Hillenbrand, Inc. (HI) Stock Analysis

Hillenbrand, Inc. (HI) Industrial Operations Profile

Hillenbrand, Inc. is a diversified industrial company providing equipment and solutions across Advanced Process Solutions, Molding Technology Solutions, and Batesville segments. With a global presence, the company serves diverse industries, including plastics, food, automotive, and funeral services, positioning itself as a key player in industrial machinery and solutions.

What Is the Investment Thesis for HI?

Hillenbrand presents a mixed investment thesis. The company's diversified business model, spanning industrial equipment and funeral services, provides some resilience across economic cycles. The dividend yield of 2.82% offers an income component. However, a high P/E ratio of 65.7 suggests the stock may be overvalued relative to earnings. A low profit margin of 1.4% raises concerns about operational efficiency and profitability. Future growth will depend on successful execution in the Advanced Process Solutions and Molding Technology Solutions segments, as well as maintaining market share in the Batesville segment. Investors should monitor the company's ability to improve profitability and manage its debt effectively.

Based on FMP financials and quantitative analysis

HI Key Highlights

Market Cap of $2.26B reflects Hillenbrand's position as a mid-sized player in the industrial sector.

• P/E Ratio of 65.7 indicates a potentially high valuation relative to earnings.
• Gross Margin of 33.7% demonstrates the company's ability to generate revenue after accounting for the cost of goods sold.
• Dividend Yield of 2.82% provides an income stream for investors.
• Beta of 1.39 suggests the stock is more volatile than the overall market.

Who Are HI's Competitors?

HI is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are HI's Key Strengths?

Diversified business model reduces reliance on any single industry.

• Established brand name in the funeral services market.
• Global presence with sales and service network.
• Strong engineering and manufacturing capabilities.

What Are HI's Weaknesses?

Low profit margin compared to industry peers.

• High P/E ratio may indicate overvaluation.
• Exposure to cyclical industries.
• Dependence on acquisitions for growth.

What Could Drive HI Stock Higher?

Potential acquisitions to expand product offerings and market reach.

• Continued growth in the Advanced Process Solutions and Molding Technology Solutions segments.
• Innovation in funeral services products and personalization.
• Expansion into emerging markets.

What Are the Key Risks for HI?

Financial-distress signal — its Altman Z-Score of 1.44 sits in the distress zone (elevated bankruptcy risk).

• Rich valuation — a P/E of 65.7 runs well above the Industrials sector’s ~32x, leaving little room for a miss.
• Economic downturns affecting industrial sectors.
• Changing consumer preferences in funeral services.
• Increased competition from global players.
• Fluctuations in raw material costs.
• Integration challenges associated with future acquisitions.

What Are the Growth Opportunities for HI?

• Growth opportunity 1: Expansion in Advanced Process Solutions: Hillenbrand can capitalize on the growing demand for advanced material handling and processing equipment. The global material handling equipment market is projected to reach $150 billion by 2028, presenting a significant opportunity for Hillenbrand to expand its market share through innovation and strategic acquisitions. Timeline: Ongoing.
• Growth opportunity 2: Leveraging Molding Technology Solutions: The injection molding and extrusion equipment market is expected to grow, driven by demand from the automotive, consumer goods, and medical industries. Hillenbrand can focus on developing energy-efficient and high-precision molding solutions to capture a larger share of this market. The global injection molding market is projected to reach $220 billion by 2027. Timeline: Ongoing.
• Growth opportunity 3: Innovation in Funeral Services: The Batesville segment can drive growth by offering innovative personalization and memorialization products and services. As consumer preferences evolve, there is an opportunity to provide unique and meaningful ways to honor loved ones. This includes expanding digital memorialization options and personalized casket designs. Timeline: Ongoing.
• Growth opportunity 4: Strategic Acquisitions: Hillenbrand has a history of successful acquisitions. Pursuing strategic acquisitions in complementary areas can expand the company's product offerings, geographic reach, and customer base. Potential targets include companies specializing in industrial automation, process control systems, and funeral-related technologies. Timeline: Ongoing.
• Growth opportunity 5: International Expansion: Expanding into emerging markets can drive growth for all three segments. Countries with growing industrial sectors and aging populations present attractive opportunities for Hillenbrand's products and services. Focus on establishing a stronger presence in Asia-Pacific and Latin America. Timeline: Ongoing.

What Are HI's Competitive Advantages?

• Established brand reputation in the funeral services industry through Batesville.
• Diversified product portfolio across multiple industrial sectors.
• Strong engineering and manufacturing capabilities.
• Global sales and service network.

What Does HI Do?

Founded in 1906 and headquartered in Batesville, Indiana, Hillenbrand, Inc. has evolved into a diversified industrial company with a global footprint. Initially focused on manufacturing caskets, the company expanded its operations through strategic acquisitions and organic growth. Today, Hillenbrand operates through three primary segments: Advanced Process Solutions, Molding Technology Solutions, and Batesville. The Advanced Process Solutions segment designs, engineers, manufactures, and services process and material handling equipment and systems. This includes compounding, extrusion, and material handling equipment, as well as screening and separating equipment used in industries such as plastics, food, pharmaceuticals, and chemicals. The Molding Technology Solutions segment offers injection molding and extrusion equipment, hot runner systems, process control systems, and mold bases and components for industries like automotive, consumer goods, and medical. The Batesville segment, the company's original business, designs, manufactures, distributes, and sells funeral services products and solutions, including burial caskets, cremation caskets, containers, urns, personalization and memorialization products, and web-based technology applications. Hillenbrand's diversified portfolio allows it to serve a wide range of industries and adapt to changing market conditions.

What Products and Services Does HI Offer?

• Designs, engineers, and manufactures process and material handling equipment.
• Provides compounding, extrusion, and material handling systems.
• Offers screening and separating equipment for various industries.
• Supplies injection molding and extrusion equipment.
• Manufactures hot runner systems and process control systems.
• Designs, manufactures, and sells burial caskets and cremation products.
• Offers personalization and memorialization products.
• Provides web-based technology applications for funeral services.

How Does HI Make Money?

• Sells advanced process solutions equipment and services to various industries.
• Generates revenue from the sale of molding technology solutions.
• Derives income from the sale of funeral service products and solutions.
• Provides aftermarket services and support for its equipment.

What Industry Does HI Operate In?

Hillenbrand operates in the industrial machinery and funeral services industries. The industrial machinery sector is characterized by technological advancements, increasing automation, and global competition. Trends include the adoption of Industry 4.0 principles, growing demand for customized solutions, and a focus on sustainability. The funeral services industry is relatively stable but faces challenges from changing consumer preferences, such as the increasing popularity of cremation. Hillenbrand competes with companies like ATS Corporation in the industrial equipment space and faces competition from various regional and national casket manufacturers in the funeral services market.

Who Are HI's Key Customers?

• Companies in the plastics, food, and pharmaceutical industries.
• Manufacturers in the automotive, consumer goods, and medical sectors.
• Funeral homes and related businesses.
• Chemical and fertilizer companies.

Return on equity for Hillenbrand, Inc. stands at 2.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.8%, showing how much profit it generates from its asset base. HI trades at a trailing price-to-earnings ratio of 65.72, above the Industrials sector average of ~32x. Its free cash flow yield is 0.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.27 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 1.5%, the inverse of the P/E and a quick read on earnings relative to price.

Hillenbrand, Inc. (HI) Valuation Context

Valued at $2.26B, HI is classified as a mid-cap stock.

Company Profile

Hillenbrand, Inc. operates in the Industrial - Machinery industry within the Industrials sector. It is headquartered in Batesville, US. The company is led by CEO Kimberly K. Ryan. HI has traded publicly since 2008.

Hillenbrand, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.44 places it in the distress zone, a signal of elevated financial risk.

Wall Street analysts project Hillenbrand, Inc. revenue of about $2.47B for fiscal 2026, with EPS near $2.58.

HI Financials

HI Latest News

Hillenbrand, Inc. Industrials Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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