Hillenbrand (HI) AI Stock Analysis

• Market Cap: $2.25B
• Dividend Yield: 2.82%
• Average Volume (3M): 812.91K
• Price to Earnings (P/E): 52.4
• Beta (1Y): 1.66
• 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: 640,799
• 30 Day Avg. Volume: 812,911
• PEG Ratio: -0.29
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 106.80
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 3.78
• Enterprise Value/Ebitda: 14.77
• 1Y Price Target: $32.00
• Price Target Upside: 0.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.33
• Revenue Forecast (FY): $2.39B

• Rating: 68 Neutral
• Price Target: $35.00 ▲(9.55% Upside)

Hillenbrand's overall stock score reflects a balance of positive technical momentum and strategic acquisition prospects against financial performance challenges and high valuation concerns. The acquisition by Lone Star Funds is a significant positive factor, offering potential for future growth.

Positive Factors

Strategic Acquisition

The acquisition by Lone Star Funds provides strategic growth opportunities and potential for innovation, positioning Hillenbrand for long-term success.

Debt Reduction

Significant debt reduction enhances financial flexibility, allowing for better cash management and investment in growth initiatives.

Cost Synergies

Early realization of cost synergies improves operational efficiency and profitability, supporting sustainable margin improvement.

Negative Factors

Declining Revenue

Significant revenue decline indicates challenges in market demand and competitive pressures, potentially impacting long-term growth.

Cash Flow Challenges

Weak cash flow performance limits reinvestment capacity and could strain financial resources, affecting future operational stability.

High Leverage

High leverage ratio suggests financial risk, potentially limiting strategic flexibility and increasing vulnerability to economic downturns.

Hillenbrand Business Overview & Revenue Model

Company Description

Hillenbrand, Inc. (NYSE: HI) is a global diversified industrial company based in Batesville, Indiana. It operates in two main segments: the Process Equipment Group and the Funeral Home Group. The Process Equipment Group provides a wide range of equipment and services for various industries, including plastics, food, and pharmaceuticals, with key products such as compounding and recycling equipment. The Funeral Home Group offers products and services for the funeral industry, including caskets and cremation equipment, and is known for its brand of Batesville caskets and related services.

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

Hillenbrand's financial performance is challenged by declining revenue growth and cash flow issues, with stable but low profitability margins. The balance sheet shows manageable leverage, but profitability and cash flow metrics indicate areas for improvement.

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: 31.95
• 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 31.95 is above the 20-day moving average (MA) of 31.77, above the 50-day MA of 30.85, and above the 200-day MA of 24.58, indicating a bullish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 69.33 is Neutral, neither overbought nor oversold. The STOCH value of 48.32 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	$1.30B	25.93	13.01%	1.48%	3.19%	31.51%
SXI	73 Outperform	$2.82B	53.36	7.72%	0.56%	18.51%	-28.69%
HI	68 Neutral	$2.25B	52.41	3.07%	2.82%	-16.00%	―
HLIO	67 Neutral	$1.88B	56.02	3.75%	0.62%	-1.46%	-10.03%
EPAC	64 Neutral	$2.15B	23.80	22.47%	0.10%	4.65%	8.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ENOV	46 Neutral	$1.51B	-1.10	-51.11%	―	11.57%	-1016.39%

Hillenbrand Corporate Events

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.

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.