tiprankstipranks
Trending News
More News >
Hillenbrand Inc (HI)
NYSE:HI

Hillenbrand (HI) AI Stock Analysis

Compare
276 Followers

Top Page

HI

Hillenbrand

(NYSE:HI)

48Neutral
Hillenbrand faces key challenges with negative earnings and high leverage as primary concerns. Strategic restructuring and a strong dividend yield provide some positives, but technical indicators are bearish, and valuation metrics are weak, resulting in a moderate overall outlook.

Hillenbrand (HI) vs. S&P 500 (SPY)

Hillenbrand Business Overview & Revenue Model

Company DescriptionHillenbrand, Inc. operates as a diversified industrial company in the United States and internationally. It operates in three segments: Advanced Process Solutions, Molding Technology Solutions, and Batesville. The Advanced Process Solutions segment designs, engineers, manufactures, markets, and services process and material handling equipment and systems comprising compounding, extrusion, and material handling equipment, as well as offers equipment system design services; and provides screening and separating equipment for various industries, including plastics, food and pharmaceuticals, chemicals, fertilizers, minerals, energy, wastewater treatment, forest products, and other general industrials. The Molding Technology Solutions segment offers injection molding and extrusion equipment; hot runner systems; process control systems; and mold bases and components for various industries, including automotive, consumer goods, medical, packaging, construction, and electronics. 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. The company was founded in 1906 and is headquartered in Batesville, Indiana.
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 profitability challenges, as evidenced by declining revenues and negative net income in TTM. Despite these hurdles, the company maintains a stable balance sheet with moderate leverage and positive cash flow generation, offering some financial stability.
Income Statement
45
Neutral
Hillenbrand's revenue has shown fluctuations with a recent decline in TTM. The gross profit margin remains robust at approximately 33.7% in TTM, but the net profit margin has deteriorated significantly, leading to a negative net income. The EBIT margin is low at 1.8% in TTM, and EBITDA is currently negative, indicating operational challenges.
Balance Sheet
55
Neutral
The balance sheet reflects a moderate debt-to-equity ratio of 1.46, indicating some leverage. Return on equity is negative due to recent net losses. However, the equity ratio stands at approximately 28.3%, suggesting a reasonable level of equity relative to total assets.
Cash Flow
60
Neutral
Operating cash flow has remained positive, showing resilience despite net losses. The free cash flow growth rate is strong, with a notable increase in TTM. However, the cash flow from financing activities has been negative, indicating a reduction in external funding.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
3.05B3.18B2.83B2.94B2.86B2.52B
Gross Profit
1.03B1.06B948.20M954.60M957.30M813.30M
EBIT
54.50M246.30M411.80M386.90M375.50M203.70M
EBITDA
-3.20M140.10M420.20M401.50M546.50M330.40M
Net Income Common Stockholders
-266.50M-211.00M569.70M208.90M249.90M-53.40M
Balance SheetCash, Cash Equivalents and Short-Term Investments
458.40M199.30M242.90M234.10M446.10M302.20M
Total Assets
4.81B5.24B5.55B3.87B4.01B3.99B
Total Debt
1.99B2.03B2.10B1.31B1.32B1.67B
Net Debt
1.54B1.83B1.86B1.08B872.40M1.37B
Total Liabilities
3.44B3.78B3.88B2.76B2.78B2.91B
Stockholders Equity
1.36B1.42B1.63B1.08B1.21B1.06B
Cash FlowFree Cash Flow
153.60M137.10M137.70M140.80M488.40M318.90M
Operating Cash Flow
202.10M191.30M207.00M191.10M528.40M354.80M
Investing Cash Flow
35.20M26.80M-729.90M-143.40M126.00M-1.30B
Financing Cash Flow
-84.90M-227.10M693.40M-244.20M-523.30M854.90M

Hillenbrand Technical Analysis

Technical Analysis Sentiment
Negative
Last Price21.70
Price Trends
50DMA
22.89
Negative
100DMA
27.30
Negative
200DMA
28.82
Negative
Market Momentum
MACD
-0.27
Negative
RSI
48.76
Neutral
STOCH
65.46
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 21.7 is above the 20-day moving average (MA) of 21.42, below the 50-day MA of 22.89, and below the 200-day MA of 28.82, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 48.76 is Neutral, neither overbought nor oversold. The STOCH value of 65.46 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GRGRC
78
Outperform
$1.02B23.0112.06%1.88%0.92%21.96%
SXSXI
71
Outperform
$1.89B30.899.29%0.79%2.67%-18.41%
TNTNC
65
Neutral
$1.44B21.5211.04%1.49%1.35%-40.63%
64
Neutral
$4.43B12.015.16%249.23%4.03%-11.73%
60
Neutral
$1.74B-15.50%19.35%27.83%
52
Neutral
$2.06B-27.40%18.32%-712.12%
HIHI
48
Neutral
$1.53B-18.22%4.12%0.31%-423.59%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HI
Hillenbrand
21.70
-21.99
-50.33%
ENOV
Enovis
36.06
-15.09
-29.50%
GRC
Gorman-Rupp Company
38.91
6.41
19.72%
SXI
Standex International
156.34
-16.69
-9.65%
TNC
Tennant Co
77.02
-26.13
-25.33%
XMTR
Xometry
34.29
18.08
111.54%

Hillenbrand Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q2-2025)
|
% Change Since: -4.11%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging macroeconomic environment with significant impacts from tariffs and reduced demand leading to lower financial performance. However, the company has shown resilience through strategic divestitures and a focus on core strengths. While there are notable achievements and a strong strategic direction, the current challenges and reduced outlook weigh heavily on the sentiment.
Q2-2025 Updates
Positive Updates
Revenue and EPS Exceed Expectations
Hillenbrand reported revenue of $716 million and adjusted earnings per share of $0.60, both ahead of expectations despite a challenging macroeconomic environment.
Successful Portfolio Transformation
The company completed the divestiture of a 51% interest in the Milacron injection molding and extrusion business, allowing a focus on core strengths in engineered processing technologies.
Strong Demand in APS Segment
Year-over-year improvement in capital orders for food, health, and nutrition products within the Advanced Process Solutions segment.
TerraSource Global Divestiture
Entered into an agreement to sell TerraSource Global, expected to generate net proceeds of $100 million for debt reduction.
Negative Updates
Revenue Decline
Revenue decreased 9% year-over-year due to reduced volume and a lower starting backlog position.
Impact of Tariffs
The ongoing global macroeconomic uncertainty and tariffs have heavily impacted demand and customer confidence, causing delays in investment plans.
Adjusted EBITDA Decrease
Adjusted EBITDA decreased 19% year-over-year, largely due to lower volume and cost inflation.
Lower Backlog
APS segment backlog decreased 15% year-over-year, indicating weaker-than-expected orders due to macro uncertainty.
Reduced FY2025 Outlook
Updated guidance reflects lower expected revenue and adjusted EBITDA due to persistent demand pressure and tariffs.
Company Guidance
During the Hillenbrand Q2 Fiscal Year 2025 earnings call, the company provided guidance indicating significant challenges due to ongoing global macroeconomic uncertainties, particularly driven by escalating tariffs. Revenue for the quarter was $716 million, with adjusted earnings per share at $0.60, both exceeding expectations but down from the prior year due to a lower starting backlog. The company has revised its outlook for the remainder of the fiscal year, now anticipating total revenue between $2.56 billion and $2.62 billion and adjusted EBITDA between $363 million and $395 million. Additionally, Hillenbrand expects direct tariff costs to impact EBITDA by approximately $15 million. While demand remained constrained, the company emphasized its efforts in mitigating tariff impacts through measures such as alternative sourcing and surcharge pricing. The guidance reflects a cautious approach, assuming continued order pressure and customer hesitancy amidst tariff-related uncertainties.

Hillenbrand Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Hillenbrand CFO Announces Departure Effective June 2025
Neutral
May 15, 2025

On May 12, 2025, Hillenbrand‘s CFO, Robert M. VanHimbergen, announced his decision to leave the company effective June 27, 2025, to pursue another position. His departure is not due to any disagreements with the company. Megan Walke, the current Vice President, Corporate Controller, and Chief Accounting Officer, will serve as Interim CFO while the company searches for a permanent replacement. Hillenbrand’s leadership, including CEO Kim Ryan, acknowledged VanHimbergen’s contributions in transforming the company into a pure-play industrial entity and expressed confidence in the company’s strategic positioning and competitive edge in the industry.

The most recent analyst rating on (HI) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Hillenbrand stock, see the HI Stock Forecast page.

Spark’s Take on HI Stock

According to Spark, TipRanks’ AI Analyst, HI is a Neutral.

Hillenbrand faces key challenges with negative earnings and high leverage as primary concerns. Strategic restructuring and a strong dividend yield provide some positives, but technical indicators are bearish, and valuation metrics are weak, resulting in a moderate overall outlook.

To see Spark’s full report on HI stock, click here.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Hillenbrand Reports 9% Revenue Decline in Q2 2025
Negative
Apr 29, 2025

On April 29, 2025, Hillenbrand reported a 9% decrease in revenue for the fiscal second quarter ending March 31, 2025, primarily due to lower volume in the Advanced Process Solutions segment. The company completed the sale of its majority stake in the Milacron injection molding and extrusion business, using the proceeds to reduce debt and focus on more profitable sectors. Despite a challenging macroeconomic environment with increased tariffs and uncertainty, Hillenbrand remains optimistic about its long-term growth prospects and competitive positioning.

Spark’s Take on HI Stock

According to Spark, TipRanks’ AI Analyst, HI is a Neutral.

Hillenbrand’s overall stock score reflects a challenging environment with negative earnings and high leverage as primary concerns. Despite strategic restructuring and strong performance in certain segments, technical indicators are bearish, and valuation metrics are mixed, providing a moderate outlook.

To see Spark’s full report on HI stock, click here.

M&A TransactionsBusiness Operations and Strategy
Hillenbrand Sells Majority Stake in Milacron to Bain
Positive
Mar 31, 2025

On March 31, 2025, Hillenbrand, Inc. completed the sale of its majority interest in the Milacron injection molding and extrusion business to Bain Capital for $287 million. This transaction, part of Hillenbrand’s strategic portfolio transformation, allows the company to focus on its core process and automation equipment for the food, pharmaceutical, and polymer markets. Hillenbrand retains a 49% stake in Milacron, while Bain Capital takes operational control, aiming to drive future growth and success for Milacron. The net proceeds of approximately $250 million after tax will be used to reduce Hillenbrand’s debt.

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.