Evaluating Hillenbrand (HI): Is There Undervalued Potential After Recent Share Price Momentum?

Hillenbrand (HI) shares have generally traded sideways over the past month, but there are some interesting numbers behind the movement. With revenue dipping slightly over the past year, net income has grown sharply, which has caught the attention of investors.

See our latest analysis for Hillenbrand.

Over the past year, Hillenbrand’s share price return has been relatively muted. However, a standout 21.3% share price gain over the past 90 days hints at momentum building as investors respond to recent earnings strength. Despite the 1-year total shareholder return remaining negative, the improving trend could signal a shift in sentiment over the longer term.

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With Hillenbrand’s recent share price gains, positive net income growth, and a valuation hovering just below analyst targets, investors may be wondering if there is hidden value in the company or if the market has already priced in its prospects.

Most Popular Narrative: 4.1% Undervalued

Hillenbrand’s most widely followed narrative suggests its current price lags its fair value by a slim margin, with the consensus target above the last closing price. The narrative’s calculations rely on analysts’ forecasts for a rebound in earnings growth and margin improvement that could influence future valuation.

“Refocused portfolio and investments in automation, digital services, and R&D are expected to boost margins and drive stable, long-term earnings growth. Strong global demand trends and supply chain optimization position Hillenbrand to rebound with higher revenue and greater resilience amid macro uncertainties.”

Read the complete narrative.

Want to know the high-octane assumptions fueling this price target? Get ready for ambitious margin targets and aggressive profit growth forecasts. Analysts are optimistic about a recovery story that could surprise skeptics. Click through to unpack the numbers they believe will power Hillenbrand’s turnaround.

Result: Fair Value of $33 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing global economic uncertainty and continued pricing pressures in key markets could still threaten Hillenbrand’s ability to meet these bullish expectations.

Find out about the key risks to this Hillenbrand narrative.

Build Your Own Hillenbrand Narrative

If you’re keen to look beyond consensus views or run your own analysis, it’s easy to build a personalized narrative backed by the data in just a few minutes. Do it your way

A great starting point for your Hillenbrand research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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