Hon Industries Story

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HNI -- USA Stock  

USD 39.91  0.45  1.11%

Hon Industries Interest Coverage is most likely to increase significantly in the upcoming years. The last year's value of Interest Coverage was reported at 29.42. The current Long Term Debt to Equity is estimated to increase to 0.44, while Net Income Per Employee is projected to decrease to 7,231. The underlying intention for this short outlook is to concentrate on Hon Industries as an investment oportunity for March. We will examine why recent Hon Industries price moves suggest a bounce in March.
Published over a month ago
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Estimating Hon Industries (NYSE:HNI) price for March 2021.
The company has a beta of -0.2688. Let's try to break down what Hon Industries's beta means in this case. Hon Industries returns are very sensitive to returns on the market. As the market goes up or down, Hon Industries is expected to follow. The beta indicator helps investors understand whether Hon Industries moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Hon Industries deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Hon Industries. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Hon Industries

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Hon Industries' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Hon Industries in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Hon Industries. Your research has to be compared to or analyzed against Hon Industries' peers to derive any actionable benefits. When done correctly, Hon Industries' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Hon Industries.

How important is Hon Industries's Liquidity

Hon Industries financial leverage refers to using borrowed capital as a funding source to finance Hon Industries ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Hon Industries 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 Hon Industries's total debt and its cash.

How Hon Industries utilizes its cash?

To perform a cash flow analysis of Hon Industries, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Hon Industries is receiving and how much cash it distributes out in a given period. The Hon Industries cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Hon Industries Net Cash Flow from Operations is most likely to increase significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 214.47 Million

Acquisition by Dhanusha Sivajee of 241 shares of Hon Industries subject to Rule 16b-3

Legal trades by Hon Industries 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:
Hon Industries insider trading alert for grant of common stock by Dhanusha Sivajee, the corporate stakeholder, on 19th of February 2021. This event was filed by Hni Corp with SEC on 2021-02-19. 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 it down a bit more

Hon Industries exhibits very low volatility with skewness of 0.65 and kurtosis of 0.7. However, we advise investors to further study Hon Industries technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hon Industries' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Hon Industries' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Returns Breakdown

Return on Investment17.0
Return on Assets0.0724
Return on Equity0.19
Return Capital0.21
Return on Sales0.0668

Our take on today Hon Industries drop

The potential upside is down to 4.09 as of today. Hon Industries exhibits very low volatility with skewness of 0.65 and kurtosis of 0.7. However, we advise investors to further study Hon Industries technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hon Industries' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Hon Industries' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

The Current Takeaway on Hon Industries Investment

When is the right time to buy or sell Hon Industries? Buying stocks such as Hon Industries isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
To conclude, as of the 28th of February 2021, we believe that Hon Industries is currently overvalued with low probability of distress in the next two years. Our primary 30 days buy-or-sell advice on the company is Sell.

About Contributor

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 Achuva Shats do not own shares of Hon Industries. Please refer to our Terms of Use for any information regarding our disclosure principles.

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