HILLENBRAND INC (HI)
US4315711089 - Common Stock
Taking everything into account, HI scores 4 out of 10 in our fundamental rating. HI was compared to 132 industry peers in the Machinery industry. HI has a medium profitability rating, but doesn't score so well on its financial health evaluation. HI is not valued too expensively and it also shows a decent growth rate. HI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year HI was profitable.
In the past year HI had a positive cash flow from operations.
HI had positive earnings in 4 of the past 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 9.69%. This is in the better half of the industry: HI outperforms 75.97% of its industry peers.
Looking at the Return On Equity, with a value of 32.06%, HI belongs to the top of the industry, outperforming 92.25% of the companies in the same industry.
HI has a Return On Invested Capital (6.42%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HI is below the industry average of 10.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.69% | ||
| ROE | 32.06% | ||
| ROIC | 6.42% |
ROA(3y)7.3%
ROA(5y)5.17%
ROE(3y)24.97%
ROE(5y)17.06%
ROIC(3y)6.96%
ROIC(5y)7.94%
1.3 Margins
HI's Profit Margin of 18.39% is amongst the best of the industry. HI outperforms 93.80% of its industry peers.
HI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.02%, HI is in the better half of the industry, outperforming 63.57% of the companies in the same industry.
HI's Operating Margin has declined in the last couple of years.
HI has a Gross Margin of 33.79%. This is in the better half of the industry: HI outperforms 64.34% of its industry peers.
HI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.02% | ||
| PM (TTM) | 18.39% | ||
| GM | 33.79% |
OM growth 3Y1.71%
OM growth 5Y-2.12%
PM growth 3YN/A
PM growth 5Y36.03%
GM growth 3Y1.21%
GM growth 5Y-1.56%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HI is destroying value.
Compared to 1 year ago, HI has more shares outstanding
The number of shares outstanding for HI has been increased compared to 5 years ago.
HI has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.59, we must say that HI is in the distress zone and has some risk of bankruptcy.
HI's Altman-Z score of 1.59 is on the low side compared to the rest of the industry. HI is outperformed by 69.77% of its industry peers.
HI has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
HI's Debt to Equity ratio of 1.20 is on the low side compared to the rest of the industry. HI is outperformed by 86.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.59 |
ROIC/WACC0.74
WACC8.68%
2.3 Liquidity
HI has a Current Ratio of 1.28. 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 (1.28) is worse than 83.72% of its industry peers.
HI has a Quick Ratio of 1.28. This is a bad value and indicates that HI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.79, HI is doing worse than 76.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
HI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.62%.
HI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.69% yearly.
Looking at the last year, HI shows a very strong growth in Revenue. The Revenue has grown by 22.39%.
The Revenue has been growing by 9.81% on average over the past years. This is quite good.
EPS 1Y (TTM)-4.62%
EPS 3Y11.05%
EPS 5Y7.69%
EPS growth Q2Q-1.43%
Revenue 1Y (TTM)22.39%
Revenue growth 3Y3.94%
Revenue growth 5Y9.81%
Revenue growth Q2Q17.94%
3.2 Future
The Earnings Per Share is expected to grow by 10.13% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.50% on average over the next years. This is quite good.
EPS Next Y8.25%
EPS Next 2Y10.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year18.62%
Revenue Next 2Y11.5%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.80, the valuation of HI can be described as reasonable.
Based on the Price/Earnings ratio, HI is valued cheaply inside the industry as 84.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.55, HI is valued rather cheaply.
A Price/Forward Earnings ratio of 9.70 indicates a reasonable valuation of HI.
HI's Price/Forward Earnings ratio is rather cheap when compared to the industry. HI is cheaper than 89.92% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, HI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 9.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HI is valued a bit cheaper than the industry average as 75.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.75 |
4.3 Compensation for Growth
HI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.43
PEG (5Y)1.53
EPS Next 2Y10.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HI has a Yearly Dividend Yield of 1.87%.
Compared to an average industry Dividend Yield of 1.71, HI pays a better dividend. On top of this HI pays more dividend than 85.27% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.39, HI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
5.2 History
The dividend of HI has a limited annual growth rate of 1.23%.
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)1.23%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
HI pays out 11.38% of its income as dividend. This is a sustainable payout ratio.
HI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP11.38%
EPS Next 2Y10.13%
EPS Next 3YN/A
HILLENBRAND INC
NYSE:HI (5/1/2024, 7:04:00 PM)
41.43
-6.29 (-13.18%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.91B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 9.7 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.43
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.69% | ||
| ROE | 32.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.02% | ||
| PM (TTM) | 18.39% | ||
| GM | 33.79% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.28 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-4.62%
EPS 3Y11.05%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22.39%
Revenue growth 3Y3.94%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y