FORTUNE BRANDS INNOVATIONS I (FBIN) Stock Fundamental Analysis
NYSE:FBIN - New York Stock Exchange, Inc. - US34964C1062 - Common Stock - Currency: USD
FBIN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Building Products industry. FBIN scores excellent on profitability, but there are concerns on its financial health. FBIN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year FBIN was profitable.
In the past year FBIN had a positive cash flow from operations.
Each year in the past 5 years FBIN has been profitable.
Each year in the past 5 years FBIN had a positive operating cash flow.
1.2 Ratios
FBIN has a Return On Assets (6.48%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 18.53%, FBIN is doing good in the industry, outperforming 65.85% of the companies in the same industry.
The Return On Invested Capital of FBIN (11.16%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FBIN is in line with the industry average of 12.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.48% | ||
| ROE | 18.53% | ||
| ROIC | 11.16% |
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 (9.42%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FBIN has grown nicely.
FBIN has a better Operating Margin (16.14%) than 60.98% of its industry peers.
In the last couple of years the Operating Margin of FBIN has grown nicely.
FBIN has a better Gross Margin (45.07%) than 92.68% of its industry peers.
FBIN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.14% | ||
| PM (TTM) | 9.42% | ||
| GM | 45.07% |
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%
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.
Compared to 1 year ago, FBIN has less shares outstanding
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
An Altman-Z score of 2.73 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 2.73. This is in the lower half of the industry: FBIN underperforms 63.41% of its industry peers.
FBIN has a debt to FCF ratio of 5.93. This is a neutral value as FBIN would need 5.93 years to pay back of all of its debts.
FBIN has a Debt to FCF ratio of 5.93. This is in the lower half of the industry: FBIN underperforms 60.98% of its industry peers.
FBIN has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.06, FBIN is doing worse than 82.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 5.93 | ||
| Altman-Z | 2.73 |
ROIC/WACC1.17
WACC9.5%
2.3 Liquidity
A Current Ratio of 1.41 indicates that FBIN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.41, FBIN is doing worse than 80.49% of the companies in the same industry.
FBIN has a Quick Ratio of 1.41. 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 0.72, FBIN is not doing good in the industry: 90.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The earnings per share for FBIN have decreased by -1.98% in the last year.
The Earnings Per Share has been growing slightly by 2.73% on average over the past years.
The Revenue has decreased by -3.48% in the past 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)-1.98%
EPS 3Y-10.34%
EPS 5Y2.73%
EPS Q2Q%-20.48%
Revenue 1Y (TTM)-3.48%
Revenue growth 3Y-1.35%
Revenue growth 5Y-4.38%
Sales Q2Q%-6.89%
3.2 Future
The Earnings Per Share is expected to grow by 9.66% on average over the next years. This is quite good.
Based on estimates for the next years, FBIN will show a small growth in Revenue. The Revenue will grow by 4.55% on average per year.
EPS Next Y-5.99%
EPS Next 2Y2.75%
EPS Next 3Y7.82%
EPS Next 5Y9.66%
Revenue Next Year-2.42%
Revenue Next 2Y0.68%
Revenue Next 3Y2.37%
Revenue Next 5Y4.55%
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
A Price/Earnings ratio of 13.64 indicates a correct valuation of FBIN.
Compared to the rest of the industry, the Price/Earnings ratio of FBIN indicates a rather cheap valuation: FBIN is cheaper than 80.49% of the companies listed in the same industry.
FBIN is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.39, the valuation of FBIN can be described as correct.
Based on the Price/Forward Earnings ratio, FBIN is valued a bit cheaper than the industry average as 78.05% of the companies are valued more expensively.
FBIN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.64 | ||
| Fwd PE | 12.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FBIN indicates a somewhat cheap valuation: FBIN is cheaper than 75.61% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, FBIN is valued cheaper than 82.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.05 | ||
| EV/EBITDA | 9.9 |
4.3 Compensation for Growth
The decent profitability rating of FBIN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5
EPS Next 2Y2.75%
EPS Next 3Y7.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.87%, FBIN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.14, FBIN pays a better dividend. On top of this FBIN pays more dividend than 92.68% of the companies listed in the same industry.
FBIN's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
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
FBIN pays out 28.10% of its income as dividend. This is a sustainable payout ratio.
FBIN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.1%
EPS Next 2Y2.75%
EPS Next 3Y7.82%
54
-0.84 (-1.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.86%
Inst Owner ChangeN/A
Ins Owners0.42%
Ins Owner Change8.11%
Market Cap6.49B
Analysts70.77
Price Target66.32 (22.81%)
Short Float %2.98%
Short Ratio1.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.87% |
Yearly Dividend0.96
Dividend Growth(5Y)1.74%
DP28.1%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.29%
Min EPS beat(2)-8.98%
Max EPS beat(2)-1.61%
EPS beat(4)1
Avg EPS beat(4)-2.36%
Min EPS beat(4)-8.98%
Max EPS beat(4)1.25%
EPS beat(8)5
Avg EPS beat(8)1.19%
EPS beat(12)9
Avg EPS beat(12)3.41%
EPS beat(16)13
Avg EPS beat(16)3.62%
Revenue beat(2)0
Avg Revenue beat(2)-5.21%
Min Revenue beat(2)-5.47%
Max Revenue beat(2)-4.96%
Revenue beat(4)0
Avg Revenue beat(4)-6%
Min Revenue beat(4)-8.6%
Max Revenue beat(4)-4.96%
Revenue beat(8)1
Avg Revenue beat(8)-3.82%
Revenue beat(12)2
Avg Revenue beat(12)-12.39%
Revenue beat(16)4
Avg Revenue beat(16)-20.92%
PT rev (1m)-8.79%
PT rev (3m)-20.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.27%
EPS NY rev (1m)0.24%
EPS NY rev (3m)-10.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.94%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-3.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.64 | ||
| Fwd PE | 12.39 | ||
| P/S | 1.43 | ||
| P/FCF | 13.05 | ||
| P/OCF | 9.9 | ||
| P/B | 2.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.9 |
EPS(TTM)3.96
EY7.33%
EPS(NY)4.36
Fwd EY8.07%
FCF(TTM)4.14
FCFY7.67%
OCF(TTM)5.45
OCFY10.1%
SpS37.69
BVpS19.16
TBVpS-8.09
PEG (NY)N/A
PEG (5Y)5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.48% | ||
| ROE | 18.53% | ||
| ROCE | 14.28% | ||
| ROIC | 11.16% | ||
| ROICexc | 11.95% | ||
| ROICexgc | 37.98% | ||
| OM | 16.14% | ||
| PM (TTM) | 9.42% | ||
| GM | 45.07% | ||
| FCFM | 10.98% |
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 Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 5.93 | ||
| Debt/EBITDA | 2.64 | ||
| Cap/Depr | 79.43% | ||
| Cap/Sales | 3.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.47% | ||
| Profit Quality | 116.58% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 2.73 |
F-Score7
WACC9.5%
ROIC/WACC1.17
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)-1.98%
EPS 3Y-10.34%
EPS 5Y2.73%
EPS Q2Q%-20.48%
EPS Next Y-5.99%
EPS Next 2Y2.75%
EPS Next 3Y7.82%
EPS Next 5Y9.66%
Revenue 1Y (TTM)-3.48%
Revenue growth 3Y-1.35%
Revenue growth 5Y-4.38%
Sales Q2Q%-6.89%
Revenue Next Year-2.42%
Revenue Next 2Y0.68%
Revenue Next 3Y2.37%
Revenue Next 5Y4.55%
EBIT growth 1Y0.8%
EBIT growth 3Y-1.84%
EBIT growth 5Y0.44%
EBIT Next Year14.76%
EBIT Next 3Y10.6%
EBIT Next 5Y9.1%
FCF growth 1Y-16.7%
FCF growth 3Y0%
FCF growth 5Y-1.25%
OCF growth 1Y-20.57%
OCF growth 3Y-1.02%
OCF growth 5Y0.94%