Hanesbrands (HBI) AI Stock Analysis

• Market Cap: $2.07B
• Dividend Yield: N/A
• Average Volume (3M): 7.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• Revenue Growth: -29.44%
• EPS Growth: -1343.00%
• Country: US
• Employees: 41,000
• Sector: Consumer Cyclical
• Sector Strength: 53
• Industry: Apparel & Luxury
• EPS (TTM): -0.73
• Shares Outstanding: 353,108,900
• 10 Day Avg. Volume: 7,665,120
• 30 Day Avg. Volume: 7,673,691
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.59
• Price to Cash Flow (P/CF): 7.70
• P/FCF Ratio: 9.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.40
• Price Target Upside: 23.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

Hanesbrands' overall score reflects its significant financial challenges, including declining revenue and high leverage. However, improvements in recent financial performance and strategic initiatives have provided a positive outlook, balancing some of the risks. Technical indicators and concerning valuation metrics pose additional challenges.

Positive Factors

Cash Flow Growth

HBI expects to see an additional ~$100M in free cash flow growth in 2025, driven by margin expansion, lower cash interest, and benefits from lapping of one-time costs.

Financial Performance

HBI delivered solid top and bottom line performance in 4Q, with all regions returning to growth, including a positive inflection in the US and accelerated growth internationally.

Negative Factors

Leadership Changes

The respected CEO Bratspies announced he will depart by 2025 end, creating concerns around the sustainability of HBI's recent successes.

Hanesbrands Business Overview & Revenue Model

Company Description

Hanesbrands, Inc. is a consumer goods company, which engages in the design, manufacture, sourcing, and sale of everyday basic innerwear and activewear apparel in the Americas, Europe, Australia and Asia Pacific. It operates through the following three segments: Innerwear, Activewear, and International. The Innerwear segment includes core apparel products, such as men's underwear, women's panties, children's underwear, socks and intimate apparel, sold in the United States (US). The Activewear segment consists of activewear products, such as T-shirts, fleece, performance apparel, sport shirts and thermals, sold in the US. The International segment composes of innerwear, activewear, hosiery and home goods products, sold outside of the US. Its brands include Hanes, Champion, Bonds, Maidenform, DIM, Bali, Playtex, Bras N Things, Nur Die/Nur Der, Alternative, L'eggs, JMS/Just My Size, Lovable, Wonderbra, Berlei, and Gear for Sports. The company was founded by J. Wesley Hanes in 1901 and is headquartered in Winston-Salem, NC.

How the Company Makes Money

Hanesbrands Inc. generates revenue primarily through the sale of its branded apparel products. The company's revenue model is based on wholesale and direct-to-consumer sales, including e-commerce platforms. Key revenue streams include innerwear and activewear sales, with a significant portion of earnings coming from large retail partnerships and distributors. Additionally, Hanesbrands leverages its strong brand recognition and extensive global supply chain to maintain a competitive edge. The company also engages in licensing agreements for certain brands, contributing to its revenue through royalties. Strategic partnerships for brand collaborations and expansion into emerging markets are significant factors that enhance its earnings potential.

Hanesbrands Financial Statement Overview

Summary

Hanesbrands is facing significant financial challenges with declining revenues and profitability, high leverage, and minimal equity. While cash flow management shows some strengths, the overall financial health is weak, with substantial risks due to high debt levels and continued losses.

Income Statement

Hanesbrands has experienced a significant decline in revenue and profitability over the years. The recent gross profit margin is 38.8%, and the net profit margin is negative, indicating losses. The revenue growth rate has been negative, with a notable drop from 2021 to 2024. The EBIT and EBITDA margins are also decreasing, showing declining operational efficiency.

Balance Sheet

The company has a very high debt-to-equity ratio, indicating high leverage and financial risk. The equity ratio is alarmingly low at 0.9%, suggesting minimal equity buffer. ROE is negative due to net losses, further indicating poor financial health.

Cash Flow

Operating cash flow has shown some resilience, with a positive operating cash flow to net income ratio, indicating better cash management despite the net losses. Free cash flow is positive, but its growth rate is negative, reflecting reduced cash flow generation capacity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement		Total Revenue
3.51B	5.64B	6.23B	6.80B	6.66B
	Gross Profit
1.36B	1.90B	2.22B	2.65B	1.85B
	EBIT
185.95M	288.78M	519.54M	797.73M	-16.63M
	EBITDA
230.56M	363.37M	700.59M	860.71M	156.26M
	Net Income Common Stockholders
-320.43M	-17.73M	-131.17M	520.97M	-75.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
214.85M	205.50M	238.41M	536.28M	909.44M
	Total Assets
3.84B	5.64B	6.50B	7.07B	7.70B
	Total Debt
2.39B	3.77B	4.30B	3.74B	4.51B
	Net Debt
2.18B	3.56B	4.06B	3.21B	3.60B
	Total Liabilities
3.81B	5.22B	6.11B	6.37B	6.88B
	Stockholders Equity
34.01M	419.35M	398.26M	702.49M	813.96M
Cash Flow		Free Cash Flow
226.35M	517.69M	-573.92M	554.14M	394.73M
	Operating Cash Flow
264.24M	561.75M	-358.80M	623.41M	448.47M
	Investing Cash Flow
813.03M	-23.48M	-216.43M	-52.45M	-41.08M
	Financing Cash Flow
-1.05B	-580.08M	295.83M	-888.02M	142.17M

Hanesbrands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HBI, the sentiment is Negative. The current price of 5.98 is below the 20-day moving average (MA) of 6.60, below the 50-day MA of 7.60, and below the 200-day MA of 6.76, indicating a bearish trend. The MACD of -0.52 indicates Positive momentum. The RSI at 31.42 is Neutral, neither overbought nor oversold. The STOCH value of 14.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HBI.

Hanesbrands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RL	81 Outperform	$15.61B	23.04	27.75%	1.23%	5.23%	24.63%
CROX	76 Outperform	$5.66B	6.50	57.76%	―	3.53%	24.55%
PVH	67 Neutral	$3.90B	5.71	13.48%	0.21%	-4.83%	45.23%
Sector *	60 Neutral	$13.01B	10.45	0.79%	3.53%	1.60%	-22.47%
VFC	58 Neutral	$8.78B	―	-16.13%	1.60%	-8.42%	57.91%
HBI	47 Neutral	$2.07B	―	-43.06%	―	-29.44%	-1343.00%

Hanesbrands Corporate Events

Hanesbrands CEO Stephen Bratspies to Depart in 2025

On February 13, 2025, Hanesbrands Inc. announced the departure of its CEO, Stephen B. Bratspies, effective at the end of 2025. The Board has begun the search for a new CEO, and Mr. Bratspies will remain in his role until a successor is found. He will then serve as a non-executive advisor until December 31, 2025, to ensure a smooth transition. His departure is categorized as an involuntary termination without cause, entitling him to severance benefits as per his existing agreement with the company.

Hanesbrands Exits Champion Japan License, Eyes Growth

HanesBrands reported better-than-expected fourth-quarter and full-year 2024 results, with net sales growing by 4.5% and operating margins increasing significantly. The company announced its decision to exit the Champion Japan license, reclassifying it as discontinued operations, and provided a positive financial outlook for 2025, expecting continued growth and debt reduction.