HILLENBRAND INC (HI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HI - US4315711089 - Common Stock
31.84 USD
+0.06 (+0.19%)
31.84 USD
0 (0%)
Overall HI gets a fundamental rating of 3 out of 10. We evaluated HI against 130 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.
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's Return On Assets of 0.96% is on the low side compared to the rest of the industry. HI is outperformed by 64.62% of its industry peers.
The Return On Equity of HI (3.11%) is worse than 60.77% of its industry peers.
HI's Return On Invested Capital of 5.36% is in line compared to the rest of the industry. HI outperforms 43.08% of its industry peers.
HI had an Average Return On Invested Capital over the past 3 years of 6.16%. This is below the industry average of 10.46%.
| 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 Profit Margin of 1.61%. This is in the lower half of the industry: HI underperforms 63.08% 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.
In the last couple of years the Operating Margin of HI has declined.
Looking at the Gross Margin, with a value of 34.05%, HI is in the better half of the industry, outperforming 61.54% 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 | 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.
Compared to 1 year ago, HI has more shares outstanding
HI has less shares outstanding than it did 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's Altman-Z score of 1.59 is on the low side compared to the rest of the industry. HI is outperformed by 73.08% of its industry peers.
The Debt to FCF ratio of HI is 85.18, which is on the high side as it means it would take HI, 85.18 years of fcf income to pay off all of its debts.
HI has a worse Debt to FCF ratio (85.18) than 66.92% of its industry peers.
HI has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
HI has a worse Debt to Equity ratio (1.08) than 78.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 85.18 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.59
WACC9.07%
2.3 Liquidity
A Current Ratio of 1.22 indicates that HI should not have too much problems paying its short term obligations.
HI's Current ratio of 1.22 is on the low side compared to the rest of the industry. HI is outperformed by 83.08% of its industry peers.
A Quick Ratio of 0.88 indicates that HI may have some problems paying its short term obligations.
HI's Quick ratio of 0.88 is on the low side compared to the rest of the industry. HI is outperformed by 70.00% of its industry peers.
| 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.
Measured over the past years, HI shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.55% on average per year.
HI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.99%.
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
The Earnings Per Share is expected to grow by 3.50% on average over the next years.
HI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.86% yearly.
EPS Next Y-5.57%
EPS Next 2Y3.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-8.76%
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.
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
A Price/Earnings ratio of 12.74 indicates a correct valuation of HI.
Based on the Price/Earnings ratio, HI is valued cheaper than 91.54% of the companies in the same industry.
HI is valuated cheaply when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.49, the valuation of HI can be described as correct.
85.38% of the companies in the same industry are more expensive than HI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HI to the average of the S&P500 Index (23.69), we can say HI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.74 | ||
| Fwd PE | 13.49 |
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 80.77% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HI is valued a bit more expensive than 66.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 125.42 | ||
| EV/EBITDA | 9.68 |
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
With a Yearly Dividend Yield of 2.86%, HI has a reasonable but not impressive dividend return.
HI's Dividend Yield is rather good when compared to the industry average which is at 1.84. HI pays more dividend than 91.54% of the companies in the same industry.
HI's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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
31.84
+0.06 (+0.19%)
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 Change1.87%
Market Cap2.25B
Revenue(TTM)2.67B
Net Income(TTM)43.10M
Analysts80
Price Target32.64 (2.51%)
Short Float %3.68%
Short Ratio1.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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)0%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.74 | ||
| Fwd PE | 13.49 | ||
| P/S | 0.84 | ||
| P/FCF | 125.42 | ||
| P/OCF | 39.95 | ||
| P/B | 1.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.68 |
EPS(TTM)2.5
EY7.85%
EPS(NY)2.36
Fwd EY7.41%
FCF(TTM)0.25
FCFY0.8%
OCF(TTM)0.8
OCFY2.5%
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
WACC9.07%
ROIC/WACC0.59
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-5.57%
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-8.76%
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 12.74 and the Price/Book (PB) ratio is 1.62.
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%.