HNI Corp (HNI, Financial), a leading provider of office furniture and hearth products, has seen a significant surge in its stock price over the past three months. With a current market cap of $1.61 billion and a price of $34.57, the company's stock has gained 2.23% over the past week and a remarkable 19.50% over the past three months. According to the GF Value, which currently stands at $39.98, the stock is modestly undervalued. This indicates a potential opportunity for investors to capitalize on the stock's future growth.
Unpacking HNI Corp's Business Model
HNI Corp operates in the industrial products industry, with a primary focus on office furniture and hearth products. The company's business model revolves around selling its products through a national system of dealers, wholesalers, and office product distributors. Additionally, HNI Corp also sells directly to end-user customers and governments. With operations spread across the United States, Canada, Mainland China, Hong Kong, India, Mexico, and Taiwan, the company has a broad market reach. 
Profitability Analysis of HNI Corp
When it comes to profitability, HNI Corp holds a GuruFocus rank of 7/10, indicating a strong performance. The company's operating margin stands at 3.21%, which is better than 31.47% of companies in the industry. Furthermore, HNI Corp's ROE, ROA, and ROIC, which stand at 10.96%, 4.28%, and 4.31% respectively, are better than a significant percentage of companies in the industry. The company has also demonstrated consistent profitability over the past 10 years, which is a positive sign for potential investors. 
Assessing HNI Corp's Growth
HNI Corp's growth has a GuruFocus rank of 6/10. The company's 3-year and 5-year revenue growth rates per share stand at 2.70% and 1.50% respectively. Moreover, the company's future total revenue growth rate estimate is 5.34%, which is better than 42.28% of companies in the industry. The company's 3-year and 5-year EPS without NRI growth rates are 5.00% and -1.00% respectively, while its future EPS without NRI growth rate estimate is 8.00%. 
Top Holders of HNI Corp's Stock
Among the top holders of HNI Corp's stock are Jim Simons (Trades, Portfolio), HOTCHKIS & WILEY, and Jeremy Grantham (Trades, Portfolio). Jim Simons (Trades, Portfolio) holds the largest number of shares, with 150,619 shares, representing 0.32% of the company's stock. HOTCHKIS & WILEY and Jeremy Grantham (Trades, Portfolio) hold 52,354 and 32,795 shares respectively, representing 0.11% and 0.07% of the company's stock.
Competitive Landscape
HNI Corp faces competition from several companies in the industrial products industry. These include Steelcase Inc (SCS, Financial) with a market cap of $1.25 billion, Ennis Inc (EBF, Financial) with a market cap of $549.837 million, and ACCO Brands Corp (ACCO, Financial) with a market cap of $484.554 million. Despite the competition, HNI Corp's strong performance and growth potential make it a compelling choice for investors.
Conclusion
In conclusion, HNI Corp's impressive stock performance, strong profitability, and promising growth prospects make it a stock to watch. With a GF Value indicating that the stock is modestly undervalued, there is potential for future growth. However, investors should also consider the competitive landscape and the holdings of top investors when making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
