SPECTRUM BRANDS HOLDINGS INC (SPB) Stock Fundamental Analysis
NYSE:SPB - New York Stock Exchange, Inc. - US84790A1051 - Common Stock
SPB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 12 industry peers in the Household Products industry. The financial health of SPB is average, but there are quite some concerns on its profitability. 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
SPB's Return On Assets of 3.25% is on the low side compared to the rest of the industry. SPB is outperformed by 66.67% of its industry peers.
SPB has a worse Return On Equity (5.83%) than 91.67% of its industry peers.
SPB has a worse Return On Invested Capital (3.47%) than 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 15.26%.
The last Return On Invested Capital (3.47%) for SPB is above the 3 year average (1.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 5.83% | ||
| ROIC | 3.47% |
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 4.21%. 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.
Looking at the Operating Margin, with a value of 6.09%, SPB is doing worse than 91.67% of the companies in the same industry.
SPB's Operating Margin has declined in the last couple of years.
SPB has a Gross Margin of 37.42%. This is comparable to the rest of the industry: SPB outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of SPB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.09% | ||
| PM (TTM) | 4.21% | ||
| GM | 37.42% |
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.
The number of shares outstanding for SPB has been reduced compared to 1 year ago.
The number of shares outstanding for SPB has been reduced compared to 5 years ago.
Compared to 1 year ago, SPB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.85 indicates that SPB is not a great score, but indicates only limited risk for bankruptcy at the moment.
SPB has a Altman-Z score (2.85) which is in line with its industry peers.
SPB has a debt to FCF ratio of 4.73. This is a neutral value as SPB would need 4.73 years to pay back of all of its debts.
The Debt to FCF ratio of SPB (4.73) is worse than 83.33% of its industry peers.
SPB has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
SPB has a better Debt to Equity ratio (0.26) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 4.73 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.45
WACC7.67%
2.3 Liquidity
SPB has a Current Ratio of 2.30. This indicates that SPB is financially healthy and has no problem in meeting its short term obligations.
SPB has a Current ratio of 2.30. This is in the better half of the industry: SPB outperforms 66.67% of its industry peers.
A Quick Ratio of 1.62 indicates that SPB should not have too much problems paying its short term obligations.
The Quick ratio of SPB (1.62) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
SPB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 170.91%, which is quite impressive.
SPB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.67% yearly.
Looking at the last year, SPB shows a small growth in Revenue. The Revenue has grown by 1.55% in the last year.
SPB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.86% yearly.
EPS 1Y (TTM)170.91%
EPS 3Y-8.53%
EPS 5Y8.67%
EPS Q2Q%-28.68%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y-0.38%
Revenue growth 5Y-4.86%
Sales Q2Q%4.46%
3.2 Future
The Earnings Per Share is expected to grow by 21.85% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.66% on average over the next years.
EPS Next Y21.44%
EPS Next 2Y18.08%
EPS Next 3Y11.98%
EPS Next 5Y21.85%
Revenue Next Year2.56%
Revenue Next 2Y2.32%
Revenue Next 3Y1.98%
Revenue Next 5Y2.66%
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
Based on the Price/Earnings ratio of 19.27, the valuation of SPB can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SPB is on the same level as its industry peers.
SPB is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.87 indicates a correct valuation of SPB.
Based on the Price/Forward Earnings ratio, SPB is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. SPB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.27 | ||
| Fwd PE | 15.87 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.38 | ||
| EV/EBITDA | 9.24 |
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.
PEG (NY)0.9
PEG (5Y)2.22
EPS Next 2Y18.08%
EPS Next 3Y11.98%
5. Dividend
5.1 Amount
SPB has a Yearly Dividend Yield of 2.20%.
Compared to an average industry Dividend Yield of 2.48, SPB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, SPB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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 40.51% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP40.51%
EPS Next 2Y18.08%
EPS Next 3Y11.98%
SPECTRUM BRANDS HOLDINGS INC
NYSE:SPB (1/21/2025, 8:04:00 PM)
After market: 86.15 0 (0%)86.15
+0.62 (+0.72%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners97.43%
Inst Owner Change-0.12%
Ins Owners3.22%
Ins Owner Change0.06%
Market Cap2.42B
Analysts75.71
Price Target106.97 (24.17%)
Short Float %4.58%
Short Ratio3.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Yearly Dividend1.6
Dividend Growth(5Y)-0.88%
DP40.51%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.16%
Min EPS beat(2)-10.27%
Max EPS beat(2)-10.06%
EPS beat(4)2
Avg EPS beat(4)54.63%
Min EPS beat(4)-10.27%
Max EPS beat(4)158.7%
EPS beat(8)4
Avg EPS beat(8)18.08%
EPS beat(12)4
Avg EPS beat(12)-5.96%
EPS beat(16)6
Avg EPS beat(16)8.96%
Revenue beat(2)2
Avg Revenue beat(2)2.34%
Min Revenue beat(2)2.17%
Max Revenue beat(2)2.51%
Revenue beat(4)4
Avg Revenue beat(4)1.73%
Min Revenue beat(4)0.55%
Max Revenue beat(4)2.51%
Revenue beat(8)4
Avg Revenue beat(8)-1.5%
Revenue beat(12)6
Avg Revenue beat(12)-2.16%
Revenue beat(16)6
Avg Revenue beat(16)-16.63%
PT rev (1m)0%
PT rev (3m)-0.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.27 | ||
| Fwd PE | 15.87 | ||
| P/S | 0.82 | ||
| P/FCF | 20.38 | ||
| P/OCF | 14.86 | ||
| P/B | 1.13 | ||
| P/tB | 8.46 | ||
| EV/EBITDA | 9.24 |
EPS(TTM)4.47
EY5.19%
EPS(NY)5.43
Fwd EY6.3%
FCF(TTM)4.23
FCFY4.91%
OCF(TTM)5.8
OCFY6.73%
SpS105.66
BVpS76.32
TBVpS10.18
PEG (NY)0.9
PEG (5Y)2.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 5.83% | ||
| ROCE | 5.72% | ||
| ROIC | 3.47% | ||
| ROICexc | 3.93% | ||
| ROICexgc | 11.76% | ||
| OM | 6.09% | ||
| PM (TTM) | 4.21% | ||
| GM | 37.42% | ||
| FCFM | 4% |
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 Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 4.73 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 43.22% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 2.54 | ||
| Cash Conversion | 57.62% | ||
| Profit Quality | 94.96% | ||
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 2.85 |
F-Score7
WACC7.67%
ROIC/WACC0.45
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)170.91%
EPS 3Y-8.53%
EPS 5Y8.67%
EPS Q2Q%-28.68%
EPS Next Y21.44%
EPS Next 2Y18.08%
EPS Next 3Y11.98%
EPS Next 5Y21.85%
Revenue 1Y (TTM)1.55%
Revenue growth 3Y-0.38%
Revenue growth 5Y-4.86%
Sales Q2Q%4.46%
Revenue Next Year2.56%
Revenue Next 2Y2.32%
Revenue Next 3Y1.98%
Revenue Next 5Y2.66%
EBIT growth 1Y401.11%
EBIT growth 3Y-1.61%
EBIT growth 5Y-9.92%
EBIT Next Year66.24%
EBIT Next 3Y21.5%
EBIT Next 5YN/A
FCF growth 1Y125.3%
FCF growth 3Y-21.46%
FCF growth 5YN/A
OCF growth 1Y139.69%
OCF growth 3Y-17.39%
OCF growth 5Y171.61%