HILLENBRAND INC (HI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HI - US4315711089 - Common Stock
31.66 USD
-0.03 (-0.09%)
31.6314 USD
-0.03 (-0.09%)
We assign a fundamental rating of 3 out of 10 to HI. HI was compared to 132 industry peers in the Machinery industry. Both the profitability and financial health of HI have multiple concerns. 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
HI had positive earnings in the past year.
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
The Return On Assets of HI (0.96%) is worse than 63.64% of its industry peers.
Looking at the Return On Equity, with a value of 3.11%, HI is in line with its industry, outperforming 40.15% of the companies in the same industry.
The Return On Invested Capital of HI (5.36%) is comparable to the rest of the industry.
HI had an Average Return On Invested Capital over the past 3 years of 6.16%. This is below the industry average of 10.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.96% | ||
| ROE | 3.11% | ||
| ROIC | 5.36% |
ROA(3y)2.4%
ROA(5y)3.77%
ROE(3y)7.74%
ROE(5y)12.64%
ROIC(3y)6.16%
ROIC(5y)6.6%
1.3 Margins
HI's Profit Margin of 1.61% is on the low side compared to the rest of the industry. HI is outperformed by 61.36% of its industry peers.
HI's Profit Margin has declined in the last couple of years.
HI has a Operating Margin of 8.75%. This is comparable to the rest of the industry: HI outperforms 52.27% of its industry peers.
In the last couple of years the Operating Margin of HI has declined.
HI has a better Gross Margin (34.05%) than 61.36% of its industry peers.
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 | 8.75% | ||
| PM (TTM) | 1.61% | ||
| GM | 34.05% |
OM growth 3Y-12.36%
OM growth 5Y-5.43%
PM growth 3Y-43.68%
PM growth 5YN/A
GM growth 3Y0.98%
GM growth 5Y0.98%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HI is destroying value.
HI has more shares outstanding than it did 1 year ago.
HI has less shares outstanding than it did 5 years ago.
HI has a better 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.
Looking at the Altman-Z score, with a value of 1.59, HI is doing worse than 75.00% of the companies in the same industry.
HI has a debt to FCF ratio of 85.18. This is a negative value and a sign of low solvency as HI would need 85.18 years to pay back of all of its debts.
The Debt to FCF ratio of HI (85.18) is worse than 65.91% of its industry peers.
HI has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.08, HI is doing worse than 78.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 85.18 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.6
WACC8.96%
2.3 Liquidity
A Current Ratio of 1.22 indicates that HI should not have too much problems paying its short term obligations.
HI has a Current ratio of 1.22. This is amonst the worse of the industry: HI underperforms 82.58% of its industry peers.
A Quick Ratio of 0.88 indicates that HI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.88, HI is doing worse than 68.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
HI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.47%.
The Earnings Per Share has been decreasing by -0.55% on average over the past years.
The Revenue for HI has decreased by -15.99% in the past year. This is quite bad
Measured over the past years, HI shows a small growth in Revenue. The Revenue has been growing by 1.22% on average per year.
EPS 1Y (TTM)-24.47%
EPS 3Y-13.92%
EPS 5Y-0.55%
EPS Q2Q%-17.82%
Revenue 1Y (TTM)-15.99%
Revenue growth 3Y4.92%
Revenue growth 5Y1.22%
Sales Q2Q%-22.15%
3.2 Future
HI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.50% yearly.
HI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.86% yearly.
EPS Next Y-2.64%
EPS Next 2Y3.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-8.05%
Revenue Next 2Y-2.86%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.66 indicates a correct valuation of HI.
HI's Price/Earnings ratio is rather cheap when compared to the industry. HI is cheaper than 92.42% of the companies in the same industry.
HI is valuated cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.01, the valuation of HI can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HI indicates a rather cheap valuation: HI is cheaper than 90.15% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HI to the average of the S&P500 Index (24.04), we can say HI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 13.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HI indicates a rather cheap valuation: HI is cheaper than 83.33% of the companies listed in the same industry.
HI's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. HI is more expensive than 65.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 124.71 | ||
| EV/EBITDA | 9.65 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.87%, HI has a reasonable but not impressive dividend return.
HI's Dividend Yield is rather good when compared to the industry average which is at 0.98. HI pays more dividend than 92.42% of the companies in the same industry.
HI's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
5.2 History
The dividend of HI decreases each year by -0.52%.
HI has paid a dividend for at least 10 years, which is 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)-0.52%
Div Incr Years16
Div Non Decr Years16
5.3 Sustainability
147.10% of the earnings are spent on dividend by HI. This is not a sustainable payout ratio.
DP147.1%
EPS Next 2Y3.5%
EPS Next 3YN/A
31.66
-0.03 (-0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners92.89%
Inst Owner Change1.1%
Ins Owners1.04%
Ins Owner Change6.51%
Market Cap2.23B
Revenue(TTM)2.67B
Net Income(TTM)43.10M
Analysts80
Price Target32.64 (3.1%)
Short Float %3.42%
Short Ratio1.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
Yearly Dividend0.9
Dividend Growth(5Y)-0.52%
DP147.1%
Div Incr Years16
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.97%
Min EPS beat(2)0.13%
Max EPS beat(2)31.82%
EPS beat(4)4
Avg EPS beat(4)10.44%
Min EPS beat(4)0.13%
Max EPS beat(4)31.82%
EPS beat(8)6
Avg EPS beat(8)5.85%
EPS beat(12)9
Avg EPS beat(12)3.05%
EPS beat(16)12
Avg EPS beat(16)2.7%
Revenue beat(2)2
Avg Revenue beat(2)4.07%
Min Revenue beat(2)1.57%
Max Revenue beat(2)6.57%
Revenue beat(4)3
Avg Revenue beat(4)1.85%
Min Revenue beat(4)-1.32%
Max Revenue beat(4)6.57%
Revenue beat(8)4
Avg Revenue beat(8)-0.71%
Revenue beat(12)4
Avg Revenue beat(12)-2.6%
Revenue beat(16)4
Avg Revenue beat(16)-7.3%
PT rev (1m)0%
PT rev (3m)-3.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.03%
EPS NY rev (1m)3.1%
EPS NY rev (3m)2.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0.77%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.66 | ||
| Fwd PE | 13.01 | ||
| P/S | 0.83 | ||
| P/FCF | 124.71 | ||
| P/OCF | 39.72 | ||
| P/B | 1.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.65 |
EPS(TTM)2.5
EY7.9%
EPS(NY)2.43
Fwd EY7.69%
FCF(TTM)0.25
FCFY0.8%
OCF(TTM)0.8
OCFY2.52%
SpS37.92
BVpS19.67
TBVpS-19.16
PEG (NY)N/A
PEG (5Y)N/A
Graham Number33.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.96% | ||
| ROE | 3.11% | ||
| ROCE | 6.79% | ||
| ROIC | 5.36% | ||
| ROICexc | 5.63% | ||
| ROICexgc | 33.95% | ||
| OM | 8.75% | ||
| PM (TTM) | 1.61% | ||
| GM | 34.05% | ||
| FCFM | 0.67% |
ROA(3y)2.4%
ROA(5y)3.77%
ROE(3y)7.74%
ROE(5y)12.64%
ROIC(3y)6.16%
ROIC(5y)6.6%
ROICexc(3y)6.5%
ROICexc(5y)7.16%
ROICexgc(3y)38.7%
ROICexgc(5y)39.05%
ROCE(3y)7.8%
ROCE(5y)8.35%
ROICexgc growth 3Y-5.09%
ROICexgc growth 5Y1.64%
ROICexc growth 3Y-15.38%
ROICexc growth 5Y-7.05%
OM growth 3Y-12.36%
OM growth 5Y-5.43%
PM growth 3Y-43.68%
PM growth 5YN/A
GM growth 3Y0.98%
GM growth 5Y0.98%
F-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 85.18 | ||
| Debt/EBITDA | 4.03 | ||
| Cap/Depr | 27.65% | ||
| Cap/Sales | 1.43% | ||
| Interest Coverage | 2.61 | ||
| Cash Conversion | 15.09% | ||
| Profit Quality | 41.53% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.59 |
F-Score6
WACC8.96%
ROIC/WACC0.6
Cap/Depr(3y)39.04%
Cap/Depr(5y)36.59%
Cap/Sales(3y)1.86%
Cap/Sales(5y)1.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-24.47%
EPS 3Y-13.92%
EPS 5Y-0.55%
EPS Q2Q%-17.82%
EPS Next Y-2.64%
EPS Next 2Y3.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-15.99%
Revenue growth 3Y4.92%
Revenue growth 5Y1.22%
Sales Q2Q%-22.15%
Revenue Next Year-8.05%
Revenue Next 2Y-2.86%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-32.42%
EBIT growth 3Y-8.05%
EBIT growth 5Y-4.28%
EBIT Next Year31.91%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-84.27%
FCF growth 3Y-51.07%
FCF growth 5Y-43.79%
OCF growth 1Y-66.55%
OCF growth 3Y-33.5%
OCF growth 5Y-30.82%
HILLENBRAND INC / HI FAQ
What is the ChartMill fundamental rating of HILLENBRAND INC (HI) stock?
ChartMill assigns a fundamental rating of 3 / 10 to HI.
What is the valuation status for HI stock?
ChartMill assigns a valuation rating of 4 / 10 to HILLENBRAND INC (HI). This can be considered as Fairly Valued.
How profitable is HILLENBRAND INC (HI) stock?
HILLENBRAND INC (HI) has a profitability rating of 3 / 10.
What is the valuation of HILLENBRAND INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HILLENBRAND INC (HI) is 12.66 and the Price/Book (PB) ratio is 1.61.
Is the dividend of HILLENBRAND INC sustainable?
The dividend rating of HILLENBRAND INC (HI) is 5 / 10 and the dividend payout ratio is 147.1%.