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Hillenbrand, Inc. (HI)

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$22.89
Sector Valuation Confidence Level
Moderate
Valuation methodValue, $Upside, %
Artificial intelligence (AI)68.36199
Intrinsic value (DCF)0.00-100
Graham-Dodd Methodn/a
Graham Formulan/a

Strategic Investment Analysis

Company Overview

Hillenbrand, Inc. (NYSE: HI) is a diversified industrial company with a strong presence in advanced process solutions, molding technology, and funeral services. Operating through three key segments—Advanced Process Solutions, Molding Technology Solutions, and Batesville—Hillenbrand serves industries such as plastics, food and pharmaceuticals, chemicals, automotive, and funeral services. The company's Advanced Process Solutions segment provides high-performance equipment for material handling, extrusion, and screening, while its Molding Technology Solutions segment delivers injection molding and extrusion systems for automotive and consumer goods. Batesville, a leader in funeral service products, offers burial and cremation solutions alongside digital memorialization tools. Founded in 1906 and headquartered in Batesville, Indiana, Hillenbrand combines industrial innovation with steady cash flow from its funeral services division, making it a unique player in the industrials sector.

Investment Summary

Hillenbrand presents a mixed investment case. On one hand, its diversified industrial segments provide exposure to high-growth areas like advanced manufacturing and material handling, supported by strong cash flow from its stable Batesville funeral services business. The company’s negative net income and high debt load ($2.03B) raise concerns, though its operating cash flow ($191.3M) suggests underlying operational strength. The dividend yield (~2.5%) may appeal to income-focused investors, but the elevated beta (1.573) indicates higher volatility. Investors should weigh Hillenbrand’s industrial growth potential against its financial leverage and cyclical exposure.

Competitive Analysis

Hillenbrand’s competitive advantage lies in its diversified industrial portfolio and niche leadership in funeral services (Batesville). In Advanced Process Solutions, it competes with firms like FLSmidth and Schenck Process, differentiating through integrated system design and a broad application range. The Molding Technology segment faces stiff competition from Engel and KraussMaffei, but Hillenbrand’s hot runner systems and process controls are well-regarded in automotive and packaging. Batesville’s dominance in funeral products is underpinned by brand loyalty and distribution reach, though it faces pressure from Matthews International’s cremation-focused offerings. Hillenbrand’s scale and aftermarket services provide resilience, but its high debt could limit agility versus leaner rivals. The company’s ability to cross-sell industrial solutions while maintaining Batesville’s steady margins is a key differentiator.

Major Competitors

  • FLSmidth & Co. (FLS): FLSmidth specializes in mineral processing and cement equipment, overlapping with Hillenbrand’s Advanced Process Solutions in screening and separation. It has stronger exposure to mining but lacks Hillenbrand’s plastics and funeral services diversification. FLSmidth’s global footprint is an advantage, but its cyclical mining reliance poses higher volatility.
  • Matthews International Corporation (MATW): Matthews competes directly with Batesville in funeral products, with a stronger focus on cremation and memorialization. Its industrial segment lacks Hillenbrand’s depth in molding technology. Matthews’ lower debt profile offers more flexibility, but Hillenbrand’s Batesville brand retains higher market share in traditional burial products.
  • KraussMaffei Group (KRAUF): A leader in injection molding, KraussMaffei rivals Hillenbrand’s Molding Technology Solutions with advanced automation and larger global reach. However, it lacks Hillenbrand’s diversified revenue streams and has faced financial instability under private equity ownership.
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