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Is Hillenbrand (HI) a Great Value Stock Right Now?

Zacks Equity Research

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Hillenbrand (HI). HI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.38, which compares to its industry's average of 16.62. Over the past 52 weeks, HI's Forward P/E has been as high as 15.24 and as low as 9.97, with a median of 12.

Another notable valuation metric for HI is its P/B ratio of 2.58. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.37. HI's P/B has been as high as 3.96 and as low as 2.06, with a median of 3.17, over the past year.

Finally, we should also recognize that HI has a P/CF ratio of 11.09. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.10. Over the past 52 weeks, HI's P/CF has been as high as 22.57 and as low as 8.29, with a median of 12.42.

These are just a handful of the figures considered in Hillenbrand's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that HI is an impressive value stock right now.

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