SPECTRUM BRANDS HOLDINGS INC (SPB) Stock Fundamental Analysis
NYSE:SPB - New York Stock Exchange, Inc. - US84790A1051 - Common Stock - Currency: USD
We assign a fundamental rating of 4 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.
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 3.30% is on the low side compared to the rest of the industry. SPB is outperformed by 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 5.88%, SPB is doing worse than 83.33% of the companies in the same industry.
The Return On Invested Capital of SPB (4.02%) is worse than 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 15.69%.
The last Return On Invested Capital (4.02%) for SPB is above the 3 year average (1.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 5.88% | ||
| ROIC | 4.02% |
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 4.01%. This is in the lower half of the industry: SPB underperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of SPB has declined.
With a Operating Margin value of 6.74%, 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 37.76%, SPB perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
SPB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.74% | ||
| PM (TTM) | 4.01% | ||
| GM | 37.76% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SPB is destroying value.
Compared to 1 year ago, SPB has less shares outstanding
Compared to 5 years ago, SPB has less shares outstanding
Compared to 1 year ago, SPB has an improved debt to assets ratio.
2.2 Solvency
SPB has an Altman-Z score of 2.91. 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.
SPB has a Altman-Z score (2.91) which is in line with its industry peers.
The Debt to FCF ratio of SPB is 10.54, which is on the high side as it means it would take SPB, 10.54 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SPB (10.54) is worse than 83.33% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that SPB is not too dependend on debt financing.
SPB has a better Debt to Equity ratio (0.27) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 10.54 | ||
| Altman-Z | 2.91 |
ROIC/WACC0.54
WACC7.38%
2.3 Liquidity
SPB has a Current Ratio of 2.40. This indicates that SPB is financially healthy and has no problem in meeting its short term obligations.
SPB's Current ratio of 2.40 is fine compared to the rest of the industry. SPB outperforms 66.67% of its industry peers.
SPB has a Quick Ratio of 1.53. This is a normal value and indicates that SPB is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SPB (1.53) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 71.27% over the past year.
Measured over the past years, SPB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.67% on average per year.
The Revenue has been growing slightly by 2.56% in the past year.
SPB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.86% yearly.
EPS 1Y (TTM)71.27%
EPS 3Y-8.53%
EPS 5Y8.67%
EPS Q2Q%30.77%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y-0.38%
Revenue growth 5Y-4.86%
Sales Q2Q%1.16%
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 21.85% on average per year.
The Revenue is expected to grow by 2.66% on average over the next years.
EPS Next Y23.22%
EPS Next 2Y19.52%
EPS Next 3Y14.51%
EPS Next 5Y21.85%
Revenue Next Year2.19%
Revenue Next 2Y2.12%
Revenue Next 3Y1.72%
Revenue Next 5Y2.66%
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 correctly with a Price/Earnings ratio of 16.82.
SPB's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.63, SPB is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.41, the valuation of SPB can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SPB indicates a rather cheap valuation: SPB is cheaper than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, SPB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.82 | ||
| Fwd PE | 12.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPB is valued cheaper than 91.67% of the companies in the same industry.
83.33% of the companies in the same industry are cheaper than SPB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.33 | ||
| EV/EBITDA | 8.17 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SPB's earnings are expected to grow with 14.51% in the coming years.
PEG (NY)0.72
PEG (5Y)1.94
EPS Next 2Y19.52%
EPS Next 3Y14.51%
5. Dividend
5.1 Amount
SPB has a Yearly Dividend Yield of 2.38%.
SPB's Dividend Yield is a higher than the industry average which is at 2.57.
Compared to an average S&P500 Dividend Yield of 2.29, SPB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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
41.66% of the earnings are spent on dividend by SPB. This is a bit on the high side, but may be sustainable.
DP41.66%
EPS Next 2Y19.52%
EPS Next 3Y14.51%
79.22
+0.1 (+0.13%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners99.26%
Inst Owner Change-7.38%
Ins Owners3.75%
Ins Owner Change0.06%
Market Cap2.08B
Analysts75.71
Price Target102.26 (29.08%)
Short Float %5.05%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
Yearly Dividend1.6
Dividend Growth(5Y)-0.88%
DP41.66%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.67%
Min EPS beat(2)-10.06%
Max EPS beat(2)8.72%
EPS beat(4)2
Avg EPS beat(4)36.77%
Min EPS beat(4)-10.27%
Max EPS beat(4)158.7%
EPS beat(8)5
Avg EPS beat(8)19.99%
EPS beat(12)5
Avg EPS beat(12)5.94%
EPS beat(16)6
Avg EPS beat(16)-1.47%
Revenue beat(2)1
Avg Revenue beat(2)0.43%
Min Revenue beat(2)-1.64%
Max Revenue beat(2)2.51%
Revenue beat(4)3
Avg Revenue beat(4)0.89%
Min Revenue beat(4)-1.64%
Max Revenue beat(4)2.51%
Revenue beat(8)4
Avg Revenue beat(8)-0.97%
Revenue beat(12)5
Avg Revenue beat(12)-2.54%
Revenue beat(16)6
Avg Revenue beat(16)-14.98%
PT rev (1m)-1.07%
PT rev (3m)-1.78%
EPS NQ rev (1m)-6.45%
EPS NQ rev (3m)-10.58%
EPS NY rev (1m)1.47%
EPS NY rev (3m)-5.03%
Revenue NQ rev (1m)-3.93%
Revenue NQ rev (3m)-4.11%
Revenue NY rev (1m)-0.36%
Revenue NY rev (3m)0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.82 | ||
| Fwd PE | 12.41 | ||
| P/S | 0.7 | ||
| P/FCF | 39.33 | ||
| P/OCF | 22.06 | ||
| P/B | 1.03 | ||
| P/tB | 9.97 | ||
| EV/EBITDA | 8.17 |
EPS(TTM)4.71
EY5.95%
EPS(NY)6.39
Fwd EY8.06%
FCF(TTM)2.01
FCFY2.54%
OCF(TTM)3.59
OCFY4.53%
SpS112.95
BVpS77.1
TBVpS7.95
PEG (NY)0.72
PEG (5Y)1.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 5.88% | ||
| ROCE | 6.62% | ||
| ROIC | 4.02% | ||
| ROICexc | 4.27% | ||
| ROICexgc | 11.83% | ||
| OM | 6.74% | ||
| PM (TTM) | 4.01% | ||
| GM | 37.76% | ||
| FCFM | 1.78% |
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-Score6
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 10.54 | ||
| Debt/EBITDA | 1.83 | ||
| Cap/Depr | 41.17% | ||
| Cap/Sales | 1.4% | ||
| Interest Coverage | 3.56 | ||
| Cash Conversion | 31.38% | ||
| Profit Quality | 44.43% | ||
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 2.91 |
F-Score6
WACC7.38%
ROIC/WACC0.54
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)71.27%
EPS 3Y-8.53%
EPS 5Y8.67%
EPS Q2Q%30.77%
EPS Next Y23.22%
EPS Next 2Y19.52%
EPS Next 3Y14.51%
EPS Next 5Y21.85%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y-0.38%
Revenue growth 5Y-4.86%
Sales Q2Q%1.16%
Revenue Next Year2.19%
Revenue Next 2Y2.12%
Revenue Next 3Y1.72%
Revenue Next 5Y2.66%
EBIT growth 1Y137.6%
EBIT growth 3Y-1.61%
EBIT growth 5Y-9.92%
EBIT Next Year66.15%
EBIT Next 3Y21.38%
EBIT Next 5YN/A
FCF growth 1Y-43.13%
FCF growth 3Y-21.46%
FCF growth 5YN/A
OCF growth 1Y-38.28%
OCF growth 3Y-17.39%
OCF growth 5Y171.61%