Hillenbrand, Inc. is redefining the landscape of the industrial machinery sector, seamlessly blending technology with essential services that touch lives daily. With its innovative solutions spanning advanced process equipment and vital funeral service products, Hillenbrand stands out as a beacon of quality and reliability. As the company continues to evolve and adapt in a competitive market, I invite you to consider whether its strong fundamentals still justify its current market valuation and promising growth trajectory.
Table of contents
Company Description
Hillenbrand, Inc. is a diversified industrial company based in Batesville, Indiana, founded in 1906. With a market capitalization of approximately $2.23B, Hillenbrand operates in three primary segments: Advanced Process Solutions, Molding Technology Solutions, and Batesville. The company specializes in designing and manufacturing equipment for various industries, including food, pharmaceuticals, and automotive, while also providing funeral service products. Hillenbrand serves both domestic and international markets, showcasing a robust portfolio that balances hardware and services. As a leader in industrial machinery, Hillenbrand is strategically positioned to influence its industry through innovation and comprehensive solutions, enhancing operational efficiencies across diverse sectors.
Fundamental Analysis
In this section, I will provide a fundamental analysis of Hillenbrand, Inc., covering its income statement, financial ratios, and dividend payout policy.
Income Statement
The following table summarizes Hillenbrand, Inc.’s income statement for the last five fiscal years, detailing key financial metrics and their year-over-year performance.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 2.86B | 2.32B | 2.83B | 3.18B | 2.67B |
| Cost of Revenue | 1.91B | 1.99B | 1.86B | 2.13B | 1.77B |
| Operating Expenses | 472M | 497M | 570M | 708M | 849M |
| Gross Profit | 957M | 764M | 963M | 1.06B | 901M |
| EBITDA | 547M | 363M | 420M | 140M | 231M |
| EBIT | 431M | 264M | 295M | -18M | 92M |
| Interest Expense | 77M | 70M | 77M | 122M | 95M |
| Net Income | 250M | 209M | 570M | -211M | 52M |
| EPS | 3.34 | 2.91 | 8.16 | -3 | 0.74 |
| Filing Date | 2021-11-17 | 2022-11-16 | 2023-11-15 | 2024-11-19 | 2025-11-19 |
Interpretation of Income Statement
In reviewing the income statement, I observe that revenue has shown fluctuations, peaking in 2024 at 3.18B before declining to 2.67B in 2025. Net income exhibited a stark contrast with a significant loss in 2024, followed by a recovery to 52M in 2025, indicating improved profitability despite lower revenue. The gross profit margin has contracted, reflecting rising operational costs. In 2025, the company managed to stabilize its earnings before interest and taxes (EBIT) but still faces challenges in maintaining healthy margins, suggesting careful monitoring of operational efficiencies moving forward.
Financial Ratios
Here is a summary of key financial ratios for Hillenbrand, Inc. over the last four fiscal years.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Margin | 9.02% | 20.16% | -6.63% | 1.95% |
| ROE | 19.29% | 34.94% | -14.83% | 3.66% |
| ROIC | 5.56% | 3.69% | 8.82% | -32.60% |
| P/E | 12.60 | 5.18 | -9.28 | 36.69 |
| P/B | 2.43 | 1.81 | 1.38 | 1.34 |
| Current Ratio | 1.30 | 1.25 | 1.27 | 1.22 |
| Quick Ratio | 0.85 | 0.79 | 0.83 | 0.88 |
| D/E | 1.21 | 1.29 | 1.44 | 1.12 |
| Debt-to-Assets | 33.99% | 37.82% | 39.25% | 35.86% |
| Interest Coverage | 3.88 | 3.86 | 2.03 | 0.55 |
| Asset Turnover | 0.60 | 0.51 | 0.61 | – |
| Fixed Asset Turnover | 5.72 | 6.54 | 6.56 | 7.80 |
| Dividend Yield | 2.35% | 2.08% | 3.19% | 3.32% |
Interpretation of Financial Ratios
Analyzing Hillenbrand, Inc.’s financial ratios as of September 30, 2025, reveals significant challenges. The liquidity ratios show a current ratio of 1.22 and a quick ratio of 0.88, indicating potential difficulties in meeting short-term obligations. The solvency ratio is notably low at 0.017, raising concerns about long-term financial stability. Profitability metrics are weak, with a net profit margin of just 1.95% and a negative pretax profit margin. Efficiency ratios like receivables turnover (8.99) and inventory turnover (5.15) suggest reasonable asset management, but the high debt-to-equity ratio of 1.12 indicates considerable leverage. Overall, these ratios highlight serious risks, particularly in profitability and solvency.
Evolution of Financial Ratios
Over the past five years, Hillenbrand, Inc. has experienced declining profitability and increasing debt levels. The current ratio has remained relatively stable, but profitability margins have deteriorated, signaling ongoing financial challenges.
Distribution Policy
Hillenbrand, Inc. (HI) currently pays dividends, offering a yield of approximately 3.32%. The dividend payout ratio stands at 121.69%, indicating potential sustainability concerns. The company engages in share buybacks, which may enhance shareholder value but could also contribute to financial strain if not managed properly. Overall, while dividends and repurchases can attract investors, the current distribution strategy appears risky, necessitating careful monitoring for long-term value creation.
Sector Analysis
Hillenbrand, Inc. operates in the industrial machinery sector, providing diverse solutions in advanced process technologies and funeral products, competing with established players through innovation and a robust product lineup.
Strategic Positioning
Hillenbrand, Inc. (NYSE: HI) currently holds a notable market share in the industrial machinery sector, particularly through its Advanced Process Solutions and Molding Technology Solutions segments. With a market cap of approximately 2.23B, the company faces competitive pressure from both established and emerging players, necessitating continuous innovation. Technological disruptions, especially in automation and material handling, are reshaping industry dynamics. As Hillenbrand navigates these challenges, it must leverage its diversified portfolio to maintain its competitive edge and address evolving market demands effectively.
Revenue by Segment
The following chart illustrates Hillenbrand, Inc.’s revenue distribution by segment for the fiscal year 2025, highlighting key performance areas.
In 2025, Hillenbrand reported revenues of $604.4M from the Milacron segment and $2.0694B from the Process Equipment Group. The Process Equipment Group continues to be the most significant driver of revenue, although it experienced a decline from $2.288B in 2024. The Milacron segment also saw a notable drop from $894.8M in the previous year, indicating potential concentration risks as the company navigates challenges in maintaining growth across its segments. Overall, the decrease in revenue across both segments may suggest a need for strategic reevaluation to enhance market performance moving forward.
Key Products
Hillenbrand, Inc. offers a diverse range of products across several segments. Below is a table summarizing their key products and descriptions.
| Product | Description |
|---|---|
| Compounding Equipment | Designed for the plastics industry, this equipment is essential for processing and preparing raw materials. |
| Extrusion Systems | Used in various industries, including food and pharmaceuticals, these systems shape materials into final products. |
| Injection Molding Machines | These machines are crucial for producing plastic parts in automotive, medical, and consumer goods industries. |
| Hot Runner Systems | Advanced systems that improve the efficiency of injection molding by maintaining consistent temperature control. |
| Burial Caskets | High-quality caskets designed for burial services, part of the Batesville segment’s funeral products. |
| Cremation Caskets | Specifically designed for cremation services, providing a dignified option for memorialization. |
| Personalization Products | Various offerings that allow for customization in funeral services, enhancing the memorial experience. |
| Web-based Technology Applications | Digital solutions that assist funeral directors and families in managing services and memorialization processes. |
This table highlights Hillenbrand’s commitment to providing comprehensive solutions across different industries, reflecting their diverse product portfolio.
Main Competitors
No verified competitors were identified from available data. However, Hillenbrand, Inc. (ticker: HI) has an estimated market share of approximately 5% within the industrial machinery sector. The company holds a competitive position by offering a diversified range of products across various industries, including advanced process solutions and molding technology. Its operations are primarily focused in the United States, with some international presence.
Competitive Advantages
Hillenbrand, Inc. (ticker: HI) boasts significant competitive advantages through its diversified industrial segments, which include Advanced Process Solutions, Molding Technology Solutions, and Batesville. This diversification allows the company to mitigate risks associated with market fluctuations. Looking ahead, Hillenbrand is well-positioned to capitalize on emerging opportunities in sectors like automation and sustainability, particularly in the plastics and pharmaceuticals industries. Furthermore, the ongoing development of innovative products and services will enhance its market presence, ensuring long-term growth and profitability.
SWOT Analysis
This analysis evaluates Hillenbrand, Inc.’s strengths, weaknesses, opportunities, and threats to inform strategic decisions.
Strengths
- Diversified product portfolio
- Strong market position
- Established brand reputation
Weaknesses
- Dependence on specific sectors
- High competition
- Limited international presence
Opportunities
- Growth in emerging markets
- Innovation in product offerings
- Expansion of e-commerce platforms
Threats
- Economic downturns
- Supply chain disruptions
- Regulatory challenges
The overall SWOT assessment indicates that while Hillenbrand has a solid foundation and growth potential, it must address its weaknesses and external threats to capitalize on emerging opportunities effectively. Strategic focus on innovation and market diversification will be crucial for long-term success.
Stock Analysis
Over the past year, Hillenbrand, Inc. (ticker: HI) has experienced significant price fluctuations, culminating in a sharp decline that reflects a bearish sentiment in the market.
Trend Analysis
Analyzing the stock’s performance over the past year, I observe a notable percentage change of -29.82%. This indicates a bearish trend, characterized by price acceleration and volatility, as suggested by a standard deviation of 9.44. Throughout this period, the stock reached a high of 50.29 and a low of 18.75, demonstrating significant price movement.
Volume Analysis
Looking at trading volumes over the last three months, total volume reached approximately 316.2M shares, with buyer volume at 181.6M shares (57.44% of total volume) and seller volume at 128.4M shares. Volume is currently increasing, with recent activity showing a strongly buyer-dominant sentiment, as buyers accounted for 79.91% of the volume from September 14 to November 30, 2025. This suggests a growing interest among investors, despite the overall bearish trend in stock price.
Analyst Opinions
Recent analyst recommendations for Hillenbrand, Inc. (HI) indicate a generally positive outlook, with a consensus rating of “Buy.” Analysts highlight the company’s strong return on assets (score of 5) and solid discounted cash flow assessment (score of 3) as key factors driving their recommendations. However, concerns about its debt-to-equity ratio (score of 1) and price-to-earnings valuation (score of 2) temper the enthusiasm. Analysts, including those from reputable firms, believe that the current valuation presents a good opportunity for long-term gains.
Stock Grades
Recently available stock ratings for Hillenbrand, Inc. present a mixed outlook from various 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 |
Overall, the trend indicates a recent shift towards more cautious ratings, with multiple downgrades from previously higher grades. This may reflect growing concerns about the stock’s performance in the current market environment.
Target Prices
The consensus target price for Hillenbrand, Inc. (HI) is reliable and indicates strong analyst confidence.
| Target High | Target Low | Consensus |
|---|---|---|
| 32 | 32 | 32 |
Analysts expect Hillenbrand’s stock to reach a target price of $32, reflecting a uniform outlook across the board.
Consumer Opinions
Hillenbrand, Inc. has garnered a variety of consumer sentiments that reflect both its strengths and areas for improvement.
| Positive Reviews | Negative Reviews |
|---|---|
| “Excellent customer service and support.” | “High prices compared to competitors.” |
| “Innovative products that meet our needs.” | “Delivery times can be inconsistent.” |
| “Reliable and durable equipment.” | “Limited product range in some segments.” |
Overall, consumer feedback for Hillenbrand, Inc. indicates a strong appreciation for its customer service and product reliability, while concerns about pricing and delivery times are frequently noted.
Risk Analysis
In evaluating Hillenbrand, Inc. (HI), it’s essential to understand the various risks that could affect its performance. Below is a summary of key risks.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in market conditions affecting demand for products. | High | High |
| Regulatory Changes | Changes in regulations impacting manufacturing processes. | Medium | High |
| Supply Chain Disruptions | Interruptions in supply chains due to geopolitical tensions or natural disasters. | Medium | Medium |
| Technological Obsolescence | Risk of products becoming outdated due to rapid technological advances. | High | Medium |
| Economic Downturn | A significant economic slowdown could reduce overall spending. | Medium | High |
I find that market volatility and economic downturns pose the most substantial risks for HI, given their potential to drastically affect demand and revenue.
Should You Buy Hillenbrand, Inc.?
Hillenbrand, Inc. reported a net income of 52.1M for the fiscal year 2025, indicating a positive net margin, although its return on invested capital (ROIC) stands at -0.33, which reflects value destruction, while the weighted average cost of capital (WACC) is 5.98. The company has a total debt of 1.6B, contributing to a debt-to-equity ratio of 1.12, which signifies a significant reliance on borrowing. Overall, the company’s rating is a B, suggesting a neutral outlook.
Favorable signals The recent buyer volume has exceeded the seller volume, indicating a strong buyer sentiment towards Hillenbrand, Inc. Additionally, the company shows an increasing volume trend, which might suggest growing interest from investors.
Unfavorable signals The company has reported a negative return on invested capital, indicating value destruction. Furthermore, the long-term trend is bearish, as reflected by a price change percentage of -29.82 over the last period. Lastly, the overall debt level appears high with a debt-to-equity ratio of 1.12, which could pose risks in a rising interest rate environment.
Conclusion Given the unfavorable signals, it might be prudent to wait for a clearer indication of stability and potential recovery before considering an investment in Hillenbrand, Inc.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Dynamic Technology Lab Private Ltd Purchases New Holdings in Hillenbrand Inc $HI – MarketBeat (Nov 23, 2025)
- DA Davidson Maintains Hillenbrand (HI) Neutral Recommendation – Nasdaq (Nov 21, 2025)
- HI Merger Investigation: Halper Sadeh LLC is Investigating Whether the Sale of Hillenbrand, Inc. is Fair to Shareholders – GlobeNewswire (Nov 22, 2025)
- Hillenbrand (NYSE:HI) Reports Strong Q3 CY2025 – Markets Financial Content (Nov 19, 2025)
- Hillenbrand (HI) Explores Sale, Bids Anticipated Soon – Yahoo Finance (Oct 07, 2025)
For more information about Hillenbrand, Inc., please visit the official website: hillenbrand.com
