Home Sectors Industrials Current Valuation: Hillenbrand Inc (NYSE: HI)

Current Valuation: Hillenbrand Inc (NYSE: HI)

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Hillenbrand Inc is part of the industrials sector and trades as part of the industrial products industry. The company CEO is Joe A. Raver. Hillenbrand Inc is a diversified industrial company that makes and sells premium business-to-business products and services. Its segments include, the Process Equipment Group and Batesville.

Previous Intraday Trading Performance:

The HI stock showed a previous change of -0.09% with an open at 43.30 and a close of 43.30. It reached an intraday high of 43.56 and a low of 43.03.

SeekingAlpha:  Hillenbrand’s (HI) CEO Joe Raver on Q1 2018 Results – Earnings Call Transcript

Liquidity:

The stock has a market cap of $2.7b with 62.5m shares outstanding, of which the float is 61.1m shares. Trading volume reached 206,077 shares compared to its average volume of 246,056 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Hillenbrand Inc shares returned 0.95% and in the past 30 trading days it returned 2.62%. Over three months, it changed 6.47%. In one year it has changed -5.52% and within that year its 52-week high was 53.41 and its 52-week low was 36.22. HI stock is 19.56% above its 52 Week Low.

Our calculations show a 200 day moving average of 46.19 and a 50 day moving average of 42.05. Currently HI stock is trading -6.26% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Hillenbrand, Inc. 2019 Q1 – Results – Earnings Call Slides

Earnings:

The last annual fiscal EPS for the company was reported at 1.2 that ended on 30th of September 2018, which according to the previous close, that is a PE of 36.08. The TTM EPS is 2.43, which comes to a TTM PE of 17.82. Historically, the PE high was 36.08 and the PE low was 13.90. If the stock reached its PE low, that would represent a price of 33.77, which is a decrease of -22.00%.

The following are the last four quarter reported earnings per share:
12-31-2018:  0.49
09-30-2018:  0.67
06-30-2018:  0.57
03-31-2018:  0.65

The dividend per share is currently 0.84, which is a dividend yield of 1.94%. Also, the payout ratio is 34.57%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 24.84, which means it may be overvalued by -74.31%

Indicators to Watch:

Based on the latest filings, there is 2.20% of insider ownership and 123.50% of institutional ownership. Short-interest is 819,712, which is 1.31% of shares outstanding. The short-interest ratio or days-to-cover ratio is 3.04. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.26

SeekingAlpha:  Hillenbrand beats Q1 consensus; reaffirms FY19 guidance

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 11.67%, return on assets is 4.48%, profit margin is 5.11%, price-to-sales is 1.52 and price-to-book is 3.71.

Company Scores:

All scores are out of six:
 1  :Valuation Score
 1  :Past Performance Score
 5  :Financial Strength Score
 3  :Future Growth Score
 4  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.