Fortune Brands Home & Security, Inc. provides home and security products for residential home repair, remodeling, new construction, and security applications. More Details
Outstanding track record with mediocre balance sheet.
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: FBHS's weekly volatility (3%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: FBHS underperformed the US Building industry which returned 69.5% over the past year.
Return vs Market: FBHS underperformed the US Market which returned 39.1% over the past year.
Long-Term 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
1 week ago | Simply Wall StHere's Why Fortune Brands Home & Security (NYSE:FBHS) Can Manage Its Debt Responsibly
2 weeks ago | Simply Wall StIs There Now An Opportunity In Fortune Brands Home & Security, Inc. (NYSE:FBHS)?
1 month ago | Simply Wall StDoes Fortune Brands Home & Security (NYSE:FBHS) Deserve A Spot On Your Watchlist?
Is Fortune Brands Home & Security undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FBHS ($97.38) is trading below our estimate of fair value ($111.56)
Significantly Below Fair Value: FBHS is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: FBHS is good value based on its PE Ratio (21.7x) compared to the US Building industry average (24.1x).
PE vs Market: FBHS is poor value based on its PE Ratio (21.7x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: FBHS is poor value based on its PEG Ratio (2.8x)
Price to Book Ratio
PB vs Industry: FBHS is overvalued based on its PB Ratio (4.6x) compared to the US Building industry average (2.6x).
How is Fortune Brands Home & Security forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FBHS's forecast earnings growth (7.6% per year) is above the savings rate (2%).
Earnings vs Market: FBHS's earnings (7.6% per year) are forecast to grow slower than the US market (15% per year).
High Growth Earnings: FBHS's earnings are forecast to grow, but not significantly.
Revenue vs Market: FBHS's revenue (5.1% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: FBHS's revenue (5.1% 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 (22.8%)
How has Fortune Brands Home & Security performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FBHS has high quality earnings.
Growing Profit Margin: FBHS's current net profit margins (9.6%) are higher than last year (7.8%).
Past Earnings Growth Analysis
Earnings Trend: FBHS's earnings have grown by 5.9% per year over the past 5 years.
Accelerating Growth: FBHS's earnings growth over the past year (36.3%) exceeds its 5-year average (5.9% per year).
Earnings vs Industry: FBHS earnings growth over the past year (36.3%) exceeded the Building industry 25.3%.
Return on Equity
High ROE: FBHS's Return on Equity (21.3%) is considered high.
How is Fortune Brands Home & Security's financial position?
Financial Position Analysis
Short Term Liabilities: FBHS's short term assets ($2.3B) exceed its short term liabilities ($1.2B).
Long Term Liabilities: FBHS's short term assets ($2.3B) do not cover its long term liabilities ($3.4B).
Debt to Equity History and Analysis
Debt Level: FBHS's debt to equity ratio (90.4%) is considered high.
Reducing Debt: FBHS's debt to equity ratio has increased from 74.7% to 90.4% over the past 5 years.
Debt Coverage: FBHS's debt is well covered by operating cash flow (29.1%).
Interest Coverage: FBHS's interest payments on its debt are well covered by EBIT (11.3x coverage).
What is Fortune Brands Home & Security current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FBHS's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: FBHS's dividend (1.07%) is low compared to the top 25% of dividend payers in the US market (3.56%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, FBHS has been paying a dividend for less than 10 years.
Growing Dividend: FBHS's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (21.8%), FBHS's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: FBHS's dividends in 3 years are forecast to be well covered by earnings (17.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Nick Fink (46 yo)
Mr. Nicholas Ian Fink, also known as Nick, serves as Independent Director at Constellation Brands, Inc. since January 4, 2021. He serves as Chief Executive Officer and Director of Fortune Brands Home & Sec...
CEO Compensation Analysis
Compensation vs Market: Nick's total compensation ($USD9.62M) is about average for companies of similar size in the US market ($USD11.26M).
Compensation vs Earnings: Nick's compensation has increased by more than 20% in the past year.
Experienced Management: FBHS's management team is considered experienced (3.8 years average tenure).
Experienced Board: FBHS's board of directors are considered experienced (6 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FBHS insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Fortune Brands Home & Security, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Fortune Brands Home & Security, Inc.
- Ticker: FBHS
- Exchange: NYSE
- Founded: 1988
- Industry: Building Products
- Sector: Capital Goods
- Market Cap: US$13.497b
- Shares outstanding: 138.60m
- Website: https://www.fbhs.com
Number of Employees
- Fortune Brands Home & Security, Inc.
- 520 Lake Cook Road
- Suite 300
- United States
Fortune Brands Home & Security, Inc. provides home and security products for residential home repair, remodeling, new construction, and security applications. It operates in three segments: Plumbing, Outdo...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/07/27 01:58|
|End of Day Share Price||2021/07/26 00:00|
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.