NYSE:HRC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer with mediocre balance sheet.


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

1.6%

HRC

3.2%

US Medical Equipment

3.4%

US Market


1 Year Return

12.6%

HRC

10.0%

US Medical Equipment

5.4%

US Market

Return vs Industry: HRC matched the US Medical Equipment industry which returned 10% over the past year.

Return vs Market: HRC exceeded the US Market which returned 5.4% over the past year.


Shareholder returns

HRCIndustryMarket
7 Day1.6%3.2%3.4%
30 Day-3.8%-1.8%-1.0%
90 Day-5.2%-0.4%-0.4%
1 Year13.6%12.6%10.9%10.0%7.7%5.4%
3 Year73.5%68.9%69.9%64.8%46.2%36.8%
5 Year149.2%136.3%128.2%102.9%65.6%47.5%

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 compared to its fair value and its price relative to the market?

2.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: HRC ($101.15) is trading below our estimate of fair value ($104.02)

Significantly Undervalued: HRC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HRC is good value based on its PE Ratio (31.5x) compared to the Medical Equipment industry average (40.6x).

PE vs Market: HRC is poor value based on its PE Ratio (31.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: HRC is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: HRC is overvalued based on its PB Ratio (4.2x) compared to the US Medical Equipment industry average (3.6x).


Next Steps

Future Growth

How is Hill-Rom Holdings forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HRC's forecast earnings growth (19.4% per year) is above the savings rate (2.7%).

Earnings vs Market: HRC's earnings (19.4% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: HRC's earnings are forecast to grow, but not significantly.

Revenue vs Market: HRC's revenue (3.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: HRC's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HRC's Return on Equity is forecast to be low in 3 years time (19.1%).


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

Earnings Trend: HRC's earnings have grown significantly by 31.5% per year over the past 5 years.

Accelerating Growth: HRC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HRC had negative earnings growth (-7.2%) over the past year, making it difficult to compare to the Medical Equipment industry average (28.2%).


Return on Equity

High ROE: HRC's Return on Equity (13.2%) is considered low.


Return on Assets

ROA vs Industry: HRC's Return on Assets is below or equal to the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: HRC has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Hill-Rom Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: HRC's short term assets ($1.2B) exceeds its short term liabilities ($814.2M)

Long Term Liabilities: HRC's short term assets (1.2B) do not cover its long term liabilities (2.1B)


Debt to Equity History and Analysis

Debt Level: HRC's debt to equity ratio (127.7%) is considered high

Reducing Debt: HRC's debt to equity ratio has increased from 35.8% to 127.7% over the past 5 years.

Debt Coverage: HRC's debt is well covered by operating cash flow (21.5%).

Interest Coverage: HRC's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: HRC's 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?

0.83%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.5%markettop25%3.8%industryaverage1.2%forecastin3Years0.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HRC's dividend (0.83%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: HRC's dividend (0.83%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.5%), HRC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HRC's dividends in 3 years are forecast to be thoroughly covered by earnings (13.7% payout ratio).


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?

2.1yrs

Average management tenure


CEO

John Groetelaars (52yo)

1.4yrs

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

Compensation vs. Market: John has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare John's compensation with company performance.


Management Age and Tenure

2.1yrs

Average Tenure

52yo

Average Age

Experienced Management: HRC's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

61yo

Average Age

Experienced Board: HRC's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Rick Wagner (51yo)

    VP, Controller & CAO

    • Tenure: 1.4yrs
  • 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: 1.4yrs
    • Compensation: US$6.10m
  • Carlos Alonso-Marum (60yo)

    Senior VP & President of International

    • Tenure: 4.5yrs
    • Compensation: US$1.92m
  • Tim Lawrence (56yo)

    Senior Vice President of Operations

    • Tenure: 2.1yrs
  • Sue-Jean Lin

    Chief Information Officer & Senior VP

    • Tenure: 3.8yrs
  • PJ Johnson (54yo)

    Senior VP & President of Patient Support Systems

    • Tenure: 2.9yrs
    • 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: 12.3yrs
    • Compensation: US$316.64k
  • Bill Dempsey (68yo)

    Independent Chairman of the Board

    • Tenure: 1.6yrs
    • Compensation: US$295.89k
  • Nancy Schlichting (65yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$272.89k
  • Gary Ellis (61yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$267.64k
  • Hank Kucheman (69yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$280.64k
  • Stacy Seng (55yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$279.14k
  • Mary Garrett (60yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$267.64k
  • John Groetelaars (52yo)

    President

    • Tenure: 1.4yrs
    • Compensation: US$6.10m
  • Gregory Moore

    Director

    • Tenure: 0.4yrs

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$6.758b
  • 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 Analysis2019/10/15 23:55
End of Day Share Price2019/10/15 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.