Fortune Brands Home & Security
Market Cap
US$8.7b
Last Updated
2019/12/08 00:15 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
2.1%
FBHS
-0.1%
US Building
0.03%
US Market
1 Year Return
51.7%
FBHS
31.5%
US Building
18.6%
US Market
Return vs Industry: FBHS exceeded the US Building industry which returned 31.5% over the past year.
Return vs Market: FBHS exceeded the US Market which returned 18.6% over the past year.
Shareholder returns
| FBHS | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.1% | -0.1% | 0.03% |
| 30 Day | 4.1% | 1.1% | 1.7% |
| 90 Day | 23.9% | 9.2% | 5.7% |
| 1 Year | 54.3%51.7% | 33.6%31.5% | 21.1%18.6% |
| 3 Year | 19.7%14.6% | 23.7%17.8% | 45.6%36.2% |
| 5 Year | 56.8%46.8% | 60.0%39.6% | 71.1%52.3% |
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
6 days ago | Simply Wall St
Should You Think About Buying Fortune Brands Home & Security, Inc. (NYSE:FBHS) Now?2 weeks ago | Simply Wall St
Fortune Brands Home & Security, Inc. (NYSE:FBHS) Looks Like A Good Stock, And It's Going Ex-Dividend SoonValuation
Is Fortune Brands Home & Security undervalued compared to its fair value and its price relative to the market?
21.94x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: FBHS ($64.6) is trading above our estimate of fair value ($63.98)
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 (21.9x) compared to the Building industry average (21.9x).
PE vs Market: FBHS is poor value based on its PE Ratio (21.9x) compared to the US market (18.5x).
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 (3.8x) compared to the US Building industry average (2.5x).
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?
10.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FBHS's forecast earnings growth (10.6% per year) is above the savings rate (1.7%).
Earnings vs Market: FBHS's earnings (10.6% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: FBHS's earnings are forecast to grow, but not significantly.
Revenue vs Market: FBHS's revenue (3.3% per year) is forecast to grow slower than the US market (7.4% per year).
High Growth Revenue: FBHS's revenue (3.3% 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 (20.4%)
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?
1.36%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: FBHS's dividend (1.36%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).
High Dividend: FBHS's dividend (1.36%) is low compared to the top 25% of dividend payers in the US market (3.7%).
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 (24.6% 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?
3.0yrs
Average management tenure
CEO
Chris Klein (55yo)
9.9yrs
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 ($USD6.81M).
Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.
Management Age and Tenure
3.0yrs
Average Tenure
53yo
Average Age
Experienced Management: FBHS's management team is considered experienced (3 years average tenure).
Board Age and Tenure
8.3yrs
Average Tenure
62.5yo
Average Age
Experienced Board: FBHS's board of directors are considered experienced (8.3 years average tenure).
Insider Trading
Insider Buying: FBHS insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Executive Officer CEO & Director |
| 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)
CEO & Director
- Tenure: 9.9yrs
- Compensation: US$8.61m
Bob Biggart (65yo)
Senior VP
- Tenure: 6yrs
- Compensation: US$1.94m
Mark-Hans Richer (52yo)
Chief Marketing & Innovation Officer and Senior VP of The Fortune Brands Global Plumbing Group
- Tenure: 2.7yrs
Sheri Grissom (55yo)
Senior Vice President of Human Resources
- Tenure: 4.8yrs
Brian Lantz (56yo)
Senior Vice President of Communications & Corporate Administration
- Tenure: 2.9yrs
Brett Finley (48yo)
President of Doors & Security Segment
- Tenure: 3.8yrs
- Compensation: US$2.34m
Nick Fink (44yo)
President & COO
- Tenure: 0.8yrs
- Compensation: US$2.58m
Tracey Belcourt (53yo)
Senior Vice President of Global Growth & Development
- Tenure: 3yrs
Pat Hallinan (51yo)
Senior VP & CFO
- Tenure: 2.4yrs
- Compensation: US$2.29m
Kaveh Bakhtiari
Director of Investor Relations
- Tenure: 0yrs
Board Members
David MacKay (63yo)
Independent Director
- Tenure: 8.3yrs
- Compensation: US$241.62k
John Morikis (56yo)
Independent Director
- Tenure: 8yrs
- 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)
Non-Executive Chairman & Lead Director
- Tenure: 8.3yrs
- Compensation: US$455.11k
Susan Kilsby (61yo)
Independent Director
- Tenure: 4.4yrs
- Compensation: US$233.64k
Irial Finan (62yo)
Independent Director
- Tenure: 0.8yrs
Chris Klein (55yo)
CEO & Director
- Tenure: 9.9yrs
- 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$8.659b
- 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 i ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/08 00:15 |
| End of Day Share Price | 2019/12/06 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.