2024-02-05 12:12:32 ET
Summary
- HNI's past revenue growth has been volatile, but it has shown a strong recovery since 2021, although growth decelerated in 2022.
- In 3Q23, strong revenue growth was driven by the acquisition of Kimball, with non-GAAP margins and EPS also expanding compared to the previous year.
- The demand outlook for workplace furnishing remains neutral, but the divestiture of Poppin and integration of Kimball are expected to bolster future margins.
- Given the decelerating growth, the current share price lacks sufficient margin of safety. Therefore, I am recommending a hold rating.
Synopsis
HNI is one of the leading manufacturers of office furniture and hearth products. It sells a range of products for both the office and home environments....
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HNI: Insufficient Margin Of Safety Given Its Modest Growth Outlook