FORTUNE BRANDS HOME & SECURI (FBHS) Stock Fundamental Analysis
USA - NYSE:FBHS - US34964C1062 - Common Stock
61.9 USD
-1.32 (-2.09%)
61.9 USD
0 (0%)
FBHS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. There are concerns on the financial health of FBHS while its profitability can be described as average. FBHS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FBHS was profitable.
In the past year FBHS had a positive cash flow from operations.
1.2 Ratios
FBHS's Return On Assets of 8.94% is fine compared to the rest of the industry. FBHS outperforms 62.22% of its industry peers.
With a decent Return On Equity value of 24.83%, FBHS is doing good in the industry, outperforming 66.67% of the companies in the same industry.
FBHS has a Return On Invested Capital of 13.77%. This is in the better half of the industry: FBHS outperforms 62.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FBHS is significantly above the industry average of 12.64%.
The last Return On Invested Capital (13.77%) for FBHS is well below the 3 year average (48.97%), which needs to be investigated, but indicates that FBHS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.94% | ||
| ROE | 24.83% | ||
| ROIC | 13.77% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)48.97%
ROIC(5y)N/A
1.3 Margins
FBHS has a better Profit Margin (9.35%) than 62.22% of its industry peers.
FBHS's Profit Margin has improved in the last couple of years.
The Operating Margin of FBHS (14.17%) is better than 62.22% of its industry peers.
In the last couple of years the Operating Margin of FBHS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.17% | ||
| PM (TTM) | 9.35% | ||
| GM | N/A |
OM growth 3Y11.66%
OM growth 5Y6.4%
PM growth 3Y12.41%
PM growth 5Y4.01%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FBHS is creating value.
FBHS has less shares outstanding than it did 1 year ago.
FBHS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.97 indicates that FBHS is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.97, FBHS perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
FBHS has a debt to FCF ratio of 12.53. This is a negative value and a sign of low solvency as FBHS would need 12.53 years to pay back of all of its debts.
FBHS has a Debt to FCF ratio (12.53) which is in line with its industry peers.
FBHS has a Debt/Equity ratio of 0.92. This is a neutral value indicating FBHS is somewhat dependend on debt financing.
FBHS has a worse Debt to Equity ratio (0.92) than 68.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 12.53 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.52
WACC9.04%
2.3 Liquidity
FBHS has a Current Ratio of 1.47. This is a normal value and indicates that FBHS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.47, FBHS is doing worse than 75.56% of the companies in the same industry.
FBHS has a Quick Ratio of 1.47. This is a bad value and indicates that FBHS is not financially healthy enough and could expect problems in meeting its short term obligations.
FBHS's Quick ratio of 0.74 is on the low side compared to the rest of the industry. FBHS is outperformed by 84.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
FBHS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.60%.
Measured over the past years, FBHS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.07% on average per year.
The Revenue has grown by 9.41% in the past year. This is quite good.
FBHS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.96% yearly.
EPS 1Y (TTM)7.6%
EPS 3Y19.59%
EPS 5Y16.07%
EPS Q2Q%20.13%
Revenue 1Y (TTM)9.41%
Revenue growth 3Y11.76%
Revenue growth 5Y8.96%
Sales Q2Q%3.39%
3.2 Future
Based on estimates for the next years, FBHS will show a small growth in Earnings Per Share. The EPS will grow by 1.11% on average per year.
Based on estimates for the next years, FBHS will show a decrease in Revenue. The Revenue will decrease by -0.36% on average per year.
EPS Next Y11.19%
EPS Next 2Y0.5%
EPS Next 3Y2.94%
EPS Next 5Y1.11%
Revenue Next Year5.43%
Revenue Next 2Y-0.08%
Revenue Next 3Y0.57%
Revenue Next 5Y-0.36%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
FBHS is valuated reasonably with a Price/Earnings ratio of 10.16.
Based on the Price/Earnings ratio, FBHS is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.89. FBHS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.70, which indicates a very decent valuation of FBHS.
Based on the Price/Forward Earnings ratio, FBHS is valued a bit cheaper than 68.89% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. FBHS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 10.7 |
4.2 Price Multiples
FBHS's Enterprise Value to EBITDA ratio is in line with the industry average.
FBHS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.36 | ||
| EV/EBITDA | 8.25 |
4.3 Compensation for Growth
FBHS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of FBHS may justify a higher PE ratio.
PEG (NY)0.91
PEG (5Y)0.63
EPS Next 2Y0.5%
EPS Next 3Y2.94%
5. Dividend
5.1 Amount
FBHS has a Yearly Dividend Yield of 1.86%.
FBHS's Dividend Yield is rather good when compared to the industry average which is at 1.24. FBHS pays more dividend than 86.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, FBHS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
On average, the dividend of FBHS grows each year by 9.14%, which is quite nice.
FBHS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.14%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
FBHS pays out 19.26% of its income as dividend. This is a sustainable payout ratio.
FBHS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.26%
EPS Next 2Y0.5%
EPS Next 3Y2.94%
61.9
-1.32 (-2.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners86.09%
Inst Owner Change0.1%
Ins Owners0.86%
Ins Owner Change0%
Market Cap7.94B
Revenue(TTM)8.04B
Net Income(TTM)752.40M
Analysts72.8
Price Target74.6 (20.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend1.04
Dividend Growth(5Y)9.14%
DP19.26%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.45%
Min EPS beat(2)2.28%
Max EPS beat(2)2.61%
EPS beat(4)4
Avg EPS beat(4)1.7%
Min EPS beat(4)0.05%
Max EPS beat(4)2.61%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.24%
Min Revenue beat(2)-3.54%
Max Revenue beat(2)1.05%
Revenue beat(4)2
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-3.54%
Max Revenue beat(4)1.05%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.01%
PT rev (3m)N/A
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.81%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 10.7 | ||
| P/S | 0.99 | ||
| P/FCF | 29.36 | ||
| P/OCF | 14.52 | ||
| P/B | 2.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.25 |
EPS(TTM)6.09
EY9.84%
EPS(NY)5.79
Fwd EY9.35%
FCF(TTM)2.11
FCFY3.41%
OCF(TTM)4.26
OCFY6.89%
SpS62.73
BVpS23.63
TBVpS-6.96
PEG (NY)0.91
PEG (5Y)0.63
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.94% | ||
| ROE | 24.83% | ||
| ROCE | N/A | ||
| ROIC | 13.77% | ||
| ROICexc | 14.56% | ||
| ROICexgc | 41.74% | ||
| OM | 14.17% | ||
| PM (TTM) | 9.35% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)48.97%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y1.41%
ROICexgc growth 5Y6.84%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y11.66%
OM growth 5Y6.4%
PM growth 3Y12.41%
PM growth 5Y4.01%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 12.53 | ||
| Debt/EBITDA | 2.55 | ||
| Cap/Depr | 145.35% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 35.94% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 2.97 |
F-Score5
WACC9.04%
ROIC/WACC1.52
Cap/Depr(3y)97.21%
Cap/Depr(5y)103.72%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)100.18%
Profit Quality(5y)101.83%
High Growth Momentum
Growth
EPS 1Y (TTM)7.6%
EPS 3Y19.59%
EPS 5Y16.07%
EPS Q2Q%20.13%
EPS Next Y11.19%
EPS Next 2Y0.5%
EPS Next 3Y2.94%
EPS Next 5Y1.11%
Revenue 1Y (TTM)9.41%
Revenue growth 3Y11.76%
Revenue growth 5Y8.96%
Sales Q2Q%3.39%
Revenue Next Year5.43%
Revenue Next 2Y-0.08%
Revenue Next 3Y0.57%
Revenue Next 5Y-0.36%
EBIT growth 1Y6.17%
EBIT growth 3Y24.79%
EBIT growth 5Y15.93%
EBIT Next Year24.98%
EBIT Next 3Y6.02%
EBIT Next 5Y2.71%
FCF growth 1Y-59.92%
FCF growth 3Y1.49%
FCF growth 5Y-1.09%
OCF growth 1Y-30.81%
OCF growth 3Y4.47%
OCF growth 5Y1.15%
FORTUNE BRANDS HOME & SECURI / FBHS FAQ
What is the fundamental rating for FBHS stock?
ChartMill assigns a fundamental rating of 4 / 10 to FBHS.
What is the valuation status for FBHS stock?
ChartMill assigns a valuation rating of 6 / 10 to FORTUNE BRANDS HOME & SECURI (FBHS). This can be considered as Fairly Valued.
How profitable is FORTUNE BRANDS HOME & SECURI (FBHS) stock?
FORTUNE BRANDS HOME & SECURI (FBHS) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for FBHS stock?
The Price/Earnings (PE) ratio for FORTUNE BRANDS HOME & SECURI (FBHS) is 10.16 and the Price/Book (PB) ratio is 2.62.
How sustainable is the dividend of FORTUNE BRANDS HOME & SECURI (FBHS) stock?
The dividend rating of FORTUNE BRANDS HOME & SECURI (FBHS) is 5 / 10 and the dividend payout ratio is 19.26%.