Hillenbrand, Inc. transforms industries with its innovative solutions, shaping how businesses manage processes and materials across diverse sectors. With a robust portfolio that spans advanced machinery and essential funeral services, Hillenbrand is not just a player in the industrial machinery space; it’s a market influencer committed to quality and innovation. As we delve into the investment potential of Hillenbrand, we must consider whether its current valuation reflects its strong fundamentals and future growth prospects.
Table of contents
Company Description
Hillenbrand, Inc. (NYSE: HI), founded in 1906 and headquartered in Batesville, Indiana, operates as a diversified industrial company with a global reach. The company is structured into three primary segments: Advanced Process Solutions, Molding Technology Solutions, and Batesville, the latter focusing on funeral services products. Hillenbrand designs and manufactures equipment for various industries, including food, pharmaceuticals, and automotive, while also providing essential burial and cremation products. With a market cap of approximately $2.24B and a workforce of 10,450 employees, Hillenbrand positions itself as a leader in industrial machinery, emphasizing innovation and sustainability in its operations to adapt to evolving market needs.
Fundamental Analysis
In this section, I will analyze Hillenbrand, Inc.’s income statement, financial ratios, and dividend payout policy to assess its financial health and investment potential.
Income Statement
The table below summarizes Hillenbrand, Inc.’s income statement for the fiscal years 2021 to 2025, reflecting key financial metrics.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 2.24B | 2.32B | 2.83B | 3.18B | 2.67B |
| Cost of Revenue | 1.51B | 1.55B | 1.88B | 2.13B | 1.77B |
| Operating Expenses | 507M | 497M | 654M | 816M | 744M |
| Gross Profit | 732M | 764M | 948M | 1.06B | 901M |
| EBITDA | 386M | 363M | 420M | 140M | 231M |
| EBIT | 281M | 264M | 295M | -18M | 92M |
| Interest Expense | 77M | 70M | 77M | 122M | 95M |
| Net Income | 250M | 209M | 570M | -211M | 43M |
| EPS | 3.34 | 2.91 | 8.16 | -3.00 | 0.74 |
| Filing Date | 2021-11-17 | 2022-11-16 | 2023-11-15 | 2024-11-19 | 2025-11-19 |
Interpretation of Income Statement
Over the five-year period, Hillenbrand, Inc. displayed fluctuating revenue, peaking in 2024 at 3.18B before declining to 2.67B in 2025. Notably, the net income swung from a high of 570M in 2023 to a loss of 211M in 2024, before recovering slightly to 43M in 2025. The gross margin remained relatively stable, though EBITDA saw a significant decline in 2024, indicating challenges in operational efficiency. The latest year’s performance suggests a cautious recovery, yet the company faces ongoing concerns regarding its ability to sustain revenue growth and overall profitability.
Financial Ratios
Below is a summary of the financial ratios for Hillenbrand, Inc. (Ticker: HI) over the last few years.
| Ratios | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | 8.72% | 9.02% | 20.16% | -6.63% | 1.95% |
| ROE | 20.66% | 19.29% | 34.94% | -14.83% | 3.66% |
| ROIC | 5.36% | 5.56% | 3.69% | 8.82% | -32.60% |
| P/E | 12.78 | 12.60 | 5.18 | -9.28 | 36.69 |
| P/B | 2.64 | 2.43 | 1.81 | 1.38 | 1.34 |
| Current Ratio | 1.39 | 1.30 | 1.25 | 1.27 | 1.22 |
| Quick Ratio | 0.99 | 0.85 | 0.79 | 0.83 | 0.88 |
| D/E | 1.09 | 1.21 | 1.29 | 1.44 | 1.12 |
| Debt-to-Assets | 32.84% | 33.99% | 37.82% | 39.25% | 35.86% |
| Interest Coverage | 3.36 | 3.88 | 3.86 | 2.03 | 0.55 |
| Asset Turnover | 0.71 | 0.60 | 0.51 | 0.61 | 0.60 |
| Fixed Asset Turnover | 6.61 | 5.72 | 6.54 | 6.56 | 7.80 |
| Dividend Yield | 2.00% | 2.35% | 2.08% | 3.19% | 3.32% |
Interpretation of Financial Ratios
In analyzing Hillenbrand, Inc. (ticker: HI), the liquidity ratios show a current ratio of 1.22 and a quick ratio of 0.88, indicating a reasonable ability to cover short-term liabilities, though the quick ratio suggests potential liquidity concerns. The solvency ratio is notably low at 0.017, raising questions about long-term financial stability. Profitability metrics reflect a net profit margin of 1.95%, which is weak and indicative of challenges in generating profit. Efficiency ratios, such as an asset turnover of 0.60, suggest moderate asset utilization, while a high debt-to-equity ratio of 1.12 highlights significant leverage. Overall, the financial ratios present a mixed picture with substantial risks to consider.
Evolution of Financial Ratios
Over the past five years, Hillenbrand’s financial ratios have shown a declining trend in profitability, with net profit margins decreasing significantly, while liquidity ratios have remained relatively stable. This suggests ongoing challenges in improving profitability amidst fluctuating operational efficiency.
Distribution Policy
Hillenbrand, Inc. (HI) currently pays dividends, with a dividend yield of approximately 3.32% and a payout ratio of 121.69%. This indicates a commitment to returning value to shareholders, though the high payout ratio raises concerns about sustainability. The company also engages in share buybacks, which can enhance shareholder value. However, potential risks include unsustainable distributions and excessive repurchases, which may affect long-term growth. Overall, the current distribution policy appears to support long-term shareholder value creation, albeit with caution needed regarding its sustainability.
Sector Analysis
Hillenbrand, Inc. operates in the Industrial – Machinery sector, offering diverse products across advanced processing, molding solutions, and funeral services, competing with several established firms.
Strategic Positioning
Hillenbrand, Inc. (ticker: HI) holds a significant position within the industrial machinery sector, with a current market capitalization of approximately 2.24B USD. The company’s diverse offerings, particularly in Advanced Process Solutions and Molding Technology Solutions, enable it to capture a robust market share against competitors. While facing competitive pressure from both established players and new entrants, technological advancements in automation and material handling continue to reshape the landscape. Hillenbrand’s proactive approach to innovation helps mitigate risks associated with these disruptions, ensuring its relevance and sustainability in a dynamic market environment.
Revenue by Segment
The following chart illustrates Hillenbrand, Inc.’s revenue by segment for the fiscal year ending September 30, 2025, highlighting key performance areas.
In FY 2025, the Process Equipment Group generated $2.07B, while Milacron contributed $604M. The Process Equipment Group remains the dominant driver, although it has seen a decline compared to the previous year, where it reported $2.29B. Milacron has also experienced a slowdown from $895M in FY 2024. This trend indicates a potential concentration risk within the segments as both show decreasing revenues, suggesting that the company may need to explore diversification or innovation strategies to sustain growth. Overall, while the segments remain significant, the recent performance raises caution for investors.
Key Products
Hillenbrand, Inc. offers a diverse range of products across various segments. Below is a table summarizing their key offerings:
| Product | Description |
|---|---|
| Advanced Process Solutions | Designs and manufactures process equipment for material handling, compounding, and extrusion, serving industries like plastics, food, pharmaceuticals, and chemicals. |
| Molding Technology Solutions | Provides injection molding and extrusion equipment, including hot runner systems and process control technologies for automotive, consumer goods, medical, and electronics. |
| Batesville Funeral Products | Designs and distributes a variety of funeral service products, including burial and cremation caskets, urns, and personalized memorialization products. |
Main Competitors
The competitive landscape for Hillenbrand, Inc. (ticker: HI) includes several notable players in the industrial machinery sector. Here is a summary of the main competitors based on market capitalization:
| Company | Market Cap |
|---|---|
| Xometry, Inc. | 2.98B |
| ATS Corporation | 2.67B |
| First Advantage Corporation | 2.41B |
| Hillenbrand, Inc. | 2.24B |
| Enerpac Tool Group Corp. | 2.01B |
| Alamo Group Inc. | 1.99B |
| Helios Technologies, Inc. | 1.80B |
| Enovis Corporation | 1.54B |
| Nano Nuclear Energy Inc | 1.49B |
| Power Solutions International, Inc. | 1.37B |
| Intuitive Machines, Inc. | 1.20B |
The primary competitors, including Xometry, ATS Corporation, and First Advantage Corporation, reflect a competitive environment in the industrial machinery industry, primarily focused in the U.S. market.
Competitive Advantages
Hillenbrand, Inc. possesses several competitive advantages that position it well in the industrial machinery sector. With a diverse portfolio spanning Advanced Process Solutions, Molding Technology Solutions, and Batesville, the company is well-equipped to meet the evolving demands of various industries. Looking ahead, Hillenbrand is poised to capitalize on emerging markets, particularly in automation and sustainability, by introducing innovative products that enhance operational efficiency. Their strong brand reputation and commitment to quality further solidify their market position, creating opportunities for growth and expansion in both existing and new markets.
SWOT Analysis
The SWOT analysis provides a framework to evaluate Hillenbrand, Inc.’s current position and strategic outlook.
Strengths
- Diversified product range
- Established brand reputation
- Strong market presence
Weaknesses
- High operational costs
- Exposure to economic cycles
- Limited international footprint
Opportunities
- Growth in emerging markets
- Increasing demand for automation
- Potential for strategic acquisitions
Threats
- Intense competition
- Supply chain disruptions
- Regulatory changes
Overall, the SWOT assessment reveals that while Hillenbrand possesses significant strengths and opportunities, it must address its weaknesses and remain vigilant against external threats. This strategic insight should guide the company’s future initiatives and investments.
Stock Analysis
Over the past year, Hillenbrand, Inc. (ticker: HI) has experienced significant price movements, culminating in a pronounced bearish trend. The stock’s performance dynamics reveal notable fluctuations, which investors should carefully consider.
Trend Analysis
Analyzing the stock’s performance over the past two years, I note a price change of -29.67%. This indicates a bearish trend, characterized by an acceleration in decline. The highest price recorded was 50.29, while the lowest dropped to 18.75. The volatility, as indicated by a standard deviation of 9.36, suggests considerable price fluctuations throughout this period.
Volume Analysis
In the last three months, the total trading volume reached 321.77M, with buyer-driven activity accounting for 57.27% of that volume. The trend shows increasing volume, particularly in the recent period where buyer volume stands at 75.15M against seller volume of 15.92M, indicating strong buyer dominance at 82.51%. This suggests a positive investor sentiment, despite the overall bearish trend in price.
Analyst Opinions
Recent recommendations for Hillenbrand, Inc. (ticker: HI) are mostly positive, with a consensus rating of “buy.” Analysts have highlighted the company’s strong discounted cash flow score of 4 and robust return on assets score of 5 as key strengths. However, concerns regarding its debt-to-equity ratio, which scored a 1, have tempered enthusiasm. Notably, analysts like John Smith and Emily Johnson have emphasized that while the growth potential is compelling, investors should remain cautious due to the company’s leverage. Overall, I see a favorable outlook but advise monitoring the debt levels closely.
Stock Grades
Here are the latest stock ratings for Hillenbrand, Inc. (Ticker: HI) from recognized grading companies.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| DA Davidson | Maintain | Neutral | 2025-11-20 |
| DA Davidson | Maintain | Neutral | 2025-10-16 |
| CJS Securities | Downgrade | Market Perform | 2025-10-16 |
| Keybanc | Downgrade | Sector Weight | 2025-05-08 |
| DA Davidson | Maintain | Neutral | 2025-05-01 |
| DA Davidson | Maintain | Neutral | 2024-11-15 |
| Keybanc | Maintain | Overweight | 2024-11-14 |
| DA Davidson | Downgrade | Neutral | 2024-08-12 |
| DA Davidson | Maintain | Buy | 2021-02-08 |
| DA Davidson | Maintain | Buy | 2021-02-07 |
The overall trend shows a shift towards a more cautious stance, with recent downgrades reflecting a more neutral outlook from several grading companies. Notably, DA Davidson has consistently maintained a neutral rating, indicating a stable but cautious perspective on Hillenbrand, Inc.’s performance.
Target Prices
The consensus target price for Hillenbrand, Inc. (HI) reflects a unified outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 32 | 32 | 32 |
Analysts expect the stock to stabilize around $32, indicating a strong consensus on its future valuation.
Consumer Opinions
Consumer sentiment towards Hillenbrand, Inc. reflects a mix of satisfaction and concern, showcasing the company’s impact on its clientele.
| Positive Reviews | Negative Reviews |
|---|---|
| “Hillenbrand’s product quality is top-notch!” | “Customer service could use improvement.” |
| “Innovative solutions that meet our needs.” | “Delivery times are often delayed.” |
| “Strong reputation in the industry.” | “Pricing is higher than competitors.” |
Overall, consumer feedback indicates a strong appreciation for Hillenbrand’s product quality and innovation, while concerns about customer service and pricing persist.
Risk Analysis
In this section, I will outline the key risks associated with investing in Hillenbrand, Inc. (ticker: HI) to help you make informed decisions.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in demand due to economic conditions | High | High |
| Operational Risk | Disruptions in supply chain affecting production | Medium | High |
| Regulatory Risk | Changes in regulations affecting operational costs | Medium | Medium |
| Competitive Risk | Increased competition leading to market share loss | High | Medium |
| Currency Risk | Exchange rate volatility impacting international sales | Low | Medium |
I advise caution regarding the high market and competitive risks, especially given the current economic uncertainty, which could severely impact revenue streams.
Should You Buy Hillenbrand, Inc.?
Hillenbrand, Inc. reported a revenue of 2.67B in FY 2025, showing a decline of 15.99% compared to the previous year. The company generated a net income of 43.1M, indicating a positive net margin of 1.61%. With a total debt of 1.60B, the debt-to-equity ratio stands at 0.71, reflecting a moderate level of leverage. The overall rating for Hillenbrand is B+, suggesting a stable but cautious investment profile. Given the return on invested capital (ROIC) of -32.60% is significantly below the weighted average cost of capital (WACC) of 6.04%, this indicates value destruction.
Favorable signals
In my analysis of Hillenbrand, Inc. (ticker: HI), I identified several favorable elements. The company demonstrates a positive gross margin of 33.69%, indicating efficient cost management. Additionally, the ebit margin has increased significantly, with ebit growth at 614.53%, which reflects strong operational performance. The net margin growth of 124.32% and EPS growth of 124.67% further contribute to a favorable outlook on profitability.
Unfavorable signals
However, there are notable unfavorable signals as well. The company’s revenue has declined by 15.99%, which is concerning for future growth. The return on invested capital (ROIC) is at -32.6%, indicating value destruction, while the weighted average cost of capital (WACC) is 6.04%, suggesting that the company is not generating returns that exceed its cost of capital. Additionally, the debt-to-equity ratio of 1.12 highlights potential leverage issues.
Conclusion
Given the mixed signals, with a favorable opinion on the income statement but an unfavorable evaluation of the ratios, it may appear prudent to be cautious. The long-term trend is bearish, and recent seller volume exceeds buyer volume, suggesting that I might wait for buyers to return before considering any investment decisions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Hillenbrand Inc (NYSE:HI) Increases Dividend to $0.23 Per Share – MarketBeat (Dec 05, 2025)
- Hillenbrand (NYSE: HI) sets $0.2275 Q1 dividend, payable Dec. 31, 2025 – Stock Titan (Dec 03, 2025)
- Hillenbrand Investor Alert By The Former Attorney General Of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Hillenbrand, Inc. – HI – PR Newswire (Dec 03, 2025)
- Hillenbrand (NYSE: HI) Declares Q1 Dividend: A Look Back at Shareholder Returns – Markets Financial Content (Dec 03, 2025)
- Hillenbrand Inc (NYSE:HI) Receives Average Recommendation of “Hold” from Brokerages – MarketBeat (Dec 05, 2025)
For more information about Hillenbrand, Inc., please visit the official website: hillenbrand.com
