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 128 industry peers in the Machinery industry. HI has a bad profitability rating. Also its financial health evaluation is rather negative. HI is cheap, but on the other hand it scores bad on growth. Finally HI also has an excellent dividend rating.
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 Return On Assets of -5.59%. This is in the lower half of the industry: HI underperforms 76.56% of its industry peers.
HI has a Return On Equity of -20.25%. This is in the lower half of the industry: HI underperforms 78.13% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.44%, HI is in line with its industry, outperforming 44.53% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HI is below the industry average of 10.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.59% | ||
| ROE | -20.25% | ||
| ROIC | 6.44% |
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 10.20%, HI perfoms like the industry average, outperforming 54.69% of the companies in the same industry.
In the last couple of years the Operating Margin of HI has declined.
HI has a Gross Margin (33.85%) which is comparable to the rest of the industry.
HI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.2% | ||
| PM (TTM) | N/A | ||
| GM | 33.85% |
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.
Compared to 5 years ago, HI has more shares outstanding
The debt/assets ratio for HI has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.51, we must say that HI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.51, HI is not doing good in the industry: 76.56% of the companies in the same industry are doing better.
The Debt to FCF ratio of HI is 12.48, which is on the high side as it means it would take HI, 12.48 years of fcf income to pay off all of its debts.
HI has a worse Debt to FCF ratio (12.48) than 64.84% of its industry peers.
A Debt/Equity ratio of 1.43 is on the high side and indicates that HI has dependencies on debt financing.
With a Debt to Equity ratio value of 1.43, HI is not doing good in the industry: 83.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 12.48 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.67
WACC9.62%
2.3 Liquidity
A Current Ratio of 1.51 indicates that HI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.51, HI is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
HI has a Quick Ratio of 1.14. This is a normal value and indicates that HI is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.14, HI perfoms like the industry average, outperforming 42.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
HI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.45%.
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 small growth in Revenue. In the last year, the Revenue has grown by 0.30%.
Measured over the past years, HI shows a quite strong growth in Revenue. The Revenue has been growing by 11.98% on average per year.
EPS 1Y (TTM)-14.45%
EPS 3Y-4.41%
EPS 5Y6.2%
EPS Q2Q%-21.05%
Revenue 1Y (TTM)0.3%
Revenue growth 3Y12.4%
Revenue growth 5Y11.98%
Sales Q2Q%-8.84%
3.2 Future
HI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.82% yearly.
The Revenue is expected to decrease by -8.06% on average over the next years.
EPS Next Y-30.59%
EPS Next 2Y-14.7%
EPS Next 3Y-6.82%
EPS Next 5YN/A
Revenue Next Year-17.64%
Revenue Next 2Y-12.92%
Revenue Next 3Y-8.06%
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 decreasing.
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
The Price/Earnings ratio is 6.65, which indicates a rather cheap valuation of HI.
94.53% of the companies in the same industry are more expensive than HI, based on the Price/Earnings ratio.
HI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.15.
HI is valuated reasonably with a Price/Forward Earnings ratio of 8.33.
Based on the Price/Forward Earnings ratio, HI is valued cheaper than 95.31% of the companies in the same industry.
HI is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.65 | ||
| Fwd PE | 8.33 |
4.2 Price Multiples
HI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HI is cheaper than 95.31% of the companies in the same industry.
95.31% of the companies in the same industry are more expensive than HI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.21 | ||
| EV/EBITDA | 6.29 |
4.3 Compensation for Growth
A cheap valuation may be justified as HI's earnings are expected to decrease with -6.82% in the coming years.
PEG (NY)N/A
PEG (5Y)1.07
EPS Next 2Y-14.7%
EPS Next 3Y-6.82%
5. Dividend
5.1 Amount
HI has a Yearly Dividend Yield of 4.38%, which is a nice return.
Compared to an average industry Dividend Yield of 1.88, HI pays a better dividend. On top of this HI pays more dividend than 96.88% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, HI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.38% |
5.2 History
The dividend of HI has a limited annual growth rate of 1.11%.
HI has been paying a dividend for at least 10 years, so it has 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
The earnings of HI are negative and hence is the payout ratio. HI will probably not be able to sustain this dividend level.
DP-23.44%
EPS Next 2Y-14.7%
EPS Next 3Y-6.82%
20.07
-0.35 (-1.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.12%
Inst Owner Change2.52%
Ins Owners1.01%
Ins Owner Change1.96%
Market Cap1.41B
Analysts81.67
Price Target33.32 (66.02%)
Short Float %2.78%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.38% |
Yearly Dividend0.89
Dividend Growth(5Y)1.11%
DP-23.44%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.92%
Min EPS beat(2)1.43%
Max EPS beat(2)8.4%
EPS beat(4)4
Avg EPS beat(4)4.22%
Min EPS beat(4)1.01%
Max EPS beat(4)8.4%
EPS beat(8)6
Avg EPS beat(8)2.54%
EPS beat(12)9
Avg EPS beat(12)0.75%
EPS beat(16)12
Avg EPS beat(16)1.67%
Revenue beat(2)1
Avg Revenue beat(2)-0.37%
Min Revenue beat(2)-1.32%
Max Revenue beat(2)0.59%
Revenue beat(4)2
Avg Revenue beat(4)-1.11%
Min Revenue beat(4)-6.24%
Max Revenue beat(4)2.55%
Revenue beat(8)2
Avg Revenue beat(8)-2.46%
Revenue beat(12)2
Avg Revenue beat(12)-6.59%
Revenue beat(16)2
Avg Revenue beat(16)-13.07%
PT rev (1m)8.17%
PT rev (3m)-18.33%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)-27.45%
EPS NY rev (1m)0.18%
EPS NY rev (3m)-17.63%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)-7.89%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-3.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.65 | ||
| Fwd PE | 8.33 | ||
| P/S | 0.46 | ||
| P/FCF | 9.21 | ||
| P/OCF | 7 | ||
| P/B | 1.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.29 |
EPS(TTM)3.02
EY15.05%
EPS(NY)2.41
Fwd EY12%
FCF(TTM)2.18
FCFY10.86%
OCF(TTM)2.87
OCFY14.29%
SpS43.25
BVpS18.84
TBVpS-20.37
PEG (NY)N/A
PEG (5Y)1.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.59% | ||
| ROE | -20.25% | ||
| ROCE | 8.15% | ||
| ROIC | 6.44% | ||
| ROICexc | 7.32% | ||
| ROICexgc | 41.47% | ||
| OM | 10.2% | ||
| PM (TTM) | N/A | ||
| GM | 33.85% | ||
| FCFM | 5.04% |
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 Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 12.48 | ||
| Debt/EBITDA | 4.11 | ||
| Cap/Depr | 32.33% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 43.86% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 1.51 |
F-Score5
WACC9.62%
ROIC/WACC0.67
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)-14.45%
EPS 3Y-4.41%
EPS 5Y6.2%
EPS Q2Q%-21.05%
EPS Next Y-30.59%
EPS Next 2Y-14.7%
EPS Next 3Y-6.82%
EPS Next 5YN/A
Revenue 1Y (TTM)0.3%
Revenue growth 3Y12.4%
Revenue growth 5Y11.98%
Sales Q2Q%-8.84%
Revenue Next Year-17.64%
Revenue Next 2Y-12.92%
Revenue Next 3Y-8.06%
Revenue Next 5YN/A
EBIT growth 1Y-14.29%
EBIT growth 3Y15.4%
EBIT growth 5Y7.76%
EBIT Next Year306.67%
EBIT Next 3Y63.45%
EBIT Next 5YN/A
FCF growth 1Y63.4%
FCF growth 3Y-38.95%
FCF growth 5Y-5.8%
OCF growth 1Y35.37%
OCF growth 3Y-31.75%
OCF growth 5Y-1.25%