SPECTRUM BRANDS HOLDINGS INC (SPB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPB - US84790A1051 - Common Stock
64.75 USD
+0.81 (+1.27%)
64.75 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to SPB. 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SPB had positive earnings in the past year.
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 2.96%, SPB is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 5.23%, SPB is doing worse than 83.33% of the companies in the same industry.
SPB has a Return On Invested Capital of 3.81%. This is amonst the worse of the industry: SPB underperforms 91.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SPB is significantly below the industry average of 14.87%.
The last Return On Invested Capital (3.81%) for SPB is above the 3 year average (2.62%), which is a sign of increasing profitability.
| 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.
SPB's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 6.38%, SPB is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
SPB's Operating Margin has declined in the last couple of years.
SPB has a Gross Margin (36.74%) which is comparable to the rest of the industry.
SPB's Gross Margin has been stable in the last couple of years.
| 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.
SPB has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SPB has less shares outstanding
The debt/assets ratio for SPB is higher compared to a year ago.
2.2 Solvency
SPB has an Altman-Z score of 2.78. 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 (2.78) 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.
A Debt/Equity ratio of 0.29 indicates that SPB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.29, SPB belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.44 | ||
| Altman-Z | 2.78 |
ROIC/WACC0.53
WACC7.2%
2.3 Liquidity
A Current Ratio of 2.26 indicates that SPB has no problem at all paying its short term obligations.
The Current ratio of SPB (2.26) is better than 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's Quick ratio of 1.41 is fine compared to the rest of the industry. SPB outperforms 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.
SPB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.78% yearly.
SPB shows a decrease in Revenue. In the last year, the revenue decreased by -5.22%.
SPB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.66% yearly.
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
The Earnings Per Share is expected to grow by 20.96% on average over the next years. This is a very strong growth
Based on estimates for the next years, SPB will show a small growth in Revenue. The Revenue will grow by 2.10% on average per year.
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
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
SPB is valuated reasonably with a Price/Earnings ratio of 11.67.
SPB's Price/Earnings ratio is rather cheap when compared to the industry. SPB is cheaper than 83.33% of the companies in the same industry.
SPB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
With a Price/Forward Earnings ratio of 13.97, SPB is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as SPB.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, SPB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 13.97 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SPB indicates a rather cheap valuation: SPB is cheaper than 83.33% of the companies listed in the same industry.
83.33% 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 | 9.16 | ||
| EV/EBITDA | 7.06 |
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 2.94%.
Compared to an average industry Dividend Yield of 2.75, SPB has a dividend in line with its industry peers.
SPB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
The dividend of SPB has a limited annual growth rate of 2.59%.
SPB has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of SPB decreased 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.
SPB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP48.25%
EPS Next 2Y-2.99%
EPS Next 3Y3.82%
64.75
+0.81 (+1.27%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners114.39%
Inst Owner Change-0.03%
Ins Owners4.09%
Ins Owner Change0.16%
Market Cap1.51B
Revenue(TTM)2.81B
Net Income(TTM)99.90M
Analysts77.14
Price Target79.31 (22.49%)
Short Float %13.34%
Short Ratio9.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
Yearly Dividend1.86
Dividend Growth(5Y)2.59%
DP48.25%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)90.29%
Min EPS beat(2)-4.18%
Max EPS beat(2)184.76%
EPS beat(4)2
Avg EPS beat(4)34.34%
Min EPS beat(4)-51.95%
Max EPS beat(4)184.76%
EPS beat(8)4
Avg EPS beat(8)44.48%
EPS beat(12)6
Avg EPS beat(12)23.5%
EPS beat(16)6
Avg EPS beat(16)4.11%
Revenue beat(2)0
Avg Revenue beat(2)-4.52%
Min Revenue beat(2)-6.67%
Max Revenue beat(2)-2.37%
Revenue beat(4)0
Avg Revenue beat(4)-3.62%
Min Revenue beat(4)-6.67%
Max Revenue beat(4)-1.64%
Revenue beat(8)4
Avg Revenue beat(8)-0.94%
Revenue beat(12)4
Avg Revenue beat(12)-2.21%
Revenue beat(16)6
Avg Revenue beat(16)-2.53%
PT rev (1m)0%
PT rev (3m)-1.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.8%
EPS NY rev (1m)0%
EPS NY rev (3m)1.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 13.97 | ||
| P/S | 0.54 | ||
| P/FCF | 9.16 | ||
| P/OCF | 7.44 | ||
| P/B | 0.79 | ||
| P/tB | 14.38 | ||
| EV/EBITDA | 7.06 |
EPS(TTM)5.55
EY8.57%
EPS(NY)4.64
Fwd EY7.16%
FCF(TTM)7.07
FCFY10.92%
OCF(TTM)8.71
OCFY13.45%
SpS120.15
BVpS81.68
TBVpS4.5
PEG (NY)N/A
PEG (5Y)2.02
Graham Number101
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 5.23% | ||
| ROCE | 6.28% | ||
| ROIC | 3.81% | ||
| ROICexc | 3.98% | ||
| ROICexgc | 11.72% | ||
| OM | 6.38% | ||
| PM (TTM) | 3.56% | ||
| GM | 36.74% | ||
| FCFM | 5.88% |
ROA(3y)13.49%
ROA(5y)9.05%
ROE(3y)27.54%
ROE(5y)20.23%
ROIC(3y)2.62%
ROIC(5y)2.19%
ROICexc(3y)2.94%
ROICexc(5y)2.42%
ROICexgc(3y)8.93%
ROICexgc(5y)6.71%
ROCE(3y)4.31%
ROCE(5y)3.61%
ROICexgc growth 3Y163.15%
ROICexgc growth 5Y-15.58%
ROICexc growth 3Y130.74%
ROICexc growth 5Y-9.4%
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%
F-Score5
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.44 | ||
| Debt/EBITDA | 2.01 | ||
| Cap/Depr | 39.08% | ||
| Cap/Sales | 1.36% | ||
| Interest Coverage | 6.79 | ||
| Cash Conversion | 73.42% | ||
| Profit Quality | 165.47% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 2.78 |
F-Score5
WACC7.2%
ROIC/WACC0.53
Cap/Depr(3y)49%
Cap/Depr(5y)49.74%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)24.16%
EPS 3Y59.41%
EPS 5Y5.78%
EPS Q2Q%169.07%
EPS Next Y-16.47%
EPS Next 2Y-2.99%
EPS Next 3Y3.82%
EPS Next 5Y20.96%
Revenue 1Y (TTM)-5.22%
Revenue growth 3Y-3.57%
Revenue growth 5Y-6.66%
Sales Q2Q%-5.2%
Revenue Next Year0.28%
Revenue Next 2Y0.87%
Revenue Next 3Y0.96%
Revenue Next 5Y2.1%
EBIT growth 1Y-0.61%
EBIT growth 3Y97.71%
EBIT growth 5Y-14.4%
EBIT Next Year117.52%
EBIT Next 3Y30.24%
EBIT Next 5YN/A
FCF growth 1Y39.38%
FCF growth 3YN/A
FCF growth 5Y-6.34%
OCF growth 1Y25.22%
OCF growth 3YN/A
OCF growth 5Y-6.85%
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 11.67 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.