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.
FBHS had a positive operating cash flow in the past year.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.94%, FBHS is in the better half of the industry, outperforming 62.22% of the companies in the same industry.
FBHS's Return On Equity of 24.83% is fine compared to the rest of the industry. FBHS outperforms 66.67% of its industry peers.
FBHS has a better Return On Invested Capital (13.77%) than 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 12.76%.
The 3 year average ROIC (48.97%) for FBHS is well above the current ROIC(13.77%). The reason for the recent decline needs to be investigated.
| 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.
FBHS has a Operating Margin of 14.17%. This is in the better half of the industry: FBHS outperforms 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
Looking at the Altman-Z score, with a value of 2.97, FBHS is in line with its industry, 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's Debt to FCF ratio of 12.53 is in line compared to the rest of the industry. FBHS outperforms 44.44% of 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 Debt to Equity ratio of 0.92. This is in the lower half of the industry: FBHS underperforms 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
A Current Ratio of 1.47 indicates that FBHS should not have too much problems paying 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.
Looking at the Quick ratio, with a value of 0.74, FBHS is doing worse than 84.44% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing by 16.07% on average over the past years. This is quite good.
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
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 10.16, which indicates a very decent valuation of FBHS.
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 27.20, FBHS is valued rather cheaply.
FBHS is valuated reasonably with a Price/Forward Earnings ratio of 10.70.
Based on the Price/Forward Earnings ratio, FBHS is valued a bit cheaper than 68.89% of the companies 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 22.70.
| 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.
The rest of the industry has a similar Price/Free Cash Flow ratio as FBHS.
| 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%. 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 1.13. FBHS pays more dividend than 86.67% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.38, FBHS is paying slightly less dividend.
| 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 Change-9.35%
Ins Owners0.86%
Ins Owner Change0%
Market Cap7.94B
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
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
ROICexcg growth 3Y1.41%
ROICexcg 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%