Hanesbrands Inc (HBI, Financial) has experienced a notable fluctuation in its stock price over recent months. The company's market capitalization currently stands at $1.95 billion, with a current stock price of $5.54. Over the past week, HBI has seen a modest gain of 0.64%. However, the past three months have painted a different picture, with the stock price witnessing a significant 23.31% loss. This decline in stock price is reflected in the company's GF Value, which has decreased from a past GF Value of $10.41 to the current GF Value of $8.26. Despite this, the current GF Valuation still suggests that HBI could be a Possible Value Trap, advising investors to Think Twice before making any decisions.
Company Overview
Hanesbrands Inc, a stalwart in the manufacturing of apparel and accessories, operates a diverse portfolio of brands such as Hanes, Champion, and Playtex. The company's vertical integration strategy allows it to produce over 70% of its products in-house across multiple nations. With a global distribution network spanning the Americas, Europe, and Asia-Pacific, Hanesbrands has established a robust presence since its inception in 1901, headquartered in Winston-Salem, North Carolina.
Assessing Profitability
When evaluating Hanesbrands' profitability, the company achieves a Profitability Rank of 6/10. Its Operating Margin stands at 5.12%, outperforming 56.71% of its industry peers. However, the company's ROE is in negative territory at -4.98%, which is still better than 20.44% of industry competitors. Similarly, HBI's ROA is also negative at -0.29%, yet surpasses 33.27% of its peers. The ROIC of 4.44% is more favorable, better than 58.37% of industry companies. Over the past decade, Hanesbrands has maintained profitability for 7 years, which is more consistent than 49.11% of its industry counterparts.
Growth Trajectory
The company's Growth Rank is currently at 3/10. Hanesbrands' 3-Year Revenue Growth Rate per Share is at -2.50%, which is better than 31.86% of its industry peers. The 5-Year Revenue Growth Rate per Share also shows a decline of -1.70%, yet this performance is still better than 41.72% of competitors. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at -3.98%, which, although negative, is better than 5.8% of industry peers. The EPS without NRI Growth Rate (Future 3Y To 5Y Est) is forecasted at -12.40%, which is not favorable but is still better than 0% of its competitors.
Key Shareholders
Among Hanesbrands' notable shareholders, Jim Simons (Trades, Portfolio) leads with 4,394,800 shares, representing a 1.26% share percentage. Close behind is Charles Brandes (Trades, Portfolio), holding 4,298,017 shares, which equates to a 1.23% share percentage. HOTCHKIS & WILEY also holds a significant stake with 1,402,910 shares, accounting for 0.4% of the company's shares.
Competitive Landscape
In comparison to its competitors, Hanesbrands Inc holds its ground with a market cap of $1.95 billion. Oxford Industries Inc (OXM, Financial) follows with a market cap of $1.73 billion, G-III Apparel Group Ltd (GIII, Financial) with $1.26 billion, and FIGS Inc (FIGS, Financial) with $824.073 million. This places Hanesbrands at the higher end of the market cap spectrum within its industry peers.
Conclusion
In summary, Hanesbrands Inc's recent stock performance has been a mixed bag, with a slight gain over the past week but a substantial loss over the past three months. The company's valuation suggests caution, as it is currently labeled as a Possible Value Trap. Hanesbrands' profitability metrics are relatively strong, particularly in terms of Operating Margin and ROIC. However, growth remains a concern, with negative trends in revenue and EPS estimates. The company's shareholder base includes prominent investors, and its market cap remains competitive within the industry. Investors should weigh these factors carefully when considering Hanesbrands as a potential addition to their portfolios.
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.
