Fortune Brands Home & Security, Inc. Fundamental Analysis (NYSE: FBHS)
Fortune Brands Home & Security, Inc. Fundamental Analysis (NYSE: FBHS)
Fortune Brands Home & Security, Inc. (NYSE: FBHS) shows weak financial fundamentals with a PE ratio of 106.72, profit margin of 1.44%, and ROE of 2.05%. The company generates $3.5B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FBHS's fundamental strength across five key dimensions:
Efficiency Score
WeakFBHS struggles to generate sufficient returns from assets.
Valuation Score
ModerateFBHS shows balanced valuation metrics.
Growth Score
ModerateFBHS shows steady but slowing expansion.
Financial Health Score
ModerateFBHS shows balanced financial health with some risks.
Profitability Score
ModerateFBHS maintains healthy but balanced margins.
Key Financial Metrics
Is FBHS Expensive or Cheap?
P/E Ratio
FBHS trades at 106.72 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FBHS's PEG of -0.36 indicates potential undervaluation.
Price to Book
The market values Fortune Brands Home & Security, Inc. at 3.29 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.18 times EBITDA. This signals the market has high growth expectations.
How Well Does FBHS Make Money?
Net Profit Margin
For every $100 in sales, Fortune Brands Home & Security, Inc. keeps $1.44 as profit after all expenses.
Operating Margin
Core operations generate 5.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.05 in profit for every $100 of shareholder equity.
ROA
Fortune Brands Home & Security, Inc. generates $0.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Fortune Brands Home & Security, Inc. produces operating cash flow of $394.44M, showing steady but balanced cash generation.
Free Cash Flow
Fortune Brands Home & Security, Inc. produces free cash flow of $348.62M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.72 in free cash annually.
FCF Yield
FBHS converts 4.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
106.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.01
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How FBHS Stacks Against Its Sector Peers
| Metric | FBHS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 106.72 | 28.27 | Worse (Expensive) |
| ROE | 2.05% | 1119.00% | Weak |
| Net Margin | 1.44% | -20989.00% (disorted) | Weak |
| Debt/Equity | 1.21 | 0.80 | Weak (High Leverage) |
| Current Ratio | 2.01 | 21.75 | Strong Liquidity |
| ROA | 0.76% | -1330684.00% (disorted) | Weak |
FBHS outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Fortune Brands Home & Security, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure