FORTUNE BRANDS INNOVATIONS I (FBIN) Stock Fundamental Analysis
USA - NYSE:FBIN - US34964C1062 - Common Stock
59.28 USD
-1.47 (-2.42%)
61.95 USD
+2.67 (+4.5%)
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 has a great profitability rating, there are quite some 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.
FBIN had a positive operating cash flow in the past year.
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's Return On Assets of 5.96% is in line compared to the rest of the industry. FBIN outperforms 46.34% of its industry peers.
FBIN has a better Return On Equity (16.81%) than 63.41% of its industry peers.
FBIN has a Return On Invested Capital of 10.19%. This is in the better half 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 12.76%.
| 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
FBIN's Profit Margin of 8.75% is in line compared to the rest of the industry. FBIN outperforms 53.66% of its industry peers.
FBIN's Profit Margin has improved in the last couple of years.
FBIN has a better Operating Margin (16.19%) than 60.98% of its industry peers.
In the last couple of years the Operating Margin of FBIN has grown nicely.
Looking at the Gross Margin, with a value of 45.50%, FBIN belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
In the last couple of years the Gross Margin of FBIN has grown nicely.
| 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.
FBIN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FBIN has been reduced compared to 5 years ago.
FBIN has about the same debt/assets ratio as last year.
2.2 Solvency
An Altman-Z score of 2.88 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 2.88. 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 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.
Looking at the Debt to FCF ratio, with a value of 7.14, FBIN is doing worse than 68.29% of the companies in the same industry.
FBIN has a Debt/Equity ratio of 1.20. This is a high value indicating a heavy dependency on external financing.
FBIN has a worse Debt to Equity ratio (1.20) than 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | 2.88 |
ROIC/WACC1.03
WACC9.85%
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.
Looking at the Current ratio, with a value of 1.97, FBIN is in line with its industry, outperforming 48.78% of the companies in the same industry.
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.
The Quick ratio of FBIN (0.98) is worse than 73.17% 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.
The Revenue has decreased by -5.79% 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)-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-5.18%
EPS Next 2Y2.78%
EPS Next 3Y6.92%
EPS Next 5Y9.96%
Revenue Next Year-2.15%
Revenue Next 2Y0.48%
Revenue Next 3Y2.06%
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
FBIN is valuated correctly with a Price/Earnings ratio of 15.60.
75.61% of the companies in the same industry are more expensive than FBIN, based on the Price/Earnings ratio.
FBIN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.59, FBIN is valued correctly.
82.93% of the companies in the same industry are more expensive than FBIN, based on the Price/Forward Earnings ratio.
FBIN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.6 | ||
| Fwd PE | 13.59 |
4.2 Price Multiples
FBIN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FBIN is cheaper than 75.61% of the companies in the same industry.
FBIN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FBIN is cheaper than 73.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.07 | ||
| EV/EBITDA | 10.52 |
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)5.72
EPS Next 2Y2.78%
EPS Next 3Y6.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.65%, 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 1.13. FBIN pays more dividend than 87.80% of the companies in the same industry.
FBIN's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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.
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 2Y2.78%
EPS Next 3Y6.92%
59.28
-1.47 (-2.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.37%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner Change7.53%
Market Cap7.12B
Analysts71.54
Price Target68.35 (15.3%)
Short Float %3.08%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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)-0.69%
PT rev (3m)3.06%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)-1.87%
EPS NY rev (1m)0.86%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.6 | ||
| Fwd PE | 13.59 | ||
| P/S | 1.58 | ||
| P/FCF | 18.07 | ||
| P/OCF | 13.09 | ||
| P/B | 3.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.52 |
EPS(TTM)3.8
EY6.41%
EPS(NY)4.36
Fwd EY7.36%
FCF(TTM)3.28
FCFY5.53%
OCF(TTM)4.53
OCFY7.64%
SpS37.45
BVpS19.5
TBVpS-7.82
PEG (NY)N/A
PEG (5Y)5.72
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 | 2.88 |
F-Score6
WACC9.85%
ROIC/WACC1.03
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-5.18%
EPS Next 2Y2.78%
EPS Next 3Y6.92%
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-2.15%
Revenue Next 2Y0.48%
Revenue Next 3Y2.06%
Revenue Next 5Y4.67%
EBIT growth 1Y-3.5%
EBIT growth 3Y-1.84%
EBIT growth 5Y0.44%
EBIT Next Year16.3%
EBIT Next 3Y9.96%
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%