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%)
Overall FBHS gets a fundamental rating of 5 out of 10. We evaluated FBHS against 42 industry peers in the Building Products industry. While FBHS is still in line with the averages on profitability rating, there are concerns on its financial health. FBHS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
FBHS had positive earnings in the past year.
In the past year FBHS had a positive cash flow from operations.
1.2 Ratios
FBHS has a better Return On Assets (8.94%) than 62.22% of its industry peers.
FBHS has a Return On Equity of 24.83%. This is in the better half of the industry: FBHS outperforms 66.67% of its industry peers.
The Return On Invested Capital of FBHS (13.77%) is better than 62.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FBHS is significantly above the industry average of 12.60%.
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
Looking at the Profit Margin, with a value of 9.35%, FBHS is in the better half of the industry, outperforming 62.22% of the companies in the same industry.
In the last couple of years the Profit Margin of FBHS has grown nicely.
The Operating Margin of FBHS (14.17%) is better than 62.22% of its industry peers.
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.
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.
The Altman-Z score of FBHS (2.97) is comparable to the rest of the 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.
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.
With a Debt to Equity ratio value of 0.92, FBHS is not doing good in the industry: 68.89% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 12.53 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.52
WACC9.04%
2.3 Liquidity
A Current Ratio of 1.47 indicates that FBHS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.47, FBHS is not doing good in the industry: 75.56% of the companies in the same industry are doing better.
A Quick Ratio of 0.74 indicates that FBHS may have some problems paying its short term obligations.
FBHS has a worse Quick ratio (0.74) than 84.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.60% over the past year.
FBHS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.07% yearly.
The Revenue has grown by 9.41% in the past year. This is quite good.
The Revenue has been growing by 8.96% on average over the past years. This is quite good.
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
FBHS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.11% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.16, the valuation of FBHS can be described as reasonable.
FBHS's Price/Earnings ratio is a bit cheaper when compared to the industry. FBHS is cheaper than 73.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.59, FBHS is valued rather cheaply.
FBHS is valuated reasonably with a Price/Forward Earnings ratio of 10.70.
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 24.03. FBHS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 10.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FBHS is on the same level as its industry peers.
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
The 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.
Compared to an average industry Dividend Yield of 0.71, FBHS pays a better dividend. On top of this FBHS pays more dividend than 86.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.88, 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 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
19.26% of the earnings are spent on dividend by FBHS. This is a low number and 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%
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 Change5.82%
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%.