HILLENBRAND INC (HI) Stock Fundamental Analysis
USA - NYSE:HI - US4315711089 - Common Stock
31.515 USD
+0.03 (+0.08%)
HI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 130 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
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.
Each year in the past 5 years HI had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -0.38%, HI is not doing good in the industry: 67.69% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -1.37%, HI is doing worse than 67.69% of the companies in the same industry.
The Return On Invested Capital of HI (5.80%) 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 10.01%.
| 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 has a Operating Margin (9.36%) which is comparable to the rest of the industry.
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 59.23% of the companies in the same industry.
HI's Gross Margin has been stable in the last couple of years.
| 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.
HI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HI has been reduced compared to a year ago.
2.2 Solvency
HI has an Altman-Z score of 1.55. This is a bad value and indicates that HI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.55, HI is doing worse than 76.15% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 14.87, HI is doing worse than 63.08% of the companies in the same industry.
HI has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.26, HI is not doing good in the industry: 81.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 14.87 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.62
WACC9.35%
2.3 Liquidity
A Current Ratio of 1.25 indicates that HI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.25, HI is not doing good in the industry: 83.08% of the companies in the same industry are doing better.
A Quick Ratio of 0.87 indicates that HI may have some problems paying its short term obligations.
HI has a Quick ratio of 0.87. This is in the lower half of the industry: HI underperforms 70.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
HI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.87%.
The Earnings Per Share has been growing slightly by 6.20% on average over the past years.
Looking at the last year, HI shows a decrease in Revenue. The Revenue has decreased by -8.00% in the last year.
Measured over the past years, HI shows a quite strong growth in Revenue. The Revenue has been growing by 11.98% on average per year.
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.
Based on estimates for the next years, HI will show a decrease in Revenue. The Revenue will decrease by -6.96% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.76, which indicates a very decent valuation of HI.
Based on the Price/Earnings ratio, HI is valued cheaper than 91.54% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.77. HI is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 13.27, HI is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HI indicates a rather cheap valuation: HI is cheaper than 84.62% 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 (23.23), we can say HI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 13.27 |
4.2 Price Multiples
83.08% of the companies in the same industry are more expensive than HI, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HI indicates a somewhat cheap valuation: HI is cheaper than 67.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.71 | ||
| EV/EBITDA | 9.07 |
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)1.9
EPS Next 2Y-15.28%
EPS Next 3Y-6.4%
5. Dividend
5.1 Amount
HI has a Yearly Dividend Yield of 2.87%.
HI's Dividend Yield is rather good when compared to the industry average which is at 1.80. HI pays more dividend than 91.54% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, HI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
5.2 History
The dividend of HI has a limited annual growth rate of 1.11%.
HI has been paying a dividend for at least 10 years, so it has 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
The earnings of HI are negative and hence is the payout ratio. HI will probably not be able to sustain this dividend level.
DP-351.11%
EPS Next 2Y-15.28%
EPS Next 3Y-6.4%
NYSE:HI (10/22/2025, 1:19:00 PM)
31.515
+0.03 (+0.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.46%
Inst Owner Change-0.02%
Ins Owners1.05%
Ins Owner Change1.99%
Market Cap2.22B
Revenue(TTM)2.86B
Net Income(TTM)-18000000
Analysts81.67
Price Target33.66 (6.81%)
Short Float %3.07%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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)0%
PT rev (3m)1.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.76%
EPS NY rev (1m)0%
EPS NY rev (3m)1.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 13.27 | ||
| P/S | 0.78 | ||
| P/FCF | 19.71 | ||
| P/OCF | 14.33 | ||
| P/B | 1.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.07 |
EPS(TTM)2.68
EY8.5%
EPS(NY)2.38
Fwd EY7.54%
FCF(TTM)1.6
FCFY5.07%
OCF(TTM)2.2
OCFY6.98%
SpS40.57
BVpS18.68
TBVpS-21.67
PEG (NY)N/A
PEG (5Y)1.9
Graham Number33.56
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%
ROICexgc growth 3Y-1.64%
ROICexgc 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 | 1.55 |
F-Score5
WACC9.35%
ROIC/WACC0.62
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 Year310.92%
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%