Fortune Brands Innovations, Inc. (FBHS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Fortune Brands Innovations, Inc.

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Otis Worldwide Corp.

Masco Corp.

Why is Fortune Brands Innovations, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of -4.66% over the last 5 years

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 543.6 MM
ROCE(HY) Lowest at 16.85%
CASH AND EQV(HY) Lowest at USD 576.3 MM

With ROCE of 15.24%, it has a expensive valuation with a 2.30 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -33.01%, its profits have risen by 2.3% ; the PEG ratio of the company is 3.5

Below par performance in long term as well as near term

Along with generating -33.01% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Fortune Brands Innovations, Inc. should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Building Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Fortune Brands Innovations, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Fortune Brands Innovations, Inc.

-38.21%

-0.52

39.86%

S&P 500

13.68%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.03%

EBIT Growth (5y)

-4.91%

EBIT to Interest (avg)

8.56

Debt to EBITDA (avg)

2.38

Net Debt to Equity (avg)

1.13

Sales to Capital Employed (avg)

0.90

Tax Ratio

22.32%

Dividend Payout Ratio

40.56%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

17.78%

ROE (avg)

24.60%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.12

EV to EBIT

14.53

EV to EBITDA

11.24

EV to Capital Employed

2.08

EV to Sales

2.18

PEG Ratio

Dividend Yield

1.24%

ROCE (Latest)

14.34%

ROE (Latest)

17.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 39.4%

DEBT-EQUITY RATIO (HY)

Lowest at 95.43 %

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 478.6 MM

ROCE(HY)

Lowest at 12.43%

RAW MATERIAL COST(Y)

Grown by 10.11% (YoY

CASH AND EQV(HY)

Lowest at USD 490.6 MM

OPERATING PROFIT(Q)

Lowest at USD 172.6 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 16.02 %

PRE-TAX PROFIT(Q)

Lowest at USD 99.8 MM

NET PROFIT(Q)

At USD 81.81 MM has Fallen at -25.38%

Here's what is working for Fortune Brands Innovations, Inc.

Debt-Equity Ratio

Lowest at 95.43 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 39.4%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Fortune Brands Innovations, Inc.

Operating Cash Flow

Lowest at USD 478.6 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Pre-Tax Profit

At USD 99.8 MM has Fallen at -33.01%

over average net sales of the previous four periods of USD 148.97 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Operating Profit

Lowest at USD 172.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 16.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 99.8 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 81.81 MM has Fallen at -25.38%

over average net sales of the previous four periods of USD 109.63 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 490.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 10.11% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales