Hibbett Stock Story


USD 60.78  1.80  2.88%   

Hibbett is scheduled to announce its earnings tomorrow. The next financial report is expected on the 27th of May 2022. Hibbett Interest Coverage is projected to decrease significantly based on the last few years of reporting. The past year's Interest Coverage was at 403.23. The current year Long Term Debt to Equity is expected to grow to 0.009461, whereas Net Income Per Employee is forecasted to decline to 8,303. While many traders are getting carried away by overanalyzing consumer cyclical space, it is reasonable to go over Hibbett as an investment alternative.
Published over two months ago
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You think Hibbett (NASDAQ:HIBB) debt is an issue for investors?

The entity currently holds 283.27 M in liabilities with Debt to Equity (D/E) ratio of 0.97, which is about average as compared to similar companies.
Our trade recommendations tool can be used to complement Hibbett advice provided by experts. It analyzes the entity's potential to grow against your specific risk preferences and investment horizon.
About 108.0% of the company shares are owned by institutional investors. Hibbett has price-to-book (P/B) ratio of 1.97. Some equities with similar Price to Book (P/B) outperform the market in the long run. The entity has Price/Earnings To Growth (PEG) ratio of 0.59. The firm recorded earning per share (EPS) of 10.99. Hibbett next dividend is scheduled to be issued on the 16th of March 2022. This firm had 3:2 split on the 28th of September 2005.
Hibbett financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Hibbett, including all of Hibbett's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Hibbett assets, the company is considered highly leveraged. Understanding the composition and structure of overall Hibbett debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Hibbett Total Debt

Hibbett liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Hibbett has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Hibbett balance sheet include debt obligations and money owed to different Hibbett vendors, workers, and loan providers. Below is the chart of Hibbett main long-term debt accounts currently reported on its balance sheet.
You can use Hibbett financial leverage analysis tool to get a better grip on understanding its financial position

How important is Hibbett's Liquidity

Hibbett financial leverage refers to using borrowed capital as a funding source to finance Hibbett ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Hibbett financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Hibbett's total debt and its cash.

Acquisition by Chikkala Ramesh of 1673 shares of Hibbett subject to Rule 16b-3

Legal trades by Hibbett insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Hibbett insider trading alert for grant of common stock by Chikkala Ramesh, the corporate stakeholder, on 5th of July 2022. This event was filed by Hibbett Inc with SEC on 2022-07-05. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Hibbett Further

The firm reported the previous year's revenue of 1.69 B. Net Income was 174.31 M with profit before overhead, payroll, taxes, and interest of 646.41 M.

Asset Breakdown

275.3 M
Assets Non Current
332.9 M
Current Assets
Total Assets608.22 Million
Current Assets332.9 Million
Assets Non Current275.32 Million
Goodwill27.4 Million
Tax Assets9.11 Million

Our perspective of the current Hibbett rise

Hibbett current semi variance builds up over 22.88.
As of the 26th of May, Hibbett retains the Downside Deviation of 5.07, risk adjusted performance of 0.0613, and Market Risk Adjusted Performance of 0.0991. Hibbett technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We have analyzed nineteen technical drivers for Hibbett, which can be compared to its competitors. Please check out Hibbett variance, maximum drawdown, and the relationship between the coefficient of variation and jensen alpha to decide if Hibbett is priced fairly, providing market reflects its last-minute price of 51.1 per share. Given that Hibbett has jensen alpha of 0.3066, we strongly advise you to confirm Hibbett's regular market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Hibbett

Whereas many of the other players within the apparel retail industry are still a little expensive, even after the recent corrections, Hibbett may offer a potential longer-term growth to investors. To conclude, as of the 26th of May 2022, our analysis shows that Hibbett actively responds to the market. The company is undervalued and projects low odds of financial turmoil for the next 2 years. Our final 90 days buy-or-sell advice on the company is Strong Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Hibbett. Please refer to our Terms of Use for any information regarding our disclosure principles.

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