Hanesbrands Inc (HBI, Financial) has recently experienced a mixed bag of stock performance metrics. With a current market capitalization of $1.59 billion and a stock price of $4.54, investors have seen a modest 0.44% gain over the past week. However, the past three months have painted a different picture, with a 13.50% loss in stock value. This decline is particularly noteworthy when compared to the GF Value of $8.35, which suggests that the stock may be undervalued. The previous GF Value was $13.49, indicating a significant drop and reinforcing the current GF Valuation status of "Possible Value Trap, Think Twice," which has remained unchanged from the past valuation.
Overview of Hanesbrands Inc
Hanesbrands Inc, a stalwart in the Manufacturing - Apparel & Accessories industry, is known for its production and distribution of basic and athletic apparel. The company's portfolio includes renowned brands such as Hanes, Champion, and Playtex. Hanesbrands boasts a vertically integrated structure, producing over 70% of its goods in-house across multiple nations. With a global distribution network spanning the Americas, Europe, and Asia-Pacific, the company, founded in 1901 and headquartered in Winston-Salem, North Carolina, has a significant presence in the apparel market. 
Profitability Analysis
When it comes to profitability, Hanesbrands Inc holds a Profitability Rank of 6/10, which is a moderate score reflecting its financial health and market position. The company's Operating Margin stands at 5.12%, outperforming 56.86% of 1,057 companies in the industry. However, the Return on Equity (ROE) is at -4.98%, which, despite being better than 20.46% of its peers, indicates a potential concern for equity holders. The Return on Assets (ROA) of -0.29% and Return on Invested Capital (ROIC) of 4.44% suggest that the company is relatively average in terms of asset and capital efficiency within the industry. Over the past decade, Hanesbrands has maintained profitability for 7 years, which is better than 48.83% of the companies in the sector. 
Growth Prospects and Challenges
The Growth Rank for Hanesbrands is currently at 4/10, indicating a below-average growth trajectory. The company has seen a 3-Year Revenue Growth Rate per Share of -2.50%, which is better than 32.44% of its industry counterparts. The 5-Year Revenue Growth Rate per Share also shows a decline of -1.70%. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is estimated at -2.54%, which, while not promising, is still better than 8.96% of the industry. On a brighter note, the EPS without NRI Growth Rate (Future 3Y To 5Y Est) is projected at 11.37%, outperforming 31.58% of the industry. This suggests that while overall revenue growth may be challenged, earnings per share could see an uptick. 
Key Shareholders in Hanesbrands
Among the notable shareholders of Hanesbrands Inc, Jim Simons (Trades, Portfolio) leads with 4,394,800 shares, representing a 1.26% share percentage. Following closely is Charles Brandes (Trades, Portfolio), holding 4,298,017 shares, which accounts for 1.23% of the company's shares. HOTCHKIS & WILEY also holds a significant stake with 1,402,910 shares, making up 0.4% of the shares. These major holders reflect a vote of confidence from savvy investors, which could be a positive signal for potential investors.
Competitive Landscape
In comparison to its competitors, Hanesbrands Inc stands in a relatively strong position with its $1.59 billion market cap. Oxford Industries Inc (OXM, Financial) closely trails with a market cap of $1.56 billion, followed by G-III Apparel Group Ltd (GIII, Financial) at $1.46 billion, and FIGS Inc (FIGS, Financial) at $1.06 billion. This competitive analysis shows that Hanesbrands is holding its own in a tight market, with a slight edge over its closest rivals.
Conclusion
In summary, Hanesbrands Inc's stock performance has been a mixed affair, with recent gains overshadowed by a significant three-month loss. The current GF Valuation suggests caution, labeling the stock as a possible value trap. Despite this, the company's profitability metrics, though not stellar, are reasonable within the industry context. Growth prospects appear limited, with revenue expected to decline, but there is some optimism in the projected increase in EPS. The commitment of major shareholders like Jim Simons (Trades, Portfolio) and Charles Brandes (Trades, Portfolio) may offer some reassurance to investors. Finally, when placed against its competitors, Hanesbrands maintains a slight lead in market capitalization, indicating a stable market position. Investors should weigh these factors carefully when considering Hanesbrands Inc as a potential addition to their portfolios.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
