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Hillenbrand Inc – Burial Casket Manufacturing
Hillenbrand is a global diversified industrial company with businesses that serve a wide variety of industries around the world. The Company pursues profitable growth and robust cash generation to drive increased value for its shareholders. Hillenbrand's portfolio includes industrial businesses such as Coperion, Milacron Injection Molding & Extrusion, and Mold-Masters, in addition to Batesville, a recognized leader in the death care industry in North America.
Analysis Results
Intrinsic Value $177.63
Latest Price $36.72
Relative Value 79% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 16.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 16.0%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 383 359
2023 444 390
2024 516 424
2025 598 461
2026 694 502
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 15100 million. This corresponds to a present value of 10200 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2140 million. Adding in the terminal value gives a total present value of 12300 million.

There are presently 69.5 million outstanding shares, so the intrinsic value per share is 177.63.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,869,000,000
Current Cash 892,200,000
Current Liabilities 2,070,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) -93,400,000
Change in NCWC -345,100,000
EBIT 750,400,000
Tax Provision 197,200,000
Depreciation and Amortization 230,200,000
Capital Expenditure -80,000,000
Unlevered Free Cash Flow 346,372,131
Current Assets 1,369,700,000
Current Cash 302,200,000
Current Liabilities 852,100,000
Current Debt 36,300,000
Non-Cash Working Capital (NCWC) 251,700,000
Change in NCWC 216,800,000
EBIT 203,200,000
Tax Provision 34,900,000
Depreciation and Amortization 130,600,000
Capital Expenditure -35,900,000
Unlevered Free Cash Flow 514,700,000
Current Assets 1,023,200,000
Current Cash 399,000,000
Current Liabilities 589,300,000
Current Debt 0
Non-Cash Working Capital (NCWC) 34,900,000
Change in NCWC 12,000,000
EBIT 210,800,000
Tax Provision 50,500,000
Depreciation and Amortization 58,500,000
Capital Expenditure -25,500,000
Unlevered Free Cash Flow 195,554,385
Current Assets 610,600,000
Current Cash 56,000,000
Current Liabilities 531,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) 22,900,000
Change in NCWC -11,800,000
EBIT 233,800,000
Tax Provision 65,300,000
Depreciation and Amortization 56,500,000
Capital Expenditure -27,000,000
Unlevered Free Cash Flow 147,287,440
Current Assets 593,600,000
Current Cash 66,000,000
Current Liabilities 511,700,000
Current Debt 18,800,000
Non-Cash Working Capital (NCWC) 34,700,000
Change in NCWC -93,700,000
EBIT 217,300,000
Tax Provision 59,900,000
Depreciation and Amortization 56,600,000
Capital Expenditure -22,000,000
Unlevered Free Cash Flow 89,074,827
Current Assets 600,300,000
Current Cash 52,000,000
Current Liabilities 433,700,000
Current Debt 13,800,000
Non-Cash Working Capital (NCWC) 128,400,000
Change in NCWC -32,600,000
EBIT 191,400,000
Tax Provision 47,300,000
Depreciation and Amortization 60,400,000
Capital Expenditure -21,200,000
Unlevered Free Cash Flow 142,831,078
Current Assets 604,100,000
Current Cash 48,300,000
Current Liabilities 404,200,000
Current Debt 9,400,000
Non-Cash Working Capital (NCWC) 161,000,000
Change in NCWC 57,300,000
EBIT 209,600,000
Tax Provision 49,100,000
Depreciation and Amortization 54,300,000
Capital Expenditure -31,000,000
Unlevered Free Cash Flow 226,790,511
Current Assets 637,800,000
Current Cash 58,000,000
Current Liabilities 491,100,000
Current Debt 15,000,000
Non-Cash Working Capital (NCWC) 103,700,000
Change in NCWC -37,500,000
EBIT 177,300,000
Tax Provision 48,700,000
Depreciation and Amortization 58,400,000
Capital Expenditure -23,600,000
Unlevered Free Cash Flow 120,600,562
Current Assets 639,400,000
Current Cash 42,700,000
Current Liabilities 465,500,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) 141,200,000
Change in NCWC 7,900,000
EBIT 116,800,000
Tax Provision 28,300,000
Depreciation and Amortization 89,400,000
Capital Expenditure -29,900,000
Unlevered Free Cash Flow 148,923,159
Current Assets 305,300,000
Current Cash 20,200,000
Current Liabilities 151,800,000
Current Debt 0
Non-Cash Working Capital (NCWC) 133,300,000
Change in NCWC 4,900,000
EBIT 150,400,000
Tax Provision 30,100,000
Depreciation and Amortization 40,400,000
Capital Expenditure -20,900,000
Unlevered Free Cash Flow 141,241,512

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