NYSE:HI

Stock Analysis Report

Executive Summary

Hillenbrand, Inc. operates as a diversified industrial company in the United States and internationally.

Rewards

PE ratio (16.8x) is below the US market (18.9x)

Earnings are forecast to grow 32.75% per year

Earnings grew by 58.5% over the past year

Pays a reliable dividend of 2.63%

Risk Analysis

Has a high level of debt



Snowflake Analysis

Excellent balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Hillenbrand's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.2%

HI

-1.7%

US Machinery

-0.09%

US Market


1 Year Return

-21.1%

HI

20.1%

US Machinery

23.9%

US Market

Return vs Industry: HI underperformed the US Machinery industry which returned 22.4% over the past year.

Return vs Market: HI underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

HIIndustryMarket
7 Day-3.2%-1.7%-0.09%
30 Day-4.5%-0.9%3.1%
90 Day0.3%5.0%10.4%
1 Year-19.2%-21.1%22.4%20.1%26.6%23.9%
3 Year-9.9%-15.4%39.3%30.3%50.9%41.2%
5 Year13.0%0.6%77.6%56.2%78.1%58.5%

Price Volatility Vs. Market

How volatile is Hillenbrand's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hillenbrand undervalued compared to its fair value and its price relative to the market?

16.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HI ($32.34) is trading above our estimate of fair value ($23.94)

Significantly Below Fair Value: HI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HI is good value based on its PE Ratio (16.8x) compared to the Machinery industry average (23.4x).

PE vs Market: HI is good value based on its PE Ratio (16.8x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: HI is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: HI is overvalued based on its PB Ratio (2.7x) compared to the US Machinery industry average (2.5x).


Next Steps

Future Growth

How is Hillenbrand forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

32.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HI's forecast earnings growth (32.8% per year) is above the savings rate (1.7%).

Earnings vs Market: HI's earnings (32.8% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HI's revenue (2.1% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: HI's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HI's Return on Equity is forecast to be high in 3 years time (23%)


Next Steps

Past Performance

How has Hillenbrand performed over the past 5 years?

-0.08%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HI has high quality earnings.

Growing Profit Margin: HI's current net profit margins (6.7%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: HI's earnings have declined by -0.08% per year over the past 5 years.

Accelerating Growth: HI's earnings growth over the past year (58.5%) exceeds its 5-year average (-0.08% per year).

Earnings vs Industry: HI earnings growth over the past year (58.5%) exceeded the Machinery industry 9.6%.


Return on Equity

High ROE: HI's Return on Equity (16.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hillenbrand's financial position?


Financial Position Analysis

Short Term Liabilities: HI's short term assets ($1.0B) exceed its short term liabilities ($589.3M).

Long Term Liabilities: HI's short term assets ($1.0B) exceed its long term liabilities ($869.5M).


Debt to Equity History and Analysis

Debt Level: HI's debt to equity ratio (80.5%) is considered high.

Reducing Debt: HI's debt to equity ratio has reduced from 94.2% to 80.5% over the past 5 years.

Debt Coverage: HI's debt is well covered by operating cash flow (28.9%).

Interest Coverage: HI's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet

Inventory Level: HI has a low level of unsold assets or inventory.

Debt Coverage by Assets: HI's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Hillenbrand's current dividend yield, its reliability and sustainability?

2.69%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: HI's dividend (2.63%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: HI's dividend (2.63%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: HI's dividends per share have been stable in the past 10 years.

Growing Dividend: HI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.5%), HI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Hillenbrand's salary, the management and board of directors tenure and is there insider trading?

4.1yrs

Average management tenure


CEO

Joe Raver (53yo)

6.3yrs

Tenure

US$5,462,728

Compensation

Mr. Joe A. Raver has been the President and Chairman of Milacron Holdings Corp. since November 21, 2019. He has been the Chief Executive Officer and President of Hillenbrand, Inc., since September 6, 2013. ...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD5.46M) is above average for companies of similar size in the US market ($USD3.84M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.1yrs

Average Tenure

47.5yo

Average Age

Experienced Management: HI's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

7.7yrs

Average Tenure

61yo

Average Age

Experienced Board: HI's board of directors are considered experienced (7.7 years average tenure).


Insider Trading

Insider Buying: HI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$66,26717 Dec 19
Glennis Williams
EntityIndividual
Shares1,993
Max PriceUS$33.25
BuyUS$110,13802 Dec 19
Christopher Trainor
EntityIndividual
Role
Senior Key Executive
Senior Vice President
Shares3,500
Max PriceUS$31.47

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Kim Ryan (52yo)

    Senior Vice President

    • Tenure: 8.8yrs
    • Compensation: US$3.77m
  • Joe Raver (53yo)

    President

    • Tenure: 6.3yrs
    • Compensation: US$5.46m
  • Kristina Cerniglia (53yo)

    Senior VP & CFO

    • Tenure: 5.4yrs
    • Compensation: US$2.01m
  • Nick Farrell (40yo)

    VP, General Counsel

    • Tenure: 3.1yrs
  • Chris Trainor (49yo)

    Senior Vice President

    • Tenure: 4.1yrs
    • Compensation: US$1.36m
  • Tory Flynn

    Director of Corporate Communications

    • Tenure: 4.6yrs
  • Bhavik Soni (46yo)

    Chief Information Officer & VP

    • Tenure: 2.7yrs
  • J. Whitted (46yo)

    Senior Vice President of Strategy & Corporate Development

    • Tenure: 1.6yrs
    • Compensation: US$1.63m
  • Rich Dudley

    Senior Director of Investor Relations

    • Andy Kitzmiller (39yo)

      VP, Chief Accounting Officer & Controller

      • Tenure: 0.2yrs

    Board Members

    • Joe Loughrey (70yo)

      Independent Chairman

      • Tenure: 6.9yrs
      • Compensation: US$277.83k
    • Neil Novich (64yo)

      Independent Director

      • Tenure: 9.9yrs
      • Compensation: US$189.69k
    • Ed Cloues (71yo)

      Independent Director

      • Tenure: 9.8yrs
      • Compensation: US$179.98k
    • Helen Cornell (60yo)

      Independent Director

      • Tenure: 8.4yrs
      • Compensation: US$192.81k
    • Stuart Taylor (58yo)

      Independent Director

      • Tenure: 11.3yrs
      • Compensation: US$192.81k
    • Gary Collar (62yo)

      Independent Director

      • Tenure: 4.7yrs
      • Compensation: US$180.31k
    • Joy Greenway (58yo)

      Independent Director

      • Tenure: 6.9yrs
      • Compensation: US$180.31k
    • Joe Raver (53yo)

      President

      • Tenure: 6.3yrs
      • Compensation: US$5.46m
    • Thomas Johnson (68yo)

      Independent Director

      • Tenure: 11.8yrs
      • Compensation: US$180.31k
    • Dan Hillenbrand (52yo)

      Independent Director

      • Tenure: 1.7yrs
      • Compensation: US$180.23k

    Company Information

    Hillenbrand, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Hillenbrand, Inc.
    • Ticker: HI
    • Exchange: NYSE
    • Founded: 2007
    • Industry: Industrial Machinery
    • Sector: Capital Goods
    • Market Cap: US$2.361b
    • Shares outstanding: 74.71m
    • Website: https://www.hillenbrand.com

    Number of Employees


    Location

    • Hillenbrand, Inc.
    • 1 Batesville Boulevard
    • Batesville
    • Indiana
    • 47006
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    HINYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2008
    9HIDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2008

    Biography

    Hillenbrand, Inc. operates as a diversified industrial company in the United States and internationally. The company operates in two segments, Process Equipment Group and Batesville. The Process Equipment Group segment designs, engineers, manufactures, markets, and services process and material handling equipment and systems for various industries, including plastics, food and pharmaceuticals, chemicals, fertilizers, minerals and mining, energy, wastewater treatment, forest products, and other general industrials. The Batesville segment designs, manufactures, distributes, and sells funeral services products and solutions, such as burial caskets, cremation caskets, containers and urns, other personalization and memorialization products, and Web-based technology applications. Hillenbrand, Inc. was founded in 2007 and is headquartered in Batesville, Indiana. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/24 00:12
    End of Day Share Price2020/01/23 00:00
    Earnings2019/09/30
    Annual Earnings2019/09/30


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.