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Fortune Brands Innovations (FBIN)
NYSE:FBIN
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Fortune Brands Innovations
(NYSE:FBIN)
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Rating:69Neutral
Price Target:
$64.00
▲(18.23% Upside)
Fortune Brands Innovations' overall stock score reflects stable financial performance and a balanced valuation. While the company shows strong cash flow and market outperformance in certain segments, challenges such as high debt levels, tariff impacts, and macroeconomic uncertainties weigh on the outlook. The technical analysis suggests a neutral trend, and the earnings call highlights both strategic growth initiatives and ongoing risks.
Positive Factors
Digital Business Growth
The growth in the digital business, including a new subscription model, indicates a shift towards recurring revenue streams, enhancing long-term revenue stability and market adaptability.
Water Segment Margin Improvement
Improved margins in the Water segment reflect effective cost management and strategic sourcing, supporting sustained profitability and competitive positioning in a key business area.
Strong Cash Flow
Strong cash conversion from profits ensures the company can meet its operational and financial commitments, providing a buffer against economic fluctuations and supporting growth initiatives.
Negative Factors
High Debt Levels
High debt levels can limit financial flexibility and increase vulnerability to interest rate changes, potentially impacting long-term financial stability and investment capacity.
Impact of Tariffs
Tariff impacts pose a significant cost challenge, potentially affecting profitability and necessitating strategic adjustments to supply chain and pricing strategies.
Macroeconomic Uncertainty
Economic uncertainties can suppress consumer spending and construction activity, affecting revenue growth and necessitating adaptive strategies to mitigate demand fluctuations.
Fortune Brands Innovations (FBIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.53B
Dividend Yield1.83%
Average Volume (3M)1.59M
Price to Earnings (P/E)17.1
Beta (1Y)1.19
Revenue Growth-5.79%
EPS Growth-9.90%
CountryUS
Employees11,000
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)1.00
Shares Outstanding120,038,870
10 Day Avg. Volume1,743,201
30 Day Avg. Volume1,586,667
Financial Highlights & Ratios
PEG Ratio1.01
Price to Book (P/B)3.57
Price to Sales (P/S)1.87
P/FCF Ratio18.21
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue1.99
Enterprise Value/Gross Profit4.40
Enterprise Value/Ebitda10.67
Forecast
1Y Price Target
$66.38Price Target Upside22.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Fortune Brands Innovations Business Overview & Revenue Model
Company DescriptionFortune Brands Innovations, Inc. provides water, outdoor, and security products, including water management, connected products, outdoor living, material conversion, sustainability, safety, and wellness. The company's portfolio of brands comprising Moen, House of Rohl, Aqualisa, Therma-Tru, Larson, Fiberon, Master Lock, and SentrySafe. Fortune Brands Innovations, Inc. was incorporated in 1988 and is headquartered in Deerfield, Illinois.
How the Company Makes MoneyFBIN generates revenue through multiple key streams, primarily by selling its diverse range of home and security products to retailers, wholesalers, and directly to consumers. The company benefits from its strong brand portfolio, which includes well-known names in the home improvement sector, allowing it to command premium pricing. Additionally, FBIN leverages strategic partnerships with major retail chains and distributors to expand its market reach and ensure product availability. The company also invests in innovation and product development, positioning itself to capitalize on emerging trends in home improvement, which further contributes to its earnings. Seasonal demand fluctuations and renovation cycles in the housing market can also impact revenue, highlighting the importance of market conditions in driving sales.
Fortune Brands Innovations Key Performance Indicators (KPIs)
Fortune Brands Innovations Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with notable achievements in market outperformance, digital business growth, and margin improvements in the Water segment. However, these were balanced by challenges such as declining sales in the Security segment, significant tariff impact, and ongoing macroeconomic uncertainties affecting consumer demand.Q2-2025 Updates
Positive Updates
Strong Market Outperformance
Fortune Brands outperformed the end market with impressive share gains in core water and outdoors businesses, returning to positive point-of-sale growth in these segments.
Digital Business Growth
The digital business showed significant year-over-year growth, with a target of $250 million in sales for 2025 and an annualized run rate approaching $300 million. The business also introduced a new subscription model expected to provide a recurring revenue stream.
Water Segment Margin Improvement
The Water segment operating margin increased by 230 basis points to 25.6%, driven by productivity improvements, strategic sourcing, and lower SG&A expenses.
Negative Updates
Security Segment Sales Decline
Security segment sales decreased by 7% due to market softness and prior execution challenges. Despite some growth in e-commerce, overall segment performance was negatively impacted.
Impact of Tariffs
The company faces an unmitigated impact of approximately $80 million in 2025 and $260 million on an annualized basis due to tariffs, though mitigation strategies are in place.
Macroeconomic Uncertainty
Broader economic uncertainty continues to weigh on consumer demand, impacting monthly trends for single-family construction and repair and remodel activity.
Company Guidance
During the Fortune Brands Second Quarter 2025 Earnings Conference Call, detailed guidance for the remainder of 2025 was provided, highlighting impressive market performance and strategic initiatives. The company reported a net revenue of $1.2 billion, with a 3% decline compared to the previous year, but achieved a 16.5% operating margin and earnings per share of $1. Fortune Brands expects full-year 2025 net sales to be flat to down 2%, with EPS ranging from $3.75 to $3.95. The Water segment reported a 2% sales growth excluding China, and the Outdoors segment saw a 3% decline due to lower channel inventories, despite achieving low-single-digit point-of-sale growth. Security sales decreased by 7%, driven by market softness and execution challenges. The company remains focused on mitigating an anticipated $80 million tariff impact in 2025 and a $260 million annualized impact through supply chain actions, cost-out opportunities, and strategic pricing. Fortune Brands is also steering towards a more agile growth engine, driven by digital transformation and brand innovation, with the digital business expected to reach $250 million in sales, with an annualized run rate approaching $300 million by year-end.Fortune Brands Innovations Financial Statement Overview
Summary
Fortune Brands Innovations demonstrates stable financial performance with moderate revenue and profit margins. The balance sheet shows a debt-heavy structure, but cash flow metrics indicate strong cash conversion efficiency. The company should focus on improving net profit margins and managing debt levels to enhance financial stability.Income Statement
Fortune Brands Innovations shows moderate revenue stability with TTM (Trailing-Twelve-Months) revenue of $4.496 billion. The Gross Profit Margin for TTM is 23.08%, indicating efficient cost management. However, the Net Profit Margin stands at 8.75%, showing a decrease from previous periods, which suggests potential issues in managing operational costs or increased interest expenses. EBIT and EBITDA margins are robust at 14.50% and 16.39% respectively, maintaining profitability despite revenue fluctuations.72
Positive
Balance Sheet
The company's Debt-to-Equity Ratio is 1.28, which is relatively high and indicates a significant reliance on debt financing. However, the Return on Equity (ROE) is 16.80% for TTM, showing efficient use of equity to generate profits. The Equity Ratio is 35.48%, suggesting a moderate financial structure but also indicating vulnerability to economic fluctuations due to lower equity levels.68
Positive
Cash Flow
Operating Cash Flow to Net Income Ratio is favorable at 1.38, indicating strong cash conversion from profits. The Free Cash Flow to Net Income Ratio is 1.15, suggesting healthy cash generation relative to profits. Despite a decrease in Free Cash Flow for TTM compared to previous periods, the company maintains a solid cash flow position, supporting its operational and financial commitments.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.50B | 4.61B | 4.63B | 4.72B | 4.80B | 3.62B |
| Gross Profit | 2.04B | 2.07B | 1.91B | 1.93B | 1.96B | 1.46B |
| EBITDA | 838.90M | 919.60M | 803.20M | 977.90M | 999.80M | 746.50M |
| Net Income | 393.40M | 471.90M | 404.50M | 686.70M | 772.40M | 553.10M |
Balance Sheet | ||||||
| Total Assets | 6.60B | 6.56B | 6.57B | 6.12B | 7.94B | 7.36B |
| Cash, Cash Equivalents and Short-Term Investments | 234.70M | 381.10M | 366.40M | 642.50M | 425.60M | 419.10M |
| Total Debt | 3.00B | 2.83B | 2.81B | 2.77B | 2.82B | 2.71B |
| Total Liabilities | 4.26B | 4.14B | 4.27B | 4.04B | 4.87B | 4.58B |
| Stockholders Equity | 2.34B | 2.42B | 2.29B | 2.08B | 3.06B | 2.78B |
Cash Flow | ||||||
| Free Cash Flow | 453.70M | 474.50M | 799.30M | 320.20M | 474.50M | 675.20M |
| Operating Cash Flow | 543.60M | 667.80M | 1.06B | 566.30M | 688.70M | 825.70M |
| Investing Cash Flow | -129.70M | -302.90M | -1.04B | -455.50M | -207.10M | -923.50M |
| Financing Cash Flow | -538.40M | -363.40M | -271.30M | 72.50M | -428.60M | 111.60M |
Fortune Brands Innovations Technical Analysis
Negative
54.13
Price Trends
57.07
Negative
54.50
Negative
59.58
Negative
Market Momentum
-0.53
Positive
37.25
Neutral
2.62
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBIN, the sentiment is Negative. The current price of 54.13 is below the 20-day moving average (MA) of 58.25, below the 50-day MA of 57.07, and below the 200-day MA of 59.58, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 37.25 is Neutral, neither overbought nor oversold. The STOCH value of 2.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FBIN.
Fortune Brands Innovations Risk Analysis
Fortune Brands Innovations disclosed 24 risk factors in its most recent earnings report. Fortune Brands Innovations reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fortune Brands Innovations Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | 8.48B | 29.03 | 35.33% | 0.63% | 15.59% | 23.46% | |
77 Outperform | 7.50B | 22.96 | 17.12% | 0.63% | 2.95% | 0.76% | |
74 Outperform | 1.82B | 14.65 | 12.23% | ― | -7.49% | 10.79% | |
69 Neutral | $6.53B | 17.11 | 16.84% | 1.83% | -5.79% | -9.90% | |
66 Neutral | 7.58B | 63.36 | 14.66% | 0.40% | 5.39% | -34.28% | |
64 Neutral | 5.61B | 30.10 | 18.87% | ― | -9.65% | -28.30% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
FBIN
Fortune Brands Innovations
54.13
-32.01
-37.16%
AAON
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94.26
-12.69
-11.87%
AWI
Armstrong World
194.90
63.20
47.99%
ROCK
Gibraltar Industries
61.16
-8.44
-12.13%
SSD
Simpson Manufacturing Co
179.38
-10.68
-5.62%
TREX
Trex Company
52.25
-17.56
-25.15%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.