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 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
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
With a Return On Assets value of 1.67%, 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 (3.14%) than 91.67% of its industry peers.
The Return On Invested Capital of SPB (3.76%) is worse 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 15.82%.
The 3 year average ROIC (1.45%) for SPB is below the current ROIC(3.76%), indicating increased profibility in the last year.
| 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.
SPB's Profit Margin has declined in the last couple of years.
SPB has a Operating Margin of 6.27%. This is amonst the worse of the industry: SPB underperforms 91.67% of its industry peers.
In the last couple of years the Operating Margin of SPB has declined.
With a Gross Margin value of 37.63%, SPB perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
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
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
SPB has a better debt/assets ratio than last year.
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 of 2.63. This is comparable to the rest of the industry: SPB outperforms 41.67% of its industry peers.
The Debt to FCF ratio of SPB is 8.45, which is on the high side as it means it would take SPB, 8.45 years of fcf income to pay off all of its debts.
SPB has a Debt to FCF ratio of 8.45. This is amonst the worse of the industry: SPB underperforms 83.33% of its industry peers.
SPB has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
SPB's Debt to Equity ratio of 0.34 is amongst the best of the industry. SPB outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 8.45 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.55
WACC6.85%
2.3 Liquidity
SPB has a Current Ratio of 2.34. This indicates that SPB is financially healthy and has no problem in meeting 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
The earnings per share for SPB have decreased strongly by -16.41% 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 small growth in Revenue. In the last year, the Revenue has grown by 1.46%.
The Revenue has been decreasing by -4.86% on average over the past years.
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
The Earnings Per Share is expected to grow by 19.24% on average over the next years. This is quite good.
SPB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.88% yearly.
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
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 14.57, which indicates a correct valuation of SPB.
66.67% of the companies in the same industry are more expensive than SPB, based on the Price/Earnings ratio.
SPB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.29.
SPB is valuated reasonably with a Price/Forward Earnings ratio of 11.39.
Based on the Price/Forward Earnings ratio, SPB is valued 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 21.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 11.39 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than SPB, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as SPB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.1 | ||
| EV/EBITDA | 6.91 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.68
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.
Compared to an average industry Dividend Yield of 2.97, 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 2.37.
| 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.
The dividend of SPB decreased 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%
54.94
-1.64 (-2.9%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners104.32%
Inst Owner Change-0.04%
Ins Owners3.66%
Ins Owner Change-0.11%
Market Cap1.37B
Analysts77.14
Price Target84.53 (53.86%)
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 | 14.57 | ||
| Fwd PE | 11.39 | ||
| P/S | 0.47 | ||
| P/FCF | 18.1 | ||
| P/OCF | 12.04 | ||
| P/B | 0.73 | ||
| P/tB | 17.43 | ||
| EV/EBITDA | 6.91 |
EPS(TTM)3.77
EY6.86%
EPS(NY)4.82
Fwd EY8.78%
FCF(TTM)3.04
FCFY5.53%
OCF(TTM)4.56
OCFY8.31%
SpS117.16
BVpS75.39
TBVpS3.15
PEG (NY)N/A
PEG (5Y)1.68
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
WACC6.85%
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%