SPECTRUM BRANDS HOLDINGS INC (SPB) Stock Fundamental Analysis
NYSE:SPB - New York Stock Exchange, Inc. - US84790A1051 - Common Stock - Currency: USD
Overall SPB gets a fundamental rating of 4 out of 10. We evaluated SPB against 12 industry peers in the Household Products industry. The financial health of SPB is average, but there are quite some concerns on its profitability. SPB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SPB had positive earnings in the past year.
SPB had a positive operating cash flow in the past year.
SPB had positive earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: SPB reported negative operating cash flow in multiple years.
1.2 Ratios
SPB has a Return On Assets of 1.67%. This is amonst the worse of the industry: SPB underperforms 83.33% of its industry peers.
SPB's Return On Equity of 3.14% is on the low side compared to the rest of the industry. SPB is outperformed by 91.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.76%, SPB is doing worse than 91.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SPB is significantly below the industry average of 15.74%.
The 3 year average ROIC (1.45%) for SPB is below the current ROIC(3.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 3.14% | ||
| ROIC | 3.76% |
ROA(3y)12.92%
ROA(5y)8.84%
ROE(3y)27.68%
ROE(5y)20.57%
ROIC(3y)1.45%
ROIC(5y)2.57%
1.3 Margins
The Profit Margin of SPB (2.02%) is worse than 83.33% of its industry peers.
SPB's Profit Margin has declined in the last couple of years.
SPB has a worse Operating Margin (6.27%) than 91.67% of its industry peers.
In the last couple of years the Operating Margin of SPB has declined.
The Gross Margin of SPB (37.63%) is comparable to the rest of the industry.
SPB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.27% | ||
| PM (TTM) | 2.02% | ||
| GM | 37.63% |
OM growth 3Y-1.23%
OM growth 5Y-5.32%
PM growth 3Y-12.68%
PM growth 5Y-19.44%
GM growth 3Y2.68%
GM growth 5Y1.67%
2. Health
2.1 Basic Checks
SPB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SPB has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SPB has less shares outstanding
The debt/assets ratio for SPB has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.62 indicates that SPB is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.62, SPB is doing worse than 66.67% of the companies in the same industry.
SPB has a debt to FCF ratio of 8.45. This is a slightly negative value and a sign of low solvency as SPB would need 8.45 years to pay back of all of its debts.
The Debt to FCF ratio of SPB (8.45) is worse than 83.33% of its industry peers.
SPB has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
SPB's Debt to Equity ratio of 0.34 is amongst the best of the industry. SPB outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 8.45 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.54
WACC6.92%
2.3 Liquidity
A Current Ratio of 2.34 indicates that SPB has no problem at all paying its short term obligations.
The Current ratio of SPB (2.34) is better than 66.67% of its industry peers.
A Quick Ratio of 1.40 indicates that SPB should not have too much problems paying its short term obligations.
SPB has a Quick ratio (1.40) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The earnings per share for SPB have decreased strongly by -16.41% in the last year.
SPB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.67% yearly.
Looking at the last year, SPB shows a small growth in Revenue. The Revenue has grown by 1.46% in the last year.
Measured over the past years, SPB shows a decrease in Revenue. The Revenue has been decreasing by -4.86% on average per year.
EPS 1Y (TTM)-16.41%
EPS 3Y-8.53%
EPS 5Y8.67%
EPS Q2Q%-58.02%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-0.38%
Revenue growth 5Y-4.86%
Sales Q2Q%-5.96%
3.2 Future
The Earnings Per Share is expected to grow by 19.24% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.88% on average over the next years.
EPS Next Y-12.23%
EPS Next 2Y3.19%
EPS Next 3Y0.28%
EPS Next 5Y19.24%
Revenue Next Year-3.27%
Revenue Next 2Y-2.61%
Revenue Next 3Y-2.37%
Revenue Next 5Y1.88%
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
SPB is valuated correctly with a Price/Earnings ratio of 14.87.
Compared to the rest of the industry, the Price/Earnings ratio of SPB indicates a somewhat cheap valuation: SPB is cheaper than 75.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. SPB is valued slightly cheaper when compared to this.
SPB is valuated reasonably with a Price/Forward Earnings ratio of 11.78.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SPB indicates a rather cheap valuation: SPB is cheaper than 91.67% of the companies listed in the same industry.
SPB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.87 | ||
| Fwd PE | 11.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SPB indicates a rather cheap valuation: SPB is cheaper than 100.00% of the companies listed in the same industry.
SPB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.12 | ||
| EV/EBITDA | 6.78 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.72
EPS Next 2Y3.19%
EPS Next 3Y0.28%
5. Dividend
5.1 Amount
SPB has a Yearly Dividend Yield of 3.26%. Purely for dividend investing, there may be better candidates out there.
SPB's Dividend Yield is a higher than the industry average which is at 2.94.
SPB's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
5.2 History
The dividend of SPB decreases each year by -0.88%.
SPB has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of SPB decreased recently.
Dividend Growth(5Y)-0.88%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
83.08% of the earnings are spent on dividend by SPB. This is not a sustainable payout ratio.
DP83.08%
EPS Next 2Y3.19%
EPS Next 3Y0.28%
56.07
-0.03 (-0.05%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners104.32%
Inst Owner Change-0.04%
Ins Owners3.66%
Ins Owner Change-0.11%
Market Cap1.38B
Analysts77.14
Price Target84.53 (50.76%)
Short Float %11.33%
Short Ratio3.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.26% |
Yearly Dividend1.6
Dividend Growth(5Y)-0.88%
DP83.08%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-21.61%
Min EPS beat(2)-51.95%
Max EPS beat(2)8.72%
EPS beat(4)1
Avg EPS beat(4)-15.89%
Min EPS beat(4)-51.95%
Max EPS beat(4)8.72%
EPS beat(8)5
Avg EPS beat(8)36.44%
EPS beat(12)5
Avg EPS beat(12)1.81%
EPS beat(16)5
Avg EPS beat(16)-9.36%
Revenue beat(2)0
Avg Revenue beat(2)-2.71%
Min Revenue beat(2)-3.78%
Max Revenue beat(2)-1.64%
Revenue beat(4)2
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-3.78%
Max Revenue beat(4)2.51%
Revenue beat(8)4
Avg Revenue beat(8)-0.83%
Revenue beat(12)4
Avg Revenue beat(12)-2.94%
Revenue beat(16)6
Avg Revenue beat(16)-13.54%
PT rev (1m)-0.75%
PT rev (3m)-17.33%
EPS NQ rev (1m)-5.25%
EPS NQ rev (3m)-23.33%
EPS NY rev (1m)-16.45%
EPS NY rev (3m)-28.77%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-6.1%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-4.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.87 | ||
| Fwd PE | 11.78 | ||
| P/S | 0.47 | ||
| P/FCF | 18.12 | ||
| P/OCF | 12.05 | ||
| P/B | 0.73 | ||
| P/tB | 17.45 | ||
| EV/EBITDA | 6.78 |
EPS(TTM)3.77
EY6.72%
EPS(NY)4.76
Fwd EY8.49%
FCF(TTM)3.09
FCFY5.52%
OCF(TTM)4.65
OCFY8.3%
SpS119.4
BVpS76.83
TBVpS3.21
PEG (NY)N/A
PEG (5Y)1.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 3.14% | ||
| ROCE | 6.2% | ||
| ROIC | 3.76% | ||
| ROICexc | 3.89% | ||
| ROICexgc | 10.5% | ||
| OM | 6.27% | ||
| PM (TTM) | 2.02% | ||
| GM | 37.63% | ||
| FCFM | 2.59% |
ROA(3y)12.92%
ROA(5y)8.84%
ROE(3y)27.68%
ROE(5y)20.57%
ROIC(3y)1.45%
ROIC(5y)2.57%
ROICexc(3y)1.72%
ROICexc(5y)2.93%
ROICexgc(3y)5.24%
ROICexgc(5y)9.84%
ROCE(3y)2.39%
ROCE(5y)4.23%
ROICexcg growth 3Y25.17%
ROICexcg growth 5Y-16.32%
ROICexc growth 3Y10.88%
ROICexc growth 5Y-5.83%
OM growth 3Y-1.23%
OM growth 5Y-5.32%
PM growth 3Y-12.68%
PM growth 5Y-19.44%
GM growth 3Y2.68%
GM growth 5Y1.67%
F-Score7
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 8.45 | ||
| Debt/EBITDA | 2.23 | ||
| Cap/Depr | 38.28% | ||
| Cap/Sales | 1.3% | ||
| Interest Coverage | 3.94 | ||
| Cash Conversion | 40.25% | ||
| Profit Quality | 128.43% | ||
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 2.62 |
F-Score7
WACC6.92%
ROIC/WACC0.54
Cap/Depr(3y)57.46%
Cap/Depr(5y)50.14%
Cap/Sales(3y)1.85%
Cap/Sales(5y)1.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-16.41%
EPS 3Y-8.53%
EPS 5Y8.67%
EPS Q2Q%-58.02%
EPS Next Y-12.23%
EPS Next 2Y3.19%
EPS Next 3Y0.28%
EPS Next 5Y19.24%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-0.38%
Revenue growth 5Y-4.86%
Sales Q2Q%-5.96%
Revenue Next Year-3.27%
Revenue Next 2Y-2.61%
Revenue Next 3Y-2.37%
Revenue Next 5Y1.88%
EBIT growth 1Y24.63%
EBIT growth 3Y-1.61%
EBIT growth 5Y-9.92%
EBIT Next Year51.7%
EBIT Next 3Y11.81%
EBIT Next 5YN/A
FCF growth 1Y-71.37%
FCF growth 3Y-21.46%
FCF growth 5YN/A
OCF growth 1Y-65.5%
OCF growth 3Y-17.39%
OCF growth 5Y171.61%