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Hanesbrands: Extreme Value During A Cyclical Downswing

When evaluating Hanesbrands (NYSE:HBI), their financials have struggled the past two years after showing consistent growth in Revenue, Free Cash Flow, and Net Income from 2011-2019. This is largely in part due to inventory issues and supply chain constraints, along with an overall market slowdown. I still think these financials look healthy over the long run for a consumer cyclical company and may provide a buying opportunity before the upswing. Furthermore, they have been consistently buying back shares. There may be backlash on this decision, with short term debt and the dividend dissolving their cash flow. But I believe a stock price under $20 is considered undervalued, shown later in the valuation segment, which means HBI has ...

seekingalpha.com     Dec 20, 2022