FORTUNE BRANDS INNOVATIONS I (FBIN) Stock Fundamental Analysis
NYSE:FBIN - US34964C1062 - Common Stock
59.05 USD
+1.9 (+3.32%)
59.05 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to FBIN. FBIN was compared to 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 on the other hand it scores bad on growth.
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.
In the past 5 years FBIN has always been profitable.
In the past 5 years FBIN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FBIN (5.96%) is comparable to the rest of the industry.
With a decent Return On Equity value of 16.81%, FBIN is doing good in the industry, outperforming 63.41% of the companies in the same industry.
FBIN has a Return On Invested Capital of 10.19%. This is in the better half of the industry: FBIN outperforms 60.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FBIN is in line with the industry average of 12.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.96% | ||
| ROE | 16.81% | ||
| ROIC | 10.19% |
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 (8.75%) which is comparable to the rest of the industry.
FBIN's Profit Margin has improved in the last couple of years.
FBIN has a better Operating Margin (16.19%) than 60.98% of its industry peers.
FBIN's Operating Margin has improved in the last couple of years.
The Gross Margin of FBIN (45.50%) is better than 95.12% of its industry peers.
In the last couple of years the Gross Margin of FBIN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.19% | ||
| PM (TTM) | 8.75% | ||
| GM | 45.5% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FBIN is still creating some value.
The number of shares outstanding for FBIN has been reduced compared to 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 2.85 indicates that FBIN is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of FBIN (2.85) is worse than 60.98% of its industry peers.
FBIN has a debt to FCF ratio of 7.14. This is a slightly negative value and a sign of low solvency as FBIN would need 7.14 years to pay back of all of its debts.
FBIN has a worse Debt to FCF ratio (7.14) than 68.29% of its industry peers.
A Debt/Equity ratio of 1.20 is on the high side and indicates that FBIN has dependencies on debt financing.
FBIN has a Debt to Equity ratio of 1.20. This is amonst the worse of the industry: FBIN underperforms 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | 2.85 |
ROIC/WACC1.03
WACC9.87%
2.3 Liquidity
A Current Ratio of 1.97 indicates that FBIN should not have too much problems paying its short term obligations.
FBIN's Current ratio of 1.97 is in line compared to the rest of the industry. FBIN outperforms 48.78% of its industry peers.
FBIN has a Quick Ratio of 1.97. 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 Quick ratio of 0.98. This is in the lower half of the industry: FBIN underperforms 73.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
FBIN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.99%.
The Earnings Per Share has been growing slightly by 2.73% on average over the past years.
FBIN shows a decrease in Revenue. In the last year, the revenue decreased by -5.79%.
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)-7.99%
EPS 3Y-10.34%
EPS 5Y2.73%
EPS Q2Q%-13.79%
Revenue 1Y (TTM)-5.79%
Revenue growth 3Y-1.35%
Revenue growth 5Y-4.38%
Sales Q2Q%-2.96%
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 9.96% yearly.
FBIN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.67% yearly.
EPS Next Y-5.18%
EPS Next 2Y2.78%
EPS Next 3Y6.92%
EPS Next 5Y9.96%
Revenue Next Year-2.09%
Revenue Next 2Y0.53%
Revenue Next 3Y2.06%
Revenue Next 5Y4.67%
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
A Price/Earnings ratio of 15.54 indicates a correct valuation of FBIN.
Based on the Price/Earnings ratio, FBIN is valued a bit cheaper than the industry average as 75.61% of the companies are valued more expensively.
FBIN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.53, FBIN is valued correctly.
Based on the Price/Forward Earnings ratio, FBIN is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FBIN to the average of the S&P500 Index (22.48), we can say FBIN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.54 | ||
| Fwd PE | 13.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FBIN is valued a bit cheaper than the industry average as 75.61% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FBIN is valued a bit cheaper than the industry average as 73.17% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18 | ||
| EV/EBITDA | 10.24 |
4.3 Compensation for Growth
The decent profitability rating of FBIN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.7
EPS Next 2Y2.78%
EPS Next 3Y6.92%
5. Dividend
5.1 Amount
FBIN has a Yearly Dividend Yield of 1.70%.
FBIN's Dividend Yield is rather good when compared to the industry average which is at 1.11. FBIN pays more dividend than 92.68% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, FBIN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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.
FBIN has decreased its dividend recently.
Dividend Growth(5Y)1.74%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
30.50% 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.
DP30.5%
EPS Next 2Y2.78%
EPS Next 3Y6.92%
59.05
+1.9 (+3.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners97.37%
Inst Owner ChangeN/A
Ins Owners0.43%
Ins Owner Change7.66%
Market Cap7.09B
Analysts70.77
Price Target68.69 (16.33%)
Short Float %3.08%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
Yearly Dividend0.96
Dividend Growth(5Y)1.74%
DP30.5%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.21%
Min EPS beat(2)-1.61%
Max EPS beat(2)1.19%
EPS beat(4)1
Avg EPS beat(4)-2.38%
Min EPS beat(4)-8.98%
Max EPS beat(4)1.19%
EPS beat(8)5
Avg EPS beat(8)1.03%
EPS beat(12)9
Avg EPS beat(12)3.29%
EPS beat(16)13
Avg EPS beat(16)3.09%
Revenue beat(2)0
Avg Revenue beat(2)-3.16%
Min Revenue beat(2)-4.96%
Max Revenue beat(2)-1.37%
Revenue beat(4)0
Avg Revenue beat(4)-5.1%
Min Revenue beat(4)-8.6%
Max Revenue beat(4)-1.37%
Revenue beat(8)1
Avg Revenue beat(8)-3.73%
Revenue beat(12)2
Avg Revenue beat(12)-9.18%
Revenue beat(16)3
Avg Revenue beat(16)-21.02%
PT rev (1m)3.38%
PT rev (3m)-5.53%
EPS NQ rev (1m)-1.48%
EPS NQ rev (3m)-11.87%
EPS NY rev (1m)0.86%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)1.18%
Revenue NQ rev (3m)-2.27%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.54 | ||
| Fwd PE | 13.53 | ||
| P/S | 1.58 | ||
| P/FCF | 18 | ||
| P/OCF | 13.04 | ||
| P/B | 3.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.24 |
EPS(TTM)3.8
EY6.44%
EPS(NY)4.36
Fwd EY7.39%
FCF(TTM)3.28
FCFY5.56%
OCF(TTM)4.53
OCFY7.67%
SpS37.45
BVpS19.5
TBVpS-7.82
PEG (NY)N/A
PEG (5Y)5.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.96% | ||
| ROE | 16.81% | ||
| ROCE | 13.04% | ||
| ROIC | 10.19% | ||
| ROICexc | 10.64% | ||
| ROICexgc | 27.51% | ||
| OM | 16.19% | ||
| PM (TTM) | 8.75% | ||
| GM | 45.5% | ||
| FCFM | 8.76% |
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-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.14 | ||
| Debt/EBITDA | 3.05 | ||
| Cap/Depr | 77.18% | ||
| Cap/Sales | 3.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.97% | ||
| Profit Quality | 100.1% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 2.85 |
F-Score6
WACC9.87%
ROIC/WACC1.03
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)-7.99%
EPS 3Y-10.34%
EPS 5Y2.73%
EPS Q2Q%-13.79%
EPS Next Y-5.18%
EPS Next 2Y2.78%
EPS Next 3Y6.92%
EPS Next 5Y9.96%
Revenue 1Y (TTM)-5.79%
Revenue growth 3Y-1.35%
Revenue growth 5Y-4.38%
Sales Q2Q%-2.96%
Revenue Next Year-2.09%
Revenue Next 2Y0.53%
Revenue Next 3Y2.06%
Revenue Next 5Y4.67%
EBIT growth 1Y-3.5%
EBIT growth 3Y-1.84%
EBIT growth 5Y0.44%
EBIT Next Year16.3%
EBIT Next 3Y9.96%
EBIT Next 5Y9.12%
FCF growth 1Y-49.85%
FCF growth 3Y0%
FCF growth 5Y-1.25%
OCF growth 1Y-47.12%
OCF growth 3Y-1.02%
OCF growth 5Y0.94%