working on integrating this new business to improve profitability (the ability to make a profit from its sales). They are also investing in product innovation for both office furniture and hearth products to meet changing customer demands, like the shift to hybrid work environments. Another key priority is strengthening its supply chain (the network to get products made and delivered) to ensure reliable service for its customers.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$33.80M
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
$1.35B
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
Fetching…
Sources
Revenue
$672.20M
Net income
$47.50M
Diluted EPS
0.98
Operating cash flow
$128.50M
Free cash flow
$114.00M
Fetching…
Sources
Revenue
$623.70M
Net income
$36.00M
Diluted EPS
0.75
Operating cash flow
$51.30M
Free cash flow
$33.80M
Fetching…
Sources
Is it cheap or expensive?
Fair value $37.53 vs current price $34.12
Wall Street consensus is the average analyst price target: $69.00 (83.8% higher than our fair-value estimate).
Our most-likely fair value is $37.53 a share — about 10.0% away from today's price of $34.12, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $1.6B. Interest coverage 6.7x.
Net debt
$1.65B
Interest coverage
6.72x
HNI Corporation's profit covers its interest bill about 6.7 times over. which is weaker than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
HNI
BASELINE
HNI Corporation
Total debt $1.73B Interest coverage 6.72x This is the baseline the peer rows are being compared against.
Total debt $568.47M Interest coverage 287.01x +4,173% vs HNI Carries about 42.7x more debt cushion than HNI.
Total debt $285.34M Interest coverage 8.39x +25% vs HNI Carries about 1.2x more debt cushion than HNI.
What you should know
The case for and against HNI
3 Rewards
3 Risks
Rewards
-
Revenue grew 26.3% last year.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 4.2% with 37-year payout history.
Risks
-
Net debt grew 389.8% over 3 years.
-
Stock trades 388.7% above its 5-year average P/E.
-
Operating margin compressed from 4.7% to 1.6% over 3 years.
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)
126.35x
Forward P/E
7.06x
P/B
1.38x
P/S
0.68x
EV/EBITDA
11.12x
PEG ratio
0.41x
Profitability
How much profit each dollar creates
Gross margin
41.1%
Operating margin
1.6%
Net margin
0.0%
ROE
0.1%
ROA
4.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.97x
Current ratio
1.39x
Quick ratio
0.68x
Total debt
$1.73B
Total cash
$78.20M
Growth
How the business has been compounding
Revenue TTM
$3.59B
Revenue 5Y CAGR
6.8%
EPS TTM
0.27
EPS 5Y CAGR
-27.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$91.90M
Free CF TTM
$208.50M
FCF margin
5.8%
Dividend
Shareholder payout
Yield
4.2%
Payout ratio
503.7%
Last ex-div date
2026-05-29