NYSE:HI

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 50.3% below its fair value

Earnings are forecast to grow 31.43% per year

Earnings grew by 3.7% over the past year

Pays a reliable dividend of 5.07%

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Very undervalued with reasonable growth potential 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.0%

HI

-1.2%

US Machinery

-2.6%

US Market


1 Year Return

-55.5%

HI

-23.5%

US Machinery

-13.3%

US Market

Return vs Industry: HI underperformed the US Machinery industry which returned -26.6% over the past year.

Return vs Market: HI underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

HIIndustryMarket
7 Day-2.0%-1.2%-2.6%
30 Day-19.6%-17.4%-15.2%
90 Day-43.6%-29.7%-22.2%
1 Year-54.2%-55.5%-21.3%-23.5%-11.5%-13.3%
3 Year-44.8%-48.5%-1.8%-8.9%13.2%5.7%
5 Year-31.0%-38.9%21.1%5.7%31.8%17.2%

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?

47.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HI ($16.75) is trading below our estimate of fair value ($33.68)

Significantly Below Fair Value: HI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HI is good value based on its PE Ratio (12x) compared to the Machinery industry average (14.5x).

PE vs Market: HI is good value based on its PE Ratio (12x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: HI is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: HI is good value based on its PB Ratio (1.1x) compared to the US Machinery industry average (1.4x).


Next Steps

Future Growth

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

31.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HI's forecast earnings growth (31.4% per year) is above the savings rate (1.7%).

Earnings vs Market: HI's earnings (31.4% per year) are forecast to grow faster than the US market (13.4% per year).

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

Revenue vs Market: HI's revenue (12.7% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: HI's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hillenbrand performed over the past 5 years?

-1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HI has a large one-off loss of $92.7M impacting its December 31 2019 financial results.

Growing Profit Margin: HI's current net profit margins (4.6%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: HI's earnings have declined by -1% per year over the past 5 years.

Accelerating Growth: HI's earnings growth over the past year (3.7%) exceeds its 5-year average (-1% per year).

Earnings vs Industry: HI earnings growth over the past year (3.7%) exceeded the Machinery industry -2%.


Return on Equity

High ROE: HI's Return on Equity (8.4%) is considered low.


Next Steps

Financial Health

How is Hillenbrand's financial position?


Financial Position Analysis

Short Term Liabilities: HI's short term assets ($1.2B) exceed its short term liabilities ($879.8M).

Long Term Liabilities: HI's short term assets ($1.2B) do not cover its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: HI's debt to equity ratio (163%) is considered high.

Reducing Debt: HI's debt to equity ratio has increased from 104.7% to 163% over the past 5 years.

Debt Coverage: HI's debt is not well covered by operating cash flow (8.6%).

Interest Coverage: HI's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Next Steps

Dividend

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

4.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HI's dividend (5.07%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: HI's dividend (5.07%) is low compared to the top 25% of dividend payers in the US market (5.82%).


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 reasonable payout ratio (60.2%), HI's dividend payments are 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

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Joe Raver (53yo)

6.58s

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 ($USD5.46M) is about average for companies of similar size in the US market ($USD4.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Joe Raver
President6.58yrsUS$5.46m0.21% $3.0m
Kristina Cerniglia
Senior VP & CFO5.67yrsUS$2.01m0.063% $885.0k
Jonathan Whitted
Senior Vice President of Strategy & Corporate Development1.83yrsUS$1.63m0.014% $201.1k
Kimberly Ryan
Senior Vice President9yrsUS$3.77m0.094% $1.3m
Christopher Trainor
Senior Vice President4.33yrsUS$1.36m0.047% $659.1k
Andrew Kitzmiller
VP, Chief Accounting Officer & Controller0.42yrno data0.0040% $55.9k
Bhavik Soni
Chief Information Officer & VP2.92yrsno datano data
Richard Dudley
Senior Director of Investor Relationsno datano datano data
Nicholas Farrell
VP, General Counsel4.5yrsno data0.013% $178.1k
Tory Flynn
Director of Corporate Communications4.83yrsno datano data

4.5yrs

Average Tenure

48yo

Average Age

Experienced Management: HI's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joe Raver
President6.58yrsUS$5.46m0.21% $3.0m
Francis Loughrey
Independent Chairman7.17yrsUS$277.83k0.040% $561.0k
Neil Novich
Independent Director10.17yrsUS$189.69kno data
Edward Cloues
Independent Director10yrsUS$179.98kno data
Helen Cornell
Independent Director8.67yrsUS$192.81k0.0020% $28.1k
Stuart Taylor
Independent Director11.58yrsUS$192.81kno data
Gary Collar
Independent Director4.92yrsUS$180.31kno data
Joy Greenway
Independent Director7.17yrsUS$180.31kno data
Thomas Johnson
Independent Director12.08yrsUS$180.31k0.0094% $130.9k
Daniel Hillenbrand
Independent Director1.92yrsUS$180.23k1.02% $14.2m

7.9yrs

Average Tenure

61yo

Average Age

Experienced Board: HI's board of directors are considered experienced (7.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

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$1.397b
  • Shares outstanding: 74.72m
  • 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 Analysis2020/04/07 02:33
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
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.