SPECTRUM BRANDS HOLDINGS INC (SPB) Stock Fundamental Analysis
NYSE:SPB - New York Stock Exchange, Inc. - US84790A1051 - Common Stock - Currency: USD
Overall SPB gets a fundamental rating of 4 out of 10. We evaluated SPB against 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year SPB was profitable.
SPB had a positive operating cash flow in the past year.
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.
SPB's Return On Invested Capital of 3.76% is on the low side compared to the rest of the industry. SPB is outperformed by 83.33% 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 15.50%.
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 Profit Margin of 2.02%. This is amonst the worse of the industry: SPB underperforms 83.33% of its industry peers.
SPB's Profit Margin has declined in the last couple of years.
SPB's Operating Margin of 6.27% is on the low side compared to the rest of the industry. SPB is outperformed by 83.33% 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 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
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.
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 2.59. 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 (2.59) which is comparable to the rest of the 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.
Looking at the Debt to FCF ratio, with a value of 8.45, SPB is doing worse than 83.33% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that SPB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.34, SPB belongs to the top 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 | 2.59 |
ROIC/WACC0.56
WACC6.71%
2.3 Liquidity
A Current Ratio of 2.34 indicates that SPB has no problem at all paying 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.
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
SPB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.41%.
The Earnings Per Share has been growing by 8.67% on average over the past years. This is quite good.
SPB shows a small growth in Revenue. In the last year, the Revenue has grown by 1.46%.
SPB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.86% yearly.
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.
SPB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.88% yearly.
EPS Next Y-12.23%
EPS Next 2Y3.19%
EPS Next 3Y0.28%
EPS Next 5Y19.24%
Revenue Next Year-3.37%
Revenue Next 2Y-2.42%
Revenue Next 3Y-1.53%
Revenue Next 5Y1.88%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 13.93, which indicates a correct valuation of SPB.
SPB's Price/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/Earnings ratio of 26.82, SPB is valued a bit cheaper.
SPB is valuated reasonably with a Price/Forward Earnings ratio of 11.04.
91.67% of the companies in the same industry are more expensive than SPB, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, SPB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 11.04 |
4.2 Price Multiples
SPB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SPB is 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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.98 | ||
| EV/EBITDA | 6.47 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.61
EPS Next 2Y3.19%
EPS Next 3Y0.28%
5. Dividend
5.1 Amount
SPB has a Yearly Dividend Yield of 3.51%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.03, SPB pays a bit more dividend than its industry peers.
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 | 3.51% |
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
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%
52.53
-0.98 (-1.83%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners104.32%
Inst Owner Change-3.02%
Ins Owners3.66%
Ins Owner Change-0.11%
Market Cap1.29B
Analysts77.14
Price Target82.37 (56.81%)
Short Float %12.21%
Short Ratio4.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.51% |
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)-2.56%
PT rev (3m)-14.66%
EPS NQ rev (1m)-8.89%
EPS NQ rev (3m)-28.55%
EPS NY rev (1m)-1.88%
EPS NY rev (3m)-28.33%
Revenue NQ rev (1m)-1.11%
Revenue NQ rev (3m)-7.01%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-4.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.93 | ||
| Fwd PE | 11.04 | ||
| P/S | 0.44 | ||
| P/FCF | 16.98 | ||
| P/OCF | 11.29 | ||
| P/B | 0.68 | ||
| P/tB | 16.35 | ||
| EV/EBITDA | 6.47 |
EPS(TTM)3.77
EY7.18%
EPS(NY)4.76
Fwd EY9.06%
FCF(TTM)3.09
FCFY5.89%
OCF(TTM)4.65
OCFY8.85%
SpS119.4
BVpS76.83
TBVpS3.21
PEG (NY)N/A
PEG (5Y)1.61
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 | 2.59 |
F-Score7
WACC6.71%
ROIC/WACC0.56
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-3.37%
Revenue Next 2Y-2.42%
Revenue Next 3Y-1.53%
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%