SPECTRUM BRANDS HOLDINGS INC (SPB) Stock Fundamental Analysis
USA - NYSE:SPB - US84790A1051 - Common Stock
52.2 USD
-0.2 (-0.38%)
52.2 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. While SPB seems to be doing ok healthwise, 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
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
Looking at the Return On Assets, with a value of 2.06%, SPB is doing worse than 91.67% of the companies in the same industry.
SPB has a Return On Equity of 3.85%. This is amonst the worse of the industry: SPB underperforms 91.67% of its industry peers.
SPB has a worse Return On Invested Capital (3.47%) than 91.67% of its industry peers.
SPB had an Average Return On Invested Capital over the past 3 years of 1.45%. This is significantly below the industry average of 15.56%.
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 has a Profit Margin of 2.56%. This is amonst the worse of the industry: SPB underperforms 91.67% of its industry peers.
In the last couple of years the Profit Margin of SPB has declined.
The Operating Margin of SPB (6.00%) is worse than 91.67% of its industry peers.
SPB's Operating Margin has declined in the last couple of years.
SPB has a Gross Margin (37.32%) 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% | ||
| 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
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
SPB has an Altman-Z score of 2.55. 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 has a Altman-Z score (2.55) which is in line with its industry peers.
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 worse Debt to FCF ratio (8.88) than 83.33% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that SPB is not too dependend on debt financing.
SPB's Debt to Equity ratio of 0.35 is amongst the best of the industry. SPB outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 8.88 | ||
| Altman-Z | 2.55 |
ROIC/WACC0.52
WACC6.63%
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.
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.
The Revenue has decreased by -2.78% in the past year.
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
Based on estimates for the next years, SPB will show a very strong growth in Earnings Per Share. The EPS will grow by 20.15% on average per year.
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.
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 correctly with a Price/Earnings ratio of 13.35.
SPB's Price/Earnings ratio is a bit cheaper when compared to the industry. SPB is cheaper than 66.67% of the companies in the same industry.
SPB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.91.
SPB is valuated reasonably with a Price/Forward Earnings ratio of 11.47.
75.00% of the companies in the same industry are more expensive than SPB, based on the Price/Forward Earnings ratio.
SPB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 11.47 |
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 a bit cheaper when compared to the industry. SPB is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.83 | ||
| EV/EBITDA | 6.7 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.54
EPS Next 2Y0.92%
EPS Next 3Y3.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.50%, SPB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.01, SPB pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, SPB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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.
The dividend of SPB decreased 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%
52.2
-0.2 (-0.38%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners112.82%
Inst Owner Change0.02%
Ins Owners3.51%
Ins Owner Change-0.11%
Market Cap1.26B
Analysts77.14
Price Target80.2 (53.64%)
Short Float %14.03%
Short Ratio6.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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)-5.13%
EPS NQ rev (1m)2.96%
EPS NQ rev (3m)11.45%
EPS NY rev (1m)-0.95%
EPS NY rev (3m)-3.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 11.47 | ||
| P/S | 0.44 | ||
| P/FCF | 16.83 | ||
| P/OCF | 11.16 | ||
| P/B | 0.67 | ||
| P/tB | 17.34 | ||
| EV/EBITDA | 6.7 |
EPS(TTM)3.91
EY7.49%
EPS(NY)4.55
Fwd EY8.72%
FCF(TTM)3.1
FCFY5.94%
OCF(TTM)4.68
OCFY8.96%
SpS117.69
BVpS78.22
TBVpS3.01
PEG (NY)N/A
PEG (5Y)1.54
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%
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 Turnover0.8
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 | 2.55 |
F-Score7
WACC6.63%
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%