HILLENBRAND INC (HI) Stock Fundamental Analysis
USA - NYSE:HI - US4315711089 - Common Stock
31.31 USD
0 (0%)
31.21 USD
-0.1 (-0.32%)
We assign a fundamental rating of 3 out of 10 to HI. HI was compared to 129 industry peers in the Machinery industry. HI has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
The reported net income has been mixed in the past 5 years: HI reported negative net income in multiple 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 -0.38%. This is in the lower half of the industry: HI underperforms 68.22% of its industry peers.
HI's Return On Equity of -1.37% is on the low side compared to the rest of the industry. HI is outperformed by 68.22% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.80%, HI is in line with its industry, outperforming 44.96% of the companies in the same industry.
HI had an Average Return On Invested Capital over the past 3 years of 7.22%. This is below the industry average of 10.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.38% | ||
| ROE | -1.37% | ||
| ROIC | 5.8% |
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
The Operating Margin of HI (9.36%) is comparable to the rest of the industry.
HI's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 33.66%, HI perfoms like the industry average, outperforming 58.91% of the companies in the same 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 | 9.36% | ||
| PM (TTM) | N/A | ||
| GM | 33.66% |
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
The debt/assets ratio for HI has been reduced compared to a year ago.
2.2 Solvency
HI has an Altman-Z score of 1.55. This is a bad value and indicates that HI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of HI (1.55) is worse than 75.97% of its industry peers.
The Debt to FCF ratio of HI is 14.87, which is on the high side as it means it would take HI, 14.87 years of fcf income to pay off all of its debts.
HI has a Debt to FCF ratio of 14.87. This is in the lower half of the industry: HI underperforms 63.57% of its industry peers.
HI has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
HI has a Debt to Equity ratio of 1.26. This is amonst the worse of the industry: HI underperforms 81.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 14.87 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.62
WACC9.4%
2.3 Liquidity
HI has a Current Ratio of 1.25. This is a normal value and indicates that HI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.25, HI is doing worse than 83.72% of the companies in the same industry.
A Quick Ratio of 0.87 indicates that HI may have some problems paying its short term obligations.
HI's Quick ratio of 0.87 is on the low side compared to the rest of the industry. HI is outperformed by 71.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
HI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.87%.
Measured over the past 5 years, HI shows a small growth in Earnings Per Share. The EPS has been growing by 6.20% on average per year.
Looking at the last year, HI shows a decrease in Revenue. The Revenue has decreased by -8.00% 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)-21.87%
EPS 3Y-4.41%
EPS 5Y6.2%
EPS Q2Q%-40%
Revenue 1Y (TTM)-8%
Revenue growth 3Y12.4%
Revenue growth 5Y11.98%
Sales Q2Q%-23.86%
3.2 Future
The Earnings Per Share is expected to decrease by -6.40% on average over the next years.
The Revenue is expected to decrease by -6.96% on average over the next years.
EPS Next Y-29.8%
EPS Next 2Y-15.28%
EPS Next 3Y-6.4%
EPS Next 5YN/A
Revenue Next Year-16.71%
Revenue Next 2Y-12.58%
Revenue Next 3Y-6.96%
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.
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
With a Price/Earnings ratio of 11.68, the valuation of HI can be described as very reasonable.
Based on the Price/Earnings ratio, HI is valued cheaper than 91.47% of the companies in the same industry.
When comparing the Price/Earnings ratio of HI to the average of the S&P500 Index (27.29), we can say HI is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.18, HI is valued correctly.
Based on the Price/Forward Earnings ratio, HI is valued cheaper than 82.95% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.85. HI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 13.18 |
4.2 Price Multiples
HI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HI is cheaper than 82.17% of the companies in the same industry.
68.22% 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 | 19.58 | ||
| EV/EBITDA | 9.04 |
4.3 Compensation for Growth
HI's earnings are expected to decrease with -6.40% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.88
EPS Next 2Y-15.28%
EPS Next 3Y-6.4%
5. Dividend
5.1 Amount
HI has a Yearly Dividend Yield of 3.50%.
Compared to an average industry Dividend Yield of 1.82, HI pays a better dividend. On top of this HI pays more dividend than 92.25% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, HI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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-351.11%
EPS Next 2Y-15.28%
EPS Next 3Y-6.4%
31.31
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.46%
Inst Owner Change-0.01%
Ins Owners1.05%
Ins Owner Change1.99%
Market Cap2.21B
Analysts81.67
Price Target33.66 (7.51%)
Short Float %3.07%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
Yearly Dividend0.89
Dividend Growth(5Y)1.11%
DP-351.11%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.26%
Min EPS beat(2)0.13%
Max EPS beat(2)8.4%
EPS beat(4)4
Avg EPS beat(4)4%
Min EPS beat(4)0.13%
Max EPS beat(4)8.4%
EPS beat(8)6
Avg EPS beat(8)2.51%
EPS beat(12)9
Avg EPS beat(12)0.5%
EPS beat(16)12
Avg EPS beat(16)1.16%
Revenue beat(2)2
Avg Revenue beat(2)1.08%
Min Revenue beat(2)0.59%
Max Revenue beat(2)1.57%
Revenue beat(4)3
Avg Revenue beat(4)0.84%
Min Revenue beat(4)-1.32%
Max Revenue beat(4)2.55%
Revenue beat(8)3
Avg Revenue beat(8)-1.65%
Revenue beat(12)3
Avg Revenue beat(12)-4.78%
Revenue beat(16)3
Avg Revenue beat(16)-12.87%
PT rev (1m)0%
PT rev (3m)1.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.76%
EPS NY rev (1m)0%
EPS NY rev (3m)1.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 13.18 | ||
| P/S | 0.77 | ||
| P/FCF | 19.58 | ||
| P/OCF | 14.24 | ||
| P/B | 1.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.04 |
EPS(TTM)2.68
EY8.56%
EPS(NY)2.38
Fwd EY7.59%
FCF(TTM)1.6
FCFY5.11%
OCF(TTM)2.2
OCFY7.02%
SpS40.57
BVpS18.68
TBVpS-21.67
PEG (NY)N/A
PEG (5Y)1.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.38% | ||
| ROE | -1.37% | ||
| ROCE | 7.34% | ||
| ROIC | 5.8% | ||
| ROICexc | 6.07% | ||
| ROICexgc | 33.05% | ||
| OM | 9.36% | ||
| PM (TTM) | N/A | ||
| GM | 33.66% | ||
| FCFM | 3.94% |
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 | 1.26 | ||
| Debt/FCF | 14.87 | ||
| Debt/EBITDA | 4.04 | ||
| Cap/Depr | 29.4% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 37.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.55 |
F-Score5
WACC9.4%
ROIC/WACC0.62
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)-21.87%
EPS 3Y-4.41%
EPS 5Y6.2%
EPS Q2Q%-40%
EPS Next Y-29.8%
EPS Next 2Y-15.28%
EPS Next 3Y-6.4%
EPS Next 5YN/A
Revenue 1Y (TTM)-8%
Revenue growth 3Y12.4%
Revenue growth 5Y11.98%
Sales Q2Q%-23.86%
Revenue Next Year-16.71%
Revenue Next 2Y-12.58%
Revenue Next 3Y-6.96%
Revenue Next 5YN/A
EBIT growth 1Y-25.77%
EBIT growth 3Y15.4%
EBIT growth 5Y7.76%
EBIT Next Year310.92%
EBIT Next 3Y63.45%
EBIT Next 5YN/A
FCF growth 1Y84.15%
FCF growth 3Y-38.95%
FCF growth 5Y-5.8%
OCF growth 1Y28.1%
OCF growth 3Y-31.75%
OCF growth 5Y-1.25%