Hillenbrand, Inc. (NYSE:HI)

CAPS Rating: 4 out of 5


Player Avatar blesto (30.95) Submitted: 12/28/2012 1:34:47 PM : Outperform Start Price: $18.89 HI Score: +10.02

People are just dyin' to use their services.

Sorry, I couldn't resist. :-/

Original Start Date: 11/1/2011
Current Start Price: $19.33
Trading at about $22.47 as of this post. Above their current Graham Number of $17.49

So why do I keep them open?

There will always be a need for their business, so how well are they running it?

The divi looks sustainable.
The divi yield of 3.50% is nice even though less than the industry avg.
The Payout ratio of 46.00 is higher than the industry avg but well below my threshold of 75.00
The Current ratio of 2.00 is good. Comparable with the industry avg of 2.30
Their Total Debt to Equity is right on the boarder of what I like at 54%. Less than 50% is preferrable but still way less than the industry avg of 221%!
The P/E of 13.3x and the Normalized P/E of 11.8x looks cheap. I like below 20.0x
I don't like their negative Tangible BV per share (-1.78) Maybe something to do with their recent acquisitions?
But I can live with that for now.
Margins look OK to me.
Gross: 43.70%
Net Profit: 10.70%
The Return on Equity could be better: 20.70% I like 25.00% or better.

More positives than negatives. I don't think they're going under (pun intended) any time soon.

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