NYSE:HRC

Stock Analysis Report

Executive Summary

Hill-Rom Holdings, Inc. operates as a medical technology company worldwide.

Snowflake

Fundamentals

Mediocre balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Hill-Rom Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.1%

HRC

1.1%

US Medical Equipment

-0.6%

US Market


1 Year Return

15.2%

HRC

9.9%

US Medical Equipment

0.7%

US Market

HRC outperformed the Medical Equipment industry which returned 9.9% over the past year.

HRC outperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

HRCIndustryMarket
7 Day0.1%1.1%-0.6%
30 Day0.9%1.3%2.9%
90 Day1.4%3.0%1.3%
1 Year16.2%15.2%10.8%9.9%2.9%0.7%
3 Year77.9%73.1%70.1%64.9%44.6%35.2%
5 Year164.5%150.8%138.9%111.8%61.9%44.2%

Price Volatility Vs. Market

How volatile is Hill-Rom Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hill-Rom Holdings undervalued based on future cash flows and its price relative to the stock market?

32.72x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Hill-Rom Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Hill-Rom Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Hill-Rom Holdings is good value based on earnings compared to the US Medical Equipment industry average.

Hill-Rom Holdings is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Hill-Rom Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

Hill-Rom Holdings is overvalued based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

How is Hill-Rom Holdings expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

19.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Hill-Rom Holdings's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).

Hill-Rom Holdings's earnings are expected to grow by 19.4% yearly, however this is not considered high growth (20% yearly).

Hill-Rom Holdings's revenue growth is positive but not above the United States of America market average.

Hill-Rom Holdings's earnings growth is expected to exceed the United States of America market average.

Hill-Rom Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Hill-Rom Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Hill-Rom Holdings performed over the past 5 years?

31.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hill-Rom Holdings has delivered over 20% year on year earnings growth in the past 5 years.

Hill-Rom Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Hill-Rom Holdings's 1-year earnings growth is negative, it can't be compared to the US Medical Equipment industry average.


Return on Equity

Hill-Rom Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Hill-Rom Holdings used its assets less efficiently than the US Medical Equipment industry average last year based on Return on Assets.


Return on Capital Employed

Hill-Rom Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Hill-Rom Holdings's financial position?


Financial Position Analysis

Hill-Rom Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Hill-Rom Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Hill-Rom Holdings's level of debt (127.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (35.8% vs 127.7% today).

Debt is well covered by operating cash flow (21.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

What is Hill-Rom Holdings's current dividend yield, its reliability and sustainability?

0.80%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Hill-Rom Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Hill-Rom Holdings's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Hill-Rom Holdings is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Hill-Rom Holdings is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Hill-Rom Holdings's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

No need to calculate the sustainability of Hill-Rom Holdings's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Hill-Rom Holdings's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

John Groetelaars (52yo)

1.3yrs

Tenure

US$6,100,322

Compensation

Mr. John P. Groetelaars serves as President, Chief Executive Officer and Director of Hill-Rom Holdings Inc. since May 14, 2018. He previously served in a variety of progressive roles at C.R. Bard during hi ...


CEO Compensation Analysis

John's remuneration is about average for companies of similar size in United States of America.

Insufficient data for John to compare compensation growth.


Management Age and Tenure

2.0yrs

Average Tenure

52yo

Average Age

The tenure for the Hill-Rom Holdings management team is about average.


Board Age and Tenure

2.5yrs

Average Tenure

61yo

Average Age

The average tenure for the Hill-Rom Holdings board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Rick Wagner (51yo)

    VP, Controller & CAO

    • Tenure: 1.3yrs
  • Steve Strobel (61yo)

    Senior Advisor

    • Tenure: 0.8yrs
    • Compensation: US$2.36m
  • Mary Ladone (44yo)

    Senior Vice President of Corporate Development

    • Tenure: 0yrs
  • Brian Lawrence (49yo)

    CTO & Senior VP

    • Tenure: 8.8yrs
  • John Groetelaars (52yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$6.10m
  • Carlos Alonso-Marum (60yo)

    Senior VP & President of International

    • Tenure: 4.4yrs
    • Compensation: US$1.92m
  • Tim Lawrence (56yo)

    Senior Vice President of Operations

    • Tenure: 2yrs
  • Sue-Jean Lin

    Chief Information Officer & Senior VP

    • Tenure: 3.7yrs
  • PJ Johnson (54yo)

    Senior VP & President of Patient Support Systems

    • Tenure: 3.3yrs
    • Compensation: US$1.80m
  • Barbara Bodem (51yo)

    Senior VP & CFO

    • Tenure: 0.8yrs

Board Members

  • Jim Giertz (61yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$267.64k
  • Ronald Malone (64yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$316.64k
  • Bill Dempsey (68yo)

    Chairman of the Board

    • Tenure: 1.5yrs
    • Compensation: US$295.89k
  • Nancy Schlichting (65yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$272.89k
  • Gary Ellis (61yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$267.64k
  • Hank Kucheman (69yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$280.64k
  • Stacy Seng (55yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$279.14k
  • Mary Garrett (60yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$267.64k
  • John Groetelaars (52yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$6.10m
  • Gregory Moore

    Director

    • Tenure: 0.3yrs

Company Information

Hill-Rom Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hill-Rom Holdings, Inc.
  • Ticker: HRC
  • Exchange: NYSE
  • Founded: 1969
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$7.032b
  • Shares outstanding: 66.82m
  • Website: https://www.hill-rom.com

Number of Employees


Location

  • Hill-Rom Holdings, Inc.
  • 130 East Randolph Street
  • Suite 1000
  • Chicago
  • Illinois
  • 60601
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HRCNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1971
HB9DB (Deutsche Boerse AG)YesCommon StockDEEURJul 1971

Biography

Hill-Rom Holdings, Inc. operates as a medical technology company worldwide. It operates in three segments: Patient Support Systems, Front Line Care, and Surgical Solutions. The company offers medical surgi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/22 00:02
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.