SPECTRUM BRANDS HOLDINGS INC (SPB) Stock Fundamental Analysis
USA - NYSE:SPB - US84790A1051 - Common Stock
55.19 USD
-0.16 (-0.29%)
55.19 USD
0 (0%)
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.
Each year in the past 5 years SPB has 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
The Return On Assets of SPB (2.06%) is worse than 91.67% of its industry peers.
SPB has a Return On Equity of 3.85%. This is amonst the worse of the industry: SPB underperforms 91.67% of its industry peers.
SPB's Return On Invested Capital of 3.47% is on the low side compared to the rest of the industry. SPB is outperformed by 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 15.54%.
The last Return On Invested Capital (3.47%) for SPB is above the 3 year average (1.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 3.85% | ||
| ROIC | 3.47% |
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 2.56%. This is amonst the worse of the industry: SPB underperforms 91.67% of its industry peers.
In the last couple of years the Profit Margin of SPB has declined.
Looking at the Operating Margin, with a value of 6.00%, SPB is doing worse than 91.67% of the companies in the same industry.
In the last couple of years the Operating Margin of SPB has declined.
SPB's Gross Margin of 37.32% 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 grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6% | ||
| PM (TTM) | 2.56% | ||
| GM | 37.32% |
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.
Compared to 1 year ago, SPB has less shares outstanding
Compared to 5 years ago, SPB has less shares outstanding
Compared to 1 year ago, SPB has an improved debt to assets ratio.
2.2 Solvency
SPB has an Altman-Z score of 2.58. 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.
With a Altman-Z score value of 2.58, SPB perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
SPB has a debt to FCF ratio of 8.88. This is a slightly negative value and a sign of low solvency as SPB would need 8.88 years to pay back of all of its debts.
SPB has a worse Debt to FCF ratio (8.88) than 83.33% of its industry peers.
SPB has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.35, SPB belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 8.88 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.53
WACC6.61%
2.3 Liquidity
A Current Ratio of 2.42 indicates that SPB has no problem at all paying its short term obligations.
SPB's Current ratio of 2.42 is fine compared to the rest of the industry. SPB outperforms 66.67% of its industry peers.
SPB has a Quick Ratio of 1.50. This is a normal value and indicates that SPB is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SPB (1.50) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The earnings per share for SPB have decreased strongly by -19.55% 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.
SPB shows a decrease in Revenue. In the last year, the revenue decreased by -2.78%.
The Revenue has been decreasing by -4.86% on average over the past years.
EPS 1Y (TTM)-19.55%
EPS 3Y-8.53%
EPS 5Y8.67%
EPS Q2Q%12.73%
Revenue 1Y (TTM)-2.78%
Revenue growth 3Y-0.38%
Revenue growth 5Y-4.86%
Sales Q2Q%-10.24%
3.2 Future
The Earnings Per Share is expected to grow by 20.15% on average over the next years. This is a very strong growth
SPB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.04% yearly.
EPS Next Y-13.84%
EPS Next 2Y0.92%
EPS Next 3Y3.2%
EPS Next 5Y20.15%
Revenue Next Year-3.94%
Revenue Next 2Y-1.61%
Revenue Next 3Y-0.85%
Revenue Next 5Y1.04%
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
Based on the Price/Earnings ratio of 14.12, the valuation of SPB can be described as correct.
66.67% of the companies in the same industry are more expensive than SPB, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SPB to the average of the S&P500 Index (27.57), we can say SPB is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.12 indicates a correct valuation of SPB.
Based on the Price/Forward Earnings ratio, SPB is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
SPB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 12.12 |
4.2 Price Multiples
SPB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SPB is cheaper than 100.00% of the companies in the same industry.
66.67% of the companies in the same industry are more expensive than SPB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.79 | ||
| EV/EBITDA | 6.96 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.63
EPS Next 2Y0.92%
EPS Next 3Y3.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.59%, SPB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.09, SPB pays a bit more dividend than its industry peers.
SPB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.59% |
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
66.80% of the earnings are spent on dividend by SPB. This is not a sustainable payout ratio.
DP66.8%
EPS Next 2Y0.92%
EPS Next 3Y3.2%
55.19
-0.16 (-0.29%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners112.82%
Inst Owner Change0.14%
Ins Owners3.51%
Ins Owner Change-0.11%
Market Cap1.34B
Revenue(TTM)2.85B
Net Income(TTM)72.90M
Analysts77.14
Price Target80.2 (45.32%)
Short Float %14.03%
Short Ratio6.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.59% |
Yearly Dividend1.6
Dividend Growth(5Y)-0.88%
DP66.8%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-28.06%
Min EPS beat(2)-51.95%
Max EPS beat(2)-4.18%
EPS beat(4)1
Avg EPS beat(4)-14.37%
Min EPS beat(4)-51.95%
Max EPS beat(4)8.72%
EPS beat(8)4
Avg EPS beat(8)25.21%
EPS beat(12)5
Avg EPS beat(12)6.67%
EPS beat(16)5
Avg EPS beat(16)-9.57%
Revenue beat(2)0
Avg Revenue beat(2)-5.22%
Min Revenue beat(2)-6.67%
Max Revenue beat(2)-3.78%
Revenue beat(4)1
Avg Revenue beat(4)-2.4%
Min Revenue beat(4)-6.67%
Max Revenue beat(4)2.51%
Revenue beat(8)4
Avg Revenue beat(8)-0.73%
Revenue beat(12)4
Avg Revenue beat(12)-2.51%
Revenue beat(16)6
Avg Revenue beat(16)-11.59%
PT rev (1m)0%
PT rev (3m)-2.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)16.43%
EPS NY rev (1m)-0.95%
EPS NY rev (3m)-1.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 12.12 | ||
| P/S | 0.47 | ||
| P/FCF | 17.79 | ||
| P/OCF | 11.8 | ||
| P/B | 0.71 | ||
| P/tB | 18.33 | ||
| EV/EBITDA | 6.96 |
EPS(TTM)3.91
EY7.08%
EPS(NY)4.55
Fwd EY8.25%
FCF(TTM)3.1
FCFY5.62%
OCF(TTM)4.68
OCFY8.47%
SpS117.69
BVpS78.22
TBVpS3.01
PEG (NY)N/A
PEG (5Y)1.63
Graham Number82.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 3.85% | ||
| ROCE | 5.72% | ||
| ROIC | 3.47% | ||
| ROICexc | 3.62% | ||
| ROICexgc | 9.92% | ||
| OM | 6% | ||
| PM (TTM) | 2.56% | ||
| GM | 37.32% | ||
| FCFM | 2.64% |
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%
ROICexgc growth 3Y25.17%
ROICexgc 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 Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 8.88 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 38.25% | ||
| Cap/Sales | 1.34% | ||
| Interest Coverage | 6.95 | ||
| Cash Conversion | 41.83% | ||
| Profit Quality | 103.02% | ||
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 2.58 |
F-Score7
WACC6.61%
ROIC/WACC0.53
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)-19.55%
EPS 3Y-8.53%
EPS 5Y8.67%
EPS Q2Q%12.73%
EPS Next Y-13.84%
EPS Next 2Y0.92%
EPS Next 3Y3.2%
EPS Next 5Y20.15%
Revenue 1Y (TTM)-2.78%
Revenue growth 3Y-0.38%
Revenue growth 5Y-4.86%
Sales Q2Q%-10.24%
Revenue Next Year-3.94%
Revenue Next 2Y-1.61%
Revenue Next 3Y-0.85%
Revenue Next 5Y1.04%
EBIT growth 1Y3.83%
EBIT growth 3Y-1.61%
EBIT growth 5Y-9.92%
EBIT Next Year42.55%
EBIT Next 3Y13.48%
EBIT Next 5YN/A
FCF growth 1Y-40.35%
FCF growth 3Y-21.46%
FCF growth 5YN/A
OCF growth 1Y-40.07%
OCF growth 3Y-17.39%
OCF growth 5Y171.61%