HILLENBRAND INC (HI) Stock Fundamental Analysis
NYSE:HI - New York Stock Exchange, Inc. - US4315711089 - Common Stock - Currency: USD
Taking everything into account, HI scores 3 out of 10 in our fundamental rating. HI was compared to 129 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.
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
HI has a worse Return On Assets (-4.38%) than 72.00% of its industry peers.
With a Return On Equity value of -16.06%, HI is not doing good in the industry: 76.80% of the companies in the same industry are doing better.
HI has a Return On Invested Capital (6.58%) 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 11.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.38% | ||
| ROE | -16.06% | ||
| ROIC | 6.58% |
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 (10.61%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HI has declined.
HI has a Gross Margin (33.86%) which is comparable to the rest of the industry.
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 | 10.61% | ||
| PM (TTM) | N/A | ||
| GM | 33.86% |
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
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 more 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 1.58, we must say that HI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.58, HI is not doing good in the industry: 67.20% of the companies in the same industry are doing better.
HI has a debt to FCF ratio of 14.81. This is a negative value and a sign of low solvency as HI would need 14.81 years to pay back of all of its debts.
HI has a Debt to FCF ratio of 14.81. This is in the lower half of the industry: HI underperforms 62.40% of its industry peers.
HI has a Debt/Equity ratio of 1.36. This is a high value indicating a heavy dependency on external financing.
HI has a Debt to Equity ratio of 1.36. This is amonst the worse of the industry: HI underperforms 85.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | 14.81 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.64
WACC10.26%
2.3 Liquidity
A Current Ratio of 1.34 indicates that HI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.34, HI is doing worse than 81.60% of the companies in the same industry.
A Quick Ratio of 0.86 indicates that HI may have some problems paying its short term obligations.
HI has a worse Quick ratio (0.86) than 76.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The earnings per share for HI have decreased by -9.40% in the last year.
The Earnings Per Share has been growing slightly by 6.20% on average over the past years.
The Revenue has been growing slightly by 5.87% in the past year.
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)-9.4%
EPS 3Y-4.41%
EPS 5Y6.2%
EPS Q2Q%-18.84%
Revenue 1Y (TTM)5.87%
Revenue growth 3Y12.4%
Revenue growth 5Y11.98%
Sales Q2Q%-8.59%
3.2 Future
Based on estimates for the next years, HI will show a decrease in Earnings Per Share. The EPS will decrease by -2.48% on average per year.
The Revenue is expected to decrease by -0.12% on average over the next years.
EPS Next Y-15.74%
EPS Next 2Y-2.48%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-4.18%
Revenue Next 2Y-0.12%
Revenue Next 3YN/A
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.
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
Based on the Price/Earnings ratio of 9.71, the valuation of HI can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of HI indicates a rather cheap valuation: HI is cheaper than 91.20% of the companies listed in the same industry.
HI is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.81, the valuation of HI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, HI is valued cheaper than 92.80% of the companies in the same industry.
HI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.71 | ||
| Fwd PE | 9.81 |
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 84.00% of the companies listed in the same industry.
HI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HI is cheaper than 78.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.9 | ||
| EV/EBITDA | 8.17 |
4.3 Compensation for Growth
A cheap valuation may be justified as HI's earnings are expected to decrease with -2.48% in the coming years.
PEG (NY)N/A
PEG (5Y)1.57
EPS Next 2Y-2.48%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HI has a Yearly Dividend Yield of 2.77%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.65, HI pays a better dividend. On top of this HI pays more dividend than 91.20% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, HI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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 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 Years15
Div Non Decr Years15
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-28.27%
EPS Next 2Y-2.48%
EPS Next 3YN/A
30.89
-1.55 (-4.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.26%
Inst Owner Change0.7%
Ins Owners1.01%
Ins Owner Change6.56%
Market Cap2.18B
Analysts84.62
Price Target42.23 (36.71%)
Short Float %3.29%
Short Ratio4.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
Yearly Dividend0.89
Dividend Growth(5Y)1.11%
DP-28.27%
Div Incr Years15
Div Non Decr Years15
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.74%
Min EPS beat(2)1.43%
Max EPS beat(2)6.05%
EPS beat(4)3
Avg EPS beat(4)1.84%
Min EPS beat(4)-1.16%
Max EPS beat(4)6.05%
EPS beat(8)6
Avg EPS beat(8)1.7%
EPS beat(12)8
Avg EPS beat(12)-0.06%
EPS beat(16)12
Avg EPS beat(16)1.41%
Revenue beat(2)1
Avg Revenue beat(2)0.61%
Min Revenue beat(2)-1.32%
Max Revenue beat(2)2.55%
Revenue beat(4)1
Avg Revenue beat(4)-2.74%
Min Revenue beat(4)-6.24%
Max Revenue beat(4)2.55%
Revenue beat(8)1
Avg Revenue beat(8)-3.45%
Revenue beat(12)1
Avg Revenue beat(12)-8.67%
Revenue beat(16)1
Avg Revenue beat(16)-13.16%
PT rev (1m)0%
PT rev (3m)-6.84%
EPS NQ rev (1m)-9.67%
EPS NQ rev (3m)-32.48%
EPS NY rev (1m)-8.2%
EPS NY rev (3m)-12.08%
Revenue NQ rev (1m)-3.5%
Revenue NQ rev (3m)-13.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.71 | ||
| Fwd PE | 9.81 | ||
| P/S | 0.7 | ||
| P/FCF | 16.9 | ||
| P/OCF | 12.04 | ||
| P/B | 1.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.17 |
EPS(TTM)3.18
EY10.29%
EPS(NY)3.15
Fwd EY10.19%
FCF(TTM)1.83
FCFY5.92%
OCF(TTM)2.57
OCFY8.31%
SpS44.25
BVpS19.62
TBVpS-23.11
PEG (NY)N/A
PEG (5Y)1.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.38% | ||
| ROE | -16.06% | ||
| ROCE | 8.33% | ||
| ROIC | 6.58% | ||
| ROICexc | 6.94% | ||
| ROICexgc | 34.68% | ||
| OM | 10.61% | ||
| PM (TTM) | N/A | ||
| GM | 33.86% | ||
| FCFM | 4.13% |
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%
ROICexcg growth 3Y-1.64%
ROICexcg 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 Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.36 | ||
| Debt/FCF | 14.81 | ||
| Debt/EBITDA | 3.87 | ||
| Cap/Depr | 33.1% | ||
| Cap/Sales | 1.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 37.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 1.58 |
F-Score5
WACC10.26%
ROIC/WACC0.64
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)-9.4%
EPS 3Y-4.41%
EPS 5Y6.2%
EPS Q2Q%-18.84%
EPS Next Y-15.74%
EPS Next 2Y-2.48%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.87%
Revenue growth 3Y12.4%
Revenue growth 5Y11.98%
Sales Q2Q%-8.59%
Revenue Next Year-4.18%
Revenue Next 2Y-0.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.58%
EBIT growth 3Y15.4%
EBIT growth 5Y7.76%
EBIT Next Year408.78%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y36.33%
FCF growth 3Y-38.95%
FCF growth 5Y-5.8%
OCF growth 1Y28.7%
OCF growth 3Y-31.75%
OCF growth 5Y-1.25%