HNIHNI Corporation
Is the business good?
The checks split: earnings fully cash-backed (2.9×), but margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is HNI?
HNI Corporation earns 2.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 6.7 points below what the capital costs: growth destroys value
- Operating margin
- 2.0%
Operating margin · Furnishings, Fixtures & Appliances median 7.8% · 12 months to Q2 2026
- Cash conversion
- 2.85×
Cash conversion · 1.34× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +53%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 3.1% |
| FY2021 | 3.9% |
| FY2022 | 6.6% |
| FY2023 | 3.7% |
| FY2024 | 8.2% |
| FY2025 | 4.4% |
Details›
- Gross margin12 months to Q2 2026
- 41%
- Operating margin12 months to Q2 2026
- 2.0%
- Net margin12 months to Q2 2026
- 0.10%
- Free cash flow margin
- 2.8%
- Revenue, trailing twelve months
- $4.39B
- Free cash flow, trailing twelve months
- $122M
- Net income, trailing twelve months
- $4.3M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 2.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Furnishings, Fixtures & Appliances
Ranks #8 of 13 by RyuScore