FORTUNE BRANDS HOME & SECURI (FBHS)
US34964C1062 - Common Stock
FBHS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 39 industry peers in the Building Products industry. While FBHS has a great profitability rating, there are quite some concerns on its financial health. FBHS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
FBHS had positive earnings in the past year.
FBHS had a positive operating cash flow in the past year.
FBHS had positive earnings in each of the past 5 years.
Each year in the past 5 years FBHS had a positive operating cash flow.
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'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.
The Average Return On Invested Capital over the past 3 years for FBHS is significantly above the industry average of 13.67%.
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's Profit Margin of 9.35% is fine compared to the rest of the industry. FBHS outperforms 62.22% of its industry peers.
FBHS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.17%, 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 Operating Margin of FBHS has grown nicely.
| 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
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.
The debt/assets ratio for FBHS has been reduced compared to a year ago.
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.
FBHS has a Debt to FCF ratio (12.53) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.92 indicates that FBHS is somewhat dependend on debt financing.
FBHS's Debt to Equity ratio of 0.92 is on the low side compared to the rest of the industry. FBHS is outperformed by 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.
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.
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%.
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.
The Revenue has grown by 9.41% in the past year. This is quite good.
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.
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.
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.
Based on the Price/Earnings ratio, FBHS is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
FBHS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.20.
With a Price/Forward Earnings ratio of 10.70, the valuation of FBHS can be described as very reasonable.
FBHS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FBHS is cheaper than 68.89% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.84. 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.
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%.
FBHS's Dividend Yield is rather good when compared to the industry average which is at 0.93. 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 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
On average, the dividend of FBHS grows each year by 9.14%, which is quite nice.
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
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%
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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 10.7 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.91
PEG (5Y)0.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.94% | ||
| ROE | 24.83% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.17% | ||
| PM (TTM) | 9.35% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.6%
EPS 3Y19.59%
EPS 5Y
EPS Q2Q%
EPS Next Y11.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.41%
Revenue growth 3Y11.76%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y