FORTUNE BRANDS INNOVATIONS I (FBIN) Stock Fundamental Analysis
NYSE:FBIN - New York Stock Exchange, Inc. - US34964C1062 - Common Stock - Currency: USD
Overall FBIN gets a fundamental rating of 5 out of 10. We evaluated FBIN 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.
Each year in the past 5 years FBIN has been profitable.
FBIN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 6.48%, FBIN perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
With a decent Return On Equity value of 18.53%, FBIN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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 12.70%.
| 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
Looking at the Profit Margin, with a value of 9.42%, FBIN is in line with its industry, outperforming 54.76% of the companies in the same industry.
In the last couple of years the Profit Margin of FBIN has grown nicely.
The Operating Margin of FBIN (16.14%) is better than 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.
FBIN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FBIN has been reduced compared to 5 years ago.
FBIN has about the same debt/assets ratio as last year.
2.2 Solvency
FBIN has an Altman-Z score of 2.65. This is not the best score and indicates that FBIN is in the grey zone with still 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.
FBIN's Debt to FCF ratio of 5.93 is on the low side compared to the rest of the industry. FBIN is outperformed by 61.90% of its industry peers.
A Debt/Equity ratio of 1.06 is on the high side and indicates that FBIN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.06, FBIN is doing worse than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 5.93 | ||
| Altman-Z | 2.65 |
ROIC/WACC1.17
WACC9.5%
2.3 Liquidity
FBIN has a Current Ratio of 1.41. This is a normal value and indicates that FBIN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of FBIN (1.41) is worse than 80.95% of its industry peers.
A Quick Ratio of 0.72 indicates that FBIN may have some problems paying its short term obligations.
FBIN has a worse Quick ratio (0.72) 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.
FBIN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.38% yearly.
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
Based on estimates for the next years, FBIN will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.38% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 12.73.
80.95% of the companies in the same industry are more expensive than FBIN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.25. FBIN is valued rather cheaply when compared to this.
FBIN is valuated reasonably with a Price/Forward Earnings ratio of 11.57.
71.43% of the companies in the same industry are more expensive than FBIN, based on the Price/Forward Earnings ratio.
FBIN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.73 | ||
| Fwd PE | 11.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FBIN indicates a somewhat cheap valuation: FBIN is cheaper than 71.43% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, FBIN is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.18 | ||
| EV/EBITDA | 9.32 |
4.3 Compensation for Growth
The decent profitability rating of FBIN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.67
EPS Next 2Y2.71%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.96%, FBIN has a reasonable but not impressive dividend return.
The stock price of FBIN dropped by -22.13% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.20, FBIN pays a better dividend. On top of this FBIN pays more dividend than 92.86% of the companies listed in the same industry.
FBIN's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| 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 paid a dividend for at least 10 years, which is 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%
50.4
-0.69 (-1.35%)
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 Cap6.06B
Analysts73.08
Price Target72.71 (44.27%)
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)-4.98%
PT rev (3m)-12.84%
EPS NQ rev (1m)-13.59%
EPS NQ rev (3m)-14.27%
EPS NY rev (1m)-9.22%
EPS NY rev (3m)-11.11%
Revenue NQ rev (1m)-4.01%
Revenue NQ rev (3m)-3.94%
Revenue NY rev (1m)-2.81%
Revenue NY rev (3m)-3.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.73 | ||
| Fwd PE | 11.57 | ||
| P/S | 1.34 | ||
| P/FCF | 12.18 | ||
| P/OCF | 9.24 | ||
| P/B | 2.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.32 |
EPS(TTM)3.96
EY7.86%
EPS(NY)4.36
Fwd EY8.65%
FCF(TTM)4.14
FCFY8.21%
OCF(TTM)5.45
OCFY10.82%
SpS37.69
BVpS19.16
TBVpS-8.09
PEG (NY)N/A
PEG (5Y)4.67
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
WACC9.5%
ROIC/WACC1.17
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%