Last Updated: 11 Nov 2024
Executive Summary
Hillenbrand Inc. (HI) is a diversified industrial company with a market capitalization of $2.18 billion. The company has been facing challenges in recent quarters, with negative earnings per share and a low profit margin. However, analysts remain optimistic about the company's long-term prospects, citing its strong balance sheet and potential for growth in its core businesses.
Company Overview
Hillenbrand Inc. is headquartered in Batesville, Indiana, and has operations in over 20 countries. The company's businesses include:
Process Equipment Group: Manufactures equipment for the food processing, chemical, and energy industries.
Batesville Casket Company: Manufactures and distributes caskets and funeral products.
Hillrom: Provides medical technology and equipment for hospitals and other healthcare facilities.
Fundamental Analysis
Revenue: Hillenbrand's revenue for the trailing twelve months (TTM) was $3.11 billion, a 0.1% increase year-over-year.
Earnings: The company reported a net loss of $85.4 million for the TTM, resulting in an EPS of -$2.96.
Profitability: Hillenbrand's gross profit margin was 31.0% for the TTM, and its operating margin was 11.0%.
Balance Sheet: The company has a strong balance sheet with $1.06 billion in cash and equivalents and $1.36 billion in total debt.
Technical Analysis
Price Action: HI's stock price has been trading within a range of $25.11 to $49.90 over the past 52 weeks.
Moving Averages: The stock is currently trading below its 50-day and 200-day moving averages.
Support and Resistance: There is support at $25.11 and resistance at $49.90.
Short Term Outlook
Analysts are cautiously optimistic about Hillenbrand's short-term prospects. The company is expected to report a loss in the upcoming quarter, but analysts believe that the company's core businesses have potential for growth.
Long Term Outlook
Analysts are more bullish on Hillenbrand's long-term prospects. The company has a strong balance sheet and is well-positioned to benefit from growth in its core markets.
Analyst Recommendations
The consensus analyst rating for Hillenbrand Inc. is "Buy." Two analysts recommend "Strong Buy," two recommend "Buy," and one recommends "Hold." The average analyst target price is $46.80.
Conclusion
Hillenbrand Inc. is a fundamentally sound company with a strong balance sheet and potential for growth in its core businesses. While the company is facing challenges in the short term, analysts remain optimistic about its long-term prospects.
