Fortune Brands Innovations (FBIN) AI Stock Analysis

• Market Cap: $5.93B
• Dividend Yield: 1.99%
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): 18.4
• Beta (1Y): 1.18
• 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: 2,106,608
• 30 Day Avg. Volume: 1,532,326
• 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: 1.52
• Enterprise Value/Revenue: 2.67
• Enterprise Value/Gross Profit: 5.95
• Enterprise Value/Ebitda: 16.36
• 1Y Price Target: $60.71
• Price Target Upside: 22.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): 3.75
• Revenue Forecast (FY): $4.52B

• Rating: 65 Neutral
• Price Target: $52.00 ▲(4.59% Upside)

Fortune Brands Innovations' overall score reflects stable financial performance and strategic initiatives highlighted in the earnings call. However, technical indicators show bearish trends, and valuation metrics suggest moderate attractiveness. The company's ability to manage debt and improve net profit margins will be crucial for future performance.

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, 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 Money

FBIN 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 Financial Statement Overview

Summary

Fortune Brands Innovations shows stable financial performance with moderate revenue and profit margins. The balance sheet reveals a balanced but debt-heavy structure, while cash flow metrics demonstrate 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.39B	4.61B	4.63B	4.72B	4.80B	3.62B
Gross Profit	1.52B	2.07B	1.91B	1.93B	1.96B	1.46B
EBITDA	551.70M	919.60M	803.20M	977.90M	999.80M	746.50M
Net Income	222.50M	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	340.80M	474.50M	799.30M	320.20M	474.50M	675.20M
Operating Cash Flow	340.80M	667.80M	1.06B	566.30M	688.70M	825.70M
Investing Cash Flow	-315.70M	-302.90M	-1.04B	-455.50M	-207.10M	-923.50M
Financing Cash Flow	-348.40M	-363.40M	-271.30M	72.50M	-428.60M	111.60M

Fortune Brands Innovations Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 49.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 49.72 is below the 20-day moving average (MA) of 50.30, below the 50-day MA of 53.43, and below the 200-day MA of 56.19, indicating a bearish trend. The MACD of -0.83 indicates Negative momentum. The RSI at 44.15 is Neutral, neither overbought nor oversold. The STOCH value of 30.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FBIN.

Fortune Brands Innovations Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSD	74 Outperform	$7.06B	20.63	17.82%	0.65%	4.26%	8.52%
AWI	73 Outperform	$8.19B	27.20	38.03%	0.67%	15.10%	23.35%
AAON	68 Neutral	$8.16B	83.04	12.08%	0.36%	8.77%	-47.50%
ROCK	66 Neutral	$1.76B	831.62	13.29%	―	-9.21%	-97.43%
FBIN	65 Neutral	$5.93B	18.45	13.72%	1.99%	-3.78%	-24.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TREX	62 Neutral	$3.42B	17.88	20.50%	―	0.10%	-15.99%

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.