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 41 industry peers in the Building Products industry. While FBIN belongs to the best of the industry regarding profitability, there are concerns on its financial health. FBIN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year FBIN was profitable.
In the past year FBIN had a positive cash flow from operations.
FBIN had positive earnings in each of the past 5 years.
FBIN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FBIN (6.48%) is comparable to the rest of the industry.
FBIN's Return On Equity of 18.53% is fine compared to the rest of the industry. FBIN outperforms 65.85% of its industry peers.
The Return On Invested Capital of FBIN (11.16%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for FBIN is in line with the industry average of 12.71%.
| 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
With a Profit Margin value of 9.42%, FBIN perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
FBIN's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 16.14%, FBIN is doing good in the industry, outperforming 60.98% of the companies in the same industry.
FBIN's Operating Margin has improved in the last couple of years.
FBIN has a better Gross Margin (45.07%) than 92.68% 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
An Altman-Z score of 2.67 indicates that FBIN is not a great score, but indicates only limited risk for bankruptcy at the moment.
FBIN has a worse Altman-Z score (2.67) than 68.29% of its industry peers.
FBIN has a debt to FCF ratio of 5.93. This is a neutral value as FBIN would need 5.93 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.93, FBIN is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
FBIN has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.06, FBIN is doing worse than 82.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 5.93 | ||
| Altman-Z | 2.67 |
ROIC/WACC1.16
WACC9.59%
2.3 Liquidity
A Current Ratio of 1.41 indicates that FBIN should not have too much problems paying its short term obligations.
The Current ratio of FBIN (1.41) is worse than 80.49% 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.
FBIN has a worse Quick ratio (0.72) than 90.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The earnings per share for FBIN have decreased by -1.98% in the last year.
Measured over the past 5 years, FBIN shows a small growth in Earnings Per Share. The EPS has been growing by 2.73% on average per year.
Looking at the last year, FBIN shows a decrease in Revenue. The Revenue has decreased by -3.48% in the last year.
Measured over the past years, FBIN shows a decrease in Revenue. The Revenue has been decreasing by -4.38% on average per year.
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 9.66% on average per year.
The Revenue is expected to grow by 4.55% on average over the next years.
EPS Next Y-5.99%
EPS Next 2Y2.75%
EPS Next 3Y7.82%
EPS Next 5Y9.66%
Revenue Next Year-2.42%
Revenue Next 2Y0.68%
Revenue Next 3Y2.37%
Revenue Next 5Y4.55%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.99, which indicates a correct valuation of FBIN.
Compared to the rest of the industry, the Price/Earnings ratio of FBIN indicates a rather cheap valuation: FBIN is cheaper than 80.49% of the companies listed in the same industry.
FBIN is valuated cheaply when we compare the Price/Earnings ratio to 26.65, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.80, the valuation of FBIN can be described as reasonable.
Based on the Price/Forward Earnings ratio, FBIN is valued a bit cheaper than the industry average as 78.05% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.27, FBIN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.99 | ||
| Fwd PE | 11.8 |
4.2 Price Multiples
70.73% of the companies in the same industry are more expensive than FBIN, based on the Enterprise Value to EBITDA ratio.
80.49% of the companies in the same industry are more expensive than FBIN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.43 | ||
| EV/EBITDA | 9.46 |
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)4.76
EPS Next 2Y2.75%
EPS Next 3Y7.82%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.02%, FBIN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.24, FBIN pays a better dividend. On top of this FBIN pays more dividend than 90.24% of the companies listed in the same industry.
FBIN's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
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.
FBIN has decreased its dividend 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.
FBIN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.1%
EPS Next 2Y2.75%
EPS Next 3Y7.82%
51.44
+1.3 (+2.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners99.86%
Inst Owner ChangeN/A
Ins Owners0.42%
Ins Owner Change8.1%
Market Cap6.19B
Analysts72.31
Price Target66.32 (28.93%)
Short Float %3.51%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
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)-8.79%
PT rev (3m)-20.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.27%
EPS NY rev (1m)0.24%
EPS NY rev (3m)-10.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.94%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-3.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.99 | ||
| Fwd PE | 11.8 | ||
| P/S | 1.36 | ||
| P/FCF | 12.43 | ||
| P/OCF | 9.43 | ||
| P/B | 2.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.46 |
EPS(TTM)3.96
EY7.7%
EPS(NY)4.36
Fwd EY8.48%
FCF(TTM)4.14
FCFY8.05%
OCF(TTM)5.45
OCFY10.6%
SpS37.69
BVpS19.16
TBVpS-8.09
PEG (NY)N/A
PEG (5Y)4.76
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 | 2.67 |
F-Score7
WACC9.59%
ROIC/WACC1.16
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-5.99%
EPS Next 2Y2.75%
EPS Next 3Y7.82%
EPS Next 5Y9.66%
Revenue 1Y (TTM)-3.48%
Revenue growth 3Y-1.35%
Revenue growth 5Y-4.38%
Sales Q2Q%-6.89%
Revenue Next Year-2.42%
Revenue Next 2Y0.68%
Revenue Next 3Y2.37%
Revenue Next 5Y4.55%
EBIT growth 1Y0.8%
EBIT growth 3Y-1.84%
EBIT growth 5Y0.44%
EBIT Next Year14.76%
EBIT Next 3Y10.6%
EBIT Next 5Y9.1%
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%