SPECTRUM BRANDS HOLDINGS INC (SPB) Stock Fundamental Analysis
USA - NYSE:SPB - US84790A1051 - Common Stock
53.88 USD
-0.93 (-1.7%)
53.88 USD
0 (0%)
Taking everything into account, SPB scores 4 out of 10 in our fundamental rating. SPB was compared to 12 industry peers in the Household Products industry. SPB scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
In the past year SPB had a positive cash flow from operations.
Each year in the past 5 years SPB has been profitable.
In multiple years SPB reported negative operating cash flow during the last 5 years.
1.2 Ratios
SPB has a Return On Assets of 2.06%. This is amonst the worse of the industry: SPB underperforms 91.67% of its industry peers.
SPB has a worse Return On Equity (3.85%) than 91.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.47%, SPB is doing worse than 91.67% of the companies in the same industry.
SPB had an Average Return On Invested Capital over the past 3 years of 1.45%. This is significantly below the industry average of 15.69%.
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
SPB's Profit Margin of 2.56% is on the low side compared to the rest of the industry. SPB is outperformed by 91.67% of its industry peers.
In the last couple of years the Profit Margin of SPB has declined.
Looking at the Operating Margin, with a value of 6.00%, SPB is doing worse than 91.67% of the companies in the same industry.
SPB's Operating Margin has declined in the last couple of years.
SPB has a Gross Margin of 37.32%. This is comparable to the rest of the industry: SPB outperforms 50.00% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SPB is destroying value.
Compared to 1 year ago, SPB has less shares outstanding
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 2.57. 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.
The Altman-Z score of SPB (2.57) 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 has a Debt to FCF ratio of 8.88. This is amonst the worse of the industry: SPB underperforms 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.
SPB has a better Debt to Equity ratio (0.35) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 8.88 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.52
WACC6.65%
2.3 Liquidity
SPB has a Current Ratio of 2.42. This indicates that SPB is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SPB (2.42) is better than 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.
SPB's Quick ratio of 1.50 is fine compared to the rest of the industry. SPB outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
The earnings per share for SPB have decreased strongly by -19.55% in the last year.
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%.
The Revenue has been decreasing by -4.86% on average over the past years.
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
SPB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.15% yearly.
Based on estimates for the next years, SPB will show a small growth in Revenue. The Revenue will grow by 1.04% on average per year.
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
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.
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
With a Price/Earnings ratio of 13.78, SPB is valued correctly.
Based on the Price/Earnings ratio, SPB is valued a bit cheaper than 66.67% of the companies in the same industry.
SPB is valuated rather cheaply when we compare the Price/Earnings ratio to 26.10, which is the current average of the S&P500 Index.
SPB is valuated reasonably with a Price/Forward Earnings ratio of 11.84.
Based on the Price/Forward Earnings ratio, SPB is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.52. SPB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.78 | ||
| Fwd PE | 11.84 |
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.
66.67% of the companies in the same industry are more expensive than SPB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.37 | ||
| EV/EBITDA | 6.92 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.59
EPS Next 2Y0.92%
EPS Next 3Y3.2%
5. Dividend
5.1 Amount
SPB has a Yearly Dividend Yield of 3.40%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.06, 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 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
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%
53.88
-0.93 (-1.7%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners112.82%
Inst Owner Change-2.36%
Ins Owners3.51%
Ins Owner Change-0.11%
Market Cap1.30B
Revenue(TTM)2.85B
Net Income(TTM)72.90M
Analysts77.14
Price Target80.2 (48.85%)
Short Float %13.61%
Short Ratio8.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
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%
PT rev (3m)-2.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.78 | ||
| Fwd PE | 11.84 | ||
| P/S | 0.46 | ||
| P/FCF | 17.37 | ||
| P/OCF | 11.52 | ||
| P/B | 0.69 | ||
| P/tB | 17.89 | ||
| EV/EBITDA | 6.92 |
EPS(TTM)3.91
EY7.26%
EPS(NY)4.55
Fwd EY8.45%
FCF(TTM)3.1
FCFY5.76%
OCF(TTM)4.68
OCFY8.68%
SpS117.69
BVpS78.22
TBVpS3.01
PEG (NY)N/A
PEG (5Y)1.59
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 | 2.57 |
F-Score7
WACC6.65%
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%.