FORTUNE BRANDS INNOVATIONS I (FBIN) Stock Fundamental Analysis
NYSE:FBIN - New York Stock Exchange, Inc. - US34964C1062 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to FBIN. FBIN was compared to 41 industry peers in the Building Products industry. While FBIN belongs to the best of the industry regarding profitability, there are concerns on its financial health. FBIN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
FBIN had positive earnings in the past year.
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 (7.19%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 19.49%, FBIN is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
FBIN has a Return On Invested Capital of 11.88%. This is in the better half of the industry: FBIN outperforms 60.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FBIN is in line with the industry average of 12.96%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.19% | ||
| ROE | 19.49% | ||
| ROIC | 11.88% |
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
Looking at the Profit Margin, with a value of 10.24%, FBIN is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
FBIN's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 16.36%, FBIN perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
FBIN's Operating Margin has improved in the last couple of years.
FBIN has a Gross Margin of 44.83%. This is amongst the best in the industry. FBIN outperforms 90.24% of its industry peers.
In the last couple of years the Gross Margin of FBIN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.36% | ||
| PM (TTM) | 10.24% | ||
| GM | 44.83% |
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
FBIN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
FBIN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FBIN has less shares outstanding
Compared to 1 year ago, FBIN has about the same debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.70 indicates that FBIN is not a great score, but indicates only limited risk for bankruptcy at the moment.
FBIN has a Altman-Z score of 2.70. This is in the lower half of the industry: FBIN underperforms 63.41% of its industry peers.
The Debt to FCF ratio of FBIN is 5.63, which is a neutral value as it means it would take FBIN, 5.63 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.63, FBIN is doing worse than 65.85% of the companies in the same industry.
FBIN has a Debt/Equity ratio of 0.90. This is a neutral value indicating FBIN is somewhat dependend on debt financing.
FBIN has a Debt to Equity ratio of 0.90. This is in the lower half of the industry: FBIN underperforms 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 5.63 | ||
| Altman-Z | 2.7 |
ROIC/WACC1.21
WACC9.81%
2.3 Liquidity
FBIN has a Current Ratio of 1.25. This is a normal value and indicates that FBIN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of FBIN (1.25) is worse than 82.93% of its industry peers.
FBIN has a Quick Ratio of 1.25. This is a bad value and indicates that FBIN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.65, FBIN is not doing good in the industry: 87.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
FBIN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.90%.
FBIN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.73% yearly.
FBIN shows a decrease in Revenue. In the last year, the revenue decreased by -0.37%.
The Revenue has been decreasing by -4.38% on average over the past years.
EPS 1Y (TTM)5.9%
EPS 3Y-10.34%
EPS 5Y2.73%
EPS Q2Q%3.16%
Revenue 1Y (TTM)-0.37%
Revenue growth 3Y-1.35%
Revenue growth 5Y-4.38%
Sales Q2Q%-4.93%
3.2 Future
FBIN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.38% yearly.
FBIN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.08% yearly.
EPS Next Y3.31%
EPS Next 2Y7.36%
EPS Next 3Y9.3%
EPS Next 5Y11.38%
Revenue Next Year0.46%
Revenue Next 2Y2.52%
Revenue Next 3Y3.5%
Revenue Next 5Y6.08%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.07, the valuation of FBIN can be described as correct.
Based on the Price/Earnings ratio, FBIN is valued a bit cheaper than the industry average as 70.73% of the companies are valued more expensively.
FBIN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.64.
With a Price/Forward Earnings ratio of 12.65, FBIN is valued correctly.
75.61% of the companies in the same industry are more expensive than FBIN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.44. FBIN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.07 | ||
| Fwd PE | 12.65 |
4.2 Price Multiples
FBIN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FBIN is cheaper than 70.73% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FBIN is valued a bit cheaper than 75.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.79 | ||
| EV/EBITDA | 9.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FBIN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of FBIN may justify a higher PE ratio.
PEG (NY)3.94
PEG (5Y)4.79
EPS Next 2Y7.36%
EPS Next 3Y9.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.94%, FBIN has a reasonable but not impressive dividend return.
The stock price of FBIN dropped by -28.09% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.28, FBIN pays a better dividend. On top of this FBIN pays more dividend than 87.80% of the companies listed in the same industry.
FBIN's Dividend Yield is slightly below the S&P500 average, which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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.
The dividend of FBIN decreased recently.
Dividend Growth(5Y)1.74%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
25.34% of the earnings are spent on dividend by FBIN. This is a low number and sustainable payout ratio.
The dividend of FBIN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP25.34%
EPS Next 2Y7.36%
EPS Next 3Y9.3%
NYSE:FBIN (4/24/2025, 3:44:10 PM)
53.975
+1.86 (+3.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners96.25%
Inst Owner ChangeN/A
Ins Owners0.31%
Ins Owner Change1.31%
Market Cap6.54B
Analysts72.8
Price Target83.42 (54.55%)
Short Float %4.33%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend0.96
Dividend Growth(5Y)1.74%
DP25.34%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.55%
Min EPS beat(2)-8.98%
Max EPS beat(2)-0.11%
EPS beat(4)2
Avg EPS beat(4)0.39%
Min EPS beat(4)-8.98%
Max EPS beat(4)9.41%
EPS beat(8)6
Avg EPS beat(8)3.05%
EPS beat(12)10
Avg EPS beat(12)3.7%
EPS beat(16)14
Avg EPS beat(16)5.49%
Revenue beat(2)0
Avg Revenue beat(2)-7.04%
Min Revenue beat(2)-8.6%
Max Revenue beat(2)-5.47%
Revenue beat(4)1
Avg Revenue beat(4)-4.5%
Min Revenue beat(4)-8.6%
Max Revenue beat(4)1.06%
Revenue beat(8)2
Avg Revenue beat(8)-3.12%
Revenue beat(12)2
Avg Revenue beat(12)-15.37%
Revenue beat(16)5
Avg Revenue beat(16)-20.25%
PT rev (1m)0%
PT rev (3m)-9.4%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-24.47%
EPS NY rev (1m)-2.08%
EPS NY rev (3m)-7.44%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-4.31%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-2.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.07 | ||
| Fwd PE | 12.65 | ||
| P/S | 1.42 | ||
| P/FCF | 13.79 | ||
| P/OCF | 9.8 | ||
| P/B | 2.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.09 |
EPS(TTM)4.13
EY7.65%
EPS(NY)4.27
Fwd EY7.91%
FCF(TTM)3.91
FCFY7.25%
OCF(TTM)5.51
OCFY10.21%
SpS38.02
BVpS19.98
TBVpS-7.15
PEG (NY)3.94
PEG (5Y)4.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.19% | ||
| ROE | 19.49% | ||
| ROCE | 15.21% | ||
| ROIC | 11.88% | ||
| ROICexc | 12.87% | ||
| ROICexgc | 45.69% | ||
| OM | 16.36% | ||
| PM (TTM) | 10.24% | ||
| GM | 44.83% | ||
| FCFM | 10.29% |
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-Score7
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 5.63 | ||
| Debt/EBITDA | 2.29 | ||
| Cap/Depr | 99.85% | ||
| Cap/Sales | 4.19% | ||
| Interest Coverage | 5.96 | ||
| Cash Conversion | 70.47% | ||
| Profit Quality | 100.53% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 2.7 |
F-Score7
WACC9.81%
ROIC/WACC1.21
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)5.9%
EPS 3Y-10.34%
EPS 5Y2.73%
EPS Q2Q%3.16%
EPS Next Y3.31%
EPS Next 2Y7.36%
EPS Next 3Y9.3%
EPS Next 5Y11.38%
Revenue 1Y (TTM)-0.37%
Revenue growth 3Y-1.35%
Revenue growth 5Y-4.38%
Sales Q2Q%-4.93%
Revenue Next Year0.46%
Revenue Next 2Y2.52%
Revenue Next 3Y3.5%
Revenue Next 5Y6.08%
EBIT growth 1Y7.33%
EBIT growth 3Y-1.84%
EBIT growth 5Y0.44%
EBIT Next Year22.69%
EBIT Next 3Y12.15%
EBIT Next 5Y10.41%
FCF growth 1Y-40.64%
FCF growth 3Y0%
FCF growth 5Y-1.25%
OCF growth 1Y-36.75%
OCF growth 3Y-1.02%
OCF growth 5Y0.94%