Fortune Brands Home & Security
Market Cap
US$9.7b
Last Updated
2020/01/25 01:26 UTC
Data Sources
Company Financials +
Executive Summary
Fortune Brands Home & Security, Inc., together with its subsidiaries, provides home and security products for residential home repair, remodeling, new construction, and security applications.
Snowflake Analysis
Mediocre balance sheet with questionable track record.
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Share Price & News
How has Fortune Brands Home & Security's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: FBHS has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.1%
FBHS
0.06%
US Building
-1.3%
US Market
1 Year Return
65.7%
FBHS
34.1%
US Building
22.0%
US Market
Return vs Industry: FBHS exceeded the US Building industry which returned 35.5% over the past year.
Return vs Market: FBHS exceeded the US Market which returned 24.7% over the past year.
Shareholder returns
| FBHS | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.1% | 0.06% | -1.3% |
| 30 Day | 6.1% | 2.8% | 1.8% |
| 90 Day | 15.2% | 5.1% | 9.3% |
| 1 Year | 68.5%65.7% | 36.2%34.1% | 24.6%22.0% |
| 3 Year | 29.6%24.1% | 26.6%20.8% | 49.2%39.6% |
| 5 Year | 65.8%55.2% | 59.7%39.3% | 77.9%58.3% |
Price Volatility Vs. Market
How volatile is Fortune Brands Home & Security's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Fortune Brands Home & Security (NYSE:FBHS) Seems To Use Debt Quite Sensibly1 week ago | Simply Wall St
Are Fortune Brands Home & Security, Inc.’s (NYSE:FBHS) Returns On Investment Worth Your While?3 weeks ago | Simply Wall St
Should You Use Fortune Brands Home & Security's (NYSE:FBHS) Statutory Earnings To Analyse It?Valuation
Is Fortune Brands Home & Security undervalued compared to its fair value and its price relative to the market?
23.6x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: FBHS ($68.02) is trading above our estimate of fair value ($62.55)
Significantly Below Fair Value: FBHS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: FBHS is good value based on its PE Ratio (23.6x) compared to the Building industry average (24x).
PE vs Market: FBHS is poor value based on its PE Ratio (23.1x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: FBHS is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: FBHS is overvalued based on its PB Ratio (4.1x) compared to the US Building industry average (2.4x).
Next Steps
Future Growth
How is Fortune Brands Home & Security forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
10.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FBHS's forecast earnings growth (10.8% per year) is above the savings rate (1.7%).
Earnings vs Market: FBHS's earnings (10.8% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: FBHS's earnings are forecast to grow, but not significantly.
Revenue vs Market: FBHS's revenue (3.8% per year) is forecast to grow slower than the US market (7.5% per year).
High Growth Revenue: FBHS's revenue (3.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FBHS's Return on Equity is forecast to be high in 3 years time (20.7%)
Next Steps
Past Performance
How has Fortune Brands Home & Security performed over the past 5 years?
10.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FBHS has high quality earnings.
Growing Profit Margin: FBHS's current net profit margins (7.2%) are lower than last year (7.9%).
Past Earnings Growth Analysis
Earnings Trend: FBHS's earnings have grown by 10.3% per year over the past 5 years.
Accelerating Growth: FBHS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: FBHS had negative earnings growth (-4.5%) over the past year, making it difficult to compare to the Building industry average (-5.5%).
Return on Equity
High ROE: FBHS's Return on Equity (17.7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Fortune Brands Home & Security's financial position?
Financial Position Analysis
Short Term Liabilities: FBHS's short term assets ($1.9B) exceed its short term liabilities ($1.4B).
Long Term Liabilities: FBHS's short term assets ($1.9B) do not cover its long term liabilities ($2.6B).
Debt to Equity History and Analysis
Debt Level: FBHS's debt to equity ratio (100.5%) is considered high.
Reducing Debt: FBHS's debt to equity ratio has increased from 29.2% to 100.5% over the past 5 years.
Debt Coverage: FBHS's debt is well covered by operating cash flow (26.1%).
Interest Coverage: FBHS's interest payments on its debt are well covered by EBIT (7.8x coverage).
Balance Sheet
Inventory Level: FBHS has a high level of physical assets or inventory.
Debt Coverage by Assets: FBHS's debt is not covered by short term assets (assets are 0.8x debt).
Next Steps
Dividend
What is Fortune Brands Home & Security's current dividend yield, its reliability and sustainability?
1.38%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Fortune Brands Home & Security before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: FBHS's dividend (1.37%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.38%).
High Dividend: FBHS's dividend (1.41%) is low compared to the top 25% of dividend payers in the US market (3.66%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, FBHS has been paying a dividend for less than 10 years.
Growing Dividend: FBHS's dividend payments have increased, but the company has only paid a dividend for 7 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (29.2%), FBHS's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: FBHS's dividends in 3 years are forecast to be well covered by earnings (23.5% payout ratio).
Next Steps
Management
What is the CEO of Fortune Brands Home & Security's salary, the management and board of directors tenure and is there insider trading?
3.5yrs
Average management tenure
CEO
Nick Fink (44yo)
0yrs
Tenure
US$2,577,931
Compensation
Mr. Nicholas Ian Fink, also known as Nick, serves as Chief Executive Officer and Director of Fortune Brands Home & Security, Inc. since January 6, 2020. Mr. Fink serves as President and Chief Operating Off ...
CEO Compensation Analysis
Compensation vs Market: Nick's total compensation ($USD2.58M) is below average for companies of similar size in the US market ($USD6.46M).
Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.
Management Age and Tenure
3.5yrs
Average Tenure
53.5yo
Average Age
Experienced Management: FBHS's management team is considered experienced (3.1 years average tenure).
Board Age and Tenure
8.2yrs
Average Tenure
62yo
Average Age
Experienced Board: FBHS's board of directors are considered experienced (8.2 years average tenure).
Insider Trading
Insider Buying: FBHS insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chairman of the Board Executive Chairman |
| Shares | 97,439 |
| Max Price | US$63.07 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,387 |
| Max Price | US$62.83 |
| Entity | Individual |
| Shares | 11,906 |
| Max Price | US$60.96 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 10,000 |
| Max Price | US$50.40 |
| Entity | Individual |
| Role | Chief Administrative Officer Senior Vice President of Communications & Corporate Administration |
| Shares | 2,192 |
| Max Price | US$52.55 |
| Entity | Individual |
| Shares | 20,000 |
| Max Price | US$53.00 |
| Entity | Individual |
| Shares | 2,000 |
| Max Price | US$46.96 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Chris Klein (55yo)
Executive Chairman
- Compensation: US$8.61m
Bob Biggart (65yo)
Senior VP
- Tenure: 6.1yrs
- Compensation: US$1.94m
Robyn Hill
Senior Vice President of Human Resources for The Fortune Brands Global Plumbing Group
Mark-Hans Richer (52yo)
Chief Marketing & Innovation Officer and Senior VP of The Fortune Brands Global Plumbing Group
- Tenure: 2.8yrs
Sheri Grissom (55yo)
Senior VP & Chief Human Resources Officer
- Tenure: 4.9yrs
Brian Lantz (56yo)
Senior Vice President of Communications & Corporate Administration
- Tenure: 3yrs
Brett Finley (48yo)
President of Doors & Security Segment
- Tenure: 3.9yrs
- Compensation: US$2.34m
Nick Fink (44yo)
President
- Compensation: US$2.58m
Pat Hallinan (51yo)
Senior VP & CFO
- Tenure: 2.5yrs
- Compensation: US$2.29m
Kaveh Bakhtiari
Director of Investor Relations
Board Members
David MacKay (63yo)
Independent Director
- Tenure: 8.3yrs
- Compensation: US$241.62k
John Morikis (56yo)
Independent Director
- Tenure: 8.1yrs
- Compensation: US$240.84k
Ronald Waters (67yo)
Independent Director
- Tenure: 8.3yrs
- Compensation: US$250.11k
Ann Hackett (65yo)
Independent Director
- Tenure: 8.3yrs
- Compensation: US$254.12k
David Thomas (70yo)
Lead Independent Director
- Compensation: US$455.11k
Susan Kilsby (61yo)
Independent Director
- Tenure: 4.5yrs
- Compensation: US$233.64k
Irial Finan (62yo)
Independent Director
- Tenure: 0.9yrs
Chris Klein (55yo)
Executive Chairman
- Compensation: US$8.61m
Nick Fink (44yo)
President
- Compensation: US$2.58m
Company Information
Fortune Brands Home & Security, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Fortune Brands Home & Security, Inc.
- Ticker: FBHS
- Exchange: NYSE
- Founded: 1988
- Industry: Building Products
- Sector: Capital Goods
- Market Cap: US$9.672b
- Shares outstanding: 139.15m
- Website: https://www.fbhs.com
Number of Employees
Location
- Fortune Brands Home & Security, Inc.
- 520 Lake Cook Road
- Deerfield
- Illinois
- 60015
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FBHS | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Sep 2011 |
| 2FB | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Sep 2011 |
| 0IRN | LSE (London Stock Exchange) | Yes | Common Shares | GB | USD | Sep 2011 |
Biography
Fortune Brands Home & Security, Inc., together with its subsidiaries, provides home and security products for residential home repair, remodeling, new construction, and security applications. It operates in three segments: Cabinets, Plumbing, and Doors & Security. The Cabinets segment manufactures custom, semi-custom, and stock cabinetry, as well as vanities for the kitchen, bath, and other parts of the home directly to kitchen and bath dealers, home centers, wholesalers, and builders in North America. The Plumbing segment manufactures, assembles, and sells faucets, accessories, kitchen sinks, and waste disposals in the United States, China, Canada, Mexico, Southeast Asia, Europe, and South America directly through its own sales force, as well as through independent manufacturers’ representatives primarily to wholesalers, home centers, mass merchandisers, and industrial distributors. The Doors & Security segment manufactures and sells fiberglass and steel entry doors, as well as composite decking, railing, and fencing products to home centers, hardware and other retailers, millwork building products and wholesale distributors, and specialty dealers, as well as to the remodeling and renovation markets. It also manufactures, sources, and distributes locks, safety and security devices, and electronic security products; and fire resistant safes, security containers and commercial cabinets to locksmiths, industrial and institutional users, and original equipment manufacturers. This segment sells its products in the United States, Canada, Europe, Central America, Japan, and Australia. The company was founded in 1988 and is headquartered in Deerfield, Illinois.Â
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/25 01:26 |
| End of Day Share Price | 2020/01/24 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.