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 correct valuation and a medium growth rate.
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.
In multiple years SPB reported negative operating cash flow during the last 5 years.
1.2 Ratios
SPB's Return On Assets of 1.67% is on the low side compared to the rest of the industry. SPB is outperformed by 83.33% of its industry peers.
SPB's Return On Equity of 3.14% is on the low side compared to the rest of the industry. SPB is outperformed by 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.
SPB had an Average Return On Invested Capital over the past 3 years of 1.45%. This is significantly below the industry average of 15.79%.
The 3 year average ROIC (1.45%) for SPB is below the current ROIC(3.76%), indicating increased profibility in the last year.
| 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
SPB has a worse Profit Margin (2.02%) than 83.33% of its industry peers.
In the last couple of years the Profit Margin of SPB has declined.
SPB has a Operating Margin of 6.27%. This is amonst the worse of the industry: SPB underperforms 91.67% of its industry peers.
SPB's Operating Margin has declined in the last couple of years.
SPB has a Gross Margin (37.63%) which is in line with its industry peers.
In the last couple of years the Gross Margin of SPB has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SPB is destroying value.
SPB has less shares outstanding than it did 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 2.65 indicates that SPB is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.65, SPB is in line with its industry, outperforming 41.67% of the companies in the same industry.
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.
The Debt to FCF ratio of SPB (8.45) is worse than 83.33% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that SPB is not too dependend on debt financing.
The Debt to Equity ratio of SPB (0.34) is better than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 8.45 | ||
| Altman-Z | 2.65 |
ROIC/WACC0.53
WACC7.07%
2.3 Liquidity
SPB has a Current Ratio of 2.34. This indicates that SPB is financially healthy and has no problem in meeting its short term obligations.
SPB's Current ratio of 2.34 is fine compared to the rest 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.
With a Quick ratio value of 1.40, SPB perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
SPB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.41%.
Measured over the past years, SPB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.67% on average per year.
The Revenue has been growing slightly by 1.46% in the past year.
Measured over the past years, SPB shows a decrease in Revenue. The Revenue has been decreasing by -4.86% on average per year.
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
SPB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.86% yearly.
The Revenue is expected to grow by 2.39% on average over the next years.
EPS Next Y5.04%
EPS Next 2Y9.76%
EPS Next 3Y9.45%
EPS Next 5Y22.86%
Revenue Next Year-1.69%
Revenue Next 2Y-1.31%
Revenue Next 3Y-2.58%
Revenue Next 5Y2.39%
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 15.41, the valuation of SPB can be described as correct.
SPB's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.82, SPB is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 10.79, the valuation of SPB can be described as reasonable.
SPB's Price/Forward Earnings ratio is rather cheap when compared to the industry. SPB is cheaper than 91.67% of the companies in the same industry.
SPB is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.41 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SPB is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
SPB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.14 | ||
| EV/EBITDA | 7.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SPB does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.06
PEG (5Y)1.78
EPS Next 2Y9.76%
EPS Next 3Y9.45%
5. Dividend
5.1 Amount
SPB has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of SPB has falen by -26.65%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
SPB's Dividend Yield is a higher than the industry average which is at 2.87.
Compared to an average S&P500 Dividend Yield of 2.39, SPB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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
SPB pays out 83.08% of its income as dividend. This is not a sustainable payout ratio.
DP83.08%
EPS Next 2Y9.76%
EPS Next 3Y9.45%
58.11
-0.41 (-0.7%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners99.26%
Inst Owner Change1%
Ins Owners3.75%
Ins Owner Change-0.05%
Market Cap1.45B
Analysts77.14
Price Target94.22 (62.14%)
Short Float %8.82%
Short Ratio4.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
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)-7.86%
PT rev (3m)-7.86%
EPS NQ rev (1m)-8.18%
EPS NQ rev (3m)-8.12%
EPS NY rev (1m)-14.23%
EPS NY rev (3m)-14.75%
Revenue NQ rev (1m)-4.6%
Revenue NQ rev (3m)-4.59%
Revenue NY rev (1m)-3.19%
Revenue NY rev (3m)-3.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.41 | ||
| Fwd PE | 10.79 | ||
| P/S | 0.5 | ||
| P/FCF | 19.14 | ||
| P/OCF | 12.73 | ||
| P/B | 0.77 | ||
| P/tB | 18.44 | ||
| EV/EBITDA | 7.05 |
EPS(TTM)3.77
EY6.49%
EPS(NY)5.39
Fwd EY9.27%
FCF(TTM)3.04
FCFY5.22%
OCF(TTM)4.56
OCFY7.85%
SpS117.16
BVpS75.39
TBVpS3.15
PEG (NY)3.06
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 | 2.65 |
F-Score7
WACC7.07%
ROIC/WACC0.53
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 Y5.04%
EPS Next 2Y9.76%
EPS Next 3Y9.45%
EPS Next 5Y22.86%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-0.38%
Revenue growth 5Y-4.86%
Sales Q2Q%-5.96%
Revenue Next Year-1.69%
Revenue Next 2Y-1.31%
Revenue Next 3Y-2.58%
Revenue Next 5Y2.39%
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%