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HNI Corporation (HNI)

Company Dividend Discount ModelIndustry: Business Equipment & SuppliesSector: Industrials

Valuation Snapshot

Stable Growth$32.63 - $52.71$41.67
Multi-Stage$41.28 - $45.17$43.19
Blended Fair Value$42.43
Current Price$46.10
Upside-7.97%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.02%3.68%1.331.231.121.131.091.101.071.041.020.97
YoY Growth--8.72%9.96%-1.02%3.17%-0.26%2.25%3.08%2.19%4.68%4.51%
Dividend Yield--2.99%2.72%4.01%3.05%2.76%4.37%2.95%2.88%2.21%2.46%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)141.60
(-) Cash Dividends Paid (M)63.20
(=) Cash Retained (M)78.40
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)28.3217.7010.62
Cash Retained (M)78.4078.4078.40
(-) Cash Required (M)-28.32-17.70-10.62
(=) Excess Retained (M)50.0860.7067.78
(/) Shares Outstanding (M)47.6847.6847.68
(=) Excess Retained per Share1.051.271.42
LTM Dividend per Share1.331.331.33
(+) Excess Retained per Share1.051.271.42
(=) Adjusted Dividend2.382.602.75
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate1.68%2.68%3.68%
Fair Value$32.63$41.67$52.71
Upside / Downside-29.22%-9.62%14.33%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)141.60145.39149.28153.27157.38161.59166.43
Payout Ratio44.63%53.71%62.78%71.85%80.93%90.00%92.50%
Projected Dividends (M)63.2078.0893.72110.13127.36145.43153.95

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate1.68%2.68%3.68%
Year 1 PV (M)70.8971.5872.28
Year 2 PV (M)77.2478.7680.31
Year 3 PV (M)82.4084.8687.36
Year 4 PV (M)86.5189.9693.52
Year 5 PV (M)89.6794.1798.85
PV of Terminal Value (M)1,561.361,639.671,721.09
Equity Value (M)1,968.072,059.002,153.40
Shares Outstanding (M)47.6847.6847.68
Fair Value$41.28$43.19$45.17
Upside / Downside-10.45%-6.32%-2.02%

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