HILLENBRAND INC (HI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HI - US4315711089 - Common Stock
31.89 USD
0 (0%)
31.89 USD
0 (0%)
Overall HI gets a fundamental rating of 3 out of 10. We evaluated HI against 132 industry peers in the Machinery industry. HI has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
- Of the past 5 years HI 4 years were profitable.
- In the past 5 years HI always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of HI (0.96%) is worse than 64.39% of its industry peers.
- HI has a Return On Equity (3.11%) which is in line with its industry peers.
- The Return On Invested Capital of HI (5.36%) 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 10.24%.
| 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
- Looking at the Profit Margin, with a value of 1.61%, HI is doing worse than 62.12% of the companies in the same industry.
- In the last couple of years the Profit Margin of HI has declined.
- With a Operating Margin value of 8.75%, HI perfoms like the industry average, outperforming 51.52% of the companies in the same industry.
- In the last couple of years the Operating Margin of HI has declined.
- HI has a Gross Margin of 34.05%. This is in the better half of the industry: HI outperforms 61.36% of its industry peers.
- HI's Gross Margin has been stable in the last couple of years.
| 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
- HI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for HI has been increased compared to 1 year ago.
- Compared to 5 years ago, HI has less shares outstanding
- The debt/assets ratio for HI has been reduced compared to a year ago.
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's Altman-Z score of 1.59 is on the low side compared to the rest of the industry. HI is outperformed by 75.00% 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.
- Looking at the Debt to FCF ratio, with a value of 85.18, HI is doing worse than 65.91% of the companies in the same industry.
- HI has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external 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/WACC0.58
WACC9.23%
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.
- Looking at the Current ratio, with a value of 1.22, HI is doing worse than 83.33% of the companies in the same industry.
- 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.
- HI has a Quick ratio of 0.88. This is in the lower half of the industry: HI underperforms 70.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
- HI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.47%.
- HI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.55% yearly.
- 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
- Based on estimates for the next years, HI will show a small growth in Earnings Per Share. The EPS will grow by 3.50% on average per year.
- 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 12.76, HI is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of HI indicates a rather cheap valuation: HI is cheaper than 94.70% of the companies listed in the same industry.
- HI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 13.10 indicates a correct valuation of HI.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HI indicates a rather cheap valuation: HI is cheaper than 91.67% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of HI to the average of the S&P500 Index (24.26), we can say HI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.76 | ||
| Fwd PE | 13.1 |
4.2 Price Multiples
- 87.88% of the companies in the same industry are more expensive than HI, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, HI is valued a bit more expensive than 65.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 125.62 | ||
| EV/EBITDA | 9.69 |
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 2.86%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.98, HI pays a better dividend. On top of this HI pays more dividend than 93.18% 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
5.2 History
- The dividend of HI decreases each year by -0.52%.
- HI has been paying a dividend for at least 10 years, so it has 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
- HI pays out 147.10% of its income as dividend. This is not a sustainable payout ratio.
DP147.1%
EPS Next 2Y3.5%
EPS Next 3YN/A
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 of HILLENBRAND INC (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.
Can you provide the PE and PB ratios for HI stock?
The Price/Earnings (PE) ratio for HILLENBRAND INC (HI) is 12.76 and the Price/Book (PB) ratio is 1.62.
Can you provide the dividend sustainability for HI stock?
The dividend rating of HILLENBRAND INC (HI) is 5 / 10 and the dividend payout ratio is 147.1%.