Hanesbrands Inc. [NYSE: HBI] shares went higher by 1.01% from its previous closing of 8.92, now trading at the price of $9.01, also adding 0.09 points. Is HBI stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 5.58 million contracts. Compared to the average trading volume of HBI shares, the company saw a far better performance. Moreover, the stock has a 348.00M float and a -0.34% run over in the last seven days. HBI share price has been hovering between 19.10 and 7.89 lately, and is definitely worthy of attention.
Hanesbrands Inc. [NYSE:HBI]: Analyst Rating and Earnings
Equities traders frequently stay up to date regarding what leading market analysts think abopossible stock buy. As it relates to Hanesbrands Inc. [HBI], the latest mean analyst recommendation that’s publicly available is from the fiscal three-month period ending in 12/30/2019. On average, stock market experts give HBI an Hold rating. The average 12-month price forecast for this stock is $9.01, with the high estimate being $22.00, the low estimate being $6.50 and the median estimate amounting to $14.90. This is compared to its latest closing price of $8.92.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Hanesbrands Inc. [HBI] is sitting at 3.11. This is compared to 1 month ago, when its average rating was 3.38.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on 05/05/2020.
Fundamental Analysis of Hanesbrands Inc. [HBI]
Now let’s turn to look at profitability: with a current Operating Margin for Hanesbrands Inc. [HBI] sitting at 12.80% and its Gross Margin at 39.90%, this company’s Net Margin is now 8.60. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 18.98, and its Return on Invested Capital has reached 12.84. Its Return on Equity is 51.80%, and its Return on Assets is 7.80%. These metrics all suggest that Hanesbrands Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Hanesbrands Inc. [HBI] has generated a Total Debt to Total Equity ratio of 315.09. Similarly, its Total Debt to Total Capital is 75.91, while its Total Debt to Total Assets stands at 52.98. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 292.35, and its Long-Term Debt to Total Capital is 70.43.
What about valuation? This company’s Enterprise Value to EBITDA is 6.46 and its Total Debt to EBITDA Value is 3.10. The Enterprise Value to Sales for this firm is now 1.01, and its Total Debt to Enterprise Value stands at 0.43. Hanesbrands Inc. [HBI] has a Price to Book Ratio of 4.35, a Price to Cash Flow Ratio of 6.75 and P/E Ratio of 5.43. These metrics all suggest that Hanesbrands Inc. is more likely to generate a positive ROI.
Hanesbrands Inc. [HBI] has 348.54M shares outstanding, amounting to a total market cap of 3.11B. Its stock price has been found in the range of 7.89 to 19.10. At its current price, it has moved down by -52.83% from its 52-week high, and it has moved up 14.18% from its 52-week low.
This stock’s Beta value is currently 1.23, which indicates that it is 15.67% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 33.88. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Hanesbrands Inc. [HBI] a Reliable Buy?
Shares of Hanesbrands Inc. [HBI], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.