SPECTRUM BRANDS HOLDINGS INC (SPB) Stock Fundamental Analysis
NYSE:SPB - New York Stock Exchange, Inc. - US84790A1051 - Common Stock - Currency: USD
SPB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SPB had positive earnings in the past year.
In the past year SPB had a positive cash flow from operations.
SPB had positive earnings in each of the past 5 years.
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
SPB has a Return On Assets of 1.67%. This is amonst the worse of the industry: SPB underperforms 83.33% of its industry peers.
SPB has a Return On Equity of 3.14%. This is amonst the worse of the industry: SPB underperforms 91.67% of its industry peers.
With a Return On Invested Capital value of 3.76%, SPB is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for SPB is significantly below the industry average of 15.74%.
The last Return On Invested Capital (3.76%) for SPB is above the 3 year average (1.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 3.14% | ||
| ROIC | 3.76% |
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
The Profit Margin of SPB (2.02%) is worse than 83.33% of its industry peers.
SPB's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.27%, SPB is doing worse than 91.67% of the companies in the same industry.
In the last couple of years the Operating Margin of SPB has declined.
SPB has a Gross Margin (37.63%) which is comparable to the rest of the industry.
SPB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.27% | ||
| PM (TTM) | 2.02% | ||
| GM | 37.63% |
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
SPB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SPB has been reduced compared to 1 year ago.
The number of shares outstanding for SPB has been reduced compared to 5 years ago.
SPB has a better debt/assets ratio than last year.
2.2 Solvency
SPB has an Altman-Z score of 2.62. This is not the best score and indicates that SPB is in the grey zone with still only limited risk for bankruptcy at the moment.
SPB's Altman-Z score of 2.62 is on the low side compared to the rest of the industry. SPB is outperformed by 66.67% of its industry peers.
SPB has a debt to FCF ratio of 8.45. This is a slightly negative value and a sign of low solvency as SPB would need 8.45 years to pay back of all of its debts.
SPB has a Debt to FCF ratio of 8.45. This is amonst the worse of the industry: SPB underperforms 83.33% of its industry peers.
SPB has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.34, SPB belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 8.45 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.54
WACC6.91%
2.3 Liquidity
A Current Ratio of 2.34 indicates that SPB has no problem at all paying its short term obligations.
SPB has a Current ratio of 2.34. This is in the better half of the industry: SPB outperforms 66.67% of its industry peers.
SPB has a Quick Ratio of 1.40. This is a normal value and indicates that SPB is financially healthy and should not expect problems in meeting its short term obligations.
SPB has a Quick ratio of 1.40. This is comparable to the rest of the industry: SPB outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The earnings per share for SPB have decreased strongly by -16.41% in the last year.
The Earnings Per Share has been growing by 8.67% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.46% in the past year.
The Revenue has been decreasing by -4.86% on average over the past years.
EPS 1Y (TTM)-16.41%
EPS 3Y-8.53%
EPS 5Y8.67%
EPS Q2Q%-58.02%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-0.38%
Revenue growth 5Y-4.86%
Sales Q2Q%-5.96%
3.2 Future
The Earnings Per Share is expected to grow by 19.24% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.88% on average over the next years.
EPS Next Y-12.23%
EPS Next 2Y3.19%
EPS Next 3Y0.28%
EPS Next 5Y19.24%
Revenue Next Year-3.27%
Revenue Next 2Y-2.61%
Revenue Next 3Y-2.37%
Revenue Next 5Y1.88%
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
Based on the Price/Earnings ratio of 15.45, the valuation of SPB can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of SPB indicates a somewhat cheap valuation: SPB is cheaper than 75.00% of the companies listed in the same industry.
SPB is valuated rather cheaply when we compare the Price/Earnings ratio to 27.53, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.24, which indicates a correct valuation of SPB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SPB indicates a rather cheap valuation: SPB is cheaper than 91.67% of the companies listed in the same industry.
SPB is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 12.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPB is valued cheaper than 100.00% of the companies in the same industry.
SPB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.82 | ||
| EV/EBITDA | 6.75 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.78
EPS Next 2Y3.19%
EPS Next 3Y0.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.35%, SPB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.96, 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
5.2 History
The dividend of SPB decreases each year by -0.88%.
SPB has been paying a dividend for at least 10 years, so it has 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
83.08% of the earnings are spent on dividend by SPB. This is not a sustainable payout ratio.
DP83.08%
EPS Next 2Y3.19%
EPS Next 3Y0.28%
58.24
+2.48 (+4.45%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners104.32%
Inst Owner Change-0.13%
Ins Owners3.66%
Ins Owner Change-0.11%
Market Cap1.43B
Analysts77.14
Price Target82.37 (41.43%)
Short Float %11.33%
Short Ratio3.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
Yearly Dividend1.6
Dividend Growth(5Y)-0.88%
DP83.08%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-21.61%
Min EPS beat(2)-51.95%
Max EPS beat(2)8.72%
EPS beat(4)1
Avg EPS beat(4)-15.89%
Min EPS beat(4)-51.95%
Max EPS beat(4)8.72%
EPS beat(8)5
Avg EPS beat(8)36.44%
EPS beat(12)5
Avg EPS beat(12)1.81%
EPS beat(16)5
Avg EPS beat(16)-9.36%
Revenue beat(2)0
Avg Revenue beat(2)-2.71%
Min Revenue beat(2)-3.78%
Max Revenue beat(2)-1.64%
Revenue beat(4)2
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-3.78%
Max Revenue beat(4)2.51%
Revenue beat(8)4
Avg Revenue beat(8)-0.83%
Revenue beat(12)4
Avg Revenue beat(12)-2.94%
Revenue beat(16)6
Avg Revenue beat(16)-13.54%
PT rev (1m)-3.29%
PT rev (3m)-19.45%
EPS NQ rev (1m)-5.25%
EPS NQ rev (3m)-23.33%
EPS NY rev (1m)-1.88%
EPS NY rev (3m)-28.33%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-6.1%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-4.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 12.24 | ||
| P/S | 0.49 | ||
| P/FCF | 18.82 | ||
| P/OCF | 12.52 | ||
| P/B | 0.76 | ||
| P/tB | 18.13 | ||
| EV/EBITDA | 6.75 |
EPS(TTM)3.77
EY6.47%
EPS(NY)4.76
Fwd EY8.17%
FCF(TTM)3.09
FCFY5.31%
OCF(TTM)4.65
OCFY7.99%
SpS119.4
BVpS76.83
TBVpS3.21
PEG (NY)N/A
PEG (5Y)1.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 3.14% | ||
| ROCE | 6.2% | ||
| ROIC | 3.76% | ||
| ROICexc | 3.89% | ||
| ROICexgc | 10.5% | ||
| OM | 6.27% | ||
| PM (TTM) | 2.02% | ||
| GM | 37.63% | ||
| FCFM | 2.59% |
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%
ROICexcg growth 3Y25.17%
ROICexcg 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 Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 8.45 | ||
| Debt/EBITDA | 2.23 | ||
| Cap/Depr | 38.28% | ||
| Cap/Sales | 1.3% | ||
| Interest Coverage | 3.94 | ||
| Cash Conversion | 40.25% | ||
| Profit Quality | 128.43% | ||
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 2.62 |
F-Score7
WACC6.91%
ROIC/WACC0.54
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)-16.41%
EPS 3Y-8.53%
EPS 5Y8.67%
EPS Q2Q%-58.02%
EPS Next Y-12.23%
EPS Next 2Y3.19%
EPS Next 3Y0.28%
EPS Next 5Y19.24%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-0.38%
Revenue growth 5Y-4.86%
Sales Q2Q%-5.96%
Revenue Next Year-3.27%
Revenue Next 2Y-2.61%
Revenue Next 3Y-2.37%
Revenue Next 5Y1.88%
EBIT growth 1Y24.63%
EBIT growth 3Y-1.61%
EBIT growth 5Y-9.92%
EBIT Next Year51.7%
EBIT Next 3Y11.81%
EBIT Next 5YN/A
FCF growth 1Y-71.37%
FCF growth 3Y-21.46%
FCF growth 5YN/A
OCF growth 1Y-65.5%
OCF growth 3Y-17.39%
OCF growth 5Y171.61%