FORTUNE BRANDS HOME & SECURI (FBHS)
US34964C1062 - Common Stock
Overall FBHS gets a fundamental rating of 5 out of 10. We evaluated FBHS against 43 industry peers in the Building Products industry. FBHS scores excellent on profitability, but there are concerns on its financial health. FBHS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year FBHS was profitable.
In the past year FBHS had a positive cash flow from operations.
FBHS had positive earnings in each of the past 5 years.
Each year in the past 5 years FBHS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.94%, FBHS is in the better half of the industry, outperforming 62.22% of the companies in the same industry.
FBHS's Return On Equity of 24.83% is fine compared to the rest of the industry. FBHS outperforms 66.67% of its industry peers.
FBHS has a better Return On Invested Capital (13.77%) than 62.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FBHS is significantly above the industry average of 13.67%.
The 3 year average ROIC (48.97%) for FBHS is well above the current ROIC(13.77%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.94% | ||
| ROE | 24.83% | ||
| ROIC | 13.77% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)48.97%
ROIC(5y)N/A
1.3 Margins
FBHS's Profit Margin of 9.35% is fine compared to the rest of the industry. FBHS outperforms 62.22% of its industry peers.
In the last couple of years the Profit Margin of FBHS has grown nicely.
With a decent Operating Margin value of 14.17%, FBHS is doing good in the industry, outperforming 62.22% of the companies in the same industry.
FBHS's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.17% | ||
| PM (TTM) | 9.35% | ||
| GM | N/A |
OM growth 3Y11.66%
OM growth 5Y6.4%
PM growth 3Y12.41%
PM growth 5Y4.01%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
FBHS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
FBHS has less shares outstanding than it did 1 year ago.
Compared to 1 year ago, FBHS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.97 indicates that FBHS is not a great score, but indicates only limited risk for bankruptcy at the moment.
FBHS has a Altman-Z score (2.97) which is in line with its industry peers.
The Debt to FCF ratio of FBHS is 12.53, which is on the high side as it means it would take FBHS, 12.53 years of fcf income to pay off all of its debts.
FBHS has a Debt to FCF ratio (12.53) which is in line with its industry peers.
A Debt/Equity ratio of 0.92 indicates that FBHS is somewhat dependend on debt financing.
FBHS's Debt to Equity ratio of 0.92 is on the low side compared to the rest of the industry. FBHS is outperformed by 68.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 12.53 | ||
| Altman-Z | 2.97 |
ROIC/WACC1.52
WACC9.04%
2.3 Liquidity
A Current Ratio of 1.47 indicates that FBHS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.47, FBHS is not doing good in the industry: 75.56% of the companies in the same industry are doing better.
FBHS has a Quick Ratio of 1.47. This is a bad value and indicates that FBHS is not financially healthy enough and could expect problems in meeting its short term obligations.
FBHS has a worse Quick ratio (0.74) than 84.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
FBHS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.60%.
Measured over the past years, FBHS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.07% on average per year.
The Revenue has grown by 9.41% in the past year. This is quite good.
Measured over the past years, FBHS shows a quite strong growth in Revenue. The Revenue has been growing by 8.96% on average per year.
EPS 1Y (TTM)7.6%
EPS 3Y19.59%
EPS 5Y16.07%
EPS growth Q2Q20.13%
Revenue 1Y (TTM)9.41%
Revenue growth 3Y11.76%
Revenue growth 5Y8.96%
Revenue growth Q2Q3.39%
3.2 Future
Based on estimates for the next years, FBHS will show a small growth in Earnings Per Share. The EPS will grow by 1.11% on average per year.
Based on estimates for the next years, FBHS will show a decrease in Revenue. The Revenue will decrease by -0.36% on average per year.
EPS Next Y11.19%
EPS Next 2Y0.5%
EPS Next 3Y2.94%
EPS Next 5Y1.11%
Revenue Next Year5.43%
Revenue Next 2Y-0.08%
Revenue Next 3Y0.57%
Revenue Next 5Y-0.36%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.16 indicates a reasonable valuation of FBHS.
73.33% of the companies in the same industry are more expensive than FBHS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.28. FBHS is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.70, the valuation of FBHS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, FBHS is valued a bit cheaper than the industry average as 68.89% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.88. FBHS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 10.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FBHS is on the same level as its industry peers.
FBHS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.36 | ||
| EV/EBITDA | 8.25 |
4.3 Compensation for Growth
FBHS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FBHS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.91
PEG (5Y)0.63
EPS Next 2Y0.5%
EPS Next 3Y2.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.86%, FBHS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.32, FBHS pays a better dividend. On top of this FBHS pays more dividend than 86.67% of the companies listed in the same industry.
FBHS's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
On average, the dividend of FBHS grows each year by 9.14%, which is quite nice.
FBHS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)9.14%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
19.26% of the earnings are spent on dividend by FBHS. This is a low number and sustainable payout ratio.
The dividend of FBHS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.26%
EPS Next 2Y0.5%
EPS Next 3Y2.94%
FORTUNE BRANDS HOME & SECURI
NYSE:FBHS (12/14/2022, 7:04:00 PM)
After market: 61.9 0 (0%)61.9
-1.32 (-2.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 10.7 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.91
PEG (5Y)0.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.94% | ||
| ROE | 24.83% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.17% | ||
| PM (TTM) | 9.35% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)7.6%
EPS 3Y19.59%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.41%
Revenue growth 3Y11.76%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y