FORTUNE BRANDS INNOVATIONS I (FBIN) Stock Fundamental Analysis
USA - NYSE:FBIN - US34964C1062 - Common Stock
49.71 USD
-0.1 (-0.2%)
49.71 USD
0 (0%)
Taking everything into account, FBIN scores 5 out of 10 in our fundamental rating. FBIN was compared to 41 industry peers in the Building Products industry. While FBIN has a great profitability rating, there are quite some concerns on its financial health. FBIN has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year FBIN was profitable.
FBIN had a positive operating cash flow in the past year.
FBIN had positive earnings in each of the past 5 years.
FBIN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FBIN has a Return On Assets (5.96%) which is in line with its industry peers.
With a decent Return On Equity value of 16.81%, FBIN is doing good in the industry, outperforming 63.41% of the companies in the same industry.
FBIN's Return On Invested Capital of 10.19% is fine compared to the rest of the industry. FBIN outperforms 60.98% of its industry peers.
FBIN had an Average Return On Invested Capital over the past 3 years of 12.06%. This is in line with the industry average of 12.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.96% | ||
| ROE | 16.81% | ||
| ROIC | 10.19% |
ROA(3y)8.19%
ROA(5y)8.36%
ROE(3y)23.34%
ROE(5y)23.03%
ROIC(3y)12.06%
ROIC(5y)10.94%
1.3 Margins
The Profit Margin of FBIN (8.75%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FBIN has grown nicely.
FBIN's Operating Margin of 16.19% is fine compared to the rest of the industry. FBIN outperforms 60.98% of its industry peers.
In the last couple of years the Operating Margin of FBIN has grown nicely.
FBIN has a Gross Margin of 45.50%. This is amongst the best in the industry. FBIN outperforms 95.12% of its industry peers.
FBIN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.19% | ||
| PM (TTM) | 8.75% | ||
| GM | 45.5% |
OM growth 3Y-0.5%
OM growth 5Y5.04%
PM growth 3Y-13.98%
PM growth 5Y6.45%
GM growth 3Y3.54%
GM growth 5Y4.93%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FBIN is still creating some value.
The number of shares outstanding for FBIN has been reduced compared to 1 year ago.
The number of shares outstanding for FBIN has been reduced compared to 5 years ago.
The debt/assets ratio for FBIN has remained at the same level compared to a year ago.
2.2 Solvency
FBIN has an Altman-Z score of 2.72. This is not the best score and indicates that FBIN is in the grey zone with still only limited risk for bankruptcy at the moment.
FBIN has a worse Altman-Z score (2.72) than 68.29% of its industry peers.
The Debt to FCF ratio of FBIN is 7.14, which is on the high side as it means it would take FBIN, 7.14 years of fcf income to pay off all of its debts.
FBIN's Debt to FCF ratio of 7.14 is on the low side compared to the rest of the industry. FBIN is outperformed by 65.85% of its industry peers.
A Debt/Equity ratio of 1.20 is on the high side and indicates that FBIN has dependencies on debt financing.
With a Debt to Equity ratio value of 1.20, FBIN is not doing good in the industry: 87.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | 2.72 |
ROIC/WACC1.15
WACC8.89%
2.3 Liquidity
FBIN has a Current Ratio of 1.97. This is a normal value and indicates that FBIN is financially healthy and should not expect problems in meeting its short term obligations.
FBIN has a Current ratio (1.97) which is in line with its industry peers.
FBIN has a Quick Ratio of 1.97. This is a bad value and indicates that FBIN is not financially healthy enough and could expect problems in meeting its short term obligations.
FBIN has a worse Quick ratio (0.98) than 70.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
FBIN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.99%.
The Earnings Per Share has been growing slightly by 2.73% on average over the past years.
Looking at the last year, FBIN shows a decrease in Revenue. The Revenue has decreased by -5.79% in the last year.
The Revenue has been decreasing by -4.38% on average over the past years.
EPS 1Y (TTM)-7.99%
EPS 3Y-10.34%
EPS 5Y2.73%
EPS Q2Q%-13.79%
Revenue 1Y (TTM)-5.79%
Revenue growth 3Y-1.35%
Revenue growth 5Y-4.38%
Sales Q2Q%-2.96%
3.2 Future
Based on estimates for the next years, FBIN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.96% on average per year.
The Revenue is expected to grow by 4.67% on average over the next years.
EPS Next Y-5.53%
EPS Next 2Y2.55%
EPS Next 3Y6.74%
EPS Next 5Y9.96%
Revenue Next Year-2.17%
Revenue Next 2Y0.45%
Revenue Next 3Y2.06%
Revenue Next 5Y4.67%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.08, FBIN is valued correctly.
Based on the Price/Earnings ratio, FBIN is valued cheaper than 87.80% of the companies in the same industry.
FBIN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.55.
A Price/Forward Earnings ratio of 11.44 indicates a reasonable valuation of FBIN.
87.80% of the companies in the same industry are more expensive than FBIN, based on the Price/Forward Earnings ratio.
FBIN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.08 | ||
| Fwd PE | 11.44 |
4.2 Price Multiples
FBIN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FBIN is cheaper than 80.49% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FBIN indicates a rather cheap valuation: FBIN is cheaper than 80.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.15 | ||
| EV/EBITDA | 9.28 |
4.3 Compensation for Growth
The decent profitability rating of FBIN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.8
EPS Next 2Y2.55%
EPS Next 3Y6.74%
5. Dividend
5.1 Amount
FBIN has a Yearly Dividend Yield of 1.99%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.24, FBIN pays a better dividend. On top of this FBIN pays more dividend than 92.68% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, FBIN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
The dividend of FBIN has a limited annual growth rate of 1.74%.
FBIN has been paying a dividend for at least 10 years, so it has a reliable track record.
FBIN has decreased its dividend recently.
Dividend Growth(5Y)1.74%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
30.50% of the earnings are spent on dividend by FBIN. This is a low number and sustainable payout ratio.
FBIN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.5%
EPS Next 2Y2.55%
EPS Next 3Y6.74%
49.71
-0.1 (-0.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners94.59%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner Change7.54%
Market Cap5.97B
Analysts71.54
Price Target68.35 (37.5%)
Short Float %4.25%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend0.96
Dividend Growth(5Y)1.74%
DP30.5%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.21%
Min EPS beat(2)-1.61%
Max EPS beat(2)1.19%
EPS beat(4)1
Avg EPS beat(4)-2.38%
Min EPS beat(4)-8.98%
Max EPS beat(4)1.19%
EPS beat(8)5
Avg EPS beat(8)1.03%
EPS beat(12)9
Avg EPS beat(12)3.29%
EPS beat(16)13
Avg EPS beat(16)3.09%
Revenue beat(2)0
Avg Revenue beat(2)-3.16%
Min Revenue beat(2)-4.96%
Max Revenue beat(2)-1.37%
Revenue beat(4)0
Avg Revenue beat(4)-5.1%
Min Revenue beat(4)-8.6%
Max Revenue beat(4)-1.37%
Revenue beat(8)1
Avg Revenue beat(8)-3.73%
Revenue beat(12)2
Avg Revenue beat(12)-9.18%
Revenue beat(16)3
Avg Revenue beat(16)-21.02%
PT rev (1m)0%
PT rev (3m)3.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.87%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.08 | ||
| Fwd PE | 11.44 | ||
| P/S | 1.33 | ||
| P/FCF | 15.15 | ||
| P/OCF | 10.98 | ||
| P/B | 2.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.28 |
EPS(TTM)3.8
EY7.64%
EPS(NY)4.34
Fwd EY8.74%
FCF(TTM)3.28
FCFY6.6%
OCF(TTM)4.53
OCFY9.11%
SpS37.45
BVpS19.5
TBVpS-7.82
PEG (NY)N/A
PEG (5Y)4.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.96% | ||
| ROE | 16.81% | ||
| ROCE | 13.04% | ||
| ROIC | 10.19% | ||
| ROICexc | 10.64% | ||
| ROICexgc | 27.51% | ||
| OM | 16.19% | ||
| PM (TTM) | 8.75% | ||
| GM | 45.5% | ||
| FCFM | 8.76% |
ROA(3y)8.19%
ROA(5y)8.36%
ROE(3y)23.34%
ROE(5y)23.03%
ROIC(3y)12.06%
ROIC(5y)10.94%
ROICexc(3y)13.39%
ROICexc(5y)12.04%
ROICexgc(3y)42.42%
ROICexgc(5y)38.5%
ROCE(3y)15.44%
ROCE(5y)14%
ROICexcg growth 3Y6.46%
ROICexcg growth 5Y-0.42%
ROICexc growth 3Y4.31%
ROICexc growth 5Y0.07%
OM growth 3Y-0.5%
OM growth 5Y5.04%
PM growth 3Y-13.98%
PM growth 5Y6.45%
GM growth 3Y3.54%
GM growth 5Y4.93%
F-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.14 | ||
| Debt/EBITDA | 3.05 | ||
| Cap/Depr | 77.18% | ||
| Cap/Sales | 3.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.97% | ||
| Profit Quality | 100.1% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 2.72 |
F-Score6
WACC8.89%
ROIC/WACC1.15
Cap/Depr(3y)126.75%
Cap/Depr(5y)117.11%
Cap/Sales(3y)4.98%
Cap/Sales(5y)4.71%
Profit Quality(3y)114.93%
Profit Quality(5y)105.66%
High Growth Momentum
Growth
EPS 1Y (TTM)-7.99%
EPS 3Y-10.34%
EPS 5Y2.73%
EPS Q2Q%-13.79%
EPS Next Y-5.53%
EPS Next 2Y2.55%
EPS Next 3Y6.74%
EPS Next 5Y9.96%
Revenue 1Y (TTM)-5.79%
Revenue growth 3Y-1.35%
Revenue growth 5Y-4.38%
Sales Q2Q%-2.96%
Revenue Next Year-2.17%
Revenue Next 2Y0.45%
Revenue Next 3Y2.06%
Revenue Next 5Y4.67%
EBIT growth 1Y-3.5%
EBIT growth 3Y-1.84%
EBIT growth 5Y0.44%
EBIT Next Year16.36%
EBIT Next 3Y9.55%
EBIT Next 5Y9.12%
FCF growth 1Y-49.85%
FCF growth 3Y0%
FCF growth 5Y-1.25%
OCF growth 1Y-47.12%
OCF growth 3Y-1.02%
OCF growth 5Y0.94%