Latest Ratios: P/E Ratio 37.3x · EV/EBITDA 9.7x · 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 | $1.9B | $2.1B | $2.5B | $1.9B | $1.2B | $1.8B | $1.5B | $1.6B | $1.6B | $1.7B | $2.5B |
| Enterprise Value | $3.4B | $3.5B | $2.9B | $2.4B | $1.5B | $2.1B | $1.6B | $1.8B | $1.7B | $2.0B | $2.7B |
| P/E Ratio → | 37.26 | 38.36 | 17.66 | 38.73 | 9.67 | 30.92 | 35.16 | 14.75 | 16.79 | 19.29 | 29.74 |
| P/S Ratio | 0.69 | 0.73 | 0.98 | 0.78 | 0.51 | 0.85 | 0.76 | 0.73 | 0.70 | 0.79 | 1.15 |
| P/B Ratio | 1.10 | 1.13 | 2.94 | 2.49 | 1.95 | 3.14 | 2.51 | 2.79 | 2.79 | 3.36 | 5.08 |
| P/FCF | 9.26 | 9.90 | 14.01 | 10.03 | 56.59 | 23.65 | 8.13 | 10.28 | 12.01 | 72.34 | 19.58 |
| P/OCF | 7.05 | 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 | 9.74 | 10.12 | 9.06 | 9.00 | 7.25 | 11.84 | 9.08 | 7.94 | 7.97 | 10.72 | 10.22 |
| EV / EBIT | 14.10 | 27.73 | 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 | 41.4% | 41.4% | 39.9% | 39.0% | 34.4% | 33.3% | 35.6% | 36.0% | 35.9% | 35.3% | 38.0% |
| Operating Margin | 8.4% | 8.4% | 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 | 7.8% | 7.8% | 12.4% | 12.0% | 10.5% | 8.9% | 9.9% | 15.1% | 14.3% | 11.6% | 22.5% |
| ROCE | 9.3% | 9.3% | 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 | 4.71 | 4.71 | 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 | 4.11 | 4.11 | 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 | 3.55 | 3.55 | 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 | 3.50 | 3.50 | 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 | 3.1% | 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 | 2.7% | 2.6% | 5.7% | 2.6% | 10.3% | 3.2% | 2.8% | 6.8% | 6.0% | 5.2% | 3.4% |
| FCF Yield | 10.8% | 10.1% | 7.1% | 10.0% | 1.8% | 4.2% | 12.3% | 9.7% | 8.3% | 1.4% | 5.1% |
| Buyback Yield | 4.3% | 4.0% | 2.7% | 0.0% | 5.4% | 3.2% | 0.5% | 5.1% | 1.9% | 3.3% | 2.2% |
| Total Shareholder Yield | 7.4% | 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 |
Integration and cyclical volatility
Based on recent financial data, HNI trades at a forward P/E of 9.85, which appears to reflect significant market skepticism regarding the company's ability to integrate recent acquisitions and navigate the current cyclical downturn in commercial real estate compared to its historical valuation multiples and industry peers.
The wide disparity between the TTM P/E of 35.68 and the forward P/E suggests that the market is pricing in a substantial recovery in earnings that may be contingent on successful synergy realization from the Kimball International transaction. Investors should monitor whether this valuation compression is a temporary reaction to integration-related accounting noise or a structural re-rating of the company's long-term growth prospects.
According to reported figures, HNI's ROIC has deteriorated to -0.8% in 2026Q1 from a peak of 4.1% in 2024Q3, indicating that the company is currently failing to generate returns above its cost of capital as it absorbs the impact of recent large-scale capital deployment and operational headwinds.
The sharp decline in return on invested capital suggests that the recent expansion of the asset base has not yet translated into incremental value creation. This trend warrants further investigation into whether the current capital allocation strategy is effectively utilizing the company's manufacturing footprint or if the recent acquisitions have introduced significant drag on overall return profiles.
As disclosed in recent quarterly filings, HNI's cash conversion cycle has become increasingly volatile, with the most recent data showing significant disruption in inventory and accounts receivable management compared to the more stable 5-15 day range observed during the 2025 fiscal year, signaling potential operational inefficiencies.
The fluctuation in the cash conversion cycle suggests that the company is struggling to balance inventory levels with shifting demand patterns in both the workplace and residential segments. Investors should monitor whether these inefficiencies are temporary adjustments to the new organizational structure or indicative of a broader challenge in managing working capital across a more complex, integrated business model.
Based on HNI's reported figures, the debt-to-EBITDA ratio spiked to 1170.87 in 2026Q1, a dramatic departure from the 3.53 level seen in 2025Q3, which highlights a significant deterioration in the company's ability to cover its debt obligations through operational earnings in the current high-interest-rate environment.
The extreme volatility in interest coverage and leverage ratios suggests that the company's balance sheet is currently highly sensitive to earnings fluctuations. This level of leverage warrants close monitoring, as it limits the company's financial flexibility and increases the risk that any further operational underperformance could necessitate more aggressive cost-cutting or capital restructuring measures.
The P/E ratio is frequently misapplied to HNI because it fails to account for the significant non-cash amortization and one-time restructuring charges associated with recent acquisitions, which currently distort the company's true earning power and mask the underlying cash-generating potential of the hearth and furniture segments.
Analysts should instead prioritize EV/EBITDA or P/FCF to better assess the company's operational health, as these metrics are less susceptible to the accounting distortions inherent in the current net income figures. Relying solely on P/E may lead to an inaccurate assessment of the company's valuation, as it ignores the capital-intensive nature of the manufacturing model and the impact of recent strategic pivots.
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Quick answers to the most common questions about buying HNI stock.
HNI Corporation's current P/E ratio is 37.3x. The historical average is 24.0x. This places it at the 83th percentile of its historical range.
HNI Corporation's current EV/EBITDA is 9.7x. 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 37.3x. This is at the 83th 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 3.12% with a payout ratio of 116.4%.
HNI Corporation has 41.4% gross margin and 8.4% operating margin.
HNI Corporation's Debt/EBITDA ratio is 4.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.