SPECTRUM BRANDS HOLDINGS INC (SPB) Stock Fundamental Analysis
USA - NYSE:SPB - US84790A1051 - Common Stock
54.38 USD
+0.5 (+0.93%)
54.38 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SPB. SPB was compared to 12 industry peers in the Household Products industry. The financial health of SPB is average, but there are quite some concerns on its profitability. SPB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SPB was profitable.
SPB had a positive operating cash flow in the past year.
Each year in the past 5 years SPB has been profitable.
The reported operating cash flow has been mixed in the past 5 years: SPB reported negative operating cash flow in multiple years.
1.2 Ratios
With a Return On Assets value of 2.06%, SPB is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
The Return On Equity of SPB (3.85%) is worse than 91.67% of its industry peers.
SPB has a worse Return On Invested Capital (3.47%) than 91.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SPB is significantly below the industry average of 15.14%.
The 3 year average ROIC (1.45%) for SPB is below the current ROIC(3.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 3.85% | ||
| ROIC | 3.47% |
ROA(3y)12.92%
ROA(5y)8.84%
ROE(3y)27.68%
ROE(5y)20.57%
ROIC(3y)1.45%
ROIC(5y)2.57%
1.3 Margins
Looking at the Profit Margin, with a value of 2.56%, SPB is doing worse than 91.67% of the companies in the same industry.
In the last couple of years the Profit Margin of SPB has declined.
SPB has a worse Operating Margin (6.00%) than 91.67% of its industry peers.
SPB's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 37.32%, SPB perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
SPB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6% | ||
| PM (TTM) | 2.56% | ||
| GM | 37.32% |
OM growth 3Y-1.23%
OM growth 5Y-5.32%
PM growth 3Y-12.68%
PM growth 5Y-19.44%
GM growth 3Y2.68%
GM growth 5Y1.67%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SPB is destroying value.
The number of shares outstanding for SPB has been reduced compared to 1 year ago.
Compared to 5 years ago, SPB has less shares outstanding
Compared to 1 year ago, SPB has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.56 indicates that SPB is not a great score, but indicates only limited risk for bankruptcy at the moment.
SPB has a Altman-Z score (2.56) which is comparable to the rest of the industry.
The Debt to FCF ratio of SPB is 8.88, which is on the high side as it means it would take SPB, 8.88 years of fcf income to pay off all of its debts.
SPB's Debt to FCF ratio of 8.88 is on the low side compared to the rest of the industry. SPB is outperformed by 83.33% of its industry peers.
SPB has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SPB (0.35) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 8.88 | ||
| Altman-Z | 2.56 |
ROIC/WACC0.52
WACC6.68%
2.3 Liquidity
A Current Ratio of 2.42 indicates that SPB has no problem at all paying its short term obligations.
SPB's Current ratio of 2.42 is fine compared to the rest of the industry. SPB outperforms 66.67% of its industry peers.
SPB has a Quick Ratio of 1.50. This is a normal value and indicates that SPB is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SPB (1.50) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
SPB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.55%.
SPB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.67% yearly.
SPB shows a decrease in Revenue. In the last year, the revenue decreased by -2.78%.
SPB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.86% yearly.
EPS 1Y (TTM)-19.55%
EPS 3Y-8.53%
EPS 5Y8.67%
EPS Q2Q%12.73%
Revenue 1Y (TTM)-2.78%
Revenue growth 3Y-0.38%
Revenue growth 5Y-4.86%
Sales Q2Q%-10.24%
3.2 Future
The Earnings Per Share is expected to grow by 20.15% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 1.04% on average over the next years.
EPS Next Y-13.84%
EPS Next 2Y0.92%
EPS Next 3Y3.2%
EPS Next 5Y20.15%
Revenue Next Year-3.94%
Revenue Next 2Y-1.61%
Revenue Next 3Y-0.85%
Revenue Next 5Y1.04%
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 13.91, which indicates a correct valuation of SPB.
Based on the Price/Earnings ratio, SPB is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
SPB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.03.
SPB is valuated reasonably with a Price/Forward Earnings ratio of 11.94.
SPB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SPB is cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, SPB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.91 | ||
| Fwd PE | 11.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SPB indicates a rather cheap valuation: SPB is cheaper than 100.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPB indicates a somewhat cheap valuation: SPB is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.53 | ||
| EV/EBITDA | 6.83 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.6
EPS Next 2Y0.92%
EPS Next 3Y3.2%
5. Dividend
5.1 Amount
SPB has a Yearly Dividend Yield of 3.43%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.18, SPB pays a bit more dividend than its industry peers.
SPB's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
5.2 History
The dividend of SPB decreases each year by -0.88%.
SPB has paid a dividend for at least 10 years, which is a reliable track record.
SPB has decreased its dividend recently.
Dividend Growth(5Y)-0.88%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SPB pays out 66.80% of its income as dividend. This is not a sustainable payout ratio.
DP66.8%
EPS Next 2Y0.92%
EPS Next 3Y3.2%
54.38
+0.5 (+0.93%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners112.82%
Inst Owner Change-2.33%
Ins Owners3.51%
Ins Owner Change-0.11%
Market Cap1.32B
Revenue(TTM)2.85B
Net Income(TTM)72.90M
Analysts77.14
Price Target79.56 (46.3%)
Short Float %13.61%
Short Ratio8.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend1.6
Dividend Growth(5Y)-0.88%
DP66.8%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-28.06%
Min EPS beat(2)-51.95%
Max EPS beat(2)-4.18%
EPS beat(4)1
Avg EPS beat(4)-14.37%
Min EPS beat(4)-51.95%
Max EPS beat(4)8.72%
EPS beat(8)4
Avg EPS beat(8)25.21%
EPS beat(12)5
Avg EPS beat(12)6.67%
EPS beat(16)5
Avg EPS beat(16)-9.57%
Revenue beat(2)0
Avg Revenue beat(2)-5.22%
Min Revenue beat(2)-6.67%
Max Revenue beat(2)-3.78%
Revenue beat(4)1
Avg Revenue beat(4)-2.4%
Min Revenue beat(4)-6.67%
Max Revenue beat(4)2.51%
Revenue beat(8)4
Avg Revenue beat(8)-0.73%
Revenue beat(12)4
Avg Revenue beat(12)-2.51%
Revenue beat(16)6
Avg Revenue beat(16)-11.59%
PT rev (1m)-0.79%
PT rev (3m)-3.41%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)10.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.83%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)3.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.91 | ||
| Fwd PE | 11.94 | ||
| P/S | 0.46 | ||
| P/FCF | 17.53 | ||
| P/OCF | 11.63 | ||
| P/B | 0.7 | ||
| P/tB | 18.06 | ||
| EV/EBITDA | 6.83 |
EPS(TTM)3.91
EY7.19%
EPS(NY)4.55
Fwd EY8.37%
FCF(TTM)3.1
FCFY5.7%
OCF(TTM)4.68
OCFY8.6%
SpS117.69
BVpS78.22
TBVpS3.01
PEG (NY)N/A
PEG (5Y)1.6
Graham Number82.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.06% | ||
| ROE | 3.85% | ||
| ROCE | 5.72% | ||
| ROIC | 3.47% | ||
| ROICexc | 3.62% | ||
| ROICexgc | 9.92% | ||
| OM | 6% | ||
| PM (TTM) | 2.56% | ||
| GM | 37.32% | ||
| FCFM | 2.64% |
ROA(3y)12.92%
ROA(5y)8.84%
ROE(3y)27.68%
ROE(5y)20.57%
ROIC(3y)1.45%
ROIC(5y)2.57%
ROICexc(3y)1.72%
ROICexc(5y)2.93%
ROICexgc(3y)5.24%
ROICexgc(5y)9.84%
ROCE(3y)2.39%
ROCE(5y)4.23%
ROICexgc growth 3Y25.17%
ROICexgc growth 5Y-16.32%
ROICexc growth 3Y10.88%
ROICexc growth 5Y-5.83%
OM growth 3Y-1.23%
OM growth 5Y-5.32%
PM growth 3Y-12.68%
PM growth 5Y-19.44%
GM growth 3Y2.68%
GM growth 5Y1.67%
F-Score7
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 8.88 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 38.25% | ||
| Cap/Sales | 1.34% | ||
| Interest Coverage | 6.95 | ||
| Cash Conversion | 41.83% | ||
| Profit Quality | 103.02% | ||
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z | 2.56 |
F-Score7
WACC6.68%
ROIC/WACC0.52
Cap/Depr(3y)57.46%
Cap/Depr(5y)50.14%
Cap/Sales(3y)1.85%
Cap/Sales(5y)1.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-19.55%
EPS 3Y-8.53%
EPS 5Y8.67%
EPS Q2Q%12.73%
EPS Next Y-13.84%
EPS Next 2Y0.92%
EPS Next 3Y3.2%
EPS Next 5Y20.15%
Revenue 1Y (TTM)-2.78%
Revenue growth 3Y-0.38%
Revenue growth 5Y-4.86%
Sales Q2Q%-10.24%
Revenue Next Year-3.94%
Revenue Next 2Y-1.61%
Revenue Next 3Y-0.85%
Revenue Next 5Y1.04%
EBIT growth 1Y3.83%
EBIT growth 3Y-1.61%
EBIT growth 5Y-9.92%
EBIT Next Year42.55%
EBIT Next 3Y13.48%
EBIT Next 5YN/A
FCF growth 1Y-40.35%
FCF growth 3Y-21.46%
FCF growth 5YN/A
OCF growth 1Y-40.07%
OCF growth 3Y-17.39%
OCF growth 5Y171.61%
SPECTRUM BRANDS HOLDINGS INC / SPB FAQ
Can you provide the ChartMill fundamental rating for SPECTRUM BRANDS HOLDINGS INC?
ChartMill assigns a fundamental rating of 4 / 10 to SPB.
What is the valuation status of SPECTRUM BRANDS HOLDINGS INC (SPB) stock?
ChartMill assigns a valuation rating of 5 / 10 to SPECTRUM BRANDS HOLDINGS INC (SPB). This can be considered as Fairly Valued.
What is the profitability of SPB stock?
SPECTRUM BRANDS HOLDINGS INC (SPB) has a profitability rating of 3 / 10.
Can you provide the financial health for SPB stock?
The financial health rating of SPECTRUM BRANDS HOLDINGS INC (SPB) is 5 / 10.
Can you provide the dividend sustainability for SPB stock?
The dividend rating of SPECTRUM BRANDS HOLDINGS INC (SPB) is 4 / 10 and the dividend payout ratio is 66.8%.