NYSE:FBHS

Stock Analysis Report

Fortune Brands Home & Security

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

Fundamentals

Mediocre balance sheet second-rate dividend payer.


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


Market Performance


7 Day Return

3.2%

FBHS

2.2%

US Building

1.8%

US Market


1 Year Return

25.9%

FBHS

20.6%

US Building

7.3%

US Market

Return vs Industry: FBHS exceeded the US Building industry which returned 20.6% over the past year.

Return vs Market: FBHS exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

FBHSIndustryMarket
7 Day3.2%2.2%1.8%
30 Day10.6%0.7%-0.7%
90 Day8.9%5.9%0.06%
1 Year28.2%25.9%22.5%20.6%9.7%7.3%
3 Year12.4%7.7%31.4%20.3%46.3%36.9%
5 Year49.1%39.7%59.7%40.1%64.5%46.5%

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?

30.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: FBHS ($58.45) is trading below our estimate of fair value ($84.33)

Significantly Undervalued: 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 (20.2x) compared to the Building industry average (20.5x).

PE vs Market: FBHS is poor value based on its PE Ratio (20.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: FBHS is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: FBHS is overvalued based on its PB Ratio (3.5x) compared to the US Building industry average (2.2x).


Next Steps

Future Growth

How is Fortune Brands Home & Security forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FBHS's forecast earnings growth (8.8% per year) is above the savings rate (2.7%).

Earnings vs Market: FBHS's earnings (8.8% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: FBHS's earnings are forecast to grow, but not significantly.

Revenue vs Market: FBHS's revenue (3.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: FBHS's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

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

12.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FBHS's earnings have grown by 12% 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 (-11.9%) over the past year, making it difficult to compare to the Building industry average (7.7%).


Return on Equity

High ROE: FBHS's Return on Equity (17.3%) is considered low.


Return on Assets

ROA vs Industry: FBHS's Return on Assets is below or equal to the Building industry average last year.


Return on Capital Employed

ROCE Improving: FBHS has improved its Return on Capital Employed over the past 3 years.


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) exceeds its short term liabilities ($1.7B)

Long Term Liabilities: FBHS's short term assets (1.9B) do not cover its long term liabilities (2.3B)


Debt to Equity History and Analysis

Debt Level: FBHS's debt to equity ratio (103%) is considered high

Reducing Debt: FBHS's debt to equity ratio has increased from 24% to 103% over the past 5 years.

Debt Coverage: FBHS's debt is well covered by operating cash flow (24%).

Interest Coverage: FBHS's interest payments on its debt are well covered by EBIT (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?

1.51%

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

company1.5%marketbottom25%1.5%markettop25%3.7%industryaverage1.7%forecastin3Years1.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FBHS's dividend (1.51%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FBHS's dividend (1.51%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.1%), 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 (24.3% 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?

3.7yrs

Average management tenure


CEO

Chris Klein (55yo)

9.8yrs

Tenure

US$8,611,331

Compensation

Mr. Christopher J. Klein, also known as Chris, has been the Chief Executive Officer of Fortune Brands Home & Security, Inc. since January 1, 2010. Mr. Klein served as the President and Chief Operating Offi ...


CEO Compensation Analysis

Compensation vs. Market: Chris's total compensation ($USD8.61M) is about average for companies of similar size in the US market ($USD6.79M).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.7yrs

Average Tenure

55yo

Average Age

Experienced Management: FBHS's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

8.1yrs

Average Tenure

62.5yo

Average Age

Experienced Board: FBHS's board of directors are considered experienced (8.1 years average tenure).


Insider Trading

Insider Buying: FBHS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$504,04406 Aug 19
Allan MacKay
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$50.40
SellUS$115,18701 May 19
Brian Lantz
EntityIndividual
Role
Chief Administrative Officer
Senior Vice President of Communications & Corporate Administration
Shares2,192
Max PriceUS$52.55
SellUS$1,060,00030 Apr 19
David Randich
EntityIndividual
Role
Unit President
President of MasterBrand Cabinets Inc
Shares20,000
Max PriceUS$53.00
SellUS$93,92413 Feb 19
Danny Luburic
EntityIndividual
Shares2,000
Max PriceUS$46.96

Ownership Breakdown


Management Team

  • Chris Klein (55yo)

    CEO & Director

    • Tenure: 9.8yrs
    • Compensation: US$8.61m
  • Bob Biggart (65yo)

    Senior VP

    • Tenure: 5.8yrs
    • Compensation: US$1.94m
  • Dave Randich (58yo)

    President of MasterBrand Cabinets Inc

    • Tenure: 7yrs
    • Compensation: US$2.17m
  • Sheri Grissom (55yo)

    Senior Vice President of Human Resources

    • Tenure: 4.7yrs
  • Brian Lantz (56yo)

    Senior Vice President of Communications & Corporate Administration

    • Tenure: 2.8yrs
  • Brett Finley (48yo)

    President of Doors & Security Segment

    • Tenure: 3.7yrs
    • Compensation: US$2.34m
  • Nick Fink (44yo)

    President & COO

    • Tenure: 0.6yrs
    • Compensation: US$2.58m
  • Tracey Belcourt (53yo)

    Senior Vice President of Global Growth & Development

    • Tenure: 2.8yrs
  • Pat Hallinan (51yo)

    Senior VP & CFO

    • Tenure: 2.3yrs
    • Compensation: US$2.29m
  • Kaveh Bakhtiari

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • David MacKay (63yo)

    Director

    • Tenure: 8.1yrs
    • Compensation: US$241.62k
  • John Morikis (56yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: US$240.84k
  • Ronald Waters (67yo)

    Director

    • Tenure: 8.1yrs
    • Compensation: US$250.11k
  • Ann Hackett (65yo)

    Director

    • Tenure: 8.1yrs
  • David Thomas (70yo)

    Non-Executive Chairman & Lead Director

    • Tenure: 8.1yrs
    • Compensation: US$455.11k
  • Susan Kilsby (61yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$233.64k
  • Irial Finan (62yo)

    Director

    • Tenure: 0.7yrs
  • Chris Klein (55yo)

    CEO & Director

    • Tenure: 9.8yrs
    • Compensation: US$8.61m

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$8.176b
  • Shares outstanding: 139.88m
  • Website: https://www.fbhs.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FBHSNYSE (New York Stock Exchange)YesCommon SharesUSUSDSep 2011
2FBDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 2011
0IRNLSE (London Stock Exchange)YesCommon SharesGBUSDSep 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 i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:20
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.