HILLENBRAND INC (HI) Stock Fundamental Analysis
USA - NYSE:HI - US4315711089 - Common Stock
31.68 USD
+0.08 (+0.25%)
31.68 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. 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.
HI had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: HI reported negative net income in multiple years.
HI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HI has a worse Return On Assets (-0.38%) than 68.46% of its industry peers.
Looking at the Return On Equity, with a value of -1.37%, HI is doing worse than 68.46% of the companies in the same industry.
HI has a Return On Invested Capital of 5.80%. This is comparable to the rest of the industry: HI outperforms 44.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HI is below the industry average of 10.24%.
| 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
With a Operating Margin value of 9.36%, HI perfoms like the industry average, outperforming 50.77% of the companies in the same industry.
HI's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 33.66%, HI perfoms like the industry average, outperforming 57.69% 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.
The number of shares outstanding for HI has been increased compared to 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 1.55. This is a bad value and indicates that HI is not financially healthy and even has some risk of bankruptcy.
HI has a Altman-Z score of 1.55. This is in the lower half of the industry: HI underperforms 73.08% of its industry peers.
The Debt to FCF ratio of HI is 14.87, which is on the high side as it means it would take HI, 14.87 years of fcf income to pay off all of its debts.
HI's Debt to FCF ratio of 14.87 is on the low side compared to the rest of the industry. HI is outperformed by 63.85% 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 Debt to Equity ratio of 1.26. This is amonst the worse of the industry: HI underperforms 81.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 14.87 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.62
WACC9.4%
2.3 Liquidity
A Current Ratio of 1.25 indicates that HI should not have too much problems paying its short term obligations.
HI has a Current ratio of 1.25. This is amonst the worse of the industry: HI underperforms 83.08% of its industry peers.
A Quick Ratio of 0.87 indicates that HI may have some problems paying its short term obligations.
HI has a worse Quick ratio (0.87) than 68.46% 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%.
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
Based on estimates for the next years, HI will show a decrease in Earnings Per Share. The EPS will decrease by -6.40% on average per year.
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-12.56%
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
HI is valuated reasonably with a Price/Earnings ratio of 11.82.
Based on the Price/Earnings ratio, HI is valued cheaply inside the industry as 91.54% of the companies are valued more expensively.
HI is valuated cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.34, which indicates a correct valuation of HI.
83.08% of the companies in the same industry are more expensive than HI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 32.68. HI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 13.34 |
4.2 Price Multiples
HI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HI is cheaper than 82.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HI is valued a bit cheaper than 66.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.81 | ||
| EV/EBITDA | 9.09 |
4.3 Compensation for Growth
A cheap valuation may be justified as HI's earnings are expected to decrease with -6.40% in the coming years.
PEG (NY)N/A
PEG (5Y)1.91
EPS Next 2Y-15.28%
EPS Next 3Y-6.4%
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 1.83. HI pays more dividend than 90.77% of the companies in the same industry.
HI's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
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 their dividend for at least 10 years, which is a reliable track record.
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%
31.68
+0.08 (+0.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.46%
Inst Owner Change-0.18%
Ins Owners1.05%
Ins Owner Change1.87%
Market Cap2.23B
Revenue(TTM)2.86B
Net Income(TTM)-18.00M
Analysts81.67
Price Target32.64 (3.03%)
Short Float %3.43%
Short Ratio1.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
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)-3.03%
PT rev (3m)-2.04%
EPS NQ rev (1m)2.57%
EPS NQ rev (3m)5.4%
EPS NY rev (1m)0%
EPS NY rev (3m)1.14%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)0.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 13.34 | ||
| P/S | 0.78 | ||
| P/FCF | 19.81 | ||
| P/OCF | 14.41 | ||
| P/B | 1.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.09 |
EPS(TTM)2.68
EY8.46%
EPS(NY)2.38
Fwd EY7.5%
FCF(TTM)1.6
FCFY5.05%
OCF(TTM)2.2
OCFY6.94%
SpS40.56
BVpS18.68
TBVpS-21.67
PEG (NY)N/A
PEG (5Y)1.91
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
WACC9.4%
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-12.56%
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%
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 6 / 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 11.82 and the Price/Book (PB) ratio is 1.7.
Is the dividend of HILLENBRAND INC sustainable?
The dividend rating of HILLENBRAND INC (HI) is 5 / 10 and the dividend payout ratio is -351.11%.