FORTUNE BRANDS HOME & SECURI (FBHS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FBHS - US34964C1062 - Common Stock
61.9 USD
-1.32 (-2.09%)
61.9 USD
0 (0%)
Overall FBHS gets a fundamental rating of 5 out of 10. We evaluated FBHS against 42 industry peers in the Building Products industry. There are concerns on the financial health of FBHS while its profitability can be described as average. FBHS has a decent growth rate and is not valued too expensively.
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.
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.
With a decent Return On Invested Capital value of 13.77%, FBHS is doing good in the industry, outperforming 62.22% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FBHS is significantly above the industry average of 12.61%.
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 has a Profit Margin of 9.35%. This is in the better half of the industry: FBHS outperforms 62.22% of its industry peers.
FBHS's Profit Margin has improved in the last couple of years.
FBHS has a better Operating Margin (14.17%) than 62.22% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FBHS is creating value.
The number of shares outstanding for FBHS has been reduced compared to 1 year ago.
The debt/assets ratio for FBHS has been reduced compared to a year ago.
2.2 Solvency
FBHS has an Altman-Z score of 2.97. This is not the best score and indicates that FBHS is in the grey zone with still only limited risk for bankruptcy at the moment.
FBHS's Altman-Z score of 2.97 is in line compared to the rest of the industry. FBHS outperforms 46.67% of 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.
Looking at the Debt to FCF ratio, with a value of 12.53, FBHS is in line with its industry, outperforming 44.44% of the companies in the same industry.
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.
The Current ratio of FBHS (1.47) is worse than 75.56% of its industry peers.
A Quick Ratio of 0.74 indicates that FBHS may have some problems paying its short term obligations.
FBHS's Quick ratio of 0.74 is on the low side compared to the rest of the industry. FBHS is outperformed by 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.
Looking at the last year, FBHS shows a quite strong growth in Revenue. The Revenue has grown by 9.41% in the last year.
FBHS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.96% yearly.
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
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
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
FBHS is valuated reasonably with a Price/Earnings ratio of 10.16.
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 26.51. FBHS is valued rather cheaply when compared to this.
FBHS is valuated reasonably with a Price/Forward Earnings ratio of 10.70.
Based on the Price/Forward Earnings ratio, FBHS is valued a bit cheaper than 68.89% of the companies in the same industry.
FBHS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.13.
| 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.
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
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 0.72. FBHS pays more dividend than 86.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, 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 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%
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 Change5.82%
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.
Can you provide the valuation status for FORTUNE BRANDS HOME & SECURI?
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.
What is the expected EPS growth for FORTUNE BRANDS HOME & SECURI (FBHS) stock?
The Earnings per Share (EPS) of FORTUNE BRANDS HOME & SECURI (FBHS) is expected to grow by 11.19% in the next year.
Is the dividend of FORTUNE BRANDS HOME & SECURI sustainable?
The dividend rating of FORTUNE BRANDS HOME & SECURI (FBHS) is 5 / 10 and the dividend payout ratio is 19.26%.