Fortune Brands Innovations (FBIN) AI Stock Analysis

• Market Cap: $6.19B
• Dividend Yield: 1.94%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): 19.2
• Beta (1Y): 1.19
• Revenue Growth: -3.78%
• EPS Growth: -24.77%
• Country: US
• Employees: 11,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 1.09
• Shares Outstanding: 120,138,360
• 10 Day Avg. Volume: 1,885,382
• 30 Day Avg. Volume: 1,812,860
• PEG Ratio: 1.01
• Price to Book (P/B): 3.57
• Price to Sales (P/S): 1.87
• P/FCF Ratio: 18.21
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 2.01
• Enterprise Value/Gross Profit: 4.46
• Enterprise Value/Ebitda: 11.89
• 1Y Price Target: $60.71
• Price Target Upside: 17.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): 3.75
• Revenue Forecast (FY): $4.52B

• Rating: 66 Neutral
• Price Target: $53.00 ▲(2.89% Upside)

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 Business Overview & Revenue Model

Company Description

Fortune Brands Innovations (FBIN) is a diversified holding company that operates in the home and security sectors, focusing on innovative products that enhance the living experience. The company primarily engages in manufacturing and supplying a wide range of home and building products, including cabinetry, plumbing, and door hardware. With a commitment to sustainability and design excellence, FBIN serves residential and commercial markets, providing high-quality solutions that meet the evolving needs of consumers and builders.

How the Company Makes Money

Fortune 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 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

• Technical Analysis Sentiment: Positive
• Last Price: 51.51
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 51.51 is above the 20-day moving average (MA) of 48.25, above the 50-day MA of 50.26, and below the 200-day MA of 54.45, indicating a neutral trend. The MACD of -0.69 indicates Negative momentum. The RSI at 59.64 is Neutral, neither overbought nor oversold. The STOCH value of 80.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FBIN.

Fortune Brands Innovations Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AWI	73 Outperform	$8.23B	27.32	38.03%	0.66%	15.10%	23.35%
SSD	69 Neutral	$6.97B	20.46	17.82%	0.65%	4.26%	8.52%
FBIN	66 Neutral	$6.19B	19.24	13.72%	1.94%	-3.78%	-24.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AAON	63 Neutral	$7.63B	77.70	12.08%	0.43%	8.77%	-47.50%
TREX	62 Neutral	$3.75B	18.94	20.50%	―	0.10%	-15.99%
ROCK	58 Neutral	$1.49B	679.59	13.29%	―	-9.21%	-97.43%

Fortune Brands Innovations Corporate Events

Fortune Brands Innovations Reports Q3 2025 Earnings

Fortune Brands Innovations, Inc. is a leading company in the home, security, and digital products sector, focusing on transforming spaces into havens with innovative solutions. The company recently released its third-quarter 2025 earnings report, highlighting its ability to outperform the end market despite challenging conditions. Fortune Brands reported Q3 2025 sales of $1.1 billion, remaining flat compared to the previous year, with a slight increase when excluding the impact of China. However, earnings per share (EPS) saw a significant decline of 46% to $0.59, although EPS before charges/gains was only down by 6% to $1.09. The company achieved sales growth in key business segments, notably in the Security segment, which saw a 4.9% increase in net sales. Despite a decrease in overall operating income by 38.6%, Fortune Brands maintained a strong balance sheet with $204.4 million in operating cash flow and $177.0 million in free cash flow. Looking ahead, the company has updated its full-year guidance to reflect current market conditions, anticipating finishing the year near the low end of its prior range. Management remains optimistic about sustaining above-market growth and long-term value creation through its strategic initiatives and strong brand portfolio.

Fortune Brands Innovations: Earnings Call Highlights and Insights

Fortune Brands Innovations, Inc. recently held its earnings call, revealing a generally positive sentiment despite some challenges. The company showcased strong performance and strategic progress in its Water and Outdoors segments, as well as significant growth in its digital business. However, hurdles in the Security segment and the impact of tariffs on the Chinese market were also discussed. Overall, the highlights of the call outweighed the lowlights, demonstrating resilience and strategic execution.

Fortune Brands Reports Q2 2025 Earnings and Updates Guidance

Fortune Brands Innovations, Inc., a leading company in the home, security, and digital products sector, focuses on transforming spaces into havens with a strong emphasis on digital solutions and sustainability. In its second quarter of 2025, Fortune Brands reported sales of $1.2 billion, marking a 3% decrease from the previous year, while earnings per share fell by 22% to $0.83. Despite these declines, the company outperformed its end market, highlighting the strength of its strategic initiatives and brand power.