NYSE:SPB

Stock Analysis Report

Spectrum Brands Holdings

Executive Summary

Spectrum Brands Holdings, Inc. operates as a branded consumer products company worldwide.

Rewards

Trading at 62.3% below its fair value

Earnings are forecast to grow 41.95% per year

Risk Analysis

Dividend of 2.67% is not well covered by earnings

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Spectrum Brands Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SPB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.4%

SPB

1.7%

US Household Products

0.7%

US Market


1 Year Return

31.8%

SPB

28.7%

US Household Products

18.2%

US Market

Return vs Industry: SPB exceeded the US Household Products industry which returned 28.7% over the past year.

Return vs Market: SPB exceeded the US Market which returned 18.2% over the past year.


Shareholder returns

SPBIndustryMarket
7 Day-0.4%1.7%0.7%
30 Day18.8%4.4%1.5%
90 Day4.7%3.5%5.0%
1 Year35.8%31.8%32.2%28.7%20.8%18.2%
3 Year-32.2%-35.1%57.3%44.0%45.2%35.8%
5 Year-18.5%-21.9%65.3%42.2%71.6%52.7%

Price Volatility Vs. Market

How volatile is Spectrum Brands Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Spectrum Brands Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SPB ($62.99) is trading below our estimate of fair value ($167.25)

Significantly Below Fair Value: SPB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SPB is unprofitable, so we can't compare its PE Ratio to the Household Products industry average.

PE vs Market: SPB is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SPB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SPB is good value based on its PB Ratio (1.8x) compared to the US Household Products industry average (4.2x).


Next Steps

Future Growth

How is Spectrum Brands Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

42.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: SPB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SPB's is expected to become profitable in the next 3 years.

Revenue vs Market: SPB's revenue (1.5% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: SPB's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPB's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has Spectrum Brands Holdings performed over the past 5 years?

30.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPB is currently unprofitable.

Growing Profit Margin: SPB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SPB is unprofitable, but has reduced losses over the past 5 years at a rate of 30.1% per year.

Accelerating Growth: Unable to compare SPB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SPB is unprofitable, making it difficult to compare its past year earnings growth to the Household Products industry (-20%).


Return on Equity

High ROE: SPB has a negative Return on Equity (-10.94%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Spectrum Brands Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SPB's short term assets ($1.7B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: SPB's short term assets ($1.7B) do not cover its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: SPB's debt to equity ratio (128.1%) is considered high.

Reducing Debt: SPB's debt to equity ratio has reduced from 229% to 128.1% over the past 5 years.


Balance Sheet

Inventory Level: SPB has a low level of unsold assets or inventory.

Debt Coverage by Assets: SPB's debt is not covered by short term assets (assets are 0.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SPB has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SPB has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Spectrum Brands Holdings's current dividend yield, its reliability and sustainability?

2.67%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: SPB's dividend (2.67%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: SPB's dividend (2.67%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: SPB has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SPB has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: SPB is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: SPB's dividends in 3 years are forecast to be well covered by earnings (45.4% payout ratio).


Next Steps

Management

What is the CEO of Spectrum Brands Holdings's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

David Maura (47yo)

1.9yrs

Tenure

US$4,523,628

Compensation

Mr. David M. Maura, CFA, has been the Chairman, President and Chief Executive Officer at Mosaic Acquisition Corp., since October 2017. Mr. Maura has been Chief Executive Officer of Spectrum Brands Legacy,  ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD4.52M) is about average for companies of similar size in the US market ($USD5.09M).

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


Management Age and Tenure

1.2yrs

Average Tenure

51yo

Average Age

Experienced Management: SPB's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

1.4yrs

Average Tenure

59yo

Average Age

Experienced Board: SPB's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$62,262,94403 Dec 19
Fortress Investment Group LLC
EntityCompany
Shares1,007,491
Max PriceUS$61.80
SellUS$2,629,67711 Sep 19
Fortress Special Opportunities Advisors LLC
EntityCompany
Shares49,715
Max PriceUS$54.16
BuyUS$1,008,50012 Aug 19
David Maura
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares20,000
Max PriceUS$50.43

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 37.4%.


Management Team

  • Doug Martin (57yo)

    Executive VP & CFO

    • Tenure: 1.4yrs
    • Compensation: US$2.33m
  • Jeremy Smeltser (44yo)

    Executive Vice President

    • Tenure: 0.2yrs
  • David Maura (47yo)

    Executive Chairman & CEO

    • Tenure: 1.9yrs
    • Compensation: US$4.52m
  • Ehsan Zargar (42yo)

    Executive VP

    • Tenure: 1.2yrs
    • Compensation: US$5.71m
  • Phil Szuba (51yo)

    President of Hardware & Home Improvement

    • Tenure: 2.1yrs
  • Randy Lewis (52yo)

    Executive VP & COO

    • Tenure: 1.2yrs
  • Dave Albert (53yo)

    President of Home & Personal Care Appliances

    • Tenure: 0.8yrs

Board Members

  • Terry Polistina (56yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$499.44k
  • Norm Matthews (86yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$428.88k
  • David Harris (59yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: US$51.38k
  • Hugh Rovit (59yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$413.60k
  • Kenneth Ambrecht (73yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$428.88k
  • David Maura (47yo)

    Executive Chairman & CEO

    • Tenure: 1.9yrs
    • Compensation: US$4.52m
  • Sherianne James (50yo)

    Independent Director

    • Tenure: 1.2yrs

Company Information

Spectrum Brands Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Spectrum Brands Holdings, Inc.
  • Ticker: SPB
  • Exchange: NYSE
  • Founded:
  • Industry: Household Products
  • Sector: Household
  • Market Cap: US$3.075b
  • Shares outstanding: 48.82m
  • Website: https://www.spectrumbrands.com

Number of Employees


Location

  • Spectrum Brands Holdings, Inc.
  • 3001 Deming Way
  • Middleton
  • Wisconsin
  • 53562
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPBNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
H221DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
SPB *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968

Biography

Spectrum Brands Holdings, Inc. operates as a branded consumer products company worldwide. The company’s Hardware & Home Improvement segment offers hardware products under the National Hardware and FANAL br ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 00:42
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.