SPECTRUM BRANDS HOLDINGS INC (SPB) Stock Fundamental Analysis
USA - NYSE:SPB - US84790A1051 - Common Stock
54.46 USD
+1.7 (+3.22%)
54.46 USD
0 (0%)
Overall SPB gets a fundamental rating of 4 out of 10. We evaluated SPB against 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 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.
In the past year SPB had a positive cash flow from operations.
In the past 5 years SPB has always been profitable.
In multiple years SPB reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.06%, SPB is doing worse than 91.67% of the companies in the same industry.
SPB's Return On Equity of 3.85% is on the low side compared to the rest of the industry. SPB is outperformed by 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 15.56%.
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 | 2.06% | ||
| ROE | 3.85% | ||
| 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's Profit Margin of 2.56% is on the low side compared to the rest of the industry. SPB is outperformed by 91.67% of its industry peers.
SPB's Profit Margin has declined in the last couple of years.
SPB has a worse Operating Margin (6.00%) than 91.67% of its industry peers.
SPB's Operating Margin has declined in the last couple of years.
SPB has a Gross Margin of 37.32%. 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% | ||
| PM (TTM) | 2.56% | ||
| GM | 37.32% |
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
SPB has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SPB has an improved debt to assets ratio.
2.2 Solvency
SPB has an Altman-Z score of 2.57. 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 (2.57) which is in line with its industry peers.
SPB has a debt to FCF ratio of 8.88. This is a slightly negative value and a sign of low solvency as SPB would need 8.88 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.88, SPB is doing worse than 83.33% of the companies in the same industry.
SPB has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
SPB's Debt to Equity ratio of 0.35 is amongst the best of the industry. SPB outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 8.88 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.52
WACC6.64%
2.3 Liquidity
A Current Ratio of 2.42 indicates that SPB has no problem at all paying its short term obligations.
SPB has a Current ratio of 2.42. This is in the better half of the industry: SPB outperforms 66.67% of its industry peers.
A Quick Ratio of 1.50 indicates that SPB should not have too much problems paying its short term obligations.
The Quick ratio of SPB (1.50) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The earnings per share for SPB have decreased strongly by -19.55% in the last year.
The Earnings Per Share has been growing by 8.67% on average over the past years. This is quite good.
SPB shows a decrease in Revenue. In the last year, the revenue decreased by -2.78%.
The Revenue has been decreasing by -4.86% on average over the past years.
EPS 1Y (TTM)-19.55%
EPS 3Y-8.53%
EPS 5Y8.67%
EPS Q2Q%12.73%
Revenue 1Y (TTM)-2.78%
Revenue growth 3Y-0.38%
Revenue growth 5Y-4.86%
Sales Q2Q%-10.24%
3.2 Future
The Earnings Per Share is expected to grow by 20.15% 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 1.04% on average per year.
EPS Next Y-13.01%
EPS Next 2Y0.29%
EPS Next 3Y3.28%
EPS Next 5Y20.15%
Revenue Next Year-3.94%
Revenue Next 2Y-1.61%
Revenue Next 3Y-0.85%
Revenue Next 5Y1.04%
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
A Price/Earnings ratio of 13.93 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.
Compared to an average S&P500 Price/Earnings ratio of 27.41, SPB is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.11, SPB is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SPB indicates a rather cheap valuation: SPB is cheaper than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, SPB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 12.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPB is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPB indicates a somewhat cheap valuation: SPB is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.56 | ||
| EV/EBITDA | 6.88 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.61
EPS Next 2Y0.29%
EPS Next 3Y3.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.42%, SPB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.86, 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
5.2 History
The dividend of SPB decreases each year by -0.88%.
SPB has paid a dividend for at least 10 years, which is a reliable track record.
SPB has decreased its dividend recently.
Dividend Growth(5Y)-0.88%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SPB pays out 66.80% of its income as dividend. This is not a sustainable payout ratio.
DP66.8%
EPS Next 2Y0.29%
EPS Next 3Y3.28%
54.46
+1.7 (+3.22%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners103.89%
Inst Owner Change4.08%
Ins Owners3.52%
Ins Owner Change-0.11%
Market Cap1.32B
Analysts77.14
Price Target80.2 (47.26%)
Short Float %13.8%
Short Ratio6.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
Yearly Dividend1.6
Dividend Growth(5Y)-0.88%
DP66.8%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-28.06%
Min EPS beat(2)-51.95%
Max EPS beat(2)-4.18%
EPS beat(4)1
Avg EPS beat(4)-14.37%
Min EPS beat(4)-51.95%
Max EPS beat(4)8.72%
EPS beat(8)4
Avg EPS beat(8)25.21%
EPS beat(12)5
Avg EPS beat(12)6.67%
EPS beat(16)5
Avg EPS beat(16)-9.57%
Revenue beat(2)0
Avg Revenue beat(2)-5.22%
Min Revenue beat(2)-6.67%
Max Revenue beat(2)-3.78%
Revenue beat(4)1
Avg Revenue beat(4)-2.4%
Min Revenue beat(4)-6.67%
Max Revenue beat(4)2.51%
Revenue beat(8)4
Avg Revenue beat(8)-0.73%
Revenue beat(12)4
Avg Revenue beat(12)-2.51%
Revenue beat(16)6
Avg Revenue beat(16)-11.59%
PT rev (1m)-2.78%
PT rev (3m)-5.84%
EPS NQ rev (1m)2.38%
EPS NQ rev (3m)13.53%
EPS NY rev (1m)-0.88%
EPS NY rev (3m)-17.18%
Revenue NQ rev (1m)1.23%
Revenue NQ rev (3m)3.68%
Revenue NY rev (1m)-0.59%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 12.11 | ||
| P/S | 0.46 | ||
| P/FCF | 17.56 | ||
| P/OCF | 11.65 | ||
| P/B | 0.7 | ||
| P/tB | 18.09 | ||
| EV/EBITDA | 6.88 |
EPS(TTM)3.91
EY7.18%
EPS(NY)4.5
Fwd EY8.26%
FCF(TTM)3.1
FCFY5.7%
OCF(TTM)4.68
OCFY8.59%
SpS117.69
BVpS78.22
TBVpS3.01
PEG (NY)N/A
PEG (5Y)1.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 3.85% | ||
| ROCE | 5.72% | ||
| ROIC | 3.47% | ||
| ROICexc | 3.62% | ||
| ROICexgc | 9.92% | ||
| OM | 6% | ||
| PM (TTM) | 2.56% | ||
| GM | 37.32% | ||
| FCFM | 2.64% |
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 Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 8.88 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 38.25% | ||
| Cap/Sales | 1.34% | ||
| Interest Coverage | 6.95 | ||
| Cash Conversion | 41.83% | ||
| Profit Quality | 103.02% | ||
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 2.57 |
F-Score7
WACC6.64%
ROIC/WACC0.52
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)-19.55%
EPS 3Y-8.53%
EPS 5Y8.67%
EPS Q2Q%12.73%
EPS Next Y-13.01%
EPS Next 2Y0.29%
EPS Next 3Y3.28%
EPS Next 5Y20.15%
Revenue 1Y (TTM)-2.78%
Revenue growth 3Y-0.38%
Revenue growth 5Y-4.86%
Sales Q2Q%-10.24%
Revenue Next Year-3.94%
Revenue Next 2Y-1.61%
Revenue Next 3Y-0.85%
Revenue Next 5Y1.04%
EBIT growth 1Y3.83%
EBIT growth 3Y-1.61%
EBIT growth 5Y-9.92%
EBIT Next Year47.03%
EBIT Next 3Y12.19%
EBIT Next 5YN/A
FCF growth 1Y-40.35%
FCF growth 3Y-21.46%
FCF growth 5YN/A
OCF growth 1Y-40.07%
OCF growth 3Y-17.39%
OCF growth 5Y171.61%