SPECTRUM BRANDS HOLDINGS INC (SPB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPB - US84790A1051 - Common Stock
62.59 USD
-0.12 (-0.19%)
Overall SPB gets a fundamental rating of 5 out of 10. We evaluated SPB against 12 industry peers in the Household Products industry. While SPB seems to be doing ok healthwise, there are quite some concerns on its profitability. SPB has a decent growth rate and is not valued too expensively.
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.
- In multiple years SPB reported negative operating cash flow during the last 5 years.
1.2 Ratios
- SPB's Return On Assets of 2.96% is on the low side compared to the rest of the industry. SPB is outperformed by 91.67% of its industry peers.
- SPB has a Return On Equity of 5.23%. This is amonst the worse of the industry: SPB underperforms 83.33% of its industry peers.
- With a Return On Invested Capital value of 3.81%, SPB is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
- Measured over the past 3 years, the Average Return On Invested Capital for SPB is significantly below the industry average of 14.84%.
- The 3 year average ROIC (2.62%) for SPB is below the current ROIC(3.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 5.23% | ||
| ROIC | 3.81% |
ROA(3y)13.49%
ROA(5y)9.05%
ROE(3y)27.54%
ROE(5y)20.23%
ROIC(3y)2.62%
ROIC(5y)2.19%
1.3 Margins
- SPB has a worse Profit Margin (3.56%) than 91.67% of its industry peers.
- SPB's Profit Margin has improved in the last couple of years.
- The Operating Margin of SPB (6.38%) is worse than 91.67% of its industry peers.
- SPB's Operating Margin has declined in the last couple of years.
- SPB's Gross Margin of 36.74% is in line compared to the rest of the industry. SPB outperforms 50.00% of its industry peers.
- In the last couple of years the Gross Margin of SPB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.38% | ||
| PM (TTM) | 3.56% | ||
| GM | 36.74% |
OM growth 3Y105.03%
OM growth 5Y-8.29%
PM growth 3Y15.88%
PM growth 5Y7.59%
GM growth 3Y5.13%
GM growth 5Y1.02%
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.
- The number of shares outstanding for SPB has been reduced compared to 5 years ago.
- Compared to 1 year ago, SPB has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.76 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 2.76, SPB is in line with its industry, outperforming 41.67% of the companies in the same industry.
- The Debt to FCF ratio of SPB is 3.44, which is a good value as it means it would take SPB, 3.44 years of fcf income to pay off all of its debts.
- SPB has a Debt to FCF ratio (3.44) which is in line with its industry peers.
- A Debt/Equity ratio of 0.29 indicates that SPB is not too dependend on debt financing.
- SPB's Debt to Equity ratio of 0.29 is amongst the best of the industry. SPB outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 2.76 |
ROIC/WACC0.53
WACC7.2%
2.3 Liquidity
- A Current Ratio of 2.26 indicates that SPB has no problem at all paying its short term obligations.
- SPB has a better Current ratio (2.26) than 66.67% of its industry peers.
- A Quick Ratio of 1.41 indicates that SPB should not have too much problems paying its short term obligations.
- SPB's Quick ratio of 1.41 is fine compared to the rest of the industry. SPB outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
- SPB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.16%, which is quite impressive.
- SPB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.78% yearly.
- The Revenue has decreased by -5.22% in the past year.
- The Revenue has been decreasing by -6.66% on average over the past years.
EPS 1Y (TTM)24.16%
EPS 3Y59.41%
EPS 5Y5.78%
EPS Q2Q%169.07%
Revenue 1Y (TTM)-5.22%
Revenue growth 3Y-3.57%
Revenue growth 5Y-6.66%
Sales Q2Q%-5.2%
3.2 Future
- The Earnings Per Share is expected to grow by 20.96% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 2.10% on average over the next years.
EPS Next Y-16.47%
EPS Next 2Y-2.99%
EPS Next 3Y3.82%
EPS Next 5Y20.96%
Revenue Next Year0.28%
Revenue Next 2Y0.87%
Revenue Next 3Y0.96%
Revenue Next 5Y2.1%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 11.28, which indicates a very decent valuation of SPB.
- SPB's Price/Earnings ratio is rather cheap when compared to the industry. SPB is cheaper than 83.33% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, SPB is valued rather cheaply.
- A Price/Forward Earnings ratio of 13.50 indicates a correct valuation of SPB.
- SPB's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of SPB to the average of the S&P500 Index (25.83), we can say SPB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 13.5 |
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 83.33% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, SPB is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.85 | ||
| EV/EBITDA | 6.89 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.95
EPS Next 2Y-2.99%
EPS Next 3Y3.82%
5. Dividend
5.1 Amount
- SPB has a Yearly Dividend Yield of 2.88%. 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 2.65.
- Compared to an average S&P500 Dividend Yield of 1.82, SPB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
5.2 History
- The dividend of SPB has a limited annual growth rate of 2.59%.
- SPB has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of SPB decreased recently.
Dividend Growth(5Y)2.59%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 48.25% of the earnings are spent on dividend by SPB. This is a bit on the high side, but may be sustainable.
- SPB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP48.25%
EPS Next 2Y-2.99%
EPS Next 3Y3.82%
SPECTRUM BRANDS HOLDINGS INC / SPB FAQ
Can you provide the ChartMill fundamental rating for SPECTRUM BRANDS HOLDINGS INC?
ChartMill assigns a fundamental rating of 5 / 10 to SPB.
What is the valuation status for SPB stock?
ChartMill assigns a valuation rating of 6 / 10 to SPECTRUM BRANDS HOLDINGS INC (SPB). This can be considered as Fairly Valued.
What is the profitability of SPB stock?
SPECTRUM BRANDS HOLDINGS INC (SPB) has a profitability rating of 3 / 10.
What are the PE and PB ratios of SPECTRUM BRANDS HOLDINGS INC (SPB) stock?
The Price/Earnings (PE) ratio for SPECTRUM BRANDS HOLDINGS INC (SPB) is 11.28 and the Price/Book (PB) ratio is 0.77.
How financially healthy is SPECTRUM BRANDS HOLDINGS INC?
The financial health rating of SPECTRUM BRANDS HOLDINGS INC (SPB) is 6 / 10.