SPECTRUM BRANDS HOLDINGS INC (SPB)
US84790A1051 - Common Stock
Overall SPB gets a fundamental rating of 5 out of 10. We evaluated SPB against 12 industry peers in the Household Products industry. Both the profitability and the financial health of SPB get a neutral evaluation. Nothing too spectacular is happening here. 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 has reported a negative cash flow from operations.
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
SPB's Return On Assets of 38.20% is amongst the best of the industry. SPB outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 80.47%, SPB is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
SPB has a Return On Invested Capital of 1.63%. This is amonst the worse of the industry: SPB underperforms 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 13.99%.
The last Return On Invested Capital (1.63%) for SPB is above the 3 year average (1.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 38.2% | ||
| ROE | 80.47% | ||
| ROIC | 1.63% |
ROA(3y)13.02%
ROA(5y)9.99%
ROE(3y)30.03%
ROE(5y)24.89%
ROIC(3y)1.57%
ROIC(5y)3.62%
1.3 Margins
SPB has a Profit Margin of 63.89%. This is amongst the best in the industry. SPB outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of SPB has grown nicely.
SPB has a worse Operating Margin (2.91%) than 91.67% of its industry peers.
In the last couple of years the Operating Margin of SPB has declined.
With a Gross Margin value of 33.39%, SPB perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
SPB's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.91% | ||
| PM (TTM) | 63.89% | ||
| GM | 33.39% |
OM growth 3Y-49.91%
OM growth 5Y-33.05%
PM growth 3Y192.47%
PM growth 5Y25.06%
GM growth 3Y-3.19%
GM growth 5Y-2.04%
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.
SPB has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SPB has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.30 indicates that SPB is not a great score, but indicates only limited risk for bankruptcy at the moment.
SPB has a worse Altman-Z score (2.30) than 83.33% of its industry peers.
SPB has a Debt/Equity ratio of 0.60. This is a neutral value indicating SPB is somewhat dependend on debt financing.
The Debt to Equity ratio of SPB (0.60) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.3 |
ROIC/WACC0.22
WACC7.5%
2.3 Liquidity
A Current Ratio of 3.36 indicates that SPB has no problem at all paying its short term obligations.
SPB's Current ratio of 3.36 is amongst the best of the industry. SPB outperforms 83.33% of its industry peers.
SPB has a Quick Ratio of 2.75. This indicates that SPB is financially healthy and has no problem in meeting its short term obligations.
SPB has a better Quick ratio (2.75) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.36 | ||
| Quick Ratio | 2.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 147.75% over the past year.
SPB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.04% yearly.
SPB shows a decrease in Revenue. In the last year, the revenue decreased by -6.18%.
The Revenue has been decreasing by -5.18% on average over the past years.
EPS 1Y (TTM)147.75%
EPS 3Y-26.7%
EPS 5Y17.04%
EPS growth Q2Q343.75%
Revenue 1Y (TTM)-6.18%
Revenue growth 3Y-9.7%
Revenue growth 5Y-5.18%
Revenue growth Q2Q-2.96%
3.2 Future
The Earnings Per Share is expected to grow by 39.07% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 1.60% on average over the next years.
EPS Next Y142.17%
EPS Next 2Y72.26%
EPS Next 3Y43.1%
EPS Next 5Y39.07%
Revenue Next Year-1.32%
Revenue Next 2Y0.37%
Revenue Next 3Y0.74%
Revenue Next 5Y1.6%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
SPB is valuated quite expensively with a Price/Earnings ratio of 30.43.
Based on the Price/Earnings ratio, SPB is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
SPB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.28.
A Price/Forward Earnings ratio of 17.09 indicates a rather expensive valuation of SPB.
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 20.88, SPB is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.43 | ||
| Fwd PE | 17.09 |
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 91.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.81 |
4.3 Compensation for Growth
SPB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SPB's earnings are expected to grow with 43.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)1.79
EPS Next 2Y72.26%
EPS Next 3Y43.1%
5. Dividend
5.1 Amount
SPB has a Yearly Dividend Yield of 2.02%.
Compared to an average industry Dividend Yield of 2.55, SPB has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, SPB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
5.2 History
The dividend of SPB is nicely growing with an annual growth rate of 27.43%!
SPB has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)27.43%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SPB pays out 3.43% of its income as dividend. This is a sustainable payout ratio.
The dividend of SPB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP3.43%
EPS Next 2Y72.26%
EPS Next 3Y43.1%
SPECTRUM BRANDS HOLDINGS INC
NYSE:SPB (5/3/2024, 7:19:17 PM)
After market: 83.67 0 (0%)83.67
+0.4 (+0.48%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.53B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.43 | ||
| Fwd PE | 17.09 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.21
PEG (5Y)1.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 38.2% | ||
| ROE | 80.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.91% | ||
| PM (TTM) | 63.89% | ||
| GM | 33.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.36 | ||
| Quick Ratio | 2.75 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)147.75%
EPS 3Y-26.7%
EPS 5Y
EPS growth Q2Q
EPS Next Y142.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.18%
Revenue growth 3Y-9.7%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y