FORTUNE BRANDS INNOVATIONS I (FBIN)
US34964C1062 - Common Stock
We assign a fundamental rating of 5 out of 10 to FBIN. FBIN was compared to 43 industry peers in the Building Products industry. FBIN has an excellent profitability rating, but there are some minor concerns on its financial health. FBIN has a decent growth rate and is not valued too expensively.
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 has a Return On Assets (6.13%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 18.25%, FBIN is in the better half of the industry, outperforming 62.79% of the companies in the same industry.
FBIN has a Return On Invested Capital of 9.79%. This is comparable to the rest of the industry: FBIN outperforms 48.84% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FBIN is in line with the industry average of 13.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 18.25% | ||
| ROIC | 9.79% |
ROA(3y)9.04%
ROA(5y)8.3%
ROE(3y)25.25%
ROE(5y)22.69%
ROIC(3y)11.57%
ROIC(5y)11%
1.3 Margins
The Profit Margin of FBIN (8.87%) is better than 65.12% of its industry peers.
FBIN's Profit Margin has improved in the last couple of years.
The Operating Margin of FBIN (15.00%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FBIN has grown nicely.
FBIN has a better Gross Margin (42.39%) than 83.72% of its industry peers.
In the last couple of years the Gross Margin of FBIN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15% | ||
| PM (TTM) | 8.87% | ||
| GM | 42.39% |
OM growth 3Y-4.64%
OM growth 5Y2.49%
PM growth 3Y-16.97%
PM growth 5Y4.24%
GM growth 3Y0.23%
GM growth 5Y2.61%
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.
FBIN has less shares outstanding than it did 5 years ago.
FBIN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.03 indicates that FBIN is not in any danger for bankruptcy at the moment.
FBIN has a worse Altman-Z score (3.03) than 65.12% of its industry peers.
The Debt to FCF ratio of FBIN is 4.83, which is a neutral value as it means it would take FBIN, 4.83 years of fcf income to pay off all of its debts.
FBIN's Debt to FCF ratio of 4.83 is on the low side compared to the rest of the industry. FBIN is outperformed by 72.09% of its industry peers.
FBIN has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
FBIN has a Debt to Equity ratio of 1.33. This is amonst the worse of the industry: FBIN underperforms 83.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 4.83 | ||
| Altman-Z | 3.03 |
ROIC/WACC0.87
WACC11.19%
2.3 Liquidity
FBIN has a Current Ratio of 2.04. This indicates that FBIN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of FBIN (2.04) is comparable to the rest of the industry.
FBIN has a Quick Ratio of 1.08. This is a normal value and indicates that FBIN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of FBIN (1.08) is worse than 72.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
FBIN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.25%.
FBIN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.09% yearly.
FBIN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.58%.
FBIN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.35% yearly.
EPS 1Y (TTM)-29.25%
EPS 3Y-2.36%
EPS 5Y3.09%
EPS growth Q2Q20.29%
Revenue 1Y (TTM)1.58%
Revenue growth 3Y8.51%
Revenue growth 5Y-3.35%
Revenue growth Q2Q6.69%
3.2 Future
FBIN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.43% yearly.
The Revenue is expected to grow by 6.47% on average over the next years.
EPS Next Y12.39%
EPS Next 2Y12.03%
EPS Next 3Y13.06%
EPS Next 5Y11.43%
Revenue Next Year4.24%
Revenue Next 2Y4.79%
Revenue Next 3Y5.76%
Revenue Next 5Y6.47%
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
A Price/Earnings ratio of 18.38 indicates a rather expensive valuation of FBIN.
FBIN's Price/Earnings is on the same level as the industry average.
FBIN is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.17, which indicates a correct valuation of FBIN.
Based on the Price/Forward Earnings ratio, FBIN is valued a bit cheaper than the industry average as 65.12% of the companies are valued more expensively.
FBIN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.38 | ||
| Fwd PE | 15.17 |
4.2 Price Multiples
FBIN's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FBIN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.82 | ||
| EV/EBITDA | 13.53 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FBIN has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FBIN's earnings are expected to grow with 13.06% in the coming years.
PEG (NY)1.48
PEG (5Y)5.95
EPS Next 2Y12.03%
EPS Next 3Y13.06%
5. Dividend
5.1 Amount
FBIN has a Yearly Dividend Yield of 1.28%.
Compared to an average industry Dividend Yield of 1.15, FBIN pays a better dividend. On top of this FBIN pays more dividend than 83.72% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, FBIN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
The dividend of FBIN has a limited annual growth rate of 3.11%.
FBIN has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)3.11%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
28.20% 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.
DP28.2%
EPS Next 2Y12.03%
EPS Next 3Y13.06%
FORTUNE BRANDS INNOVATIONS I
NYSE:FBIN (5/14/2024, 1:14:43 PM)
74.26
+0.15 (+0.2%)
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 Cap9.33B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 18.38 | ||
| Fwd PE | 15.17 | ||
| 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)1.48
PEG (5Y)5.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 18.25% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15% | ||
| PM (TTM) | 8.87% | ||
| GM | 42.39% | ||
| 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 Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.08 | ||
| 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)-29.25%
EPS 3Y-2.36%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.39%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.58%
Revenue growth 3Y8.51%
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