Spectrum Brands Holdings, Inc.
Spectrum Brands Holdings, Inc. Fundamental Analysis
Spectrum Brands Holdings, Inc. (SPB) shows weak financial fundamentals with a PE ratio of 17.71, profit margin of 3.76%, and ROE of 5.52%. The company generates $2.8B in annual revenue with weak year-over-year growth of -5.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SPB's fundamental strength across five key dimensions:
Efficiency Score
WeakSPB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSPB trades at attractive valuation levels.
Growth Score
WeakSPB faces weak or negative growth trends.
Financial Health Score
ExcellentSPB maintains a strong and stable balance sheet.
Profitability Score
WeakSPB struggles to sustain strong margins.
Key Financial Metrics
Is SPB Expensive or Cheap?
P/E Ratio
SPB trades at 17.71 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SPB's PEG of 1.90 indicates fair valuation.
Price to Book
The market values Spectrum Brands Holdings, Inc. at 0.98 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.78 times EBITDA. This is generally considered low.
How Well Does SPB Make Money?
Net Profit Margin
For every $100 in sales, Spectrum Brands Holdings, Inc. keeps $3.76 as profit after all expenses.
Operating Margin
Core operations generate 4.11 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.52 in profit for every $100 of shareholder equity.
ROA
Spectrum Brands Holdings, Inc. generates $3.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Spectrum Brands Holdings, Inc. produces operating cash flow of $341.62M, showing steady but balanced cash generation.
Free Cash Flow
Spectrum Brands Holdings, Inc. generates strong free cash flow of $301.33M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $12.94 in free cash annually.
FCF Yield
SPB converts 16.41% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.90
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How SPB Stacks Against Its Sector Peers
| Metric | SPB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.71 | 23.01 | Better (Cheaper) |
| ROE | 5.52% | 1228.00% | Weak |
| Net Margin | 3.76% | -4010.00% (disorted) | Weak |
| Debt/Equity | 0.43 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 2.21 | 2.35 | Strong Liquidity |
| ROA | 3.06% | -157546.00% (disorted) | Weak |
SPB outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Spectrum Brands Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
86.33%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
77.66%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
22.28%
Industry Style: Defensive, Dividend, Low Volatility
High Growth