At some point in our lives, we might have bought products of Hanesbrands Inc. If not, you might have seen someone wearing their products. They are present at most of the malls.
Hanesbrands Inc., founded in 1901 is headquartered in Winston-Salem, North Carolina and sells its products all over the world. Operates 240 retail stores in the US and 690 stores worldwide.
Here are some notes on the company and its stock.
- Markets T-shirts, bras, panties, shapewear, underwear, socks, hosiery, and activewear under some of the world’s strongest apparel brands, including Hanes, Champion, Bonds, DIM, Maidenform, Bali, Playtex, Lovable, Bras N Things, Nur Die/Nur Der, Alternative, L’eggs, JMS/Just My Size, Wonderbra, Berlei, and Gear for Sports.
- Hanesbrands Inc’s top competitors include Nike, adidas, Gildan Activewear, Under Armour and MACK.
- Pays a dividend of $0.6 (5.36%). Paying dividend since 2013 and increased it overtime.
- Dividend Payout ratio is 42.86%.
- Missed Q1 2020 EPS estimates by $0.09. However met EPS estimates for prior three quarters.
- Revenue increased from $6B to $6.97B in the last 4 years. Earnings increased from $539M to $600M during the same period.
- Total Debt is $5.01B. Gross Profit 2.78B. Revenue is 6.7B. Current Ratio is 2.21.
- Market Capitalization of $4.07B, P/E: 8.33,PEG ratio : 4.02
- Shares are currently trading at $11.72 with 52W-High of $17.69 and 52W-Low of $6.96 with support level at $9.31 and resistance level at $14.85.
- Recently (June 2020) Hanesbrands appointed Walmart vet, Stephen Bratspies to chief executive position.
Pros:
Good company with worldwide presence marketing in multiple segments. Good Dividend payout and dividend raises. Payout ratio low and so chances of eliminating/cutting the dividend is low. The company has been around for a long time with low debt, no fear of bankruptcy.
Cons:
These are trying times for Hanesbrands with malls closed for some time during the pandemic. Hanesbrands Inc., has taken a major hit to its revenues. The stock price went down 47% when the market crashed and recovered back to $11.72. New CEO appointment would mean changes are coming to make his own impact and need to see how this is going to pan out.
Final Thoughts:
With brick and mortar stores out of favor, pandemic and new CEO I will wait on the company for some more time. Not buying now.
Be patient. Some things take time.
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