HILLENBRAND INC (HI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HI - US4315711089 - Common Stock
31.9 USD
+0.04 (+0.13%)
31.9 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 may be in some trouble as it scores bad on both profitability and health. HI is valued correctly, 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.
- Of the past 5 years HI 4 years were profitable.
- Each year in the past 5 years HI had a positive operating cash flow.
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 64.39% of its industry peers.
- The Return On Equity of HI (3.11%) is comparable to the rest of the industry.
- HI has a Return On Invested Capital (5.36%) which is in line with 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 10.24%.
| 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
- The Profit Margin of HI (1.61%) is worse than 62.12% of its industry peers.
- HI's Profit Margin has declined in the last couple of years.
- HI has a Operating Margin (8.75%) which is comparable to the rest of the industry.
- HI's Operating Margin has declined in the last couple of years.
- HI's Gross Margin of 34.05% is fine compared to the rest of the industry. HI outperforms 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.
- Compared to 5 years ago, HI has less shares outstanding
- 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.
- The Altman-Z score of HI (1.59) is worse than 75.00% 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 65.91% 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'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/WACC0.59
WACC9.09%
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.
- The Current ratio of HI (1.22) is worse than 83.33% of its industry peers.
- 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%.
- The Earnings Per Share has been decreasing by -0.55% on average over the past years.
- 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
- 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.
- 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
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, HI is valued rather cheaply.
- A Price/Forward Earnings ratio of 13.11 indicates a correct valuation of HI.
- 90.15% 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 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.76 | ||
| Fwd PE | 13.11 |
4.2 Price Multiples
- 87.12% 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 | 125.66 | ||
| 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 2.85%, 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 1.01. HI pays more dividend than 93.18% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, HI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
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 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
- 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%.