Hill-Rom Stock Analysis, Valuation (NYSE:HRC)

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$73.6 $0.37 (0.51%) HRC stock closing price Sep 22, 2017 (Closing)
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Hill-Rom
Updated on : Sep 22, 2017
previous close
HRC 73.6 (0%)
S&P 500 2502.2 (0%)
Closing Price On: Sep 22, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical Products
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2017-Q3
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
9.4%
Sector Average:
-2.3%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
2.34B
Debt/Equity Ratio:
 1.81
Compared to the industry
Cash Flow
Operating cash flow:
$113.3M
Net Income:
$6M
Dividend Yield
HRC dividend yield:
0.95%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
PE Valuation
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
HRC PS :
1.8
Industry PS :
5.3
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
5.3%
Return on Equity:
9.4%
Free Cash Flow Margin:
13%
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Hill-Rom Stock Analysis

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View Hill-Rom stock analysis video. This is our analyst opinion covering the buy and sell arguments for HRC stock.

Hill-Rom Holdings, Inc. Stock Rating 3.6/5

Our Hill-Rom stock opinion is based on fundamentals of the company. This Hill-Rom stock analysis is based on latest 2017 Q3 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy HRC stock?

  • Hill-Rom had a healthy average operating margin of 9.4% over the last 4 quarters.
  • LTM Net margins were good at 4.3% for Hill-Rom.
  • HRC stock is trading at an earnings multiple of 19.8 which is better than the industry average of 22.9.
  • The lower PS ratio 1.8 for HRC stock versus Medical Products industry average of 5.3 is a positive for the company.
  • Hill-Rom generates a high return on invested capital of 5.3%.
  • The LTM ROE of 9.4% for Hill-Rom is attractive.
  • The company has a good Free Cash Flow (FCF) margin of 13%.

Should you sell HRC stock?

  • With a debt/equity ratio of  1.81, Hill-Rom is highly leveraged in comparison to Medical peers.

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