NYSE:FBHS

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Fortune Brands Home & Security

Market Cap

US$13.8b

Last Updated

2021/08/03 23:27 UTC

Data Sources

Company Financials +

Executive Summary

Fortune Brands Home & Security, Inc. provides home and security products for residential home repair, remodeling, new construction, and security applications. More Details


Snowflake Analysis

Outstanding track record with mediocre balance sheet.


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 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.


Market Performance


7 Day Return

3.1%

FBHS

3.8%

US Building

0.9%

US Market


1 Year Return

29.1%

FBHS

69.0%

US Building

34.7%

US Market

Return vs Industry: FBHS underperformed the US Building industry which returned 63.9% over the past year.

Return vs Market: FBHS underperformed the US Market which returned 34.4% over the past year.


Shareholder returns

FBHSIndustryMarket
7 Day3.1%3.8%0.9%
30 Day1.1%5.1%0.2%
90 Day-8.1%6.6%4.7%
1 Year30.6%29.1%70.9%69.0%36.8%34.7%
3 Year82.8%75.0%97.6%80.8%62.5%52.4%
5 Year67.8%56.9%132.5%101.3%123.1%98.4%

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

Valuation

Is Fortune Brands Home & Security undervalued compared to its fair value and its price relative to the market?

11.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FBHS ($100.19) is trading below our estimate of fair value ($113.51)

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 (19.2x) compared to the US Building industry average (25x).

PE vs Market: FBHS is poor value based on its PE Ratio (19.2x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: FBHS is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: FBHS is overvalued based on its PB Ratio (4.5x) compared to the US Building industry average (2.7x).


Future Growth

How is Fortune Brands Home & Security forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FBHS's forecast earnings growth (8.9% per year) is above the savings rate (2%).

Earnings vs Market: FBHS's earnings (8.9% 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 (5.7% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: FBHS's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if FBHS's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Fortune Brands Home & Security performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FBHS has high quality earnings.

Growing Profit Margin: FBHS's current net profit margins (10.3%) are higher than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: FBHS's earnings have grown by 7.4% per year over the past 5 years.

Accelerating Growth: FBHS's earnings growth over the past year (66.4%) exceeds its 5-year average (7.4% per year).

Earnings vs Industry: FBHS earnings growth over the past year (66.4%) exceeded the Building industry 48%.


Return on Equity

High ROE: FBHS's Return on Equity (23.8%) is considered high.


Financial Health

How is Fortune Brands Home & Security's financial position?


Financial Position Analysis

Short Term Liabilities: FBHS's short term assets ($2.5B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: FBHS's short term assets ($2.5B) do not cover its long term liabilities ($3.3B).


Debt to Equity History and Analysis

Debt Level: FBHS's debt to equity ratio (84.4%) is considered high.

Reducing Debt: FBHS's debt to equity ratio has increased from 70.2% to 84.4% over the past 5 years.

Debt Coverage: FBHS's debt is well covered by operating cash flow (32.2%).

Interest Coverage: FBHS's interest payments on its debt are well covered by EBIT (12.7x coverage).


Balance Sheet


Dividend

What is Fortune Brands Home & Security current dividend yield, its reliability and sustainability?

1.04%

Current Dividend Yield


Upcoming Dividend Payment

TodayAug 04 2021Ex Dividend DateAug 26 2021Dividend Pay DateSep 15 202120 days from Ex DividendBuy in the next 22 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: FBHS's dividend (1.04%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: FBHS's dividend (1.04%) is low compared to the top 25% of dividend payers in the US market (3.57%).


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 (19.2%), 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 (18.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Nick Fink (46 yo)

1.58yrs

Tenure

US$9,615,974

Compensation

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 ($USD9.62M) is about average for companies of similar size in the US market ($USD11.16M).

Compensation vs Earnings: Nick's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: FBHS's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: FBHS's board of directors are considered experienced (6.1 years average tenure).


Ownership

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

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$13.814b
  • Shares outstanding: 137.88m
  • Website: https://www.fbhs.com

Number of Employees


Location

  • Fortune Brands Home & Security, Inc.
  • 520 Lake Cook Road
  • Suite 300
  • Deerfield
  • Illinois
  • 60015-5611
  • United States

Listings


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 23:27
End of Day Share Price2021/08/03 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.