Stock in Focus: Hill-Rom Holdings Inc. (HRC)

Company Profile:

Hill-Rom Holdings, Inc. operates as a medical technology company worldwide. It operates in three segments: Patient Support Systems, Front Line Care, and Surgical Solutions. The company offers medical surgical beds, intensive care unit beds, and bariatric patient beds, lifts and other patient mobility devices, non-invasive therapeutic products and surfaces, and information technologies and software solutions; and medical equipment management services, as well as sells equipment service contracts for its capital equipment. Hill-Rom Holdings, Inc. was founded in 1969 and is headquartered in Chicago, Illinois.

Recent News:

For the fiscal third quarter ended June 30, 2019, Hillrom reported worldwide revenue of $727 million and GAAP earnings of $0.48 per diluted share. Hillrom expects fiscal 2019 revenue to increase approximately 2 percent on a reported basis and approximately 3 percent on a constant currency basis, reflecting the divestiture of surgical consumables.

On August 2, 2019, the company announced that it has entered into a definitive agreement to acquire Breathe Technologies, Inc., developer and manufacturer of a patented wearable, non-invasive ventilation technology that supports improved patient mobility, for a cash consideration of $130 million.

Its board of directors declared a fiscal 2019 fourth quarter dividend of $0.21 per share payable on September 30, 2019, to shareholders of record as of the close of business on September 20, 2019. The indicated annual dividend rate is $0.84 per share.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

HRC’s strengths can be seen in its strong growth, better profitability and better efficiency compared with its peers. Its reveune and net income have increased over recently several years. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, MACD is trying to cross back up and the RSI stands at 49.44 with positive bias. We rate Hill-Rom Holdings, Inc. (HRC) a STRONG BUY.