Fortune Brands Home & Security
Market Cap
US$4.9b
Last Updated
2020/04/05 05:39 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.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with solid track record.
Similar Companies
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-18.5%
FBHS
-8.5%
US Building
-2.8%
US Market
1 Year Return
-29.5%
FBHS
-26.6%
US Building
-15.9%
US Market
Return vs Industry: FBHS underperformed the US Building industry which returned -24.6% over the past year.
Return vs Market: FBHS underperformed the US Market which returned -15.1% over the past year.
Shareholder returns
| FBHS | Industry | Market | |
|---|---|---|---|
| 7 Day | -18.5% | -8.5% | -2.8% |
| 30 Day | -41.4% | -35.3% | -18.8% |
| 90 Day | -46.2% | -36.7% | -24.0% |
| 1 Year | -28.4%-29.5% | -25.4%-26.6% | -14.2%-15.9% |
| 3 Year | -40.2%-42.7% | -23.0%-26.6% | 9.9%2.8% |
| 5 Year | -17.9%-23.2% | -8.8%-20.5% | 27.2%13.3% |
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
4 days ago | Simply Wall St
How Does Fortune Brands Home & Security's (NYSE:FBHS) P/E Compare To Its Industry, After The Share Price Drop?1 week ago | Simply Wall St
Is Fortune Brands Home & Security, Inc. (NYSE:FBHS) A High Quality Stock To Own?3 weeks ago | Simply Wall St
A Sliding Share Price Has Us Looking At Fortune Brands Home & Security, Inc.'s (NYSE:FBHS) P/E RatioValuation
Is Fortune Brands Home & Security undervalued compared to its fair value and its price relative to the market?
46.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FBHS ($35.42) is trading below our estimate of fair value ($65.21)
Significantly Below Fair Value: FBHS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FBHS is good value based on its PE Ratio (11.5x) compared to the Building industry average (14.7x).
PE vs Market: FBHS is good value based on its PE Ratio (11.5x) compared to the US market (12.4x).
Price to Earnings Growth Ratio
PEG Ratio: FBHS is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: FBHS is overvalued based on its PB Ratio (2x) compared to the US Building industry average (1.1x).
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?
12.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FBHS's forecast earnings growth (12.4% per year) is above the savings rate (1.7%).
Earnings vs Market: FBHS's earnings (12.4% per year) are forecast to grow slower than the US market (13.4% per year).
High Growth Earnings: FBHS's earnings are forecast to grow, but not significantly.
Revenue vs Market: FBHS's revenue (4% per year) is forecast to grow slower than the US market (7.1% per year).
High Growth Revenue: FBHS's revenue (4% 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 low in 3 years time (17.3%).
Next Steps
Past Performance
How has Fortune Brands Home & Security performed over the past 5 years?
9.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FBHS has high quality earnings.
Growing Profit Margin: FBHS's current net profit margins (7.5%) are higher than last year (7.1%).
Past Earnings Growth Analysis
Earnings Trend: FBHS's earnings have grown by 9.1% per year over the past 5 years.
Accelerating Growth: FBHS's earnings growth over the past year (10.8%) exceeds its 5-year average (9.1% per year).
Earnings vs Industry: FBHS earnings growth over the past year (10.8%) exceeded the Building industry -15.9%.
Return on Equity
High ROE: FBHS's Return on Equity (17.8%) is considered low.
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 ($2.5B).
Debt to Equity History and Analysis
Debt Level: FBHS's debt to equity ratio (90%) is considered high.
Reducing Debt: FBHS's debt to equity ratio has increased from 29.6% to 90% over the past 5 years.
Debt Coverage: FBHS's debt is well covered by operating cash flow (29.2%).
Interest Coverage: FBHS's interest payments on its debt are well covered by EBIT (7.9x 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 0.9x debt).
Next Steps
Dividend
What is Fortune Brands Home & Security's current dividend yield, its reliability and sustainability?
2.71%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FBHS's dividend (2.71%) is higher than the bottom 25% of dividend payers in the US market (2.05%).
High Dividend: FBHS's dividend (2.71%) is low compared to the top 25% of dividend payers in the US market (5.71%).
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 (28.5%), 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 (21.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Nick Fink (44yo)
0.25
Tenure
US$4,665,678
Compensation
Mr. Nicholas Ian Fink, also known as Nick, serves as Chief Executive Officer and Director of Fortune Brands Home & Security, Inc. since January 6, 2020. Mr. Fink served as President and Chief Operating Off ...
CEO Compensation Analysis
Compensation vs Market: Nick's total compensation ($USD4.67M) is below average for companies of similar size in the US market ($USD7.63M).
Compensation vs Earnings: Nick's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 0.25yr | US$10.69m | 0.26% $12.9m | |
| CEO & Director | 0.25yr | US$4.67m | 0.031% $1.5m | |
| Senior VP & CFO | 2.75yrs | US$2.74m | 0.016% $805.6k | |
| President of Doors & Security Segment | 4.17yrs | US$2.63m | 0.011% $544.3k | |
| President of MasterBrand Cabinets Inc. | 0.42yr | US$3.54m | no data | |
| Senior Vice President of Operations & Supply Chain Strategy | 2.58yrs | no data | 0.0031% $152.4k | |
| Senior Vice President of Communications & Corporate Administration | 3.25yrs | no data | 0.012% $577.0k | |
| Director of Investor Relations | no data | no data | no data | |
| Senior VP | 6.33yrs | US$1.94m | 0.029% $1.4m | |
| Senior VP & Chief Human Resources Officer | 5.17yrs | no data | 0.014% $668.5k |
3.0yrs
Average Tenure
55yo
Average Age
Experienced Management: FBHS's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman of the Board | 0.25yr | US$10.69m | 0.26% $12.9m | |
| CEO & Director | 0.25yr | US$4.67m | 0.031% $1.5m | |
| Independent Director | 8.58yrs | US$240.82k | 0.014% $691.8k | |
| Independent Director | 8.33yrs | US$245.82k | 0.029% $1.4m | |
| Independent Director | 8.58yrs | US$251.44k | 0.0083% $410.7k | |
| Independent Director | 8.58yrs | US$253.32k | 0.00029% $14.4k | |
| Lead Independent Director | no data | US$453.32k | 0.029% $1.4m | |
| Independent Director | 4.75yrs | US$233.32k | 0.0067% $333.0k | |
| Independent Director | 1.17yrs | US$217.92k | 0.0018% $86.6k |
6.5yrs
Average Tenure
62yo
Average Age
Experienced Board: FBHS's board of directors are considered experienced (6.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$4.948b
- Shares outstanding: 139.71m
- 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 |
| 2FB | BRSE (Berne Stock Exchange) | Yes | Common Shares | CH | CHF | Sep 2011 |
| F1BH34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 SHS UNSPON | BR | BRL | Jan 2020 |
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 under the Diamond, Aristokraft, Mid-Continent, Kitchen Craft, Homecrest, Omega, StarMark, Ultracraft, Kemper, Schrock, Decora, and Mantra brand names. 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 offers fiberglass and steel entry door systems under the Therma-Tru brand name; composite decking and railing under the Fiberon brand name; and urethane millwork under the Fypon brand name. This segment also manufactures, sources, and distributes locks, safety and security devices, and electronic security products under the Master Lock and American Lock brand names; and fire resistant safes, security containers, and commercial cabinets under the SentrySafe brand name. It serves home centers, hardware and other retailers, millwork building products and wholesale distributors, specialty dealers, and remodeling and renovation markets, as well as 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/05 05:39 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.