HILLENBRAND INC (HI) Stock Fundamental Analysis
NYSE:HI - US4315711089 - Common Stock
25.36 USD
-0.72 (-2.76%)
25.32 USD
-0.04 (-0.16%)
HI gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 127 industry peers in the Machinery industry. HI may be in some trouble as it scores bad on both profitability and health. HI has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year HI was profitable.
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.
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 -0.38%, HI is doing worse than 68.50% of the companies in the same industry.
With a Return On Equity value of -1.37%, HI is not doing good in the industry: 67.72% of the companies in the same industry are doing better.
The Return On Invested Capital of HI (5.80%) 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 10.48%.
| 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.
In the last couple of years the Operating Margin of HI has declined.
Looking at the Gross Margin, with a value of 33.66%, HI is in line with its industry, outperforming 58.27% of the companies in the same industry.
HI's Gross Margin has been stable in the last couple of years.
| 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
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 1.47, we must say that HI is in the distress zone and has some risk of bankruptcy.
HI has a Altman-Z score of 1.47. This is in the lower half of the industry: HI underperforms 74.80% 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 worse Debt to FCF ratio (14.87) than 67.72% 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.
The Debt to Equity ratio of HI (1.26) is worse than 82.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 14.87 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.6
WACC9.67%
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.
The Current ratio of HI (1.25) is worse than 83.46% of its industry peers.
A Quick Ratio of 0.87 indicates that HI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.87, HI is doing worse than 70.87% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing slightly by 6.20% on average over the past years.
The Revenue has decreased by -8.00% 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)-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
HI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.40% yearly.
The Revenue is expected to decrease by -7.13% 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-16.89%
Revenue Next 2Y-12.7%
Revenue Next 3Y-7.13%
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 9.46, which indicates a very decent valuation of HI.
92.91% of the companies in the same industry are more expensive than HI, based on the Price/Earnings ratio.
HI is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.67, 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 93.70% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.63. HI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 10.67 |
4.2 Price Multiples
HI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HI is cheaper than 87.40% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HI is valued a bit cheaper than 79.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.86 | ||
| EV/EBITDA | 8.02 |
4.3 Compensation for Growth
A cheap valuation may be justified as HI's earnings are expected to decrease with -6.40% in the coming years.
PEG (NY)N/A
PEG (5Y)1.53
EPS Next 2Y-15.28%
EPS Next 3Y-6.4%
5. Dividend
5.1 Amount
HI has a Yearly Dividend Yield of 3.66%. Purely for dividend investing, there may be better candidates out there.
HI's Dividend Yield is rather good when compared to the industry average which is at 1.87. HI pays more dividend than 93.70% of the companies in the same industry.
HI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
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
The earnings of HI are negative and hence is the payout ratio. HI will probably not be able to sustain this dividend level.
DP-351.11%
EPS Next 2Y-15.28%
EPS Next 3Y-6.4%
25.36
-0.72 (-2.76%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.26%
Inst Owner Change-2.03%
Ins Owners1.04%
Ins Owner Change2.88%
Market Cap1.79B
Analysts81.67
Price Target33.66 (32.73%)
Short Float %2.75%
Short Ratio3.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
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)1.02%
PT rev (3m)9.27%
EPS NQ rev (1m)2.76%
EPS NQ rev (3m)-22.48%
EPS NY rev (1m)1.14%
EPS NY rev (3m)1.33%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)-14.2%
Revenue NY rev (1m)0.9%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 10.67 | ||
| P/S | 0.63 | ||
| P/FCF | 15.86 | ||
| P/OCF | 11.53 | ||
| P/B | 1.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.02 |
EPS(TTM)2.68
EY10.57%
EPS(NY)2.38
Fwd EY9.37%
FCF(TTM)1.6
FCFY6.31%
OCF(TTM)2.2
OCFY8.67%
SpS40.57
BVpS18.68
TBVpS-21.67
PEG (NY)N/A
PEG (5Y)1.53
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 | 1.47 |
F-Score5
WACC9.67%
ROIC/WACC0.6
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-16.89%
Revenue Next 2Y-12.7%
Revenue Next 3Y-7.13%
Revenue Next 5YN/A
EBIT growth 1Y-25.77%
EBIT growth 3Y15.4%
EBIT growth 5Y7.76%
EBIT Next Year307.34%
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%