FORTUNE BRANDS INNOVATIONS I (FBIN) Stock Fundamental Analysis
NYSE:FBIN - New York Stock Exchange, Inc. - US34964C1062 - Common Stock - Currency: USD
FBIN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 42 industry peers in the Building Products industry. While FBIN has a great profitability rating, there are quite some concerns on its financial health. FBIN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
FBIN had positive earnings in the past year.
FBIN had a positive operating cash flow in the past year.
FBIN had positive earnings in each of the past 5 years.
In the past 5 years FBIN always reported a positive cash flow from operatings.
1.2 Ratios
FBIN's Return On Assets of 6.48% is in line compared to the rest of the industry. FBIN outperforms 47.62% of its industry peers.
FBIN has a better Return On Equity (18.53%) than 66.67% of its industry peers.
With a Return On Invested Capital value of 11.16%, FBIN perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FBIN is in line with the industry average of 12.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.48% | ||
| ROE | 18.53% | ||
| ROIC | 11.16% |
ROA(3y)8.19%
ROA(5y)8.36%
ROE(3y)23.34%
ROE(5y)23.03%
ROIC(3y)12.06%
ROIC(5y)10.94%
1.3 Margins
FBIN has a Profit Margin (9.42%) which is in line with its industry peers.
In the last couple of years the Profit Margin of FBIN has grown nicely.
FBIN has a Operating Margin of 16.14%. This is in the better half of the industry: FBIN outperforms 61.90% of its industry peers.
In the last couple of years the Operating Margin of FBIN has grown nicely.
The Gross Margin of FBIN (45.07%) is better than 92.86% of its industry peers.
FBIN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.14% | ||
| PM (TTM) | 9.42% | ||
| GM | 45.07% |
OM growth 3Y-0.5%
OM growth 5Y5.04%
PM growth 3Y-13.98%
PM growth 5Y6.45%
GM growth 3Y3.54%
GM growth 5Y4.93%
2. Health
2.1 Basic Checks
FBIN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for FBIN has been reduced compared to 1 year ago.
Compared to 5 years ago, FBIN has less shares outstanding
Compared to 1 year ago, FBIN has about the same debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.65 indicates that FBIN is not a great score, but indicates only limited risk for bankruptcy at the moment.
FBIN has a Altman-Z score of 2.65. This is in the lower half of the industry: FBIN underperforms 64.29% of its industry peers.
The Debt to FCF ratio of FBIN is 5.93, which is a neutral value as it means it would take FBIN, 5.93 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FBIN (5.93) is worse than 64.29% of its industry peers.
FBIN has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
FBIN has a Debt to Equity ratio of 1.06. This is amonst the worse of the industry: FBIN underperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 5.93 | ||
| Altman-Z | 2.65 |
ROIC/WACC1.18
WACC9.48%
2.3 Liquidity
A Current Ratio of 1.41 indicates that FBIN should not have too much problems paying its short term obligations.
FBIN has a worse Current ratio (1.41) than 80.95% of its industry peers.
FBIN has a Quick Ratio of 1.41. This is a bad value and indicates that FBIN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of FBIN (0.72) is worse than 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
FBIN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.98%.
FBIN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.73% yearly.
The Revenue has decreased by -3.48% in the past year.
The Revenue has been decreasing by -4.38% on average over the past years.
EPS 1Y (TTM)-1.98%
EPS 3Y-10.34%
EPS 5Y2.73%
EPS Q2Q%-20.48%
Revenue 1Y (TTM)-3.48%
Revenue growth 3Y-1.35%
Revenue growth 5Y-4.38%
Sales Q2Q%-6.89%
3.2 Future
The Earnings Per Share is expected to grow by 11.38% on average over the next years. This is quite good.
Based on estimates for the next years, FBIN will show a small growth in Revenue. The Revenue will grow by 6.08% on average per year.
EPS Next Y-6.21%
EPS Next 2Y2.71%
EPS Next 3Y8.12%
EPS Next 5Y11.38%
Revenue Next Year-2.45%
Revenue Next 2Y0.67%
Revenue Next 3Y2.33%
Revenue Next 5Y6.08%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
FBIN is valuated correctly with a Price/Earnings ratio of 13.03.
78.57% of the companies in the same industry are more expensive than FBIN, based on the Price/Earnings ratio.
FBIN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.35.
The Price/Forward Earnings ratio is 11.84, which indicates a very decent valuation of FBIN.
73.81% of the companies in the same industry are more expensive than FBIN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of FBIN to the average of the S&P500 Index (22.20), we can say FBIN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.03 | ||
| Fwd PE | 11.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FBIN is valued a bit cheaper than 69.05% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FBIN indicates a somewhat cheap valuation: FBIN is cheaper than 76.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.46 | ||
| EV/EBITDA | 9.3 |
4.3 Compensation for Growth
FBIN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.77
EPS Next 2Y2.71%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
FBIN has a Yearly Dividend Yield of 1.96%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of FBIN has falen by -20.30%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.20, FBIN pays a better dividend. On top of this FBIN pays more dividend than 90.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, FBIN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
The dividend of FBIN has a limited annual growth rate of 1.74%.
FBIN has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of FBIN decreased recently.
Dividend Growth(5Y)1.74%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
28.10% of the earnings are spent on dividend by FBIN. This is a low number and sustainable payout ratio.
The dividend of FBIN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.1%
EPS Next 2Y2.71%
EPS Next 3Y8.12%
51.58
+1.32 (+2.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners96.25%
Inst Owner ChangeN/A
Ins Owners0.31%
Ins Owner Change7.84%
Market Cap6.20B
Analysts73.08
Price Target72.71 (40.97%)
Short Float %4.6%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend0.96
Dividend Growth(5Y)1.74%
DP28.1%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.29%
Min EPS beat(2)-8.98%
Max EPS beat(2)-1.61%
EPS beat(4)1
Avg EPS beat(4)-2.36%
Min EPS beat(4)-8.98%
Max EPS beat(4)1.25%
EPS beat(8)5
Avg EPS beat(8)1.19%
EPS beat(12)9
Avg EPS beat(12)3.41%
EPS beat(16)13
Avg EPS beat(16)3.62%
Revenue beat(2)0
Avg Revenue beat(2)-5.21%
Min Revenue beat(2)-5.47%
Max Revenue beat(2)-4.96%
Revenue beat(4)0
Avg Revenue beat(4)-6%
Min Revenue beat(4)-8.6%
Max Revenue beat(4)-4.96%
Revenue beat(8)1
Avg Revenue beat(8)-3.82%
Revenue beat(12)2
Avg Revenue beat(12)-12.39%
Revenue beat(16)4
Avg Revenue beat(16)-20.92%
PT rev (1m)-12.84%
PT rev (3m)-12.84%
EPS NQ rev (1m)-13.59%
EPS NQ rev (3m)-15.19%
EPS NY rev (1m)-9.22%
EPS NY rev (3m)-11.11%
Revenue NQ rev (1m)-4.01%
Revenue NQ rev (3m)-4.16%
Revenue NY rev (1m)-2.81%
Revenue NY rev (3m)-3.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.03 | ||
| Fwd PE | 11.84 | ||
| P/S | 1.37 | ||
| P/FCF | 12.46 | ||
| P/OCF | 9.46 | ||
| P/B | 2.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.3 |
EPS(TTM)3.96
EY7.68%
EPS(NY)4.36
Fwd EY8.45%
FCF(TTM)4.14
FCFY8.03%
OCF(TTM)5.45
OCFY10.57%
SpS37.69
BVpS19.16
TBVpS-8.09
PEG (NY)N/A
PEG (5Y)4.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.48% | ||
| ROE | 18.53% | ||
| ROCE | 14.28% | ||
| ROIC | 11.16% | ||
| ROICexc | 11.95% | ||
| ROICexgc | 37.98% | ||
| OM | 16.14% | ||
| PM (TTM) | 9.42% | ||
| GM | 45.07% | ||
| FCFM | 10.98% |
ROA(3y)8.19%
ROA(5y)8.36%
ROE(3y)23.34%
ROE(5y)23.03%
ROIC(3y)12.06%
ROIC(5y)10.94%
ROICexc(3y)13.39%
ROICexc(5y)12.04%
ROICexgc(3y)42.42%
ROICexgc(5y)38.5%
ROCE(3y)15.44%
ROCE(5y)14%
ROICexcg growth 3Y6.46%
ROICexcg growth 5Y-0.42%
ROICexc growth 3Y4.31%
ROICexc growth 5Y0.07%
OM growth 3Y-0.5%
OM growth 5Y5.04%
PM growth 3Y-13.98%
PM growth 5Y6.45%
GM growth 3Y3.54%
GM growth 5Y4.93%
F-Score7
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 5.93 | ||
| Debt/EBITDA | 2.64 | ||
| Cap/Depr | 79.43% | ||
| Cap/Sales | 3.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.47% | ||
| Profit Quality | 116.58% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 2.65 |
F-Score7
WACC9.48%
ROIC/WACC1.18
Cap/Depr(3y)126.75%
Cap/Depr(5y)117.11%
Cap/Sales(3y)4.98%
Cap/Sales(5y)4.71%
Profit Quality(3y)114.93%
Profit Quality(5y)105.66%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.98%
EPS 3Y-10.34%
EPS 5Y2.73%
EPS Q2Q%-20.48%
EPS Next Y-6.21%
EPS Next 2Y2.71%
EPS Next 3Y8.12%
EPS Next 5Y11.38%
Revenue 1Y (TTM)-3.48%
Revenue growth 3Y-1.35%
Revenue growth 5Y-4.38%
Sales Q2Q%-6.89%
Revenue Next Year-2.45%
Revenue Next 2Y0.67%
Revenue Next 3Y2.33%
Revenue Next 5Y6.08%
EBIT growth 1Y0.8%
EBIT growth 3Y-1.84%
EBIT growth 5Y0.44%
EBIT Next Year14.76%
EBIT Next 3Y10.6%
EBIT Next 5Y10.41%
FCF growth 1Y-16.7%
FCF growth 3Y0%
FCF growth 5Y-1.25%
OCF growth 1Y-20.57%
OCF growth 3Y-1.02%
OCF growth 5Y0.94%