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 40 industry peers in the Building Products industry. FBIN scores excellent on profitability, but there are concerns on its financial health. FBIN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FBIN was profitable.
FBIN had a positive operating cash flow in the past year.
In the past 5 years FBIN has always been profitable.
In the past 5 years FBIN always reported a positive cash flow from operatings.
1.2 Ratios
FBIN has a Return On Assets of 7.19%. This is comparable to the rest of the industry: FBIN outperforms 50.00% of its industry peers.
The Return On Equity of FBIN (19.49%) is better than 65.00% of its industry peers.
FBIN has a Return On Invested Capital (11.88%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for FBIN is in line with the industry average of 13.20%.
| 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)11.93%
ROIC(5y)10.86%
1.3 Margins
The Profit Margin of FBIN (10.24%) is better than 62.50% of its industry peers.
In the last couple of years the Profit Margin of FBIN has grown nicely.
FBIN has a Operating Margin of 16.36%. This is comparable to the rest of the industry: FBIN outperforms 55.00% of its industry peers.
In the last couple of years the Operating Margin of FBIN has grown nicely.
FBIN's Gross Margin of 44.83% is amongst the best of the industry. FBIN outperforms 90.00% 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-1.58%
OM growth 5Y4.35%
PM growth 3Y-13.98%
PM growth 5Y6.45%
GM growth 3Y3.13%
GM growth 5Y4.68%
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
FBIN has less shares outstanding than it did 5 years ago.
FBIN has about the same debt/assets ratio as last year.
2.2 Solvency
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.
FBIN has a worse Debt to FCF ratio (5.63) than 70.00% of its industry peers.
A Debt/Equity ratio of 0.90 indicates that FBIN is somewhat dependend on debt financing.
FBIN has a Debt to Equity ratio of 0.90. This is amonst the worse of the industry: FBIN underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 5.63 | ||
| Altman-Z | N/A |
ROIC/WACC1.17
WACC10.12%
2.3 Liquidity
A Current Ratio of 1.25 indicates that FBIN should not have too much problems paying its short term obligations.
FBIN has a Current ratio of 1.25. This is amonst the worse of the industry: FBIN underperforms 87.50% of its industry peers.
A Quick Ratio of 0.65 indicates that FBIN may have some problems paying its short term obligations.
FBIN has a Quick ratio of 0.65. This is amonst the worse of the industry: FBIN underperforms 92.50% of its industry peers.
| 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%.
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.
The Revenue has decreased by -0.37% in the past year.
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
The Earnings Per Share is expected to grow by 11.92% 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 7.09% on average per year.
EPS Next Y6.53%
EPS Next 2Y9.27%
EPS Next 3Y10.37%
EPS Next 5Y11.92%
Revenue Next Year2.76%
Revenue Next 2Y4.09%
Revenue Next 3Y6.66%
Revenue Next 5Y7.09%
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
FBIN is valuated correctly with a Price/Earnings ratio of 15.84.
67.50% of the companies in the same industry are more expensive than FBIN, based on the Price/Earnings ratio.
FBIN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 14.87, which indicates a correct valuation of FBIN.
72.50% 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 22.68. FBIN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.84 | ||
| Fwd PE | 14.87 |
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 67.50% of the companies listed in the same industry.
62.50% 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 | 17.13 | ||
| EV/EBITDA | 11.15 |
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)2.42
PEG (5Y)5.81
EPS Next 2Y9.27%
EPS Next 3Y10.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.50%, FBIN has a reasonable but not impressive dividend return.
FBIN's Dividend Yield is rather good when compared to the industry average which is at 1.10. FBIN pays more dividend than 85.00% of the companies in the same industry.
FBIN's Dividend Yield is slightly below the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
The dividend of FBIN has a limited annual growth rate of 1.68%.
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)1.68%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
FBIN pays out 25.34% of its income as dividend. This is a sustainable payout ratio.
The dividend of FBIN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP25.34%
EPS Next 2Y9.27%
EPS Next 3Y10.37%
65.41
-1.23 (-1.85%)
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 Change-0.97%
Market Cap8.13B
Analysts72
Price Target83.42 (27.53%)
Short Float %4.47%
Short Ratio4.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
Yearly Dividend0.95
Dividend Growth(5Y)1.68%
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)-3.1%
PT rev (3m)-2.51%
EPS NQ rev (1m)-21.22%
EPS NQ rev (3m)-26.54%
EPS NY rev (1m)-4.56%
EPS NY rev (3m)-6.67%
Revenue NQ rev (1m)-3.78%
Revenue NQ rev (3m)-7.52%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.84 | ||
| Fwd PE | 14.87 | ||
| P/S | 1.76 | ||
| P/FCF | 17.13 | ||
| P/OCF | 12.17 | ||
| P/B | 3.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.15 |
EPS(TTM)4.13
EY6.31%
EPS(NY)4.4
Fwd EY6.73%
FCF(TTM)3.82
FCFY5.84%
OCF(TTM)5.38
OCFY8.22%
SpS37.1
BVpS19.5
TBVpS-6.98
PEG (NY)2.42
PEG (5Y)5.81
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 | 10.3% |
ROA(3y)8.19%
ROA(5y)8.36%
ROE(3y)23.34%
ROE(5y)23.03%
ROIC(3y)11.93%
ROIC(5y)10.86%
ROICexc(3y)13.25%
ROICexc(5y)11.96%
ROICexgc(3y)41.91%
ROICexgc(5y)38.2%
ROCE(3y)15.27%
ROCE(5y)13.9%
ROICexcg growth 3Y5.3%
ROICexcg growth 5Y-1.07%
ROICexc growth 3Y3.17%
ROICexc growth 5Y-0.58%
OM growth 3Y-1.58%
OM growth 5Y4.35%
PM growth 3Y-13.98%
PM growth 5Y6.45%
GM growth 3Y3.13%
GM growth 5Y4.68%
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 | 250 | ||
| Cash Conversion | 70.47% | ||
| Profit Quality | 100.53% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | N/A |
F-Score7
WACC10.12%
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)5.9%
EPS 3Y-10.34%
EPS 5Y2.73%
EPS Q2Q%3.16%
EPS Next Y6.53%
EPS Next 2Y9.27%
EPS Next 3Y10.37%
EPS Next 5Y11.92%
Revenue 1Y (TTM)-0.37%
Revenue growth 3Y-1.35%
Revenue growth 5Y-4.38%
Sales Q2Q%-4.93%
Revenue Next Year2.76%
Revenue Next 2Y4.09%
Revenue Next 3Y6.66%
Revenue Next 5Y7.09%
EBIT growth 1Y7.33%
EBIT growth 3Y-2.91%
EBIT growth 5Y-0.21%
EBIT Next Year27.9%
EBIT Next 3Y14.36%
EBIT Next 5Y10.72%
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%