SPECTRUM BRANDS HOLDINGS INC (SPB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPB - US84790A1051 - Common Stock
64.68 USD
-0.56 (-0.86%)
64.68 USD
0 (0%)
Taking everything into account, SPB scores 5 out of 10 in our fundamental rating. SPB was compared to 12 industry peers in the Household Products industry. SPB scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
- SPB had a positive operating cash flow in the past year.
- 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
- The Return On Assets of SPB (2.96%) is worse than 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.
- Looking at the Return On Invested Capital, with a value of 3.81%, SPB is doing worse than 91.67% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for SPB is significantly below the industry average of 14.86%.
- 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 Profit Margin of 3.56%. 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 grown nicely.
- SPB's Operating Margin of 6.38% is on the low side compared to the rest of the industry. SPB is outperformed by 91.67% of its industry peers.
- SPB's Operating Margin has declined in the last couple of years.
- SPB has a Gross Margin (36.74%) which is in line with 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SPB is destroying value.
- Compared to 1 year ago, SPB has less shares outstanding
- The number of shares outstanding for SPB has been reduced compared to 5 years ago.
- The debt/assets ratio for SPB is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.78 indicates that SPB is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of SPB (2.78) is comparable to the rest of the 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 comparable to the rest of the industry.
- SPB has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
- SPB has a Debt to Equity ratio of 0.29. This is amongst the best in the industry. SPB outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 2.78 |
ROIC/WACC0.53
WACC7.24%
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 Current ratio of 2.26. This is in the better half of the industry: SPB outperforms 66.67% of its industry peers.
- SPB has a Quick Ratio of 1.41. 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 better Quick ratio (1.41) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 24.16% over the past year.
- The Earnings Per Share has been growing slightly by 5.78% on average over the past years.
- SPB shows a decrease in Revenue. In the last year, the revenue decreased by -5.22%.
- 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
- SPB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.96% yearly.
- 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
- With a Price/Earnings ratio of 11.65, the valuation of SPB can be described as very reasonable.
- 83.33% of the companies in the same industry are more expensive than SPB, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, SPB is valued rather cheaply.
- With a Price/Forward Earnings ratio of 13.95, SPB is valued correctly.
- SPB's Price/Forward Earnings is on the same level as the industry average.
- SPB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 13.95 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SPB is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
- 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 | 9.15 | ||
| EV/EBITDA | 7.1 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.02
EPS Next 2Y-2.99%
EPS Next 3Y3.82%
5. Dividend
5.1 Amount
- SPB has a Yearly Dividend Yield of 2.88%.
- SPB's Dividend Yield is a higher than the industry average which is at 2.67.
- 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 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)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.
- The dividend of SPB is growing, but earnings are growing more, so the dividend growth is 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 11.65 and the Price/Book (PB) ratio is 0.79.
How financially healthy is SPECTRUM BRANDS HOLDINGS INC?
The financial health rating of SPECTRUM BRANDS HOLDINGS INC (SPB) is 6 / 10.