* Note: Prices are in Million (M) USD.
Description:
Spectrum Brands Holdings, Inc. is a global branded consumer products company. The company is headquartered in Middleton, Wisconsin.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $369 M
Debt : $648 M
EBITDA : $282 M
Net Debt (Debt - Cash): $279 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Consumer cyclical
Industry: Home furnishings & fixtures
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 15.40
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $183 M
Average Revenue: $2,502 M
Revenue Converted To Free Cash Flow (%): 7.3%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-09-30): $2,964 M
Revenue 4 Years Ago (2020-09-30): $2,622 M
Last 5 Years Average Revenue Growth: 3%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-09-30): $31 M
Share Count 5 Years Ago (2020-09-30): $45 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $5.14
Trailing 12-Month Earnings Per Share (EPS): $2.26
Average Earnings Per Share (EPS): $3.70
Dividend Per Share (DPS): $2
Payout Ratio: 48%
Dividend Yield: 3%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 3, 3 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 1.7%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $57
52-Week Low: $51
Threshold Price (15% Above 52-Week Low): $58
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,289 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 26 points to above Spectrum Brands Holdings Inc (SPB) stock.
Last 8 Years Avg PE 25.99, Fair Value PE 15, Industry Based PE 23, Growth Based PE 2, RCFC Based PE 15.85, ROE Based PE 11.38, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 15.76. Value-Trades has assined P/E value 15.76. Since an average (Current Year EPS + Next Year EPS) earning per share is $3.70.
The fair value of Spectrum Brands Holdings Inc (SPB) stock should be (15.76 x $3.70) = $58.3.
