FORTUNE BRANDS HOME & SECURI (FBHS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FBHS - US34964C1062 - Common Stock
61.9 USD
-1.32 (-2.09%)
61.9 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to FBHS. FBHS was compared to 42 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 decent growth rate and is not valued too expensively.
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
- With a decent Return On Assets value of 8.94%, FBHS is doing good in the industry, outperforming 62.22% of the companies in the same industry.
- FBHS has a better Return On Equity (24.83%) than 66.67% of its industry peers.
- FBHS's Return On Invested Capital of 13.77% is fine compared to the rest 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 12.68%.
- 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.
- In the last couple of years the Profit Margin of FBHS has grown nicely.
- With a decent Operating Margin value of 14.17%, FBHS is doing good in the industry, outperforming 62.22% of the companies in the same industry.
- FBHS's Operating Margin has improved in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FBHS is creating value.
- Compared to 1 year ago, FBHS has less shares outstanding
- 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.
- FBHS's Altman-Z score of 2.97 is in line compared to the rest of the industry. FBHS outperforms 46.67% of its industry peers.
- The Debt to FCF ratio of FBHS is 12.53, which is on the high side as it means it would take FBHS, 12.53 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of FBHS (12.53) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.92 indicates that FBHS is somewhat dependend on debt financing.
- The Debt to Equity ratio of FBHS (0.92) is worse 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.
- A Quick Ratio of 0.74 indicates that FBHS may have some problems paying its short term obligations.
- The Quick ratio of FBHS (0.74) is worse than 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.
- Looking at the last year, FBHS shows a quite strong growth in Revenue. The Revenue has grown by 9.41% in the last year.
- Measured over the past years, FBHS shows a quite strong growth in Revenue. The Revenue has been growing by 8.96% on average per year.
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.
- The Revenue is expected to decrease by -0.36% on average over the next years.
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.
- 73.33% of the companies in the same industry are more expensive than FBHS, based on the Price/Earnings ratio.
- FBHS is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 10.70 indicates a reasonable valuation of FBHS.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FBHS indicates a somewhat cheap valuation: FBHS is cheaper than 68.89% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. 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.
- FBHS has a very decent profitability rating, which 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%. Purely for dividend investing, there may be better candidates out there.
- FBHS's Dividend Yield is rather good when compared to the industry average which is at 0.66. FBHS pays more dividend than 86.67% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, FBHS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
- The dividend of FBHS is nicely growing with an annual growth rate of 9.14%!
- FBHS has been paying a dividend for at least 10 years, so it has 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.
- The dividend of FBHS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.26%
EPS Next 2Y0.5%
EPS Next 3Y2.94%
FORTUNE BRANDS HOME & SECURI / FBHS FAQ
What is the fundamental rating for FBHS stock?
ChartMill assigns a fundamental rating of 4 / 10 to FBHS.
Can you provide the valuation status for FORTUNE BRANDS HOME & SECURI?
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.
What is the expected EPS growth for FORTUNE BRANDS HOME & SECURI (FBHS) stock?
The Earnings per Share (EPS) of FORTUNE BRANDS HOME & SECURI (FBHS) is expected to grow by 11.19% in the next year.
Is the dividend of FORTUNE BRANDS HOME & SECURI sustainable?
The dividend rating of FORTUNE BRANDS HOME & SECURI (FBHS) is 5 / 10 and the dividend payout ratio is 19.26%.