SPECTRUM BRANDS HOLDINGS INC (SPB) Stock Fundamental Analysis
NYSE:SPB - New York Stock Exchange, Inc. - US84790A1051 - Common Stock - Currency: USD
SPB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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
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
With a Return On Assets value of 3.30%, SPB is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
SPB has a worse Return On Equity (5.88%) than 83.33% of its industry peers.
SPB has a worse Return On Invested Capital (4.02%) than 91.67% of its industry peers.
SPB had an Average Return On Invested Capital over the past 3 years of 1.45%. This is significantly below the industry average of 15.44%.
The 3 year average ROIC (1.45%) for SPB is below the current ROIC(4.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 5.88% | ||
| ROIC | 4.02% |
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
SPB has a Profit Margin of 4.01%. This is in the lower half of the industry: SPB underperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of SPB has declined.
SPB has a worse Operating Margin (6.74%) 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 (37.76%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SPB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.74% | ||
| PM (TTM) | 4.01% | ||
| GM | 37.76% |
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.
The number of shares outstanding for SPB has been reduced compared to 5 years ago.
The debt/assets ratio for SPB has been reduced compared to a year ago.
2.2 Solvency
SPB has an Altman-Z score of 2.71. This is not the best score and indicates that SPB is in the grey zone with still only limited risk for bankruptcy at the moment.
SPB has a Altman-Z score of 2.71. This is comparable to the rest of the industry: SPB outperforms 41.67% of its industry peers.
SPB has a debt to FCF ratio of 10.54. This is a negative value and a sign of low solvency as SPB would need 10.54 years to pay back of all of its debts.
With a Debt to FCF ratio value of 10.54, SPB is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
SPB has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.27, SPB belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 10.54 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.57
WACC6.99%
2.3 Liquidity
A Current Ratio of 2.40 indicates that SPB has no problem at all paying its short term obligations.
SPB's Current ratio of 2.40 is fine compared to the rest of the industry. SPB outperforms 66.67% of its industry peers.
A Quick Ratio of 1.53 indicates that SPB should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.53, SPB is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 71.27% over the past year.
Measured over the past years, SPB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.67% on average per year.
SPB shows a small growth in Revenue. In the last year, the Revenue has grown by 2.56%.
SPB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.86% yearly.
EPS 1Y (TTM)71.27%
EPS 3Y-8.53%
EPS 5Y8.67%
EPS Q2Q%30.77%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y-0.38%
Revenue growth 5Y-4.86%
Sales Q2Q%1.16%
3.2 Future
Based on estimates for the next years, SPB will show a very strong growth in Earnings Per Share. The EPS will grow by 22.86% on average per year.
Based on estimates for the next years, SPB will show a small growth in Revenue. The Revenue will grow by 2.39% on average per year.
EPS Next Y22.47%
EPS Next 2Y16.82%
EPS Next 3Y10.68%
EPS Next 5Y22.86%
Revenue Next Year1.55%
Revenue Next 2Y1.85%
Revenue Next 3Y1.7%
Revenue Next 5Y2.39%
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 12.69, which indicates a correct valuation of SPB.
Based on the Price/Earnings ratio, SPB is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.63. SPB is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.80, the valuation of SPB can be described as very reasonable.
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.
The average S&P500 Price/Forward Earnings ratio is at 20.85. SPB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.69 | ||
| Fwd PE | 9.8 |
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.
Based on the Price/Free Cash Flow ratio, SPB is valued more expensive than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.68 | ||
| EV/EBITDA | 6.41 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.56
PEG (5Y)1.46
EPS Next 2Y16.82%
EPS Next 3Y10.68%
5. Dividend
5.1 Amount
SPB has a Yearly Dividend Yield of 3.14%. Purely for dividend investing, there may be better candidates out there.
The stock price of SPB dropped by -29.83% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.74, SPB pays a bit more dividend than its industry peers.
SPB's Dividend Yield is a higher than the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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
41.66% of the earnings are spent on dividend by SPB. This is a bit on the high side, but may be sustainable.
DP41.66%
EPS Next 2Y16.82%
EPS Next 3Y10.68%
NYSE:SPB (4/22/2025, 2:10:03 PM)
59.78
+0.82 (+1.39%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners99.26%
Inst Owner Change0.13%
Ins Owners3.75%
Ins Owner Change0.06%
Market Cap1.57B
Analysts77.14
Price Target102.26 (71.06%)
Short Float %5.8%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
Yearly Dividend1.6
Dividend Growth(5Y)-0.88%
DP41.66%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.67%
Min EPS beat(2)-10.06%
Max EPS beat(2)8.72%
EPS beat(4)2
Avg EPS beat(4)36.77%
Min EPS beat(4)-10.27%
Max EPS beat(4)158.7%
EPS beat(8)5
Avg EPS beat(8)19.99%
EPS beat(12)5
Avg EPS beat(12)5.94%
EPS beat(16)6
Avg EPS beat(16)-1.47%
Revenue beat(2)1
Avg Revenue beat(2)0.43%
Min Revenue beat(2)-1.64%
Max Revenue beat(2)2.51%
Revenue beat(4)3
Avg Revenue beat(4)0.89%
Min Revenue beat(4)-1.64%
Max Revenue beat(4)2.51%
Revenue beat(8)4
Avg Revenue beat(8)-0.97%
Revenue beat(12)5
Avg Revenue beat(12)-2.54%
Revenue beat(16)6
Avg Revenue beat(16)-14.98%
PT rev (1m)0%
PT rev (3m)-4.41%
EPS NQ rev (1m)-1.07%
EPS NQ rev (3m)-7.45%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-4.6%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.69 | ||
| Fwd PE | 9.8 | ||
| P/S | 0.53 | ||
| P/FCF | 29.68 | ||
| P/OCF | 16.64 | ||
| P/B | 0.78 | ||
| P/tB | 7.52 | ||
| EV/EBITDA | 6.41 |
EPS(TTM)4.71
EY7.88%
EPS(NY)6.1
Fwd EY10.2%
FCF(TTM)2.01
FCFY3.37%
OCF(TTM)3.59
OCFY6.01%
SpS112.95
BVpS77.1
TBVpS7.95
PEG (NY)0.56
PEG (5Y)1.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 5.88% | ||
| ROCE | 6.62% | ||
| ROIC | 4.02% | ||
| ROICexc | 4.27% | ||
| ROICexgc | 11.83% | ||
| OM | 6.74% | ||
| PM (TTM) | 4.01% | ||
| GM | 37.76% | ||
| FCFM | 1.78% |
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-Score6
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 10.54 | ||
| Debt/EBITDA | 1.83 | ||
| Cap/Depr | 41.17% | ||
| Cap/Sales | 1.4% | ||
| Interest Coverage | 3.56 | ||
| Cash Conversion | 31.38% | ||
| Profit Quality | 44.43% | ||
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 2.71 |
F-Score6
WACC6.99%
ROIC/WACC0.57
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)71.27%
EPS 3Y-8.53%
EPS 5Y8.67%
EPS Q2Q%30.77%
EPS Next Y22.47%
EPS Next 2Y16.82%
EPS Next 3Y10.68%
EPS Next 5Y22.86%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y-0.38%
Revenue growth 5Y-4.86%
Sales Q2Q%1.16%
Revenue Next Year1.55%
Revenue Next 2Y1.85%
Revenue Next 3Y1.7%
Revenue Next 5Y2.39%
EBIT growth 1Y137.6%
EBIT growth 3Y-1.61%
EBIT growth 5Y-9.92%
EBIT Next Year67.97%
EBIT Next 3Y21.04%
EBIT Next 5YN/A
FCF growth 1Y-43.13%
FCF growth 3Y-21.46%
FCF growth 5YN/A
OCF growth 1Y-38.28%
OCF growth 3Y-17.39%
OCF growth 5Y171.61%