Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Hillenbrand, Inc. (NYSE:HI) due to its excellent fundamentals in more than one area. HI is a financially-healthy company with a a great history of dividend payments and an optimistic growth outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on Hillenbrand here.
Excellent balance sheet with reasonable growth potential and pays a dividend
Investors in search for stocks with room to flourish should look no further than HI, with its expected earnings growth of 38% which is expected to flow into an impressive return on equity of 20% over the next couple of years. HI is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that HI has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. HI’s has produced operating cash levels of 0.72x total debt over the past year, which implies that HI’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Income investors would also be happy to know that HI is a great dividend company, with a current yield standing at 2.3%. HI has also been regularly increasing its dividend payments to shareholders over the past decade.
For Hillenbrand, I’ve compiled three essential aspects you should further examine:
- Historical Performance: What has HI’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is HI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether HI is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.