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Hillenbrand Inc (HI)
:HI
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Hillenbrand
(NYSE:HI)
57Neutral
Hillenbrand (HI) vs. S&P 500 (SPY)
Market Cap
$1.80B
Dividend Yield3.43%
Average Volume (3M)435.75K
Price to Earnings (P/E)―
Beta (1Y)1.44
Revenue Growth5.88%
EPS Growth-324.10%
CountryUS
Employees10,450
SectorIndustrials
Sector Strength67
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)-3.15
Shares Outstanding70,420,360
10 Day Avg. Volume481,287
30 Day Avg. Volume435,753
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.58
Price to Cash Flow (P/CF)-40.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$36.50Price Target Upside42.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Hillenbrand Business Overview & Revenue Model
Company DescriptionHillenbrand, Inc. (HI) is a diversified industrial company primarily focused on manufacturing and engineering solutions. The company operates through multiple business segments, including Advanced Process Solutions and Molding Technology Solutions, serving industries such as plastics, food, and pharmaceuticals. Hillenbrand's core products and services include industrial equipment, processing systems, and related aftermarket parts and services.
How the Company Makes MoneyHillenbrand makes money through the sale of industrial equipment and systems, as well as the provision of aftermarket parts and services. The company's revenue streams are diversified across its business segments, with the Advanced Process Solutions segment contributing significantly through the sale of processing equipment and systems used in industries like plastics and food processing. The Molding Technology Solutions segment generates revenue by providing machinery and equipment for various molding applications. Hillenbrand also benefits from ongoing service contracts and the sale of replacement parts, which provide a steady stream of recurring revenue. Key partnerships with industry leaders and a focus on expanding its global footprint contribute to Hillenbrand's earnings by enhancing its market reach and customer base.
Hillenbrand Financial Statement Overview
Summary
Hillenbrand is facing financial challenges with declining revenue and negative net income. Despite stable gross margins and improved cash flow, high leverage and liquidity risks are significant concerns.Income Statement
Hillenbrand's income statement reveals a challenging period with decreasing revenue and profitability. The TTM shows a revenue dip of approximately 2.1% compared to the prior year, while net income has turned negative, leading to a concerning net profit margin. Although gross profit margins remain relatively stable, the company's EBIT and EBITDA margins are under pressure, suggesting operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet indicates high leverage, with a debt-to-equity ratio of 1.44, which poses a financial risk. However, the company maintains an equity ratio of around 28%, reflecting a moderate level of financial stability. The decrease in stockholders' equity and increase in total debt over time highlight potential liquidity risks.55
Neutral
Cash Flow
Hillenbrand's cash flow statement shows a modest growth in free cash flow from the previous period, indicating efficient cash generation relative to net income. The operating cash flow to net income ratio is positive, suggesting improved cash conversion despite the net loss. Nevertheless, the overall cash flow remains constrained due to high financing outflows.60
Neutral
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.12B | 3.18B | 2.83B | 2.94B | 2.86B | 2.52B | Gross Profit |
| 1.02B | 1.06B | 948.20M | 954.60M | 957.30M | 813.30M | EBIT |
| 145.00M | 0.00 | 411.80M | 386.90M | 375.50M | 203.70M | EBITDA |
| 88.90M | 140.10M | 420.20M | 401.50M | 546.50M | 330.40M | Net Income Common Stockholders |
| -221.80M | -204.20M | 569.70M | 208.90M | 249.90M | -53.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 208.00M | 199.30M | 242.90M | 234.10M | 446.10M | 302.20M | Total Assets |
| 5.06B | 5.24B | 5.55B | 3.87B | 4.01B | 3.99B | Total Debt |
| 2.04B | 161.70M | 2.10B | 1.31B | 1.32B | 1.67B | Net Debt |
| 1.83B | -37.60M | 1.86B | 1.08B | 872.40M | 1.37B | Total Liabilities |
| 3.64B | 3.78B | 3.88B | 2.76B | 2.78B | 2.91B | Stockholders Equity |
| 1.42B | 1.42B | 1.63B | 1.08B | 1.21B | 1.06B |
| Cash Flow | Free Cash Flow | ||||
| 152.00M | 137.10M | 137.70M | 140.80M | 488.40M | 318.90M | Operating Cash Flow |
| 204.00M | 191.30M | 207.00M | 191.10M | 528.40M | 354.80M | Investing Cash Flow |
| 51.40M | -55.10M | -729.90M | -143.40M | 126.00M | -1.30B | Financing Cash Flow |
| -183.20M | -227.10M | 693.40M | -244.20M | -523.30M | 854.90M |
Hillenbrand Technical Analysis
Negative
25.59
Price Trends
30.14
Negative
30.75
Negative
32.10
Negative
Market Momentum
-1.24
Negative
35.50
Neutral
39.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HI, the sentiment is Negative. The current price of 25.59 is below the 20-day moving average (MA) of 26.09, below the 50-day MA of 30.14, and below the 200-day MA of 32.10, indicating a bearish trend. The MACD of -1.24 indicates Negative momentum. The RSI at 35.50 is Neutral, neither overbought nor oversold. The STOCH value of 39.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HI.
Hillenbrand Risk Analysis
Hillenbrand disclosed 27 risk factors in its most recent earnings report. Hillenbrand reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hillenbrand Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $10.91B | 21.91 | 19.60% | 0.92% | 10.59% | 27.04% | |
77 Outperform | $24.55B | 9.37 | 24.30% | 1.13% | -2.99% | 159.26% | |
72 Outperform | $64.05B | 27.42 | 9.66% | 1.85% | 10.29% | 22.72% | |
69 Neutral | $30.31B | 33.51 | 26.22% | 1.90% | -11.28% | -23.69% | |
62 Neutral | $32.80B | 40.00 | 8.40% | 0.10% | 5.22% | 8.01% | |
62 Neutral | $8.27B | 14.02 | 2.58% | 3.08% | 3.83% | -15.91% | |
57 Neutral | $1.80B | ― | -14.61% | 3.43% | 5.88% | -324.10% |
* Industrials Sector Average
Performance Comparison
HI
Hillenbrand
24.96
-23.05
-48.01%
DOV
Dover
174.65
1.00
0.58%
EMR
Emerson Electric Company
108.64
-2.88
-2.58%
ITT
ITT
128.71
-4.07
-3.07%
ROK
Rockwell Automation
258.63
-19.54
-7.02%
IR
Ingersoll Rand
79.44
-14.10
-15.07%
Hillenbrand Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -23.93% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for Hillenbrand. There were significant strategic achievements such as the sale of part of the Milacron business and strong performance in specific segments like FHN, which indicate a positive long-term strategy. However, immediate challenges include a notable decline in revenue and EPS, reduced backlog, and market softness, particularly in the MTS segment.Highlights
Successful Portfolio Restructuring
Hillenbrand announced the sale of 51% of its Milacron injection molding and extrusion business to Bain Capital for $287 million. This move is part of a strategic shift towards a higher margin, higher growth portfolio.
Strong Performance in Food, Health, and Nutrition (FHN)
Record orders in FHN end markets, with increased demand across baked goods, pet foods, snacks, cereals, and pharmaceuticals, particularly in North America.
Aftermarket Orders Reach New Record
Aftermarket orders in the APS segment reached a new record level, driven by modernization projects and proactive aftermarket strategies.
Improved Working Capital Efficiency
Cash flow from operations improved by $13 million compared to the prior year due to better working capital efficiency.
Lowlights
Decline in Consolidated Revenue
Consolidated revenue decreased by 9% year over year to $707 million, attributed to lower volume and a lower starting backlog.
Decrease in Adjusted Earnings Per Share
Adjusted EPS decreased by 19% to $0.56, impacted by lower volume and cost inflation.
Continued Market Softness in MTS Segment
The MTS segment experienced ongoing market slowness, particularly in North America and Europe, with significant impacts from tariff uncertainty.
Reduced Backlog
Backlog decreased by 17% in the APS segment compared to the prior year, reflecting customer delays in order decisions due to macroeconomic uncertainties.
Company Guidance
During the Hillenbrand, Inc. First Quarter and Full Year 2025 Earnings Call, guidance was provided for the fiscal year reflecting the impact of the sale of a 51% stake in the Milacron injection molding and extrusion business. The transaction, expected to close by the end of the fiscal second quarter or early in the third quarter, will result in an estimated $250 million net proceeds used for debt reduction. The company's updated guidance for the fiscal year post-transaction includes projected revenue of approximately $2.63 billion to $2.8 billion, adjusted EBITDA of $411 million, and adjusted earnings per share ranging from $2.45 to $2.80. For the second quarter, Hillenbrand anticipates revenue between $685 million and $705 million and adjusted earnings per share of $0.53 to $0.58. The company also highlighted strong performance in its food, health, and nutrition markets, with record orders and a focus on cross-selling opportunities.Hillenbrand Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Hillenbrand Sells Milacron Business, Focuses on Growth
Neutral
Feb 5, 2025
On February 5, 2025, Hillenbrand announced its fiscal first-quarter 2025 results and the majority sale of its Milacron injection molding and extrusion business to an affiliate of Bain Capital. The company’s revenue was $707 million, a 9% decrease from the previous year, and adjusted EPS fell to $0.56. The transaction aligns with Hillenbrand’s transformation strategy to enhance its margin profile and focus on high-growth sectors, with net proceeds aimed at reducing debt. The sale reflects a strategic shift away from previously declining segments and positions Hillenbrand for future growth in less cyclical markets.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.