HILLENBRAND INC (HI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HI - US4315711089 - Common Stock
31.66 USD
-0.03 (-0.09%)
31.6314 USD
-0.03 (-0.09%)
Taking everything into account, HI scores 3 out of 10 in our fundamental rating. HI was compared to 132 industry peers in the Machinery industry. Both the profitability and financial health of HI have multiple concerns. HI has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
HI had positive earnings in the past year.
HI had a positive operating cash flow in the past year.
HI had positive earnings in 4 of the past 5 years.
In the past 5 years HI always reported a positive cash flow from operatings.
1.2 Ratios
HI has a Return On Assets of 0.96%. This is in the lower half of the industry: HI underperforms 63.64% of its industry peers.
HI has a Return On Equity (3.11%) which is comparable to the rest of the industry.
HI has a Return On Invested Capital (5.36%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for HI is below the industry average of 10.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.96% | ||
| ROE | 3.11% | ||
| ROIC | 5.36% |
ROA(3y)2.4%
ROA(5y)3.77%
ROE(3y)7.74%
ROE(5y)12.64%
ROIC(3y)6.16%
ROIC(5y)6.6%
1.3 Margins
HI has a worse Profit Margin (1.61%) than 61.36% of its industry peers.
HI's Profit Margin has declined in the last couple of years.
The Operating Margin of HI (8.75%) is comparable to the rest of the industry.
HI's Operating Margin has declined in the last couple of years.
The Gross Margin of HI (34.05%) is better than 61.36% of its industry peers.
In the last couple of years the Gross Margin of HI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.75% | ||
| PM (TTM) | 1.61% | ||
| GM | 34.05% |
OM growth 3Y-12.36%
OM growth 5Y-5.43%
PM growth 3Y-43.68%
PM growth 5YN/A
GM growth 3Y0.98%
GM growth 5Y0.98%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HI is destroying value.
HI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HI has been reduced compared to 5 years ago.
Compared to 1 year ago, HI has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.59, we must say that HI is in the distress zone and has some risk of bankruptcy.
HI has a Altman-Z score of 1.59. This is in the lower half of the industry: HI underperforms 73.48% of its industry peers.
HI has a debt to FCF ratio of 85.18. This is a negative value and a sign of low solvency as HI would need 85.18 years to pay back of all of its debts.
HI's Debt to FCF ratio of 85.18 is on the low side compared to the rest of the industry. HI is outperformed by 65.91% of its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that HI has dependencies on debt financing.
HI's Debt to Equity ratio of 1.08 is on the low side compared to the rest of the industry. HI is outperformed by 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 85.18 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.6
WACC8.97%
2.3 Liquidity
HI has a Current Ratio of 1.22. This is a normal value and indicates that HI is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.22, HI is not doing good in the industry: 82.58% of the companies in the same industry are doing better.
HI has a Quick Ratio of 1.22. This is a bad value and indicates that HI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.88, HI is doing worse than 68.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for HI have decreased strongly by -24.47% in the last year.
The Earnings Per Share has been decreasing by -0.55% on average over the past years.
The Revenue for HI has decreased by -15.99% in the past year. This is quite bad
HI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.22% yearly.
EPS 1Y (TTM)-24.47%
EPS 3Y-13.92%
EPS 5Y-0.55%
EPS Q2Q%-17.82%
Revenue 1Y (TTM)-15.99%
Revenue growth 3Y4.92%
Revenue growth 5Y1.22%
Sales Q2Q%-22.15%
3.2 Future
HI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.50% yearly.
The Revenue is expected to decrease by -2.86% on average over the next years.
EPS Next Y-2.64%
EPS Next 2Y3.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-8.05%
Revenue Next 2Y-2.86%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue 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
With a Price/Earnings ratio of 12.66, HI is valued correctly.
Based on the Price/Earnings ratio, HI is valued cheaply inside the industry as 92.42% 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 26.57.
With a Price/Forward Earnings ratio of 13.01, HI is valued correctly.
88.64% of the companies in the same industry are more expensive than HI, based on the Price/Forward Earnings ratio.
HI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 13.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HI is valued cheaper than 83.33% of the companies in the same industry.
65.91% of the companies in the same industry are cheaper than HI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 124.71 | ||
| EV/EBITDA | 9.65 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HI has a Yearly Dividend Yield of 2.87%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.04, HI pays a better dividend. On top of this HI pays more dividend than 92.42% of the companies listed in the same industry.
HI's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
5.2 History
The dividend of HI decreases each year by -0.52%.
HI has paid a dividend for at least 10 years, which is a reliable track record.
HI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.52%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
147.10% of the earnings are spent on dividend by HI. This is not a sustainable payout ratio.
DP147.1%
EPS Next 2Y3.5%
EPS Next 3YN/A
31.66
-0.03 (-0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners92.89%
Inst Owner Change1.1%
Ins Owners1.04%
Ins Owner Change6.51%
Market Cap2.23B
Revenue(TTM)2.67B
Net Income(TTM)43.10M
Analysts80
Price Target32.64 (3.1%)
Short Float %3.42%
Short Ratio1.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
Yearly Dividend0.9
Dividend Growth(5Y)-0.52%
DP147.1%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.97%
Min EPS beat(2)0.13%
Max EPS beat(2)31.82%
EPS beat(4)4
Avg EPS beat(4)10.44%
Min EPS beat(4)0.13%
Max EPS beat(4)31.82%
EPS beat(8)6
Avg EPS beat(8)5.85%
EPS beat(12)9
Avg EPS beat(12)3.05%
EPS beat(16)12
Avg EPS beat(16)2.7%
Revenue beat(2)2
Avg Revenue beat(2)4.07%
Min Revenue beat(2)1.57%
Max Revenue beat(2)6.57%
Revenue beat(4)3
Avg Revenue beat(4)1.85%
Min Revenue beat(4)-1.32%
Max Revenue beat(4)6.57%
Revenue beat(8)4
Avg Revenue beat(8)-0.71%
Revenue beat(12)4
Avg Revenue beat(12)-2.6%
Revenue beat(16)4
Avg Revenue beat(16)-7.3%
PT rev (1m)0%
PT rev (3m)-3.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.03%
EPS NY rev (1m)3.1%
EPS NY rev (3m)2.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 13.01 | ||
| P/S | 0.83 | ||
| P/FCF | 124.71 | ||
| P/OCF | 39.72 | ||
| P/B | 1.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.65 |
EPS(TTM)2.5
EY7.9%
EPS(NY)2.43
Fwd EY7.69%
FCF(TTM)0.25
FCFY0.8%
OCF(TTM)0.8
OCFY2.52%
SpS37.92
BVpS19.67
TBVpS-19.16
PEG (NY)N/A
PEG (5Y)N/A
Graham Number33.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.96% | ||
| ROE | 3.11% | ||
| ROCE | 6.79% | ||
| ROIC | 5.36% | ||
| ROICexc | 5.63% | ||
| ROICexgc | 33.95% | ||
| OM | 8.75% | ||
| PM (TTM) | 1.61% | ||
| GM | 34.05% | ||
| FCFM | 0.67% |
ROA(3y)2.4%
ROA(5y)3.77%
ROE(3y)7.74%
ROE(5y)12.64%
ROIC(3y)6.16%
ROIC(5y)6.6%
ROICexc(3y)6.5%
ROICexc(5y)7.16%
ROICexgc(3y)38.7%
ROICexgc(5y)39.05%
ROCE(3y)7.8%
ROCE(5y)8.35%
ROICexgc growth 3Y-5.09%
ROICexgc growth 5Y1.64%
ROICexc growth 3Y-15.38%
ROICexc growth 5Y-7.05%
OM growth 3Y-12.36%
OM growth 5Y-5.43%
PM growth 3Y-43.68%
PM growth 5YN/A
GM growth 3Y0.98%
GM growth 5Y0.98%
F-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 85.18 | ||
| Debt/EBITDA | 4.03 | ||
| Cap/Depr | 27.65% | ||
| Cap/Sales | 1.43% | ||
| Interest Coverage | 2.61 | ||
| Cash Conversion | 15.09% | ||
| Profit Quality | 41.53% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.59 |
F-Score6
WACC8.97%
ROIC/WACC0.6
Cap/Depr(3y)39.04%
Cap/Depr(5y)36.59%
Cap/Sales(3y)1.86%
Cap/Sales(5y)1.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-24.47%
EPS 3Y-13.92%
EPS 5Y-0.55%
EPS Q2Q%-17.82%
EPS Next Y-2.64%
EPS Next 2Y3.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-15.99%
Revenue growth 3Y4.92%
Revenue growth 5Y1.22%
Sales Q2Q%-22.15%
Revenue Next Year-8.05%
Revenue Next 2Y-2.86%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-32.42%
EBIT growth 3Y-8.05%
EBIT growth 5Y-4.28%
EBIT Next Year30.17%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-84.27%
FCF growth 3Y-51.07%
FCF growth 5Y-43.79%
OCF growth 1Y-66.55%
OCF growth 3Y-33.5%
OCF growth 5Y-30.82%
HILLENBRAND INC / HI FAQ
What is the ChartMill fundamental rating of HILLENBRAND INC (HI) stock?
ChartMill assigns a fundamental rating of 3 / 10 to HI.
What is the valuation status for HI stock?
ChartMill assigns a valuation rating of 4 / 10 to HILLENBRAND INC (HI). This can be considered as Fairly Valued.
How profitable is HILLENBRAND INC (HI) stock?
HILLENBRAND INC (HI) has a profitability rating of 3 / 10.
What is the valuation of HILLENBRAND INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HILLENBRAND INC (HI) is 12.66 and the Price/Book (PB) ratio is 1.61.
Is the dividend of HILLENBRAND INC sustainable?
The dividend rating of HILLENBRAND INC (HI) is 5 / 10 and the dividend payout ratio is 147.1%.