HILLENBRAND INC (HI) Stock Fundamental Analysis
USA - NYSE:HI - US4315711089 - Common Stock
24.74 USD
+0.01 (+0.04%)
24.74 USD
0 (0%)
HI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. Both the profitability and financial health of HI have multiple concerns. HI is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
HI had positive earnings in the past year.
In the past year HI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HI reported negative net income in multiple years.
In the past 5 years HI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.38%, HI is doing worse than 69.53% of the companies in the same industry.
HI's Return On Equity of -1.37% is on the low side compared to the rest of the industry. HI is outperformed by 68.75% of its industry peers.
HI has a Return On Invested Capital (5.80%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for HI is below the industry average of 10.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.38% | ||
| ROE | -1.37% | ||
| ROIC | 5.8% |
ROA(3y)3.88%
ROA(5y)3.27%
ROE(3y)13.14%
ROE(5y)10.88%
ROIC(3y)7.22%
ROIC(5y)6.99%
1.3 Margins
HI's Operating Margin of 9.36% is in line compared to the rest of the industry. HI outperforms 50.00% of its industry peers.
In the last couple of years the Operating Margin of HI has declined.
Looking at the Gross Margin, with a value of 33.66%, HI is in line with its industry, outperforming 58.59% of the companies in the same industry.
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 | 9.36% | ||
| PM (TTM) | N/A | ||
| GM | 33.66% |
OM growth 3Y2.67%
OM growth 5Y-3.77%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.99%
GM growth 5Y-0.52%
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 increased compared to 5 years ago.
HI has a better debt/assets ratio than last year.
2.2 Solvency
HI has an Altman-Z score of 1.47. This is a bad value and indicates that HI is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.47, HI is not doing good in the industry: 74.22% of the companies in the same industry are doing better.
HI has a debt to FCF ratio of 14.87. This is a negative value and a sign of low solvency as HI would need 14.87 years to pay back of all of its debts.
HI has a worse Debt to FCF ratio (14.87) than 65.63% of its industry peers.
HI has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
HI has a worse Debt to Equity ratio (1.26) than 82.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 14.87 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.59
WACC9.77%
2.3 Liquidity
A Current Ratio of 1.25 indicates that HI should not have too much problems paying its short term obligations.
The Current ratio of HI (1.25) is worse than 82.81% of its industry peers.
HI has a Quick Ratio of 1.25. This is a bad value and indicates that HI is not financially healthy enough and could expect problems in meeting its short term obligations.
HI has a Quick ratio of 0.87. This is in the lower half of the industry: HI underperforms 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for HI have decreased strongly by -21.87% in the last year.
HI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.20% yearly.
HI shows a decrease in Revenue. In the last year, the revenue decreased by -8.00%.
HI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.98% yearly.
EPS 1Y (TTM)-21.87%
EPS 3Y-4.41%
EPS 5Y6.2%
EPS Q2Q%-40%
Revenue 1Y (TTM)-8%
Revenue growth 3Y12.4%
Revenue growth 5Y11.98%
Sales Q2Q%-23.86%
3.2 Future
HI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.40% yearly.
HI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.96% yearly.
EPS Next Y-29.8%
EPS Next 2Y-15.28%
EPS Next 3Y-6.4%
EPS Next 5YN/A
Revenue Next Year-16.71%
Revenue Next 2Y-12.58%
Revenue Next 3Y-6.96%
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.
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 9.23, the valuation of HI can be described as very reasonable.
Based on the Price/Earnings ratio, HI is valued cheaper than 92.97% of the companies in the same industry.
When comparing the Price/Earnings ratio of HI to the average of the S&P500 Index (27.20), we can say HI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.41, the valuation of HI can be described as reasonable.
HI's Price/Forward Earnings ratio is rather cheap when compared to the industry. HI is cheaper than 92.97% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HI to the average of the S&P500 Index (22.71), we can say HI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.23 | ||
| Fwd PE | 10.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HI is valued cheaper than 89.06% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HI is valued cheaper than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.47 | ||
| EV/EBITDA | 7.92 |
4.3 Compensation for Growth
HI's earnings are expected to decrease with -6.40% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.49
EPS Next 2Y-15.28%
EPS Next 3Y-6.4%
5. Dividend
5.1 Amount
HI has a Yearly Dividend Yield of 3.50%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.74, HI pays a better dividend. On top of this HI pays more dividend than 92.97% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, HI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
5.2 History
The dividend of HI has a limited annual growth rate of 1.11%.
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)1.11%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
HI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-351.11%
EPS Next 2Y-15.28%
EPS Next 3Y-6.4%
24.74
+0.01 (+0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.26%
Inst Owner Change-2.03%
Ins Owners1.04%
Ins Owner Change1.97%
Market Cap1.74B
Analysts81.67
Price Target33.66 (36.05%)
Short Float %3.23%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
Yearly Dividend0.89
Dividend Growth(5Y)1.11%
DP-351.11%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.26%
Min EPS beat(2)0.13%
Max EPS beat(2)8.4%
EPS beat(4)4
Avg EPS beat(4)4%
Min EPS beat(4)0.13%
Max EPS beat(4)8.4%
EPS beat(8)6
Avg EPS beat(8)2.51%
EPS beat(12)9
Avg EPS beat(12)0.5%
EPS beat(16)12
Avg EPS beat(16)1.16%
Revenue beat(2)2
Avg Revenue beat(2)1.08%
Min Revenue beat(2)0.59%
Max Revenue beat(2)1.57%
Revenue beat(4)3
Avg Revenue beat(4)0.84%
Min Revenue beat(4)-1.32%
Max Revenue beat(4)2.55%
Revenue beat(8)3
Avg Revenue beat(8)-1.65%
Revenue beat(12)3
Avg Revenue beat(12)-4.78%
Revenue beat(16)3
Avg Revenue beat(16)-12.87%
PT rev (1m)1.02%
PT rev (3m)1.02%
EPS NQ rev (1m)-3.64%
EPS NQ rev (3m)-22.48%
EPS NY rev (1m)1.14%
EPS NY rev (3m)1.33%
Revenue NQ rev (1m)-0.68%
Revenue NQ rev (3m)-14.16%
Revenue NY rev (1m)1.13%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.23 | ||
| Fwd PE | 10.41 | ||
| P/S | 0.61 | ||
| P/FCF | 15.47 | ||
| P/OCF | 11.25 | ||
| P/B | 1.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.92 |
EPS(TTM)2.68
EY10.83%
EPS(NY)2.38
Fwd EY9.6%
FCF(TTM)1.6
FCFY6.46%
OCF(TTM)2.2
OCFY8.89%
SpS40.57
BVpS18.68
TBVpS-21.67
PEG (NY)N/A
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.38% | ||
| ROE | -1.37% | ||
| ROCE | 7.34% | ||
| ROIC | 5.8% | ||
| ROICexc | 6.07% | ||
| ROICexgc | 33.05% | ||
| OM | 9.36% | ||
| PM (TTM) | N/A | ||
| GM | 33.66% | ||
| FCFM | 3.94% |
ROA(3y)3.88%
ROA(5y)3.27%
ROE(3y)13.14%
ROE(5y)10.88%
ROIC(3y)7.22%
ROIC(5y)6.99%
ROICexc(3y)7.72%
ROICexc(5y)7.66%
ROICexgc(3y)40.63%
ROICexgc(5y)38.52%
ROCE(3y)9.14%
ROCE(5y)8.85%
ROICexcg growth 3Y-1.64%
ROICexcg growth 5Y-16.19%
ROICexc growth 3Y0.38%
ROICexc growth 5Y-14.09%
OM growth 3Y2.67%
OM growth 5Y-3.77%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.99%
GM growth 5Y-0.52%
F-Score5
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 14.87 | ||
| Debt/EBITDA | 4.04 | ||
| Cap/Depr | 29.4% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 37.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.47 |
F-Score5
WACC9.77%
ROIC/WACC0.59
Cap/Depr(3y)42.77%
Cap/Depr(5y)36.55%
Cap/Sales(3y)1.94%
Cap/Sales(5y)1.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-21.87%
EPS 3Y-4.41%
EPS 5Y6.2%
EPS Q2Q%-40%
EPS Next Y-29.8%
EPS Next 2Y-15.28%
EPS Next 3Y-6.4%
EPS Next 5YN/A
Revenue 1Y (TTM)-8%
Revenue growth 3Y12.4%
Revenue growth 5Y11.98%
Sales Q2Q%-23.86%
Revenue Next Year-16.71%
Revenue Next 2Y-12.58%
Revenue Next 3Y-6.96%
Revenue Next 5YN/A
EBIT growth 1Y-25.77%
EBIT growth 3Y15.4%
EBIT growth 5Y7.76%
EBIT Next Year307.34%
EBIT Next 3Y63.45%
EBIT Next 5YN/A
FCF growth 1Y84.15%
FCF growth 3Y-38.95%
FCF growth 5Y-5.8%
OCF growth 1Y28.1%
OCF growth 3Y-31.75%
OCF growth 5Y-1.25%