SPECTRUM BRANDS HOLDINGS INC (SPB) Stock Fundamental Analysis
USA - NYSE:SPB - US84790A1051 - Common Stock
53.24 USD
+1.66 (+3.22%)
53.24 USD
0 (0%)
SPB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 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.
In multiple years SPB reported negative operating cash flow during the last 5 years.
1.2 Ratios
SPB's Return On Assets of 2.06% 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 Equity, with a value of 3.85%, SPB is doing worse than 83.33% of the companies in the same industry.
SPB has a worse Return On Invested Capital (3.47%) 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 14.90%.
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.
SPB's Profit Margin has declined in the last couple of years.
The Operating Margin of SPB (6.00%) 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 (37.32%) which is in line with 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
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
SPB has a better debt/assets ratio than last year.
2.2 Solvency
SPB has an Altman-Z score of 2.56. 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.
The Altman-Z score of SPB (2.56) is comparable to the rest of the 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.
With a Debt to FCF ratio value of 8.88, SPB is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.35 indicates that SPB is not too dependend on debt financing.
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 | 2.56 |
ROIC/WACC0.52
WACC6.65%
2.3 Liquidity
A Current Ratio of 2.42 indicates that SPB has no problem at all paying its short term obligations.
The Current ratio of SPB (2.42) is better than 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.
SPB has a Quick ratio of 1.50. This is in the better half of the industry: SPB outperforms 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.
The Earnings Per Share has been growing by 8.67% on average over the past years. This is quite good.
Looking at the last year, SPB shows a decrease in Revenue. The Revenue has decreased by -2.78% in the last year.
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
SPB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.15% yearly.
Based on estimates for the next years, SPB will show a small growth in Revenue. The Revenue will grow by 1.04% on average per year.
EPS Next Y-13.84%
EPS Next 2Y0.78%
EPS Next 3Y2.29%
EPS Next 5Y20.15%
Revenue Next Year-4.04%
Revenue Next 2Y-1.72%
Revenue Next 3Y-0.94%
Revenue Next 5Y1.04%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 13.62, the valuation of SPB can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of SPB indicates a somewhat cheap valuation: SPB is cheaper than 66.67% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SPB to the average of the S&P500 Index (26.34), we can say SPB is valued slightly cheaper.
A Price/Forward Earnings ratio of 11.73 indicates a reasonable valuation of SPB.
75.00% of the companies in the same industry are more expensive than SPB, based on the Price/Forward Earnings ratio.
SPB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.62 | ||
| 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.
75.00% 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 | 17.16 | ||
| EV/EBITDA | 6.78 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.57
EPS Next 2Y0.78%
EPS Next 3Y2.29%
5. Dividend
5.1 Amount
SPB has a Yearly Dividend Yield of 3.43%. 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 3.21.
SPB's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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 2Y0.78%
EPS Next 3Y2.29%
53.24
+1.66 (+3.22%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners112.82%
Inst Owner Change0.6%
Ins Owners3.51%
Ins Owner Change-0.11%
Market Cap1.29B
Revenue(TTM)2.85B
Net Income(TTM)72.90M
Analysts77.14
Price Target79.56 (49.44%)
Short Float %13.61%
Short Ratio8.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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)-0.79%
PT rev (3m)-3.55%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)10.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.83%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)3.27%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.62 | ||
| Fwd PE | 11.73 | ||
| P/S | 0.45 | ||
| P/FCF | 17.16 | ||
| P/OCF | 11.39 | ||
| P/B | 0.68 | ||
| P/tB | 17.68 | ||
| EV/EBITDA | 6.78 |
EPS(TTM)3.91
EY7.34%
EPS(NY)4.54
Fwd EY8.53%
FCF(TTM)3.1
FCFY5.83%
OCF(TTM)4.68
OCFY8.78%
SpS117.69
BVpS78.22
TBVpS3.01
PEG (NY)N/A
PEG (5Y)1.57
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 | 2.56 |
F-Score7
WACC6.65%
ROIC/WACC0.52
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 2Y0.78%
EPS Next 3Y2.29%
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-4.04%
Revenue Next 2Y-1.72%
Revenue Next 3Y-0.94%
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%
SPECTRUM BRANDS HOLDINGS INC / SPB FAQ
Can you provide the ChartMill fundamental rating for SPECTRUM BRANDS HOLDINGS INC?
ChartMill assigns a fundamental rating of 4 / 10 to SPB.
What is the valuation status of SPECTRUM BRANDS HOLDINGS INC (SPB) stock?
ChartMill assigns a valuation rating of 5 / 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.
Can you provide the financial health for SPB stock?
The financial health rating of SPECTRUM BRANDS HOLDINGS INC (SPB) is 5 / 10.
Can you provide the dividend sustainability for SPB stock?
The dividend rating of SPECTRUM BRANDS HOLDINGS INC (SPB) is 4 / 10 and the dividend payout ratio is 66.8%.