Latest Ratios: P/E Ratio 42.5x · EV/EBITDA 13.9x · ROE 4.1%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.4B | $2.1B | $2.5B | $1.9B | $1.2B | $1.8B | $1.5B | $1.6B | $1.6B | $1.7B | $2.5B |
| Enterprise Value | $4.8B | $3.5B | $2.9B | $2.4B | $1.5B | $2.1B | $1.6B | $1.8B | $1.7B | $2.0B | $2.7B |
| P/E Ratio → | 42.49 | 38.36 | 17.66 | 38.73 | 9.67 | 30.92 | 35.16 | 14.75 | 16.79 | 19.29 | 29.74 |
| P/S Ratio | 1.20 | 0.73 | 0.98 | 0.78 | 0.51 | 0.85 | 0.76 | 0.73 | 0.70 | 0.79 | 1.15 |
| P/B Ratio | 1.26 | 1.13 | 2.94 | 2.49 | 1.95 | 3.14 | 2.51 | 2.79 | 2.79 | 3.36 | 5.08 |
| P/FCF | 16.16 | 9.90 | 14.01 | 10.03 | 56.59 | 23.65 | 8.13 | 10.28 | 12.01 | 72.34 | 19.58 |
| P/OCF | 12.31 | 7.54 | 10.88 | 7.10 | 14.78 | 14.04 | 6.90 | 7.43 | 8.42 | 12.99 | 11.39 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.23 | 1.16 | 1.01 | 0.63 | 0.95 | 0.83 | 0.82 | 0.77 | 0.91 | 1.24 |
| EV / EBITDA | 13.87 | 10.08 | 9.06 | 9.00 | 7.25 | 11.84 | 9.08 | 7.94 | 7.97 | 10.72 | 10.22 |
| EV / EBIT | 20.05 | 27.84 | 14.28 | 27.11 | 9.55 | 24.52 | 26.50 | 12.01 | 13.65 | 25.87 | 20.47 |
| EV / FCF | — | 16.66 | 16.70 | 12.93 | 69.95 | 26.49 | 8.89 | 11.57 | 13.33 | 82.94 | 20.95 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 40.4% | 40.4% | 39.9% | 39.0% | 34.4% | 33.3% | 35.6% | 36.0% | 35.9% | 35.3% | 38.0% |
| Operating Margin | 8.5% | 8.5% | 8.6% | 7.3% | 5.1% | 4.2% | 5.1% | 6.8% | 6.4% | 5.2% | 9.0% |
| Net Profit Margin | 1.9% | 1.9% | 5.5% | 2.0% | 5.2% | 2.7% | 2.1% | 4.9% | 4.1% | 4.1% | 3.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 4.1% | 4.1% | 17.4% | 7.1% | 20.5% | 10.1% | 7.1% | 19.3% | 17.3% | 17.7% | 17.5% |
| ROA | 1.6% | 1.6% | 7.3% | 2.9% | 8.5% | 4.1% | 2.9% | 7.7% | 6.7% | 6.6% | 6.6% |
| ROIC | 7.9% | 7.9% | 12.4% | 12.0% | 10.5% | 8.9% | 9.9% | 15.1% | 14.3% | 11.6% | 22.5% |
| ROCE | 9.4% | 9.4% | 15.1% | 14.3% | 12.0% | 9.3% | 10.3% | 15.8% | 15.4% | 12.7% | 23.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.89 | 0.89 | 0.59 | 0.76 | 0.49 | 0.47 | 0.43 | 0.44 | 0.44 | 0.54 | 0.43 |
| Debt / EBITDA | 4.69 | 4.69 | 1.53 | 2.12 | 1.47 | 1.57 | 1.43 | 1.12 | 1.14 | 1.50 | 0.80 |
| Net Debt / Equity | — | 0.78 | 0.56 | 0.72 | 0.46 | 0.38 | 0.23 | 0.35 | 0.31 | 0.49 | 0.35 |
| Net Debt / EBITDA | 4.09 | 4.09 | 1.46 | 2.02 | 1.39 | 1.27 | 0.78 | 0.89 | 0.79 | 1.37 | 0.67 |
| Debt / FCF | — | 6.76 | 2.69 | 2.90 | 13.36 | 2.84 | 0.76 | 1.30 | 1.32 | 10.60 | 1.37 |
| Interest Coverage | 3.59 | 3.59 | 7.57 | 3.54 | 17.65 | 11.73 | 8.73 | 17.70 | 12.74 | 12.02 | 26.15 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.24 | 1.24 | 1.10 | 1.16 | 1.19 | 1.03 | 1.13 | 1.10 | 1.22 | 1.00 | 0.93 |
| Quick Ratio | 0.82 | 0.82 | 0.69 | 0.73 | 0.73 | 0.68 | 0.82 | 0.76 | 0.86 | 0.68 | 0.68 |
| Cash Ratio | 0.19 | 0.19 | 0.06 | 0.07 | 0.05 | 0.11 | 0.27 | 0.11 | 0.18 | 0.05 | 0.08 |
| Asset Turnover | — | 0.58 | 1.35 | 1.26 | 1.67 | 1.46 | 1.38 | 1.55 | 1.61 | 1.56 | 1.66 |
| Inventory Turnover | 3.56 | 3.56 | 7.82 | 7.55 | 8.60 | 8.02 | 9.13 | 8.79 | 9.20 | 9.05 | 11.53 |
| Days Sales Outstanding | — | 73.42 | 36.06 | 36.99 | 33.71 | 39.63 | 37.93 | 44.74 | 41.34 | 43.37 | 38.01 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.7% | 3.0% | 2.6% | 3.1% | 4.4% | 2.9% | 3.5% | 3.2% | 3.3% | 2.9% | 1.9% |
| Payout Ratio | 116.4% | 116.4% | 45.6% | 118.9% | 42.9% | 89.9% | 124.3% | 47.3% | 54.7% | 55.2% | 56.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.4% | 2.6% | 5.7% | 2.6% | 10.3% | 3.2% | 2.8% | 6.8% | 6.0% | 5.2% | 3.4% |
| FCF Yield | 6.2% | 10.1% | 7.1% | 10.0% | 1.8% | 4.2% | 12.3% | 9.7% | 8.3% | 1.4% | 5.1% |
| Buyback Yield | 2.5% | 4.0% | 2.7% | 0.0% | 5.4% | 3.2% | 0.5% | 5.1% | 1.9% | 3.3% | 2.2% |
| Total Shareholder Yield | 5.2% | 7.0% | 5.2% | 3.1% | 9.9% | 6.1% | 4.0% | 8.4% | 5.2% | 6.2% | 4.1% |
| Shares Outstanding | — | $49M | $49M | $45M | $42M | $44M | $43M | $43M | $44M | $45M | $46M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying HNI stock.
HNI Corporation's current P/E ratio is 42.5x. The historical average is 24.0x. This places it at the 97th percentile of its historical range.
HNI Corporation's current EV/EBITDA is 13.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.3x.
HNI Corporation's return on equity (ROE) is 4.1%. The historical average is 15.9%.
Based on historical data, HNI Corporation is trading at a P/E of 42.5x. This is at the 97th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
HNI Corporation's current dividend yield is 2.74% with a payout ratio of 116.4%.
HNI Corporation has 40.4% gross margin and 8.5% operating margin.
HNI Corporation's Debt/EBITDA ratio is 4.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Integration and macro headwinds
Metrics are mathematically derived from official filings.
Conglomerate Discount Masks Forward Value
HNI's trailing P/E of 44.35 reflects depressed earnings, but forward P/E of 11.33 and EV/EBITDA of 6.66 suggest market pricing for recovery. According to recent filings, this gap implies skepticism about margin normalization.
The wide spread between trailing and forward multiples indicates that the market expects a significant earnings rebound, likely from Kimball synergies and margin recovery. However, the PEG of 17.58 is distorted by near-term earnings volatility, making it an unreliable gauge. Relative to peers like Steelcase (P/E 15.82) and MillerKnoll (17.24), HNI's forward multiple is lower, suggesting the market is not fully crediting the residential segment's stability. Investors should monitor whether the forward estimates are achievable given the integration risks.
Gross Margin Strength, Net Margin Strain
Gross margin expanded to 44.0% in 2026Q2, up from 41.8% a year earlier, but net margin remains thin at 3.5%. Based on reported figures, this divergence highlights integration costs and elevated SG&A burden.
The gross margin improvement indicates a favorable product mix, likely driven by the higher-margin residential segment. However, operating margin of 7.8% is below the 10.6% in 2025Q2, and SG&A as a percentage of revenue rose to 35.5% from 31.2%, suggesting that acquisition-related overhead is not yet offset by synergies. The net margin of 3.5% is below Steelcase's 3.8% and MillerKnoll's 2.4%, but the gap may narrow if integration costs subside. Adjusted EBITDA, which excludes acquisition amortization and stock-based compensation, likely presents a cleaner picture of underlying profitability.
Returns Compressed by Acquisition Scale
ROIC fell to 2.5% in 2026Q2 from 3.9% a year earlier, while ROE dropped to 2.9% from 6.0%. As reported in financial statements, the Kimball acquisition has temporarily diluted returns on a larger capital base.
The decline in ROIC and ROE reflects the substantial increase in invested capital from the Kimball deal, which has not yet generated proportional operating income. The 10-quarter trend shows ROIC fluctuating between 1.7% and 4.2%, with the recent dip to 2.5% indicating that integration costs and working capital demands are suppressing returns. If management achieves the guided synergies, ROIC could recover toward the mid-single digits, but the current trajectory suggests a multi-quarter digestion period. The asset turnover of 0.31x is low, indicating that the expanded asset base is not yet generating sufficient revenue per dollar of assets.
Working Capital Swing Distorts Cash Conversion
Cash conversion cycle turned negative to -5 days in 2026Q2, driven by DPO of 96 days, but operating cash flow was -$32M. According to recent SEC filings, this suggests aggressive supplier terms may be masking inventory build.
The negative CCC is primarily due to extended payables (DPO of 96 days), which may indicate HNI is leveraging supplier financing post-acquisition. However, the negative operating cash flow in 2026Q2, despite a positive net income, points to significant working capital outflows, likely from inventory and receivables related to Kimball integration. DSO of 37 days is stable, but DIO of 55 days is elevated, suggesting inventory management challenges. The efficiency gains from negative CCC are not translating into cash generation, which warrants monitoring as integration progresses.
Leverage Spikes, Coverage Thins
Debt-to-equity rose to 0.93 in 2026Q2 from 0.55 a year earlier, while interest coverage fell to 4.82x from 11.00x. Based on reported figures, the Kimball acquisition has materially increased financial risk.
The D/E ratio of 0.93 is elevated relative to peers like Steelcase (0.63) and MillerKnoll (1.28), indicating a moderate leverage position. However, D/EBITDA of 9.29x is high, reflecting the recent earnings dip; this metric would improve if EBITDA normalizes. Interest coverage of 4.82x is adequate but down sharply from 11.00x in 2025Q2, suggesting that debt service is becoming less comfortable. The company's ability to refinance or service debt depends on achieving the raised guidance; otherwise, covenant risk could emerge. Investors should monitor the trajectory of EBITDA and interest expense in coming quarters.
Liquidity Buffer Thin but Manageable
Current ratio improved to 1.36 in 2026Q2, but quick ratio of 0.88 indicates inventory dependence. As reported in financial statements, cash of $105M against $1.7B debt suggests limited flexibility under stress.
The current ratio of 1.36 is above the 1.0 threshold, but the quick ratio of 0.88 reveals that a significant portion of current assets is tied up in inventory, which may be harder to liquidate in a downturn. Cash of $105M is modest relative to total debt, and with negative free cash flow in 2026Q2, the liquidity position could tighten if working capital outflows persist. However, the company has maintained its dividend, indicating a commitment to shareholder returns even under cash strain. Under a severe stress scenario, HNI may need to draw on credit facilities or curtail capex, but the current ratios suggest a manageable, albeit thin, buffer.
Misapplied Metric: Trailing P/E
The trailing P/E of 44.35 is commonly misapplied to HNI, as it reflects depressed earnings from acquisition costs and cyclical trough. According to recent filings, forward P/E of 11.33 better captures normalized earnings power.
Investors often screen on trailing P/E, which for HNI is distorted by one-time charges and the Kimball integration, making the company appear overvalued. This metric obscures the potential for margin recovery and the stable cash flows from the residential segment. A more appropriate valuation approach is to use forward EV/EBITDA (6.66x) or sum-of-the-parts analysis, which separates the higher-multiple hearth business from the cyclical office furniture segment. Additionally, adjusted EBITDA, which excludes acquisition amortization and stock-based compensation, provides a cleaner basis for valuation. Relying on trailing P/E alone could lead to an incorrect conclusion that HNI is expensive relative to peers.