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Fortune Brands Innovations (FBIN)
NYSE:FBIN
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Fortune Brands Innovations
(NYSE:FBIN)
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Rating:66Neutral
Price Target:
$53.00
▼(-3.64% Downside)
Fortune Brands Innovations presents a stable financial profile with strong profitability and cash flow, despite revenue growth challenges and high leverage. Technical indicators suggest a bearish trend, while valuation metrics indicate the stock is fairly valued. The earnings call provided a mixed outlook, with strategic growth initiatives offset by segment-specific challenges.
Positive Factors
Strategic Transformation
Consolidating operations at a new headquarters can enhance efficiency and drive growth, indicating a strong strategic direction and commitment to long-term expansion.
Digital Portfolio Growth
Growth in the digital portfolio demonstrates the company's ability to adapt to market trends, enhancing its competitive position and revenue potential in the digital space.
Cash Flow Strength
Strong cash conversion efficiency supports operational and financial commitments, providing flexibility for strategic investments and debt management.
Negative Factors
Rising Debt Levels
High reliance on debt can strain financial flexibility and increase vulnerability to economic downturns, impacting long-term stability.
Sales Decline in Water Segment
Declining sales in a key segment can indicate challenges in market demand or competition, potentially affecting overall revenue growth and market position.
Outdoor Segment Margin Pressure
Margin pressure due to higher costs and product mix challenges can impact profitability, necessitating strategic adjustments to maintain financial health.
Fortune Brands Innovations (FBIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.61B
Dividend Yield1.91%
Average Volume (3M)1.37M
Price to Earnings (P/E)21.7
Beta (1Y)1.18
Revenue Growth-3.78%
EPS Growth-24.77%
CountryUS
Employees11,000
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)1.09
Shares Outstanding120,138,360
10 Day Avg. Volume1,223,862
30 Day Avg. Volume1,365,635
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/Revenue2.01
Enterprise Value/Gross Profit4.46
Enterprise Value/Ebitda11.89
Forecast
1Y Price Target
$62.63Price Target Upside13.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 MoneyFortune Brands Innovations generates revenue through multiple key streams, primarily from the sale of its home and building products. The company's revenue model is based on direct sales to consumers, distributors, and retail partners. Significant revenue is derived from the cabinetry segment, which includes kitchen and bathroom cabinets, followed by plumbing products and door hardware. FBIN also benefits from partnerships with major home improvement retailers, enhancing its market reach and distribution capabilities. Additionally, the company invests in innovation and product development to create demand for its offerings, contributing to its overall earnings growth.
Fortune Brands Innovations Key Performance Indicators (KPIs)
Any
Revenue by Channel
Shows how sales are distributed across different channels, indicating the effectiveness of sales strategies and potential areas for expansion or risk.
Shows how sales are distributed across different channels, indicating the effectiveness of sales strategies and potential areas for expansion or risk.
Data provided by:
The Fly
The FlyFortune Brands Innovations Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 04, 2026
Earnings Call Sentiment Neutral
The earnings call demonstrated a well-executed strategic transformation, digital growth, and ability to outperform the market. However, sales declines in the Water segment, outdoor margin pressures, and ongoing tariff challenges present concerns.Q3-2025 Updates
Positive Updates
Strategic Transformation Milestone
Fortune Brands Innovations welcomed over 500 associates to their new headquarters in Chicago, achieving hiring commitments two years ahead of schedule. The consolidation aims to drive growth and efficiency.
Digital Portfolio Growth
The digital portfolio is on track to approach $300 million in annualized sales by the end of 2025, with strong growth in the Flow segment and the introduction of a new subscription service.
Market Outperformance
Sales in the Water segment were down 3%, but excluding China, net sales were flat, with point-of-sale results up low single digits against a slightly down market.
LARSON and Fiberon Success
LARSON achieved double-digit sales growth, and Fiberon saw the highest monthly sellout for the year in September, with strong performance in both retail and wholesale.
Security Segment Growth
Sales in the Security segment increased by 5%, driven by strong growth in e-commerce and commercial business, with new retail placements secured.
Negative Updates
Sales Decline in Water Segment
The Water segment saw a 3% decline in sales compared to Q3 2024, influenced by lower volumes and modest inventory destocking in Canada.
Outdoor Segment Margin Pressure
Outdoor's operating margin decreased by 250 basis points due to lower volumes, higher material costs, and product mix.
Tariff and Inventory Challenges
Despite offsetting the tariffs, the tariff environment remains a concern with cautious consumer sentiment and margin pressures.
Company Guidance
During the Fortune Brands Third Quarter 2025 Earnings Conference Call, the company provided an update on its financial performance and guidance. Sales for the third quarter were approximately $1.1 billion, flat year-over-year, with a 1% increase excluding China. The company's operating margin was 17.9%, and earnings per share (EPS) stood at $1.09. The Water segment reported sales of $619 million, down 3% from the previous year, while the Outdoors segment maintained flat sales at $345 million. Security segment sales increased by 5% to $186 million. Fortune Brands continues to generate strong free cash flow, projected between $400 million and $420 million for the full year. The company is focused on covering tariffs through a combination of supply chain actions, cost-out opportunities, and strategic pricing, with expectations to outperform the market for the remainder of 2025 and into 2026.Fortune Brands Innovations Financial Statement Overview
Summary
Fortune Brands Innovations shows strong profitability and cash flow metrics, with healthy margins and efficient cash flow management. However, the company faces challenges in revenue growth and has a relatively high leverage.Income Statement
Fortune Brands Innovations shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 13.6%, which is concerning. However, the company maintains a healthy gross profit margin of 45.1% and a net profit margin of 7.3%. The EBIT and EBITDA margins are also solid at 12.5% and 16.9% respectively, indicating operational efficiency. Despite the revenue decline, the company manages to sustain profitability, which is a positive sign.Balance Sheet
The balance sheet reflects a stable yet slightly leveraged position. The debt-to-equity ratio stands at 1.19, indicating a higher reliance on debt financing. Return on equity is moderate at 13.9%, showing that the company is generating reasonable returns on shareholders' investments. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets.Cash Flow
Cash flow analysis reveals strong free cash flow growth of 21.9% in the TTM period, a positive indicator of the company's ability to generate cash. The operating cash flow to net income ratio is 0.59, and the free cash flow to net income ratio is 0.90, suggesting efficient cash conversion from profits. The company demonstrates a robust cash flow position, which is crucial for sustaining operations and funding growth.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.49B | 4.61B | 4.63B | 4.72B | 4.80B | 3.62B |
| Gross Profit | 2.03B | 2.07B | 1.91B | 1.93B | 1.96B | 1.46B |
| EBITDA | 759.10M | 919.60M | 803.20M | 977.90M | 999.80M | 746.50M |
| Net Income | 327.60M | 471.90M | 404.50M | 686.70M | 772.40M | 553.10M |
Balance Sheet | ||||||
| Total Assets | 6.52B | 6.56B | 6.57B | 6.12B | 7.94B | 7.36B |
| Cash, Cash Equivalents and Short-Term Investments | 223.90M | 381.10M | 366.40M | 642.50M | 425.60M | 419.10M |
| Total Debt | 2.83B | 2.83B | 2.81B | 2.77B | 2.82B | 2.71B |
| Total Liabilities | 4.14B | 4.14B | 4.27B | 4.04B | 4.87B | 4.58B |
| Stockholders Equity | 2.38B | 2.42B | 2.29B | 2.08B | 3.06B | 2.78B |
Cash Flow | ||||||
| Free Cash Flow | 455.10M | 474.50M | 799.30M | 320.20M | 474.50M | 675.20M |
| Operating Cash Flow | 542.70M | 667.80M | 1.06B | 566.30M | 688.70M | 825.70M |
| Investing Cash Flow | -128.60M | -302.90M | -1.04B | -455.50M | -207.10M | -923.50M |
| Financing Cash Flow | -532.90M | -363.40M | -271.30M | 72.50M | -428.60M | 111.60M |
Fortune Brands Innovations Technical Analysis
Positive
55.00
Price Trends
50.04
Positive
52.40
Positive
52.76
Positive
Market Momentum
0.68
Negative
65.68
Neutral
77.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBIN, the sentiment is Positive. The current price of 55 is above the 20-day moving average (MA) of 51.57, above the 50-day MA of 50.04, and above the 200-day MA of 52.76, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 65.68 is Neutral, neither overbought nor oversold. The STOCH value of 77.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.44B | 28.71 | 38.03% | 0.66% | 15.10% | 23.35% | |
71 Outperform | $7.17B | 21.78 | 17.82% | 0.69% | 4.26% | 8.52% | |
67 Neutral | $4.13B | 20.89 | 20.50% | ― | 0.10% | -15.99% | |
66 Neutral | $6.61B | 21.72 | 13.72% | 1.91% | -3.78% | -24.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $6.52B | 69.17 | 12.08% | 0.53% | 8.77% | -47.50% | |
60 Neutral | $1.52B | 696.76 | 13.29% | ― | -9.21% | -97.43% |
* Industrials Sector Average
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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.