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 127 industry peers in the Machinery industry. HI has a bad profitability rating. Also its financial health evaluation is rather negative. HI is valued quite cheap, but it does not seem to be growing. 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.
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
With a Return On Assets value of -5.59%, HI is not doing good in the industry: 76.38% of the companies in the same industry are doing better.
HI has a worse Return On Equity (-20.25%) than 77.95% of its industry peers.
HI has a Return On Invested Capital (6.44%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for HI is below the industry average of 10.77%.
| 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 has a Operating Margin of 10.20%. This is comparable to the rest of the industry: HI outperforms 54.33% of its industry peers.
HI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 33.85%, HI is in line with its industry, outperforming 58.27% 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 | 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.
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 1.52, we must say that HI is in the distress zone and has some risk of bankruptcy.
HI's Altman-Z score of 1.52 is on the low side compared to the rest of the industry. HI is outperformed by 77.17% 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.
Looking at the Debt to FCF ratio, with a value of 12.48, HI is doing worse than 64.57% of the companies in the same industry.
HI has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.43, HI is doing worse than 83.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 12.48 | ||
| Altman-Z | 1.52 |
ROIC/WACC0.68
WACC9.52%
2.3 Liquidity
HI has a Current Ratio of 1.51. 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 Current ratio of 1.51. This is in the lower half of the industry: HI underperforms 74.80% of its industry peers.
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.
HI's Quick ratio of 1.14 is in line compared to the rest of the industry. HI outperforms 42.52% of its industry peers.
| 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%.
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 small growth in Revenue. The Revenue has grown by 0.30% in the last year.
HI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.98% yearly.
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
The Earnings Per Share is expected to decrease by -6.82% on average over the next years.
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
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
Based on the Price/Earnings ratio of 7.45, the valuation of HI can be described as very cheap.
Based on the Price/Earnings ratio, HI is valued cheaply inside the industry as 93.70% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.53, HI is valued rather cheaply.
A Price/Forward Earnings ratio of 9.34 indicates a reasonable valuation of HI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HI indicates a rather cheap valuation: HI is cheaper than 92.91% of the companies listed in the same industry.
HI is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.45 | ||
| Fwd PE | 9.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HI is valued cheaper than 93.70% 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 92.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.32 | ||
| EV/EBITDA | 6.51 |
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)1.2
EPS Next 2Y-14.7%
EPS Next 3Y-6.82%
5. Dividend
5.1 Amount
HI has a Yearly Dividend Yield of 4.16%, which is a nice return.
HI's Dividend Yield is rather good when compared to the industry average which is at 1.87. HI pays more dividend than 96.06% 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 | 4.16% |
5.2 History
The dividend of HI has a limited annual growth rate of 1.11%.
HI has paid a dividend for at least 10 years, which is 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%
22.5
+0.62 (+2.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.12%
Inst Owner Change0.02%
Ins Owners1.01%
Ins Owner Change3.38%
Market Cap1.59B
Analysts81.67
Price Target33.32 (48.09%)
Short Float %2.47%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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)0%
PT rev (3m)-18.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.45 | ||
| Fwd PE | 9.34 | ||
| P/S | 0.52 | ||
| P/FCF | 10.32 | ||
| P/OCF | 7.84 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.51 |
EPS(TTM)3.02
EY13.42%
EPS(NY)2.41
Fwd EY10.7%
FCF(TTM)2.18
FCFY9.69%
OCF(TTM)2.87
OCFY12.75%
SpS43.25
BVpS18.84
TBVpS-20.37
PEG (NY)N/A
PEG (5Y)1.2
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 | 1.52 |
F-Score5
WACC9.52%
ROIC/WACC0.68
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%