SPECTRUM BRANDS HOLDINGS INC (SPB) Stock Fundamental Analysis
NYSE:SPB - New York Stock Exchange, Inc. - US84790A1051 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to SPB. SPB was compared to 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SPB was profitable.
In the past year SPB had a positive cash flow from operations.
In the past 5 years SPB has always been profitable.
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 worse Return On Assets (1.67%) than 83.33% of its industry peers.
With a Return On Equity value of 3.14%, SPB is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
The Return On Invested Capital of SPB (3.76%) is worse than 91.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SPB is significantly below the industry average of 15.82%.
The last Return On Invested Capital (3.76%) for SPB is above the 3 year average (1.45%), which is a sign of increasing profitability.
| 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.
In the last couple of years the Profit Margin of SPB has declined.
The Operating Margin of SPB (6.27%) is worse than 91.67% of its industry peers.
In the last couple of years the Operating Margin of SPB has declined.
SPB has a Gross Margin of 37.63%. This is comparable 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 grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SPB 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 2.63 indicates that SPB is not a great score, but indicates only limited risk for bankruptcy at the moment.
SPB has a Altman-Z score (2.63) which is comparable to the rest of the 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.
A Debt/Equity ratio of 0.34 indicates that SPB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.34, SPB belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 8.45 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.55
WACC6.89%
2.3 Liquidity
A Current Ratio of 2.34 indicates that SPB has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.34, SPB is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
SPB has a Quick Ratio of 1.40. This is a normal value and indicates that SPB is financially healthy and should not expect problems in meeting 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
SPB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.41%.
SPB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.67% yearly.
SPB shows a small growth in Revenue. In the last year, the Revenue has grown by 1.46%.
SPB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.86% yearly.
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
Based on estimates for the next years, SPB will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.24% on average per year.
Based on estimates for the next years, SPB will show a small growth in Revenue. The Revenue will grow by 1.88% on average per year.
EPS Next Y-10.56%
EPS Next 2Y3.88%
EPS Next 3Y1.3%
EPS Next 5Y19.24%
Revenue Next Year-3.1%
Revenue Next 2Y-2.53%
Revenue Next 3Y-2.22%
Revenue Next 5Y1.88%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 15.01 indicates a correct valuation of SPB.
Based on the Price/Earnings ratio, SPB is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.45. SPB is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 11.73 indicates a reasonable valuation of SPB.
SPB's Price/Forward Earnings ratio is rather cheap when compared to the industry. SPB is cheaper than 91.67% of the companies in the same industry.
SPB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.89, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.01 | ||
| Fwd PE | 11.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPB is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.64 | ||
| EV/EBITDA | 6.91 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.73
EPS Next 2Y3.88%
EPS Next 3Y1.3%
5. Dividend
5.1 Amount
SPB has a Yearly Dividend Yield of 3.32%. 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 2.97.
Compared to an average S&P500 Dividend Yield of 2.37, SPB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
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.
SPB has decreased its dividend recently.
Dividend Growth(5Y)-0.88%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SPB pays out 83.08% of its income as dividend. This is not a sustainable payout ratio.
DP83.08%
EPS Next 2Y3.88%
EPS Next 3Y1.3%
56.58
+0.14 (+0.25%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners104.32%
Inst Owner Change-61.96%
Ins Owners3.66%
Ins Owner Change-0.11%
Market Cap1.41B
Analysts77.14
Price Target84.53 (49.4%)
Short Float %10.52%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
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)-10.28%
PT rev (3m)-17.33%
EPS NQ rev (1m)-5.48%
EPS NQ rev (3m)-21.58%
EPS NY rev (1m)-14.85%
EPS NY rev (3m)-27.41%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-5.99%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)-4.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.01 | ||
| Fwd PE | 11.73 | ||
| P/S | 0.48 | ||
| P/FCF | 18.64 | ||
| P/OCF | 12.4 | ||
| P/B | 0.75 | ||
| P/tB | 17.95 | ||
| EV/EBITDA | 6.91 |
EPS(TTM)3.77
EY6.66%
EPS(NY)4.82
Fwd EY8.53%
FCF(TTM)3.04
FCFY5.37%
OCF(TTM)4.56
OCFY8.07%
SpS117.16
BVpS75.39
TBVpS3.15
PEG (NY)N/A
PEG (5Y)1.73
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 | 2.63 |
F-Score7
WACC6.89%
ROIC/WACC0.55
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-10.56%
EPS Next 2Y3.88%
EPS Next 3Y1.3%
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-3.1%
Revenue Next 2Y-2.53%
Revenue Next 3Y-2.22%
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%