HILLENBRAND INC (HI) Stock Fundamental Analysis
NYSE:HI - New York Stock Exchange, Inc. - US4315711089 - Common Stock - Currency: USD
Overall HI gets a fundamental rating of 3 out of 10. We evaluated HI against 128 industry peers in the Machinery industry. Both the profitability and financial health of HI have multiple concerns. 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
HI had positive earnings in the past year.
In the past year HI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HI reported negative net income in multiple years.
In the past 5 years HI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -5.59%, HI is doing worse than 76.56% of the companies in the same industry.
HI has a worse Return On Equity (-20.25%) than 78.13% of its industry peers.
The Return On Invested Capital of HI (6.44%) is comparable to the rest of the industry.
HI had an Average Return On Invested Capital over the past 3 years of 7.22%. This 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
HI's Operating Margin of 10.20% is in line compared to the rest of the industry. HI outperforms 54.69% of its industry peers.
HI's Operating Margin has declined in the last couple of years.
The Gross Margin of HI (33.85%) 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
HI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
HI has more shares outstanding than it did 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.
HI has a Altman-Z score of 1.51. This is in the lower half of the industry: HI underperforms 75.78% of its industry peers.
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.
The Debt to FCF ratio of HI (12.48) is worse 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.
Looking at the Current ratio, with a value of 1.51, HI is doing worse than 75.00% of the companies in the same industry.
A Quick Ratio of 1.14 indicates that HI should not have too much problems paying 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
The earnings per share for HI have decreased strongly by -14.45% in the last year.
HI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.20% yearly.
The Revenue has been growing slightly by 0.30% in the past year.
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
Based on estimates for the next years, HI will show a decrease in Earnings Per Share. The EPS will decrease by -6.82% on average per year.
HI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -8.06% yearly.
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
Based on the Price/Earnings ratio of 6.95, the valuation of HI can be described as very cheap.
Based on the Price/Earnings ratio, HI is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.21. HI is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.72, the valuation of HI can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HI indicates a rather cheap valuation: HI is cheaper than 95.31% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.70. HI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.95 | ||
| Fwd PE | 8.72 |
4.2 Price Multiples
HI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HI is cheaper than 94.53% of the companies in the same industry.
HI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HI is cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.63 | ||
| EV/EBITDA | 6.37 |
4.3 Compensation for Growth
HI's earnings are expected to decrease with -6.82% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.12
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.
HI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| 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 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 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-23.44%
EPS Next 2Y-14.7%
EPS Next 3Y-6.82%
20.99
+0.92 (+4.58%)
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 Cap1.48B
Analysts81.67
Price Target33.32 (58.74%)
Short Float %2.96%
Short Ratio3.64
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 | 6.95 | ||
| Fwd PE | 8.72 | ||
| P/S | 0.49 | ||
| P/FCF | 9.63 | ||
| P/OCF | 7.32 | ||
| P/B | 1.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.37 |
EPS(TTM)3.02
EY14.39%
EPS(NY)2.41
Fwd EY11.47%
FCF(TTM)2.18
FCFY10.39%
OCF(TTM)2.87
OCFY13.67%
SpS43.25
BVpS18.84
TBVpS-20.37
PEG (NY)N/A
PEG (5Y)1.12
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%