FORTUNE BRANDS INNOVATIONS I (FBIN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FBIN - US34964C1062 - Common Stock
55.4 USD
-1.41 (-2.48%)
55.4 USD
0 (0%)
Taking everything into account, FBIN scores 5 out of 10 in our fundamental rating. FBIN was compared to 42 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 is valued correctly, but it does not seem to be growing.
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
- The Return On Assets of FBIN (5.03%) is comparable to the rest of the industry.
- FBIN's Return On Equity of 13.77% is fine compared to the rest of the industry. FBIN outperforms 61.90% of its industry peers.
- FBIN has a Return On Invested Capital (10.22%) which is in line with 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 12.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.03% | ||
| ROE | 13.77% | ||
| ROIC | 10.22% |
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
- FBIN has a Profit Margin (7.30%) which is in line with its industry peers.
- FBIN's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 15.99%, FBIN is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
- In the last couple of years the Operating Margin of FBIN has grown nicely.
- FBIN has a better Gross Margin (45.40%) than 95.24% of its industry peers.
- In the last couple of years the Gross Margin of FBIN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.99% | ||
| PM (TTM) | 7.3% | ||
| GM | 45.4% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FBIN 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
- 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 2.89. 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's Altman-Z score of 2.89 is in line compared to the rest of the industry. FBIN outperforms 40.48% of its industry peers.
- The Debt to FCF ratio of FBIN is 6.72, which is on the high side as it means it would take FBIN, 6.72 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 6.72, FBIN perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
- A Debt/Equity ratio of 1.12 is on the high side and indicates that FBIN has dependencies on debt financing.
- FBIN's Debt to Equity ratio of 1.12 is on the low side compared to the rest of the industry. FBIN is outperformed by 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 6.72 | ||
| Altman-Z | 2.89 |
ROIC/WACC1.18
WACC8.69%
2.3 Liquidity
- FBIN has a Current Ratio of 1.95. This is a normal value and indicates that FBIN is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.95, FBIN perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
- FBIN has a Quick Ratio of 1.95. 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 (0.94) than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
- FBIN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.02%.
- Measured over the past 5 years, FBIN shows a small growth in Earnings Per Share. The EPS has been growing by 2.73% on average per year.
- Looking at the last year, FBIN shows a decrease in Revenue. The Revenue has decreased by -3.78% in the last year.
- Measured over the past years, FBIN shows a decrease in Revenue. The Revenue has been decreasing by -4.38% on average per year.
EPS 1Y (TTM)-9.02%
EPS 3Y-10.34%
EPS 5Y2.73%
EPS Q2Q%-6.03%
Revenue 1Y (TTM)-3.78%
Revenue growth 3Y-1.35%
Revenue growth 5Y-4.38%
Sales Q2Q%-0.53%
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 9.96% yearly.
- The Revenue is expected to grow by 4.67% on average over the next years.
EPS Next Y-7.61%
EPS Next 2Y0.63%
EPS Next 3Y5.04%
EPS Next 5Y9.96%
Revenue Next Year-2.74%
Revenue Next 2Y-0.3%
Revenue Next 3Y1.34%
Revenue Next 5Y4.67%
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
- The Price/Earnings ratio is 14.85, which indicates a correct valuation of FBIN.
- Based on the Price/Earnings ratio, FBIN is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- FBIN is valuated rather cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 13.25 indicates a correct valuation of FBIN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FBIN indicates a somewhat cheap valuation: FBIN is cheaper than 78.57% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of FBIN to the average of the S&P500 Index (25.96), we can say FBIN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.85 | ||
| Fwd PE | 13.25 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FBIN is valued a bit cheaper than 66.67% of the companies in the same industry.
- 73.81% of the companies in the same industry are more expensive than FBIN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.84 | ||
| EV/EBITDA | 10.11 |
4.3 Compensation for Growth
- FBIN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.44
EPS Next 2Y0.63%
EPS Next 3Y5.04%
5. Dividend
5.1 Amount
- FBIN has a Yearly Dividend Yield of 1.72%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.66, FBIN pays a better dividend. On top of this FBIN pays more dividend than 90.48% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, FBIN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
5.2 History
- The dividend of FBIN has a limited annual growth rate of 1.74%.
- FBIN has paid a dividend for at least 10 years, which is 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
- 36.69% 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.
DP36.69%
EPS Next 2Y0.63%
EPS Next 3Y5.04%
FORTUNE BRANDS INNOVATIONS I / FBIN FAQ
Can you provide the ChartMill fundamental rating for FORTUNE BRANDS INNOVATIONS I?
ChartMill assigns a fundamental rating of 5 / 10 to FBIN.
What is the valuation status for FBIN stock?
ChartMill assigns a valuation rating of 5 / 10 to FORTUNE BRANDS INNOVATIONS I (FBIN). This can be considered as Fairly Valued.
How profitable is FORTUNE BRANDS INNOVATIONS I (FBIN) stock?
FORTUNE BRANDS INNOVATIONS I (FBIN) has a profitability rating of 7 / 10.
What is the financial health of FORTUNE BRANDS INNOVATIONS I (FBIN) stock?
The financial health rating of FORTUNE BRANDS INNOVATIONS I (FBIN) is 3 / 10.
Is the dividend of FORTUNE BRANDS INNOVATIONS I sustainable?
The dividend rating of FORTUNE BRANDS INNOVATIONS I (FBIN) is 6 / 10 and the dividend payout ratio is 36.69%.