FORTUNE BRANDS HOME & SECURI (FBHS) Stock Fundamental Analysis
USA - NYSE:FBHS - US34964C1062 - Common Stock
61.9 USD
-1.32 (-2.09%)
61.9 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to FBHS. FBHS was compared to 41 industry peers in the Building Products industry. While FBHS is still in line with the averages on profitability rating, there are concerns on its financial health. FBHS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year FBHS was profitable.
FBHS had a positive operating cash flow in the past year.
1.2 Ratios
The Return On Assets of FBHS (8.94%) is better than 62.22% of its industry peers.
With a decent Return On Equity value of 24.83%, FBHS is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Return On Invested Capital of FBHS (13.77%) is better than 62.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FBHS is significantly above the industry average of 12.64%.
The last Return On Invested Capital (13.77%) for FBHS is well below the 3 year average (48.97%), which needs to be investigated, but indicates that FBHS had better years and this may not be a problem.
| 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 has a better Profit Margin (9.35%) than 62.22% of its industry peers.
FBHS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.17%, FBHS is in the better half of the industry, outperforming 62.22% of the companies in the same industry.
In the last couple of years the Operating Margin of FBHS has grown nicely.
| 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.
The debt/assets ratio for FBHS has been reduced compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 2.97, FBHS is in line with its industry, outperforming 46.67% of the companies in the same industry.
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.
FBHS has a Debt/Equity ratio of 0.92. This is a neutral value indicating FBHS is somewhat dependend on debt financing.
FBHS has a Debt to Equity ratio of 0.92. This is in the lower half of the industry: FBHS underperforms 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.
FBHS has a worse Current ratio (1.47) than 75.56% of its industry peers.
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
The Earnings Per Share has been growing slightly by 7.60% over the past year.
The Earnings Per Share has been growing by 16.07% on average over the past years. This is quite good.
FBHS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.41%.
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 Q2Q%20.13%
Revenue 1Y (TTM)9.41%
Revenue growth 3Y11.76%
Revenue growth 5Y8.96%
Sales Q2Q%3.39%
3.2 Future
FBHS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.11% yearly.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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 26.89. FBHS is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.70, the valuation of FBHS can be described as 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.
When comparing the Price/Forward Earnings ratio of FBHS to the average of the S&P500 Index (22.99), we can say FBHS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 10.7 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FBHS.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FBHS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.36 | ||
| EV/EBITDA | 8.25 |
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.
The decent profitability rating of FBHS 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
FBHS has a Yearly Dividend Yield of 1.86%.
FBHS's Dividend Yield is rather good when compared to the industry average which is at 1.24. FBHS pays more dividend than 86.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, FBHS has a dividend comparable with the average S&P500 company.
| 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 paid a dividend for at least 10 years, which is 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.
FBHS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.26%
EPS Next 2Y0.5%
EPS Next 3Y2.94%
61.9
-1.32 (-2.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners86.09%
Inst Owner Change0.1%
Ins Owners0.86%
Ins Owner Change0%
Market Cap7.94B
Revenue(TTM)8.04B
Net Income(TTM)752.40M
Analysts72.8
Price Target74.6 (20.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend1.04
Dividend Growth(5Y)9.14%
DP19.26%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.45%
Min EPS beat(2)2.28%
Max EPS beat(2)2.61%
EPS beat(4)4
Avg EPS beat(4)1.7%
Min EPS beat(4)0.05%
Max EPS beat(4)2.61%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.24%
Min Revenue beat(2)-3.54%
Max Revenue beat(2)1.05%
Revenue beat(4)2
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-3.54%
Max Revenue beat(4)1.05%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.01%
PT rev (3m)N/A
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.81%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 10.7 | ||
| P/S | 0.99 | ||
| P/FCF | 29.36 | ||
| P/OCF | 14.52 | ||
| P/B | 2.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.25 |
EPS(TTM)6.09
EY9.84%
EPS(NY)5.79
Fwd EY9.35%
FCF(TTM)2.11
FCFY3.41%
OCF(TTM)4.26
OCFY6.89%
SpS62.73
BVpS23.63
TBVpS-6.96
PEG (NY)0.91
PEG (5Y)0.63
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.94% | ||
| ROE | 24.83% | ||
| ROCE | N/A | ||
| ROIC | 13.77% | ||
| ROICexc | 14.56% | ||
| ROICexgc | 41.74% | ||
| OM | 14.17% | ||
| PM (TTM) | 9.35% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)48.97%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y1.41%
ROICexgc growth 5Y6.84%
ROICexc growth 3YN/A
ROICexc growth 5YN/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
F-Score5
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 12.53 | ||
| Debt/EBITDA | 2.55 | ||
| Cap/Depr | 145.35% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 35.94% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 2.97 |
F-Score5
WACC9.04%
ROIC/WACC1.52
Cap/Depr(3y)97.21%
Cap/Depr(5y)103.72%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)100.18%
Profit Quality(5y)101.83%
High Growth Momentum
Growth
EPS 1Y (TTM)7.6%
EPS 3Y19.59%
EPS 5Y16.07%
EPS Q2Q%20.13%
EPS Next Y11.19%
EPS Next 2Y0.5%
EPS Next 3Y2.94%
EPS Next 5Y1.11%
Revenue 1Y (TTM)9.41%
Revenue growth 3Y11.76%
Revenue growth 5Y8.96%
Sales Q2Q%3.39%
Revenue Next Year5.43%
Revenue Next 2Y-0.08%
Revenue Next 3Y0.57%
Revenue Next 5Y-0.36%
EBIT growth 1Y6.17%
EBIT growth 3Y24.79%
EBIT growth 5Y15.93%
EBIT Next Year24.98%
EBIT Next 3Y6.02%
EBIT Next 5Y2.71%
FCF growth 1Y-59.92%
FCF growth 3Y1.49%
FCF growth 5Y-1.09%
OCF growth 1Y-30.81%
OCF growth 3Y4.47%
OCF growth 5Y1.15%
FORTUNE BRANDS HOME & SECURI / FBHS FAQ
What is the fundamental rating for FBHS stock?
ChartMill assigns a fundamental rating of 4 / 10 to FBHS.
What is the valuation status for FBHS stock?
ChartMill assigns a valuation rating of 6 / 10 to FORTUNE BRANDS HOME & SECURI (FBHS). This can be considered as Fairly Valued.
How profitable is FORTUNE BRANDS HOME & SECURI (FBHS) stock?
FORTUNE BRANDS HOME & SECURI (FBHS) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for FBHS stock?
The Price/Earnings (PE) ratio for FORTUNE BRANDS HOME & SECURI (FBHS) is 10.16 and the Price/Book (PB) ratio is 2.62.
How sustainable is the dividend of FORTUNE BRANDS HOME & SECURI (FBHS) stock?
The dividend rating of FORTUNE BRANDS HOME & SECURI (FBHS) is 5 / 10 and the dividend payout ratio is 19.26%.