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Hanesbrands - AI Stock Analysis
Analysis generated February 19, 2025
Hanesbrands Inc. (HBI) is a leading global marketer of everyday basic apparel under world-class brands such as Hanes, Champion, Bali, Maidenform, Playtex, and more. The company designs, manufactures, sources, and sells bras, panties, shapewear, underwear, T-shirts, socks, hosiery, and activewear, among other products. Hanesbrands operates in the Americas, Europe, and Asia-Pacific, with a business model centered on innovation and brand development. The company has a robust omni-channel strategy, selling through mass merchants, department stores, specialty stores, direct consumer channels, and through its own website.
Fundamental Analysis
Revenue: Revenue for the last quarter was $937 million, representing a decrease of 5.86% quarter-over-quarter and a significant 37.99% year-over-year decline. This trend raises concerns about the company’s ability to generate sales consistently.
Net Income: The net income for the last quarter was $30 million, which marks a substantial increase of 110.04% compared to the previous quarter and a spectacular 177.20% growth year-over-year. This is a positive indicator of profitability and operational efficiency improvements.
EBITDA: Last quarter's EBITDA stood at $105 million, up by an impressive 274.32% from the previous quarter and an increase of 51.25% year-over-year. This highlights strong earnings performance and profitability.
P/E Ratio: The current P/E ratio is 129.84. This high valuation multiple may suggest an overvalued stock, signaling potential bearish outlook given the typical P/E standards.
Technical Analysis
Stock Price: Today’s stock price is $6.11, representing a 26.30% decrease compared to a month ago. However, it shows a 34.58% increase year-over-year, which is indicative of a positive long-term trend.
SMA10: The current SMA10 stands at $6.47, lower than the previous SMA10 of $6.61, suggesting a potential downward trend.
RSI: The RSI is at 96.1, indicating an overbought condition and the likelihood of bearish price movements in the near term.
Alternative Data Analysis
Job Postings and Employee Sentiment: Hanesbrands has 148 open positions, which is down by 11% in the past couple of months. Additionally, only 41% of employees have a positive business outlook, a 9% decline from previous months. These metrics suggest internal cost-cutting measures and low employee morale.
Customer Acquisition and Engagement: Hanesbrands' website sees an estimated 780,000 visitors, down by 36% over the last few months. This decline points to potential customer attrition. The company has 78,000 followers on Instagram, with no notable changes in followership recently.
AltIndex AI Score: According to AltIndex, Hanesbrands' AI score is 31, which signals a strong sell recommendation based on aggregated fundamental, technical, and alternative data.
Conclusion and Recommendation
In summary, despite the robust increases in net income and EBITDA, Hanesbrands is facing substantial challenges in revenue generation and stock valuation. The high P/E ratio and the bearish technical indicators raise red flags. Coupled with declining employee sentiment, fewer job postings, and decreasing web traffic, the outlook appears bleak. The AI score of 31 further supports a strongly bearish stance.
Given these analyses, it would be prudent to adopt a cautious approach toward Hanesbrands' stock. Conservative investors might consider holding off purchasing or considering divesting until more positive indicators emerge.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
