FORTUNE BRANDS HOME & SECURI (FBHS) Fundamental Analysis & Valuation

NYSE:FBHS • US34964C1062

Current stock price

61.9 USD
-1.32 (-2.09%)
At close:
61.9 USD
0 (0%)
After Hours:

This FBHS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. FBHS Profitability Analysis

1.1 Basic Checks

  • In the past year FBHS was profitable.
  • In the past year FBHS had a positive cash flow from operations.
FBHS Yearly Net Income VS EBIT VS OCF VS FCFFBHS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 200M 400M 600M 800M 1B

1.2 Ratios

  • FBHS has a better Return On Assets (8.94%) than 62.22% of its industry peers.
  • The Return On Equity of FBHS (24.83%) is better than 66.67% of its industry peers.
  • 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.
  • FBHS had an Average Return On Invested Capital over the past 3 years of 48.97%. This is significantly above the industry average of 11.89%.
  • 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 RankSector 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
FBHS Yearly ROA, ROE, ROICFBHS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 5 10 15 20 25

1.3 Margins

  • The Profit Margin of FBHS (9.35%) is better than 62.22% of its industry peers.
  • 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 RankSector 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
FBHS Yearly Profit, Operating, Gross MarginsFBHS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 10 20 30

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3

2. FBHS Health Analysis

2.1 Basic Checks

  • FBHS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • FBHS has less shares outstanding than it did 1 year ago.
  • Compared to 1 year ago, FBHS has an improved debt to assets ratio.
FBHS Yearly Shares OutstandingFBHS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 50M 100M 150M
FBHS Yearly Total Debt VS Total AssetsFBHS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2B 4B 6B

2.2 Solvency

  • FBHS has an Altman-Z score of 2.97. This is not the best score and indicates that FBHS is in the grey zone with still 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.
  • 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.
  • 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.
  • The Debt to Equity ratio of FBHS (0.92) is worse than 68.89% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.92
Debt/FCF 12.53
Altman-Z 2.97
ROIC/WACC1.52
WACC9.04%
FBHS Yearly LT Debt VS Equity VS FCFFBHS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 1B 2B 3B

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.
  • 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 Quick ratio of 0.74. This is amonst the worse of the industry: FBHS underperforms 84.44% of its industry peers.
Industry RankSector Rank
Current Ratio 1.47
Quick Ratio 0.74
FBHS Yearly Current Assets VS Current LiabilitesFBHS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 500M 1B 1.5B 2B 2.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. FBHS Growth Analysis

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

  • The Earnings Per Share is expected to grow by 1.11% on average over the next years.
  • 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.
FBHS Yearly Revenue VS EstimatesFBHS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B
FBHS Yearly EPS VS EstimatesFBHS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

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6

4. FBHS Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 10.16, which indicates a very decent valuation of FBHS.
  • Compared to the rest of the industry, the Price/Earnings ratio of FBHS indicates a somewhat cheap valuation: FBHS is cheaper than 73.33% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.51, FBHS is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 10.70, the valuation of FBHS can be described as very reasonable.
  • 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.
  • FBHS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.76.
Industry RankSector Rank
PE 10.16
Fwd PE 10.7
FBHS Price Earnings VS Forward Price EarningsFBHS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • FBHS's Enterprise Value to EBITDA ratio is in line with the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as FBHS.
Industry RankSector Rank
P/FCF 29.36
EV/EBITDA 8.25
FBHS Per share dataFBHS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. FBHS Dividend Analysis

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 0.77, FBHS pays a better dividend. On top of this FBHS pays more dividend than 86.67% of the companies listed in the same industry.
  • FBHS's Dividend Yield is comparable with the S&P500 average which is at 1.89.
Industry RankSector 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
FBHS Yearly Dividends per shareFBHS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 0.2 0.4 0.6 0.8 1

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%
FBHS Yearly Income VS Free CF VS DividendFBHS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 200M 400M 600M
FBHS Dividend Payout.FBHS Dividend Payout, showing the Payout Ratio.FBHS Dividend Payout.PayoutRetained Earnings

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FBHS Fundamentals: All Metrics, Ratios and Statistics

FORTUNE BRANDS HOME & SECURI

NYSE:FBHS (12/14/2022, 8:04:00 PM)

After market: 61.9 0 (0%)

61.9

-1.32 (-2.09%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)10-26
Earnings (Next)01-31
Inst Owners86.09%
Inst Owner Change3.94%
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 Fundamental Analysis FAQ

What is the fundamental rating for FBHS stock?

ChartMill assigns a fundamental rating of 4 / 10 to FBHS.


What is the valuation status of FORTUNE BRANDS HOME & SECURI (FBHS) stock?

ChartMill assigns a valuation rating of 6 / 10 to FORTUNE BRANDS HOME & SECURI (FBHS). This can be considered as Fairly Valued.


Can you provide the profitability details for FORTUNE BRANDS HOME & SECURI?

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 financially healthy is FORTUNE BRANDS HOME & SECURI?

The financial health rating of FORTUNE BRANDS HOME & SECURI (FBHS) is 3 / 10.