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. The financial health of SPB is average, but 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
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.
In multiple years SPB reported negative operating cash flow during the last 5 years.
1.2 Ratios
SPB's Return On Assets of 3.30% is on the low side compared to the rest of the industry. SPB is outperformed by 83.33% of its industry peers.
With a Return On Equity value of 5.88%, SPB is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
SPB has a worse Return On Invested Capital (4.02%) than 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SPB is significantly below the industry average of 15.46%.
The last Return On Invested Capital (4.02%) for SPB is above the 3 year average (1.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 5.88% | ||
| ROIC | 4.02% |
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 4.01%. This is in the lower half of the industry: SPB underperforms 66.67% of its industry peers.
SPB's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.74%, 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.
Looking at the Gross Margin, with a value of 37.76%, SPB is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Gross Margin of SPB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.74% | ||
| PM (TTM) | 4.01% | ||
| GM | 37.76% |
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
SPB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SPB has less shares outstanding than it did 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 2.75 indicates that SPB is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SPB (2.75) is comparable to the rest of the industry.
The Debt to FCF ratio of SPB is 10.54, which is on the high side as it means it would take SPB, 10.54 years of fcf income to pay off all of its debts.
SPB's Debt to FCF ratio of 10.54 is on the low side compared to the rest of the industry. SPB is outperformed by 83.33% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that SPB is not too dependend on debt financing.
SPB has a better Debt to Equity ratio (0.27) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 10.54 | ||
| Altman-Z | 2.75 |
ROIC/WACC0.58
WACC6.98%
2.3 Liquidity
A Current Ratio of 2.40 indicates that SPB has no problem at all paying its short term obligations.
SPB has a Current ratio of 2.40. This is in the better half of the industry: SPB outperforms 66.67% of its industry peers.
A Quick Ratio of 1.53 indicates that SPB should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.53, SPB is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
SPB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 71.27%, which is quite impressive.
SPB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.67% yearly.
Looking at the last year, SPB shows a small growth in Revenue. The Revenue has grown by 2.56% in the last year.
SPB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.86% yearly.
EPS 1Y (TTM)71.27%
EPS 3Y-8.53%
EPS 5Y8.67%
EPS Q2Q%30.77%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y-0.38%
Revenue growth 5Y-4.86%
Sales Q2Q%1.16%
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 22.86% on average per year.
Based on estimates for the next years, SPB will show a small growth in Revenue. The Revenue will grow by 2.39% on average per year.
EPS Next Y22.47%
EPS Next 2Y16.82%
EPS Next 3Y10.68%
EPS Next 5Y22.86%
Revenue Next Year1.55%
Revenue Next 2Y1.9%
Revenue Next 3Y1.79%
Revenue Next 5Y2.39%
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
A Price/Earnings ratio of 13.79 indicates a correct valuation of SPB.
Compared to the rest of the industry, the Price/Earnings ratio of SPB indicates a somewhat cheap valuation: SPB is cheaper than 75.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SPB to the average of the S&P500 Index (27.75), we can say SPB is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.65, the valuation of SPB can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SPB is valued cheaper than 91.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.49. SPB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.79 | ||
| Fwd PE | 10.65 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than SPB, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPB indicates a rather expensive valuation: SPB more expensive than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.24 | ||
| EV/EBITDA | 6.77 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.61
PEG (5Y)1.59
EPS Next 2Y16.82%
EPS Next 3Y10.68%
5. Dividend
5.1 Amount
SPB has a Yearly Dividend Yield of 3.02%.
The stock price of SPB dropped by -25.41% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.80, 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 | 3.02% |
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 41.66% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP41.66%
EPS Next 2Y16.82%
EPS Next 3Y10.68%
NYSE:SPB (5/2/2025, 12:58:15 PM)
64.95
+1.88 (+2.98%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners99.26%
Inst Owner Change-1.65%
Ins Owners3.75%
Ins Owner Change0.06%
Market Cap1.71B
Analysts77.14
Price Target96.52 (48.61%)
Short Float %8.22%
Short Ratio4.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Yearly Dividend1.6
Dividend Growth(5Y)-0.88%
DP41.66%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.67%
Min EPS beat(2)-10.06%
Max EPS beat(2)8.72%
EPS beat(4)2
Avg EPS beat(4)36.77%
Min EPS beat(4)-10.27%
Max EPS beat(4)158.7%
EPS beat(8)5
Avg EPS beat(8)19.99%
EPS beat(12)5
Avg EPS beat(12)5.94%
EPS beat(16)6
Avg EPS beat(16)-1.47%
Revenue beat(2)1
Avg Revenue beat(2)0.43%
Min Revenue beat(2)-1.64%
Max Revenue beat(2)2.51%
Revenue beat(4)3
Avg Revenue beat(4)0.89%
Min Revenue beat(4)-1.64%
Max Revenue beat(4)2.51%
Revenue beat(8)4
Avg Revenue beat(8)-0.97%
Revenue beat(12)5
Avg Revenue beat(12)-2.54%
Revenue beat(16)6
Avg Revenue beat(16)-14.98%
PT rev (1m)-5.61%
PT rev (3m)-9.77%
EPS NQ rev (1m)-0.39%
EPS NQ rev (3m)-7.45%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-4.6%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.79 | ||
| Fwd PE | 10.65 | ||
| P/S | 0.58 | ||
| P/FCF | 32.24 | ||
| P/OCF | 18.08 | ||
| P/B | 0.84 | ||
| P/tB | 8.17 | ||
| EV/EBITDA | 6.77 |
EPS(TTM)4.71
EY7.25%
EPS(NY)6.1
Fwd EY9.39%
FCF(TTM)2.01
FCFY3.1%
OCF(TTM)3.59
OCFY5.53%
SpS112.95
BVpS77.1
TBVpS7.95
PEG (NY)0.61
PEG (5Y)1.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 5.88% | ||
| ROCE | 6.62% | ||
| ROIC | 4.02% | ||
| ROICexc | 4.27% | ||
| ROICexgc | 11.83% | ||
| OM | 6.74% | ||
| PM (TTM) | 4.01% | ||
| GM | 37.76% | ||
| FCFM | 1.78% |
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-Score6
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 10.54 | ||
| Debt/EBITDA | 1.83 | ||
| Cap/Depr | 41.17% | ||
| Cap/Sales | 1.4% | ||
| Interest Coverage | 3.56 | ||
| Cash Conversion | 31.38% | ||
| Profit Quality | 44.43% | ||
| Current Ratio | 2.4 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 2.75 |
F-Score6
WACC6.98%
ROIC/WACC0.58
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)71.27%
EPS 3Y-8.53%
EPS 5Y8.67%
EPS Q2Q%30.77%
EPS Next Y22.47%
EPS Next 2Y16.82%
EPS Next 3Y10.68%
EPS Next 5Y22.86%
Revenue 1Y (TTM)2.56%
Revenue growth 3Y-0.38%
Revenue growth 5Y-4.86%
Sales Q2Q%1.16%
Revenue Next Year1.55%
Revenue Next 2Y1.9%
Revenue Next 3Y1.79%
Revenue Next 5Y2.39%
EBIT growth 1Y137.6%
EBIT growth 3Y-1.61%
EBIT growth 5Y-9.92%
EBIT Next Year67.97%
EBIT Next 3Y21.04%
EBIT Next 5YN/A
FCF growth 1Y-43.13%
FCF growth 3Y-21.46%
FCF growth 5YN/A
OCF growth 1Y-38.28%
OCF growth 3Y-17.39%
OCF growth 5Y171.61%