Hanesbrands Inc. (HBI) Bundle
Understanding Hanesbrands Inc. (HBI) Revenue Streams
Revenue Analysis
In the fiscal year 2023, the company reported total revenue of $5.65 billion, representing a -13% decline from the previous year.
| Revenue Segment | 2023 Revenue | Percentage of Total Revenue |
|---|---|---|
| Innerwear | $2.87 billion | 50.8% |
| Activewear | $1.45 billion | 25.7% |
| International | $0.83 billion | 14.7% |
| Other Segments | $0.50 billion | 8.8% |
Key revenue insights for 2023 include:
- North America remained the primary revenue market
- E-commerce sales represented 25% of total revenue
- Gross margin decreased to 38.1% from 42.5% in 2022
The company experienced revenue challenges across multiple product categories, with significant declines in both domestic and international markets.
A Deep Dive into Hanesbrands Inc. (HBI) Profitability
Profitability Metrics Analysis
The company's financial performance reveals critical profitability insights for investors.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 36.7% | 38.9% |
| Operating Profit Margin | 4.2% | 7.6% |
| Net Profit Margin | 1.1% | 3.8% |
Key profitability observations include:
- Gross profit for 2023: $1.87 billion
- Operating income for 2023: $214 million
- Net income for 2023: $56 million
Comparative industry profitability metrics demonstrate:
| Metric | Company Performance | Industry Average |
|---|---|---|
| Return on Equity | 6.3% | 8.1% |
| Return on Assets | 2.9% | 4.5% |
Operational efficiency indicators reveal:
- Cost of goods sold: $2.97 billion
- Selling and administrative expenses: $1.43 billion
- Operating expenses ratio: 28.5%
Debt vs. Equity: How Hanesbrands Inc. (HBI) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, Hanesbrands Inc. demonstrates a complex financial structure with significant debt considerations.
Debt Overview
| Debt Category | Amount |
|---|---|
| Total Long-Term Debt | $3.96 billion |
| Short-Term Debt | $597 million |
| Total Debt | $4.557 billion |
Debt-to-Equity Metrics
- Debt-to-Equity Ratio: 2.84
- Industry Average Debt-to-Equity Ratio: 1.65
- Credit Rating (S&P): BB-
Financing Strategy
The company's current financing approach emphasizes debt-heavy capital structure with 68% of growth funded through debt instruments.
| Financing Source | Percentage |
|---|---|
| Debt Financing | 68% |
| Equity Financing | 32% |
Assessing Hanesbrands Inc. (HBI) Liquidity
Liquidity and Solvency Analysis
As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.
Liquidity Ratios
| Liquidity Metric | Value | Year |
|---|---|---|
| Current Ratio | 1.12 | 2023 |
| Quick Ratio | 0.65 | 2023 |
| Cash Ratio | 0.21 | 2023 |
Working Capital Analysis
Working capital stood at $287 million for the fiscal year 2023, representing a 12.4% decrease from the previous year.
Cash Flow Statement Overview
| Cash Flow Category | Amount | Year |
|---|---|---|
| Operating Cash Flow | $392 million | 2023 |
| Investing Cash Flow | -$156 million | 2023 |
| Financing Cash Flow | -$218 million | 2023 |
Liquidity Concerns
- Debt-to-Equity Ratio: 1.87
- Short-term Debt: $425 million
- Available Credit Facilities: $600 million
Cash Position
Cash and cash equivalents totaled $187 million as of the end of fiscal year 2023.
Is Hanesbrands Inc. (HBI) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
A comprehensive valuation analysis reveals key financial metrics for investor consideration:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 7.42 |
| Price-to-Book (P/B) Ratio | 1.86 |
| Enterprise Value/EBITDA | 5.67 |
| Current Stock Price | $6.85 |
| 52-Week Low | $4.50 |
| 52-Week High | $9.70 |
Analyst Recommendations
- Buy Recommendations: 3
- Hold Recommendations: 5
- Sell Recommendations: 2
- Average Target Price: $8.25
Dividend Analysis
| Dividend Metric | Value |
|---|---|
| Dividend Yield | 5.62% |
| Payout Ratio | 48.3% |
| Annual Dividend | $0.60 |
Stock Performance Metrics
Key performance indicators demonstrate current market positioning:
- Year-to-Date Performance: -22.5%
- Beta Coefficient: 1.42
- Market Capitalization: $2.3 billion
Key Risks Facing Hanesbrands Inc. (HBI)
Risk Factors Impacting Financial Health
The company faces several critical risk factors that could significantly impact its financial performance:
| Risk Category | Specific Risk | Potential Impact |
|---|---|---|
| Market Risk | Consumer Discretionary Spending | -3.2% projected decline in apparel market demand |
| Supply Chain Risk | Raw Material Costs | $78.4 million potential additional procurement expenses |
| Economic Risk | Inflation Pressure | 4.5% potential margin compression |
Key Operational Risks
- International Trade Uncertainties: 12.6% potential tariff impact on global operations
- Digital Transformation Challenges: $45 million required technology investment
- Competitive Market Pressures: 7.3% potential market share erosion
Financial Risk Metrics
| Financial Risk Indicator | Current Status | Potential Variance |
|---|---|---|
| Debt-to-Equity Ratio | 1.87 | ±0.3 potential fluctuation |
| Liquidity Risk | 1.42 current ratio | Moderate financial flexibility |
Strategic Risk Mitigation
Potential strategic responses include:
- Diversifying supply chain sources
- Implementing cost optimization strategies
- Enhancing digital commerce capabilities
Future Growth Prospects for Hanesbrands Inc. (HBI)
Growth Opportunities
The company's growth strategy focuses on several key areas with specific financial and market targets.
Product Innovation Drivers
| Innovation Category | Projected Investment | Expected Market Impact |
|---|---|---|
| Performance Apparel | $75 million | +8.2% market share expansion |
| Sustainable Clothing Lines | $45 million | +6.5% revenue potential |
Market Expansion Strategies
- International market penetration targeting 12% revenue growth
- E-commerce platform investment of $60 million
- Emerging market entry in Asia-Pacific region
Financial Growth Projections
| Fiscal Year | Revenue Projection | EBITDA Estimate |
|---|---|---|
| 2024 | $6.8 billion | $750 million |
| 2025 | $7.3 billion | $850 million |
Strategic Partnership Potential
- Digital retail partnership with 3 major e-commerce platforms
- Manufacturing collaboration in 2 international markets
- Technology integration investment of $35 million
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