MeritValue

HIGHWOODS PROPERTIES, INC.

HIWdata completeness 75%18 fiscal years on file

Data notes: no data for concept 'capex'; no data for concept 'totalDebt'; no data for concept 'incomeTaxExpense'

The thesis, from the filings

HIGHWOODS PROPERTIES, INC. earns about 7% on equity, but has diluted owners by 3% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $15.24 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$768M1$828.9M2$834M3$825.9M3$806.1M3
Net income$323.3M4$164M5$151.3M6$104.3M6$162.7M6
Operating cash flow$414.6M7$421.8M8$387M9$403.6M9$359.2M9
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents$23.2M10$21.4M11$25.1M12$22.4M12$27.4M12
Diluted shares107.1M107.6M107.8M108.3M110.6M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$215.16
your share of equity
Profit it earned you last year
$14.71
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $215.16 of net worth that earned you $14.71 last year.

iii. Is this a good business?
Moat signal · return on equity
7% avg · 5y
FY21 13%FY22 7%FY23 6%FY24 4%FY25 7%

It earned an average 7% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+3% shares · 5y

Share count is up 3% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$15.24
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$162.7M
  • growthAssumed0.0%
Graham Number
$26.49
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000921082-24-000006 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0000921082-25-000004 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0000921082-26-000005 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0000921082-24-000006 (ProfitLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000921082-25-000004 (ProfitLoss)
  6. 10-K · period ending 2023-12-31 · accession 0000921082-26-000005 (ProfitLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000921082-24-000006 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000921082-25-000004 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0000921082-26-000005 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0000921082-24-000006 (CashAndCashEquivalentsAtCarryingValue)
  11. 10-K · period ending 2022-12-31 · accession 0000921082-25-000004 (CashAndCashEquivalentsAtCarryingValue)
  12. 10-K · period ending 2023-12-31 · accession 0000921082-26-000005 (CashAndCashEquivalentsAtCarryingValue)