DCF Tool

HNI

HNI Corp. – Office Furniture (except Wood) Manufacturing
HNI is a leading global provider and designer of office furniture and the nation's leading manufacturer and marketer of hearth products. HNI sells the broadest and deepest selection of quality office furniture solutions available to meet the needs of every customer through an extensive portfolio of well-known and trusted brands. Its hearth products are the strongest, most respected brands in the industry and include a full array of gas, electric, wood and biomass burning fireplaces, inserts, stoves, facings and accessories.
Analysis Results
Intrinsic Value $80.94
Latest Price $28.29
Relative Value 65% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 14.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 137 127
2023 156 135
2024 179 143
2025 205 152
2026 234 161
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 4130 million. This corresponds to a present value of 2630 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 717 million. Adding in the terminal value gives a total present value of 3350 million.

There are presently 41.4 million outstanding shares, so the intrinsic value per share is 80.94.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 523,494,000
Current Cash 53,662,000
Current Liabilities 506,448,000
Current Debt 5,986,000
Non-Cash Working Capital (NCWC) -30,630,000
Change in NCWC 28,040,000
EBIT 91,719,000
Tax Provision 18,456,000
Depreciation and Amortization 83,146,000
Capital Expenditure -66,548,000
Unlevered Free Cash Flow 114,728,908
Current Assets 495,735,000
Current Cash 117,807,000
Current Liabilities 439,028,000
Current Debt 2,430,000
Non-Cash Working Capital (NCWC) -58,670,000
Change in NCWC -56,983,000
EBIT 100,193,000
Tax Provision 12,466,000
Depreciation and Amortization 77,683,000
Capital Expenditure -41,802,000
Unlevered Free Cash Flow 56,124,999
Current Assets 528,834,000
Current Cash 53,169,000
Current Liabilities 478,705,000
Current Debt 1,353,000
Non-Cash Working Capital (NCWC) -1,687,000
Change in NCWC -21,795,000
EBIT 153,713,000
Tax Provision 32,211,000
Depreciation and Amortization 77,427,000
Capital Expenditure -66,885,000
Unlevered Free Cash Flow 107,766,491
Current Assets 531,883,000
Current Cash 78,146,000
Current Liabilities 434,308,000
Current Debt 679,000
Non-Cash Working Capital (NCWC) 20,108,000
Change in NCWC 9,646,000
EBIT 143,898,000
Tax Provision 25,399,000
Depreciation and Amortization 74,788,000
Capital Expenditure -63,696,000
Unlevered Free Cash Flow 133,851,706
Current Assets 488,880,000
Current Cash 25,363,000
Current Liabilities 489,703,000
Current Debt 36,648,000
Non-Cash Working Capital (NCWC) 10,462,000
Change in NCWC 45,441,000
EBIT 112,157,000
Tax Provision -19,286,000
Depreciation and Amortization 72,872,000
Capital Expenditure -127,391,000
Unlevered Free Cash Flow 103,079,000
Current Assets 433,041,000
Current Cash 38,564,000
Current Liabilities 463,473,000
Current Debt 34,017,000
Non-Cash Working Capital (NCWC) -34,979,000
Change in NCWC -10,126,000
EBIT 167,269,000
Tax Provision 43,273,000
Depreciation and Amortization 68,947,000
Capital Expenditure -119,584,000
Unlevered Free Cash Flow 50,356,940
Current Assets 438,370,000
Current Cash 32,800,000
Current Liabilities 435,900,000
Current Debt 5,477,000
Non-Cash Working Capital (NCWC) -24,853,000
Change in NCWC 13,957,000
EBIT 175,273,000
Tax Provision 51,764,000
Depreciation and Amortization 57,564,000
Capital Expenditure -114,966,000
Unlevered Free Cash Flow 74,101,769
Current Assets 455,559,000
Current Cash 37,196,000
Current Liabilities 457,333,000
Current Debt 160,000
Non-Cash Working Capital (NCWC) -38,810,000
Change in NCWC 8,042,000
EBIT 135,145,000
Tax Provision 43,776,000
Depreciation and Amortization 56,722,000
Capital Expenditure -112,713,000
Unlevered Free Cash Flow 30,815,068
Current Assets 433,228,000
Current Cash 72,281,000
Current Liabilities 411,584,000
Current Debt 3,785,000
Non-Cash Working Capital (NCWC) -46,852,000
Change in NCWC -11,802,000
EBIT 106,320,000
Tax Provision 33,338,000
Depreciation and Amortization 46,621,000
Capital Expenditure -78,895,000
Unlevered Free Cash Flow 25,592,091
Current Assets 404,940,000
Current Cash 49,032,000
Current Liabilities 395,885,000
Current Debt 4,927,000
Non-Cash Working Capital (NCWC) -35,050,000
Change in NCWC -28,831,000
EBIT 89,571,000
Tax Provision 29,278,000
Depreciation and Amortization 43,360,000
Capital Expenditure -60,270,000
Unlevered Free Cash Flow 10,037,157

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