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%)
We assign a fundamental rating of 3 out of 10 to HI. HI was compared to 132 industry peers in the Machinery industry. Both the profitability and financial health of HI have multiple concerns. HI is valued correctly, 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.
- HI had positive earnings in 4 of the past 5 years.
- HI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- HI has a Return On Assets of 0.96%. This is in the lower half of the industry: HI underperforms 64.39% of its industry peers.
- HI has a Return On Equity (3.11%) which is in line with its industry peers.
- HI has a Return On Invested Capital (5.36%) which 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 10.24%.
| 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
- HI has a worse Profit Margin (1.61%) than 62.12% of its industry peers.
- HI's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 8.75%, HI is in line with its industry, outperforming 51.52% of the companies in the same industry.
- In the last couple of years the Operating Margin of HI has declined.
- HI's Gross Margin of 34.05% is fine compared to the rest 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 reduced compared to 5 years ago.
- HI has a better debt/assets ratio than last year.
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 has a Altman-Z score of 1.59. This is in the lower half of the industry: HI underperforms 75.76% 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.
- HI has a Debt to FCF ratio of 85.18. This is in the lower half of the industry: HI underperforms 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
WACC9.11%
2.3 Liquidity
- A Current Ratio of 1.22 indicates that HI should not have too much problems paying its short term obligations.
- The Current ratio of HI (1.22) is worse than 83.33% of its industry peers.
- A Quick Ratio of 0.88 indicates that HI may have some problems paying its short term obligations.
- HI has a worse Quick ratio (0.88) than 70.45% 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.
- 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
- Measured over the past years, HI shows a small growth in Revenue. The Revenue has been growing by 1.22% on average per year.
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.
- HI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.86% yearly.
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
- A Price/Earnings ratio of 12.76 indicates a correct valuation of HI.
- HI's Price/Earnings ratio is rather cheap when compared to the industry. HI is cheaper than 94.70% of the companies 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.
- With a Price/Forward Earnings ratio of 13.10, HI is valued correctly.
- 90.15% of the companies in the same industry are more expensive than HI, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, HI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.76 | ||
| Fwd PE | 13.1 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HI is valued cheaper than 86.36% of the companies in the same industry.
- 65.91% of the companies in the same industry are cheaper than HI, based on the Price/Free Cash Flow ratio.
| 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
- 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 1.81, 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 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
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%.