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Fortune Brands Innovations Inc FBIN

Morningstar Rating
$79.53 +0.21 (0.26%)
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Company Report

Fortune Brands Earnings: Profit Margins to Expand in 2024 as Repair and Remodel Spending Recovers

In our view, Fortune Brands Innovations’ fourth-quarter financial performance was a story of strong execution amid generally sluggish end markets. Repair and remodel spending in the United States has pulled back this year, and the Chinese market remains challenging. On the other hand, U.S. single-family construction strengthened in the second half of 2023 as homebuilders became more aggressive with sales incentives to improve affordability. Against this backdrop, Fortune Brands saw fourth-quarter organic revenue decline 3% year over year, but reported revenue increased 3%, primarily due to the acquisitions of several brands from Assa Abloy. Adjusted operating margin narrowed 150 basis points year over year to 15.8% as a 220-basis-point contraction in water segment profit margin was slightly offset by modest margin gains for the outdoors and security segments. Investments in the Moen brand and capacity expansion to support Fortune Brands’ House of Rohl product portfolio detracted from water segment profit margin this quarter, but such investments are important to support market share and pricing power.

Price vs Fair Value

FBIN is trading at a 2% discount.
Price
$79.77
Fair Value
$52.00
Uncertainty
Medium
1-Star Price
$531.83
5-Star Price
$24.50
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The R&R market is poised for long-term growth, driven by several secular tailwinds, including the aging housing stock and favorable demographics.

Bears

R&R spending and new-home construction could materially weaken due to challenging housing affordability conditions and elevated economic uncertainty, pressuring Fortune Brands' sales growth and profitability.

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News

Trading Information

Previous Close Price
$79.32
Day Range
$79.3580.13
52-Week Range
$54.1081.48
Bid/Ask
$79.77 / $81.84
Market Cap
$10.03 Bil
Volume/Avg
92 / 1.1 Mil

Key Statistics

Price/Earnings (Normalized)
19.79
Price/Sales
2.20
Dividend Yield (Trailing)
1.15%
Dividend Yield (Forward)
1.15%
Total Yield
2.64%

Company Profile

Fortune Brands Innovations is a leading home and security products company that has three reportable segments. The company’s $2.6 billion water segment, led by the Moen brand, sells faucets, showers, and other plumbing fixtures; the $1.3 billion outdoors segment primarily sells entry doors under the Therma-Tru brand name and Fiberon-branded patio decking; and the $723 million security segment sells locks and other security devices under the Master Lock, SentrySafe, Yale, and August brand names.
Sector
Industrials
Industry
Building Products & Equipment
Stock Style Box
Mid Core
Total Number of Employees
11,236

Competitors

Valuation

Metric
FBIN
ALLE
MAS
Price/Earnings (Normalized)
19.7919.0718.88
Price/Book Value
4.379.35
Price/Sales
2.203.202.08
Price/Cash Flow
15.6418.2114.16
Price/Earnings
FBIN
ALLE
MAS

Financial Strength

Metric
FBIN
ALLE
MAS
Quick Ratio
0.870.821.02
Current Ratio
1.801.261.68
Interest Coverage
5.677.5612.59
Quick Ratio
FBIN
ALLE
MAS

Profitability

Metric
FBIN
ALLE
MAS
Return on Assets (Normalized)
7.76%14.80%16.37%
Return on Equity (Normalized)
22.74%54.20%
Return on Invested Capital (Normalized)
11.59%21.59%28.30%
Return on Assets
FBIN
ALLE
MAS
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