SPECTRUM BRANDS HOLDINGS INC (SPB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SPB - US84790A1051 - Common Stock
64.215 USD
-1.05 (-1.6%)
Overall SPB gets a fundamental rating of 5 out of 10. We evaluated SPB 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 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.
- 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
- 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.
- With a Return On Equity value of 5.23%, SPB is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
- SPB's Return On Invested Capital of 3.81% is on the low side compared to the rest of the industry. SPB is outperformed by 91.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SPB is significantly below the industry average of 14.84%.
- 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 worse Profit Margin (3.56%) than 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.
- In the last couple of years the Operating Margin of SPB has declined.
- With a Gross Margin value of 36.74%, 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 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.
- SPB has a Altman-Z score of 2.78. This is comparable to the rest of the industry: SPB outperforms 41.67% of its industry peers.
- SPB has a debt to FCF ratio of 3.44. This is a good value and a sign of high solvency as SPB would need 3.44 years to pay back of all of its debts.
- SPB has a Debt to FCF ratio (3.44) which is in line with its industry peers.
- A Debt/Equity ratio of 0.29 indicates that SPB is not too dependend on debt financing.
- SPB has a better Debt to Equity ratio (0.29) than 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
WACC7.23%
2.3 Liquidity
- SPB has a Current Ratio of 2.26. This indicates that SPB is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 2.26, SPB is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 1.41, SPB is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
- SPB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.16%, which is quite impressive.
- 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%.
- Measured over the past years, SPB shows a decrease in Revenue. The Revenue has been decreasing by -6.66% on average per year.
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
- Based on estimates for the next years, SPB will show a very strong growth in Earnings Per Share. The EPS will grow by 20.96% on average per year.
- 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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 11.57, which indicates a very decent valuation of SPB.
- 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.
- The average S&P500 Price/Earnings ratio is at 28.82. SPB is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 13.85, the valuation of SPB can be described as correct.
- SPB's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of SPB to the average of the S&P500 Index (25.95), we can say SPB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.57 | ||
| Fwd PE | 13.85 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SPB is valued cheaper than 83.33% of the companies in the same industry.
- 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 | 9.08 | ||
| EV/EBITDA | 7.1 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2
EPS Next 2Y-2.99%
EPS Next 3Y3.82%
5. Dividend
5.1 Amount
- SPB has a Yearly Dividend Yield of 2.88%.
- Compared to an average industry Dividend Yield of 2.65, 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 1.82.
| 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 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%
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 11.57 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.