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

  • 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 Return On Equity of 24.83%. This is in the better half of the industry: FBHS outperforms 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 11.91%.
  • 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

  • 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.
  • In the last couple of years the Operating Margin of FBHS has grown nicely.
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

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FBHS is creating value.
  • The number of shares outstanding for FBHS has been reduced compared to 1 year ago.
  • FBHS has a better debt/assets ratio than last year.
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

  • 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.
  • 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 comparable to the rest of the industry.
  • FBHS has a Debt/Equity ratio of 0.92. This is a neutral value indicating 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 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.
  • FBHS's Current ratio of 1.47 is on the low side compared to the rest of the industry. FBHS is outperformed by 75.56% of its industry peers.
  • 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 has a worse Quick ratio (0.74) than 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%.
  • 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.
  • 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.
  • 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.
  • The average S&P500 Price/Earnings ratio is at 26.11. FBHS is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 10.70 indicates a reasonable valuation of FBHS.
  • Based on the Price/Forward Earnings ratio, FBHS is valued a bit cheaper than the industry average as 68.89% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of FBHS to the average of the S&P500 Index (24.12), we can say FBHS is valued rather cheaply.
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as FBHS.
  • FBHS's Price/Free Cash Flow is on the same level as the industry average.
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.
  • FBHS's Dividend Yield is rather good when compared to the industry average which is at 0.75. FBHS pays more dividend than 86.67% of the companies in the same industry.
  • FBHS's Dividend Yield is comparable with the S&P500 average which is at 1.91.
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.
  • 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%
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.


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%.