Hillenbrand (HI) AI Stock Analysis

• Market Cap: $2.24B
• Dividend Yield: 2.85%
• Average Volume (3M): 723.94K
• Price to Earnings (P/E): 52.3
• Beta (1Y): 1.61
• Revenue Growth: -16.00%
• EPS Growth: N/A
• Country: US
• Employees: 10,450
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.83
• Shares Outstanding: 70,508,650
• 10 Day Avg. Volume: 678,000
• 30 Day Avg. Volume: 723,937
• PEG Ratio: -0.36
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 106.80
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 1.25
• Enterprise Value/Gross Profit: 3.72
• Enterprise Value/Ebitda: 14.53
• 1Y Price Target: $32.00
• Price Target Upside: 0.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.41
• Revenue Forecast (FY): $2.39B

• Rating: 65 Neutral
• Price Target: $34.00 ▲(6.82% Upside)

The score is driven primarily by mixed fundamentals—weak cash flow and declining revenue/low margins, partly balanced by manageable leverage. Technicals are supportive with price above key moving averages and a positive MACD. Valuation is a headwind due to a high P/E, while corporate events provide upside optionality from the approved all-cash acquisition, tempered by litigation-related deal risk.

Positive Factors

Diversified business segments

Hillenbrand's dual-segment model spreads demand risk across industrial equipment and funeral products. This diversification reduces revenue cyclicality, enables cross-segment cash flow smoothing, and supports long-term resilience versus pure-play peers dependent on one end market.

Recurring aftermarket/service revenue

Aftermarket parts and service contracts create durable, higher-margin recurring revenue from an installed equipment base. This steady stream supports service margins, improves cash visibility, and builds customer stickiness that sustains revenue even when new equipment orders fluctuate.

Manageable leverage

A debt-to-equity around 1.12 reflects moderate leverage, giving the company financial flexibility to fund operations, invest in maintenance or targeted M&A, and withstand cyclical downturns without immediate refinancing stress, supporting multi-quarter stability.

Negative Factors

Severe free cash flow decline

An 84% drop in FCF and very low operating-cash-to-net-income conversion indicate weak cash generation and earnings quality. Persistently impaired cash flow restricts reinvestment, deleverages capacity to service debt or fund capex, and pressures long-term capital allocation.

Declining revenue and thin margins

Falling revenue and sub-2% net margin signal structural pressure on demand or competitive pricing. Low profitability limits the firm's ability to reinvest, reduces returns to stakeholders, and raises sensitivity to cost inflation or volume declines over the medium term.

Merger litigation and execution risk

Ongoing lawsuits and supplemental disclosures around the Lone Star acquisition create execution and timing risk. Litigation can delay closing, increase costs, distract management, and inject uncertainty into supplier/customer relationships and strategic planning for several months.

Hillenbrand Business Overview & Revenue Model

Company Description

Hillenbrand, 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 Money

Hillenbrand generates revenue primarily through the sale of its diversified product offerings across its two business segments. The Process Equipment Group earns income from the sale of machinery, equipment, and service contracts to various industries, contributing significantly to its revenue stream. This segment also benefits from recurring revenue through aftermarket parts and services. The Funeral Home Group makes money primarily through the sale of caskets, cremation equipment, and related services. Their strong brand presence and partnerships with funeral homes enhance sales and customer loyalty. The company often engages in strategic acquisitions to expand its product portfolio and market reach, further boosting earnings. Additionally, Hillenbrand's global presence allows it to tap into emerging markets, contributing to revenue growth.

Hillenbrand Financial Statement Overview

Summary

Mixed fundamentals: revenue fell 6.49% and net margin is low (1.95%) with weak EBIT/EBITDA margins, while gross margin is relatively stable (33.69%) and leverage appears manageable (debt-to-equity 1.12). Cash generation is a key weakness, with free cash flow down 84.12% and a very low operating cash flow to net income ratio (0.06).

Income Statement

Hillenbrand's income statement shows a mixed performance. The company has experienced a decline in revenue growth rate and net profit margin over the past year, with a notable decrease in revenue by 6.49% and a low net profit margin of 1.95%. However, the gross profit margin remains relatively stable at 33.69%, indicating efficient cost management. The EBIT and EBITDA margins are low, reflecting challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 1.12, indicating a balanced leverage. The return on equity is low at 3.66%, suggesting limited profitability from shareholders' investments. The equity ratio is not calculated, but the overall leverage appears manageable, though there is room for improvement in profitability.

Cash Flow

The cash flow statement highlights significant challenges, with a drastic decline in free cash flow growth by 84.12%. The operating cash flow to net income ratio is low at 0.06, indicating potential cash flow issues. The free cash flow to net income ratio is moderate at 0.32, suggesting some ability to generate cash relative to net income, but overall cash flow performance is weak.

Breakdown	TTM	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	2.67B	2.67B	2.67B	3.18B	2.83B	2.32B
Gross Profit	900.80M	900.80M	900.80M	1.06B	948.20M	763.80M
EBITDA	230.60M	230.60M	230.60M	140.10M	420.20M	362.60M
Net Income	43.10M	43.10M	43.10M	-211.00M	569.70M	208.90M
Balance Sheet
Total Assets	4.47B	4.47B	4.47B	5.24B	5.55B	3.87B
Cash, Cash Equivalents and Short-Term Investments	164.80M	164.80M	164.80M	199.30M	242.90M	232.20M
Total Debt	1.60B	1.60B	1.60B	2.03B	2.10B	1.29B
Total Liabilities	3.04B	3.04B	3.04B	3.78B	3.88B	2.76B
Stockholders Equity	1.39B	1.39B	1.39B	1.42B	1.63B	1.08B
Cash Flow
Free Cash Flow	17.90M	17.90M	17.90M	113.80M	900.00K	152.80M
Operating Cash Flow	56.20M	56.20M	56.20M	168.00M	70.20M	191.10M
Investing Cash Flow	192.70M	192.70M	192.70M	26.80M	-729.90M	-143.40M
Financing Cash Flow	-279.40M	-279.40M	-279.40M	-227.10M	693.40M	-244.20M

Hillenbrand Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HI, the sentiment is Positive. The current price of 31.83 is above the 20-day moving average (MA) of 31.75, above the 50-day MA of 31.60, and above the 200-day MA of 25.08, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 66.88 is Neutral, neither overbought nor oversold. The STOCH value of 74.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HI.

Hillenbrand Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRC	76 Outperform	$1.36B	27.08	13.01%	1.49%	3.19%	31.51%
SXI	73 Outperform	$2.99B	56.61	7.72%	0.57%	18.51%	-28.69%
EPAC	68 Neutral	$2.12B	24.12	21.75%	0.10%	3.91%	1.48%
HLIO	67 Neutral	$2.04B	60.73	3.75%	0.64%	-1.46%	-10.03%
HI	65 Neutral	$2.24B	52.28	3.07%	2.85%	-16.00%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ENOV	49 Neutral	$1.39B	-1.00	-51.11%	―	11.57%	-1016.39%

Hillenbrand Corporate Events

Hillenbrand Launches Conditional Change-of-Control Tender Offers

On October 14, 2025, Hillenbrand, Inc. agreed to be acquired via a merger in which LSF12 Helix Merger Sub, an affiliate of Lone Star Fund XII, will merge with and into Hillenbrand, leaving Hillenbrand as a wholly owned subsidiary of LSF12 Helix Parent, LLC. In connection with this planned change of control, on January 9, 2026, the Lone Star–affiliated parent launched conditional change-of-control offers to purchase any and all of Hillenbrand’s 6.2500% Senior Notes due 2029 and 3.7500% Senior Notes due 2031 at 101% of principal plus accrued interest, with the offers only required and capable of closing if the merger is consummated, the notes are downgraded below investment grade in the defined trigger period, and those conditions are satisfied before the offers expire no later than March 9, 2026, a structure that provides bondholders with an exit mechanism while underscoring the refinancing and ratings risk associated with the leveraged buyout.

The most recent analyst rating on (HI) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on Hillenbrand stock, see the HI Stock Forecast page.

Hillenbrand Shareholders Approve Merger with Lone Star Affiliate

On January 8, 2026, Hillenbrand, Inc. held a special meeting of shareholders to vote on an agreement and plan of merger, dated October 14, 2025, under which an affiliate of Lone Star Fund XII, L.P. would acquire Hillenbrand by merging LSF12 Helix Merger Sub, Inc. into the company, leaving Hillenbrand as a wholly owned subsidiary of LSF12 Helix Parent, LLC. Of the 70,508,655 shares outstanding as of the November 28, 2025 record date, holders of 58,935,056 shares (83.58%) were present in person or by proxy, and shareholders overwhelmingly approved the merger agreement, endorsed on an advisory basis the merger-related executive compensation, and backed the option to adjourn the meeting if needed to seek additional proxies, underscoring strong investor support for the transaction even as the deal remains subject to customary closing conditions, including regulatory approvals.

The most recent analyst rating on (HI) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Hillenbrand stock, see the HI Stock Forecast page.

Hillenbrand issues supplemental disclosures amid merger litigation

On October 14, 2025, Hillenbrand, Inc. agreed to be acquired by affiliates of Lone Star Fund XII via a merger that would take the company private, and in November and December it filed and mailed proxy materials outlining the $32 per share cash consideration and supporting financial analyses. By December 23, 2025, two New York state court lawsuits and additional shareholder demands challenged the adequacy and accuracy of Hillenbrand’s definitive proxy statement, prompting the company—while denying any wrongdoing or need for further disclosure—to issue detailed supplemental information on the sale process, competing bids, Evercore’s valuation work, and long‑term financial projections in an effort to neutralize the claims, avoid delays to the transaction, and reduce litigation risk and cost.

The most recent analyst rating on (HI) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Hillenbrand stock, see the HI Stock Forecast page.

Hillenbrand Announces Merger Agreement with Lone Star

On October 14, 2025, Hillenbrand, Inc. entered into a Merger Agreement with LSF12 Helix Parent, LLC, and LSF12 Helix Merger Sub, Inc., affiliates of Lone Star Funds, to merge Hillenbrand with Merger Sub, making Hillenbrand a wholly owned subsidiary of Parent. The merger agreement, unanimously adopted by Hillenbrand’s board, includes a cash payment of $32.00 per share for Hillenbrand’s common stock. The merger is subject to customary conditions, including shareholder approval and regulatory clearances. Termination rights are specified, with potential fees for either party under certain conditions. Lone Star Fund XII, L.P. has committed significant equity and debt financing to support the transaction.

The most recent analyst rating on (HI) stock is a Hold with a $32.00 price target. To see the full list of analyst forecasts on Hillenbrand stock, see the HI Stock Forecast page.

Hillenbrand to Be Acquired by Lone Star Funds

On October 15, 2025, Hillenbrand, Inc. announced it has entered into a definitive agreement to be acquired by an affiliate of Lone Star Funds in an all-cash transaction valued at $32.00 per share, equating to an enterprise value of approximately $3.8 billion. This acquisition represents a premium of 37% over Hillenbrand’s unaffected closing share price on August 12, 2025, and 53% over the volume weighted average price for the 90 days ending August 12, 2025. The transaction, which is expected to close by the end of the first quarter of 2026, will result in Hillenbrand becoming a privately held company, ceasing its trading on the New York Stock Exchange. The acquisition is seen as a strategic move that will allow Hillenbrand to continue its growth and innovation in its core markets, with Lone Star recognizing the company’s progress and potential.

The most recent analyst rating on (HI) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Hillenbrand stock, see the HI Stock Forecast page.