HILLENBRAND INC (HI)
US4315711089 - Common Stock
We assign a fundamental rating of 3 out of 10 to HI. HI was compared to 131 industry peers in the Machinery industry. HI may be in some trouble as it scores bad on both profitability and health. HI has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year HI was profitable.
In the past year HI had a positive cash flow from operations.
In multiple years HI reported negative net income over the last 5 years.
Of the past 5 years HI 4 years had a positive operating cash flow.
1.2 Ratios
HI has a Return On Assets of -3.93%. This is in the lower half of the industry: HI underperforms 72.44% of its industry peers.
HI has a Return On Equity of -14.71%. This is in the lower half of the industry: HI underperforms 76.38% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.02%, HI is in line with its industry, outperforming 53.54% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HI is below the industry average of 10.95%.
The 3 year average ROIC (6.96%) for HI is below the current ROIC(7.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.93% | ||
| ROE | -14.71% | ||
| ROIC | 7.02% |
ROA(3y)7.3%
ROA(5y)5.17%
ROE(3y)24.97%
ROE(5y)17.06%
ROIC(3y)6.96%
ROIC(5y)7.94%
1.3 Margins
In the last couple of years the Profit Margin of HI has grown nicely.
HI's Operating Margin of 11.60% is fine compared to the rest of the industry. HI outperforms 61.42% of its industry peers.
HI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 33.79%, HI is in line with its industry, outperforming 59.06% of the companies in the same industry.
In the last couple of years the Gross Margin of HI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.6% | ||
| PM (TTM) | N/A | ||
| GM | 33.79% |
OM growth 3Y1.71%
OM growth 5Y-2.12%
PM growth 3YN/A
PM growth 5Y36.03%
GM growth 3Y1.21%
GM growth 5Y-1.56%
2. Health
2.1 Basic Checks
HI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
There is no outstanding debt for HI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
HI has an Altman-Z score of 1.56. This is a bad value and indicates that HI is not financially healthy and even has some risk of bankruptcy.
HI has a worse Altman-Z score (1.56) than 72.44% of its industry peers.
HI has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.47, HI is not doing good in the industry: 87.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.56 |
ROIC/WACC0.83
WACC8.42%
2.3 Liquidity
A Current Ratio of 1.35 indicates that HI should not have too much problems paying its short term obligations.
HI has a worse Current ratio (1.35) than 81.89% of its industry peers.
HI has a Quick Ratio of 1.35. This is a bad value and indicates that HI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.88, HI is not doing good in the industry: 75.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for HI have decreased by -5.97% in the last year.
Measured over the past 5 years, HI shows a small growth in Earnings Per Share. The EPS has been growing by 6.20% on average per year.
EPS 1Y (TTM)-5.97%
EPS 3Y-4.41%
EPS 5Y6.2%
EPS Q2Q%-10.62%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.81%
3.2 Future
HI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.51% yearly.
The Revenue is expected to grow by 1.79% on average over the next years.
EPS Next Y-4.16%
EPS Next 2Y4.51%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.77%
Revenue Next 2Y1.79%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HI is valuated reasonably with a Price/Earnings ratio of 10.26.
Based on the Price/Earnings ratio, HI is valued cheaply inside the industry as 88.19% of the companies are valued more expensively.
HI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.81.
A Price/Forward Earnings ratio of 10.70 indicates a reasonable valuation of HI.
Based on the Price/Forward Earnings ratio, HI is valued cheaper than 92.13% of the companies in the same industry.
HI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 10.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HI indicates a rather cheap valuation: HI is cheaper than 85.04% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.27 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.65
EPS Next 2Y4.51%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HI has a Yearly Dividend Yield of 2.95%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.53, HI pays a better dividend. On top of this HI pays more dividend than 94.49% of the companies listed in the same industry.
HI's Dividend Yield is a higher than the S&P500 average which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
5.2 History
The dividend of HI has a limited annual growth rate of 1.23%.
HI has paid a dividend for at least 10 years, which is a reliable track record.
HI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)1.23%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
HI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of HI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-29.99%
EPS Next 2Y4.51%
EPS Next 3YN/A
HILLENBRAND INC
NYSE:HI (11/15/2024, 10:01:00 AM)
33.96
+0.26 (+0.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.39B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 10.7 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.93% | ||
| ROE | -14.71% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.6% | ||
| PM (TTM) | N/A | ||
| GM | 33.79% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.35 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-5.97%
EPS 3Y-4.41%
EPS 5Y
EPS Q2Q%
EPS Next Y-4.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y