ZYBERNO
Stock Report
Updated Jun 2, 2026

Hanesbrands Inc. (HBI)

NYSE

$6.47
Hanesbrands Inc. is an American multinational clothing company headquartered in Winston-Salem, North Carolina, that manufactures and markets everyday basic apparel including innerwear (bras, panties, shapewear, hosiery), activewear, and socks. The company sold its Champion activewear brand to Authentic Brands Group in 2023, allowing it to focus on its core Hanes and Maidenform innerwear brands.

Professional Investment Analysis

ZYBERNO SCORE
Is it a great business? Is it getting better?
34.0/100
WEAK BUSINESS
Hanesbrands Inc. (HBI) scores 34/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.
📊 How is the Zyberno Score calculated? +
VALUATION SIGNAL
MARGIN OF SAFETY
Is this stock cheap or expensive relative to what the business has historically generated for owners?
-100.0%
Overvalued
Is the market underestimating or overestimating what this business is capable of going forward?
-2.9%
Fairly Priced
↑ UNDER
+50%
Brina Gap
-50%
↓ OVER
← OVERVALUED
-100%
Margin of Safety
UNDERVALUED →
+100%
UNDERESTIMATED
GROWTH
DOUBLE
DISCOUNT
EXPENSIVE
HYPE
VALUE
TRAP
0,0
MoS -100.0%  ·  Gap -2.9%

Two independent signals. One tells you if the stock is cheap relative to what the business has historically generated for owners — the Margin of Safety. The other tells you if the market is underestimating what the business is capable of going forward — the Brina Gap.

They are calculated from completely different data sources and answer completely different questions. The Margin of Safety reads the past. The Brina Gap reads the present economics and compares them against what the current stock price is assuming about the future.

When both point in the same direction simultaneously — DOUBLE DISCOUNT — the probability of genuine mispricing is high. The market is wrong on two independent dimensions at once, which is rare and significant.

The most dangerous scenario is not an overvalued stock — those are easy to avoid. It is a VALUE TRAP: a stock that appears cheap historically but where the market is already pricing in stronger growth than the business fundamentals support. Without the Brina Gap signal this looks identical to a genuine opportunity. The matrix separates them instantly.

The Brina Gap is the more powerful of the two signals. Most investors and analytical tools focus on valuation alone — whether a stock is cheap relative to earnings. Far fewer systematically compare what the business economics structurally support against what the stock price is actually assuming. That gap between fundamental growth potential and market expectations is where the most reliable mispricings live, and where this matrix earns its value.

Use this as your first filter. A stock in DOUBLE DISCOUNT territory is worth investigating. Everything else requires either more caution or a specific reason to act.

OVERPRICED
Hanesbrands Inc. (HBI) is expensive relative to historical cash generation (Margin of Safety -100.0%) with no forward growth catalyst identified (Brina Gap -2.9%).
🎯 Expected Annual Return
-56.0%
5-year annualised assuming price converges to intrinsic value
💰 How is Margin of Safety calculated? +
📈 How is Brina Gap calculated? +

Critical Financial Health Indicators

Return on Equity (Profitability):EXCELLENT (191.2%)
Debt-to-Equity (Solvency Risk):CRITICAL (5.87x)
Operating Margin (Operational Efficiency):AVERAGE (13.1%)
Return on Capital (Capital Efficiency):AVERAGE (13.5%)
📊 Valuation Trilogy
Three interconnected metrics for complete valuation analysis
Click any metric for full methodology and detailed analysis
Zyberno's Verdict

According to Zyberno, Hanesbrands Inc. (HBI) is not a buy — WEAK BUSINESS (34/100) with a negative Margin of Safety of -100.0% and a Brina Gap of -2.9% showing the market already prices in more growth than the fundamentals support.

According to Zyberno's DCF model, Hanesbrands Inc. (HBI) trades at $6.47 against an estimated intrinsic value per share of $0.59 — a -100.0% Margin of Safety based on Owner Earnings of $104.90M TTM, projected at -28.9% growth for 10 years with a 2.5% terminal growth rate. The Brina Gap of -2.9% weakens the case: based on the company's ROIC (13.5%) and reinvestment rate (-11.9%), the business can fundamentally grow at -1.6% — but the current enterprise value implies the market expects 1.3%. This places HBI in the Expensive Hype quadrant of the Brina Matrix, the most fragile combination — overvalued on cash AND overpriced on growth. Zyberno's model translates this into a 5-year expected return of -56.0% annually.

Over the trailing twelve months, HBI generated $104.90M in Owner Earnings. Capital was deployed as follows: $28.88M invested in capital expenditures. Reinvestment rate: -11.9%. Owner Earnings have declined at 28.9% annually over the trailing five years using log-linear regression.

DIVISION I: EXECUTIVE SUMMARY
A. Market Valuation

Market Price & Capitalization (2)

Current Price:6.47
Market Cap:$2.29B

Valuation Multiples (4)

P/B Ratio:5.13x
P/S Ratio:0.65x
Peg Ratio:-999.00x

Enterprise Metrics (3)

Enterprise Value:$4.42B
Ev Ebitda Ratio:8.47x
Pfcf Ratio:22.69x
B. Profitability Assessment

Return Metrics (7)

ROA:8.3%
Reinvestment Rate:-11.9%
Fundamental Growth Rate (g):-1.6%
Market-Implied Growth Rate:1.3%

Margin Analysis (3)

Operating Margin Ttm:13.1%
Net Margin Ttm:9.3%
Ebitda Margin:14.8%

TTM Performance (3)

Gross Margin Ttm:42.0%
Operating Margin Ttm:13.1%
Net Margin Ttm:9.3%

Yield Metrics (3)

Earnings Yield:$14.22
Owner Earnings Yield:$4.58
Dividend Yield:0.0%
C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

EPS Surprise vs Expected:514.1%
Latest Earnings Filed:2025-11-06

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-18.4%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):-2.6%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):-29.4%
Operating Cash Flow Growth Rate (Linear):-25.7%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):-9.2%
D. Financial Stability

Liquidity Ratios (3)

Current Ratio:1.51x
Quick Ratio:0.71x
Cash Ratio:0.17x

Leverage Analysis (3)

Debt To Equity Ttm:5.87x
Debt-to-Equity Ratio:5.87x
Debt To Ebitda:4.49x

Coverage Ratios (1)

Times Interest Earned:-999.00

Capital Structure (4)

Working Capital:634,546,000.00
Cash And Cash Equivalents:217,573,000.00
Long Term Debt:$2.21B
Net Debt:$2.12B
DIVISION II: FINANCIAL STATEMENTS ANALYSIS
A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $3.53B
Linear Growth: -18.4%
📊 Click to view full HBI Revenue analysis & methodology →
Cost Of Revenue Ttm:$2.05B

Profitability Breakdown (2)

Gross profit TTM: $1.48B
Linear Growth: -15.0%
📊 Click to view full HBI Gross Profit analysis & methodology →
Operating income TTM: $461.79M
Linear Growth: -9.2%
📊 Click to view full HBI Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: $330.01M
Linear Growth: -2.6%
📊 Click to view full HBI Net Income analysis & methodology →
Income Before Tax:$224.56M
Ebitda Ttm:521,339,000.00

Operating Expenses (5)

Operating Expenses:0.00
R And D Expense:15,988,000.00
Sga Expense:1,020,552,000.00
Income Tax Expense:-$192.66M
Interest Expense:0.00

Expense Ratios (3)

R And D To Revenue Percentage:1.8%
Sga To Revenue Percentage:114.5%
Ebitda Margin:14.8%
B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$4.28B
Current Assets:$1.88B
Ppe Net:190,417,000.00
Goodwill:649,598,000.00
Intangible Assets:$908.11M

Liability Structure (4)

Total Liabilities:3,831,281,000.00
Current Liabilities:1,244,873,000.00
Long Term Debt:$2.21B
Short Term Debt:$135.25M

Equity & Capital (3)

Equity:$446.44M
Retained Earnings:$577.50M
Common Stock:2,000,000,000.00

Working Capital Items (3)

Accounts Receivable:454,977,000.00
Inventory:990,953,000.00
Accounts Payable:572,283,000.00

Special Items (2)

Contract Liabilities:0.00
Stock Based Compensation:5,168,000.00
C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $129.89M
Linear Growth: -25.7%
Free cash flow TTM: $101.01M
Linear Growth: -29.4%
📊 Click to view full HBI Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:$17.58M
Capital Expenditures Ttm:28,877,000.00

Financing Activities (3)

Financing Cash Flow:$51.06M
Dividends Paid Ttm:0.00
Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00
Long Term Debt Issuance:$0.00
Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:59,545,000.00
DIVISION III: OPERATIONAL METRICS
A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):0.92
Eps diluted TTM: $0.92
Linear Growth: -3.2%
📊 Click to view full HBI EPS analysis & methodology →
Earnings Per Share Ttm:$0.93

Revenue & Cash Per Share (3)

Sales Per Share Ttm:9.97
Operating Cash Flow Per Share:$0.75
Fcf Per Share Ttm:0.29

Book Value & Capital (2)

Book Value Per Share:$1.26
Cash Per Share:0.61

Dividend Policy (1)

Dividend Payout Ratio:0.00x
B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.89x
Working Capital Turnover Ttm:5.57x

Receivables Management (2)

Receivables Turnover Ttm:7.76x
Days Sales Outstanding Ttm:47.02

Inventory Management (2)

Inventory Turnover Ttm:2.07x
Days Inventory Outstanding Ttm:176.50

Payables & Cash Cycle (2)

Days Payable Outstanding:101.93
Cash Conversion Cycle:121.59
C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:40.00
Quality Score:35.00

Market Metrics (2)

Beta:0.00x
Volatility Category:unknown
DIVISION IV: INVESTMENT ANALYSIS
A. Value Investment Framework

Owner Earnings Analysis (3)

Owner earnings TTM: $104.90M
Linear Growth: -28.9%
📊 Click to view full HBI Owner Earnings analysis & methodology →
Owner Earnings Per Share:$0.30
Owner Earnings Yield:$4.58

Growth Assessment (1)

Owner Earnings Growth Rate:-$28.86

Damodaran Growth Analysis (4)

Reinvestment Rate:-11.9%
Fundamental Growth Rate (g):-1.6%
Market-Implied Growth Rate:1.3%

Intrinsic Value Models (1)

Return Scenarios (1)

Investment Assessment (1)

Buffett Assessment:Overvalued
B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):-18.4%
Net Income Growth Rate (Linear):-2.6%
Operating Income Growth Rate (Linear):-9.2%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):-29.4%
Operating Cash Flow Growth Rate (Linear):-25.7%

Other Growth Rates (3)

Gross Profit Growth Rate (Linear):-15.0%
Book Value Growth Rate (Linear):-40.4%
Owner Earnings Growth Rate:-$28.86
C. Company Profile & Context

Corporate Information (6)

Symbol:HBI
Company Name:Hanesbrands Inc.
Sector:Unknown
Industry:Apparel Retail
Exchange:NYSE
Country:United States

Market Classification (3)

Market Cap Category:N/A
Price Category:low
Volume Category:N/A

Share Structure (3)

Shares Outstanding:354.18M
Shares Outstanding Basic:354.18M
Shares Outstanding Diluted:357.08M

Data Processing Info (3)

Processing Version:v3.0
Last Updated:2026-06-02 01:12:48 UTC
Data Timestamp:2026-06-02T01:12:48.678182
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