HILLENBRAND INC (HI)
US4315711089 - Common Stock
Taking everything into account, HI scores 3 out of 10 in our fundamental rating. HI was compared to 132 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
HI had positive earnings in the past year.
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 -4.03%. This is in the lower half of the industry: HI underperforms 70.77% of its industry peers.
HI has a Return On Equity of -14.83%. This is in the lower half of the industry: HI underperforms 74.62% of its industry peers.
HI's Return On Invested Capital of 6.75% is in line compared to the rest of the industry. HI outperforms 53.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HI is below the industry average of 11.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.03% | ||
| ROE | -14.83% | ||
| ROIC | 6.75% |
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 (10.87%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HI has declined.
HI's Gross Margin of 33.65% is in line compared to the rest of the industry. HI outperforms 57.69% 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 | 10.87% | ||
| PM (TTM) | N/A | ||
| GM | 33.65% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HI is destroying value.
Compared to 1 year ago, HI has more shares outstanding
Compared to 5 years ago, HI has more shares outstanding
HI has a better debt/assets ratio than last year.
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.
HI has a Altman-Z score of 1.51. This is in the lower half of the industry: HI underperforms 74.62% of its industry peers.
The Debt to FCF ratio of HI is 16.63, which is on the high side as it means it would take HI, 16.63 years of fcf income to pay off all of its debts.
HI has a Debt to FCF ratio of 16.63. This is in the lower half of the industry: HI underperforms 61.54% of its industry peers.
HI has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
HI has a Debt to Equity ratio of 1.32. This is amonst the worse of the industry: HI underperforms 86.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 16.63 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.77
WACC8.78%
2.3 Liquidity
HI has a Current Ratio of 1.27. This is a normal value and indicates that HI is financially healthy and should not expect problems in meeting its short term obligations.
HI has a worse Current ratio (1.27) than 87.69% of its industry peers.
A Quick Ratio of 0.83 indicates that HI may have some problems paying its short term obligations.
HI's Quick ratio of 0.83 is on the low side compared to the rest of the industry. HI is outperformed by 79.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The earnings per share for HI have decreased by -5.97% in the last year.
The Earnings Per Share has been growing slightly by 6.20% on average over the past years.
Looking at the last year, HI shows a quite strong growth in Revenue. The Revenue has grown by 12.63% in the last year.
The Revenue has been growing by 11.98% on average over the past years. This is quite good.
EPS 1Y (TTM)-5.97%
EPS 3Y-4.41%
EPS 5Y6.2%
EPS Q2Q%-10.62%
Revenue 1Y (TTM)12.63%
Revenue growth 3Y12.4%
Revenue growth 5Y11.98%
Sales Q2Q%9.81%
3.2 Future
HI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.23% yearly.
Based on estimates for the next years, HI will show a decrease in Revenue. The Revenue will decrease by -0.12% on average per year.
EPS Next Y-8.21%
EPS Next 2Y3.23%
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
HI is valuated reasonably with a Price/Earnings ratio of 9.01.
Compared to the rest of the industry, the Price/Earnings ratio of HI indicates a rather cheap valuation: HI is cheaper than 91.54% of the companies listed in the same industry.
HI is valuated cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
HI is valuated reasonably with a Price/Forward Earnings ratio of 9.81.
HI's Price/Forward Earnings ratio is rather cheap when compared to the industry. HI is cheaper than 93.85% of the companies in the same industry.
HI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.01 | ||
| 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 86.92% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HI is valued a bit cheaper than 78.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.41 | ||
| EV/EBITDA | 7.51 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.45
EPS Next 2Y3.23%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HI has a Yearly Dividend Yield of 3.10%.
HI's Dividend Yield is rather good when compared to the industry average which is at 1.71. HI pays more dividend than 92.31% of the companies in the same industry.
HI's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
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 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
HI has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of HI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-29.62%
EPS Next 2Y3.23%
EPS Next 3YN/A
HILLENBRAND INC
NYSE:HI (12/20/2024, 8:16:38 PM)
Premarket: 28 -1.82 (-6.1%)29.82
+0.75 (+2.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.46%
Inst Owner Change-1.69%
Ins Owners0.9%
Ins Owner Change4.97%
Market Cap2.09B
Analysts84.62
Price Target44.47 (49.13%)
Short Float %3.3%
Short Ratio5.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
Dividend Growth(5Y)1.11%
DP-29.62%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.53%
Min EPS beat(2)1.01%
Max EPS beat(2)6.05%
EPS beat(4)2
Avg EPS beat(4)1.25%
Min EPS beat(4)-1.16%
Max EPS beat(4)6.05%
EPS beat(8)5
Avg EPS beat(8)-0.64%
EPS beat(12)8
Avg EPS beat(12)0.11%
EPS beat(16)12
Avg EPS beat(16)3.79%
Revenue beat(2)1
Avg Revenue beat(2)-1.85%
Min Revenue beat(2)-6.24%
Max Revenue beat(2)2.55%
Revenue beat(4)1
Avg Revenue beat(4)-3.28%
Min Revenue beat(4)-6.24%
Max Revenue beat(4)2.55%
Revenue beat(8)1
Avg Revenue beat(8)-4.83%
Revenue beat(12)1
Avg Revenue beat(12)-10.35%
Revenue beat(16)2
Avg Revenue beat(16)-12.83%
PT rev (1m)-4.39%
PT rev (3m)-8.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.44%
EPS NY rev (1m)-4.23%
EPS NY rev (3m)-4.23%
Revenue NQ rev (1m)-3.47%
Revenue NQ rev (3m)-13.96%
Revenue NY rev (1m)-3.43%
Revenue NY rev (3m)-3.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.01 | ||
| Fwd PE | 9.81 | ||
| P/S | 0.66 | ||
| P/FCF | 18.41 | ||
| P/OCF | 12.47 | ||
| P/B | 1.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.51 |
EPS(TTM)3.31
EY11.1%
EPS(NY)3.04
Fwd EY10.19%
FCF(TTM)1.62
FCFY5.43%
OCF(TTM)2.39
OCFY8.02%
SpS45.31
BVpS20.26
TBVpS-24.18
PEG (NY)N/A
PEG (5Y)1.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.03% | ||
| ROE | -14.83% | ||
| ROCE | 8.55% | ||
| ROIC | 6.75% | ||
| ROICexc | 7.1% | ||
| ROICexgc | 37.52% | ||
| OM | 10.87% | ||
| PM (TTM) | N/A | ||
| GM | 33.65% | ||
| FCFM | 3.58% |
ROA(3y)3.88%
ROA(5y)3.27%
ROE(3y)13.14%
ROE(5y)10.88%
ROIC(3y)7.22%
ROIC(5y)6.99%
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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 16.63 | ||
| Debt/EBITDA | 3.71 | ||
| Cap/Depr | 34.3% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 2.8 | ||
| Cash Conversion | 33.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 1.51 |
F-Score5
WACC8.78%
ROIC/WACC0.77
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)-5.97%
EPS 3Y-4.41%
EPS 5Y6.2%
EPS Q2Q%-10.62%
EPS Next Y-8.21%
EPS Next 2Y3.23%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.63%
Revenue growth 3Y12.4%
Revenue growth 5Y11.98%
Sales Q2Q%9.81%
Revenue Next Year-4.18%
Revenue Next 2Y-0.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y1.47%
EBIT growth 3Y15.4%
EBIT growth 5Y7.76%
EBIT Next Year405.86%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y12544.4%
FCF growth 3Y-38.95%
FCF growth 5Y-5.8%
OCF growth 1Y139.32%
OCF growth 3Y-31.75%
OCF growth 5Y-1.25%