Fortune Brands Innovations (FBIN) AI Stock Analysis

• Market Cap: $6.47B
• Dividend Yield: 1.91%
• Average Volume (3M): 2.71M
• Price to Earnings (P/E): 21.8
• Beta (1Y): 1.22
• Revenue Growth: -3.78%
• EPS Growth: -24.77%
• Country: US
• Employees: 11,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.86
• Shares Outstanding: 120,138,360
• 10 Day Avg. Volume: 4,329,328
• 30 Day Avg. Volume: 2,712,395
• PEG Ratio: -0.60
• Price to Book (P/B): 2.61
• Price to Sales (P/S): 1.39
• P/FCF Ratio: 16.97
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 1.97
• Enterprise Value/Gross Profit: 4.43
• Enterprise Value/Ebitda: 12.31
• 1Y Price Target: $61.50
• Price Target Upside: 13.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): 3.6
• Revenue Forecast (FY): $4.52B

• Rating: 51 Neutral
• Price Target: $52.00 ▼(-4.27% Downside)
• Action: Reiterated Date: 02/17/26
• Date: Action: Reiterated 02/17/26

The score is held back primarily by weakening fundamentals (flat-to-down revenue, stepped-down earnings, and a debt-heavy capital structure) and a bearish technical setup (trading below major moving averages with weak RSI). These are partially offset by ongoing positive free cash flow, management’s cost actions and liquidity, and a valuation that appears roughly neutral with a modest dividend yield.

Positive Factors

Free cash flow & liquidity

Consistent positive free cash flow and ample undrawn revolver (~$1.1B liquidity) provide durable internal funding for capex, share buybacks, and debt reduction. Strong cash conversion underpins strategic flexibility and resilience through housing-cycle volatility over the next several quarters.

Digital & security momentum

Rapid growth in digital/security brands and new subscription/insurance models signal a structural shift toward higher-growth, higher-margin, and recurring revenue streams. This diversification reduces sole reliance on cyclical housing markets and can sustainably improve consolidated margin mix over the medium term.

Brand strength and share gains

Consistent outperformance versus end markets and brand-level wins (House of Rohl, Larson) indicate durable channel execution and pricing power. Strong retail and builder relationships support steady demand and enable targeted product premiumization, cushioning revenue during slower housing activity.

Negative Factors

Revenue stagnation and earnings decline

Multi-year flat-to-down revenue and stepped-down earnings vs prior peaks reflect weakening demand and limit operating leverage. With top-line growth constrained, sustained margin expansion and earnings recovery depend heavily on cost actions and market inflection, raising execution risk over the medium term.

Elevated leverage / debt-heavy capital structure

A debt-heavy capital structure and net leverage above target reduce financial flexibility for opportunistic investment or extended downturns. Higher leverage increases refinancing and interest-rate risk, constraining the firm's ability to fund growth or absorb prolonged housing-market softness without further deleveraging actions.

Segment-specific demand weakness (Outdoors & China)

Persistent Outdoors softness and double-digit China declines are structural headwinds that depress overall growth and margins. Loss of key retail business and builder distress reduce predictability of revenue streams, making sustained recovery dependent on market improvements or costly restructuring to restore prior profit levels.

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

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

Margins and free cash flow remain respectable and consistently positive, but the multi-year trajectory is weakening: revenue is flat-to-down, net income has fallen materially from prior peaks, and cash flow has become more volatile. Leverage is meaningful (debt running above equity), reducing flexibility if end markets stay soft.

Income Statement

Revenue has been essentially flat-to-down over the last several years (down slightly in 2022–2024 and down again in 2025), signaling limited growth momentum. Profitability remains decent for the period shown, with gross margin in the low-to-mid 40% range and strong operating profitability in 2023–2024, but earnings have clearly stepped down from 2021–2022 highs (net income fell from ~$772M in 2021 to ~$299M in 2025). Overall, the income statement shows solid underlying margins but a weakening earnings trajectory and limited top-line growth.

Balance Sheet

Leverage is meaningful, with debt running above equity in recent years (debt-to-equity around ~1.17–1.33 from 2022–2024), which reduces financial flexibility versus a more conservatively financed peer set. Equity has also declined versus 2021 levels while debt remains elevated, and returns on equity have moderated from very strong levels in 2022 to lower levels in 2023–2024. The balance sheet is not distressed, but the capital structure is debt-heavy and less supportive if operating performance softens.

Cash Flow

Cash generation is generally positive, with free cash flow consistently positive across the years provided, including ~$475M in 2024 and ~$367M in 2025. However, cash flow has been volatile: operating cash flow spiked in 2023 and then dropped materially in 2024–2025, and free cash flow growth turned sharply negative in 2025. Free cash flow covered a meaningful portion of earnings in 2023–2024 (roughly ~70–76%), but the recent downtrend in both earnings and cash generation is a key watch item.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.46B	4.61B	4.63B	4.72B	4.80B
Gross Profit	2.00B	2.07B	1.91B	1.93B	1.96B
EBITDA	850.40M	919.60M	803.20M	977.90M	999.80M
Net Income	298.80M	471.90M	404.50M	686.70M	772.40M
Balance Sheet
Total Assets	6.52B	6.56B	6.57B	6.12B	7.94B
Cash, Cash Equivalents and Short-Term Investments	264.00M	381.10M	366.40M	642.50M	425.60M
Total Debt	2.54B	2.83B	2.81B	2.77B	2.82B
Total Liabilities	4.13B	4.14B	4.27B	4.04B	4.87B
Stockholders Equity	2.39B	2.42B	2.29B	2.08B	3.06B
Cash Flow
Free Cash Flow	366.80M	474.50M	799.30M	320.20M	474.50M
Operating Cash Flow	478.60M	667.80M	1.06B	566.30M	688.70M
Investing Cash Flow	-104.90M	-302.90M	-1.04B	-455.50M	-207.10M
Financing Cash Flow	-503.30M	-363.40M	-271.30M	72.50M	-428.60M

Fortune Brands Innovations Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 54.32
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FBIN, the sentiment is Neutral. The current price of 54.32 is below the 20-day moving average (MA) of 57.00, below the 50-day MA of 55.05, and above the 200-day MA of 53.12, indicating a neutral trend. The MACD of -0.25 indicates Positive momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 26.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FBIN.

Fortune Brands Innovations Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AWI	79 Outperform	$8.48B	28.16	38.03%	0.66%	15.10%	23.35%
SSD	71 Outperform	$8.43B	24.68	18.00%	0.69%	4.26%	8.52%
TREX	67 Neutral	$4.49B	22.51	20.50%	―	0.10%	-15.99%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AAON	61 Neutral	$8.35B	84.91	12.08%	0.53%	8.77%	-47.50%
ROCK	61 Neutral	$1.56B	718.24	13.29%	―	-9.21%	-97.43%
FBIN	51 Neutral	$6.47B	21.84	12.43%	1.91%	-3.78%	-24.77%

Fortune Brands Innovations Corporate Events

Fortune Brands Innovations Announces CEO Transition Amid Challenges

On February 12, 2026, Fortune Brands Innovations unveiled a leadership transition following a difficult 2025, appointing director Amit Banati as chief executive officer effective May 13, 2026, succeeding Nicholas Fink, who will resign as CEO and director on April 1, 2026. Board chair Susan S. Kilsby will serve as interim executive chair and principal executive officer between Fink’s departure and Banati’s start, while Banati’s compensation package, including substantial long-term incentives and make-whole awards, underscores the company’s bet on his consumer-sector and financial expertise to guide its strategic and profitability agenda.

Also on February 12, 2026, the company reported that fourth-quarter 2025 sales fell 2.4% to $1.08 billion and full-year 2025 revenue declined 3.2% to $4.46 billion, with GAAP EPS dropping 25% in the quarter and 34% for the year amid margin pressure. Management highlighted outperformance versus end markets, strong cash generation and extended credit capacity, but issued cautious 2026 guidance for flat to modest sales growth and only modest margin improvement, reflecting continued weakness in global and U.S. housing-related demand, particularly in China, and signaling a focus on cost structure optimization and long-term margin enhancement for investors.

The most recent analyst rating on (FBIN) stock is a Buy with a $68.00 price target. To see the full list of analyst forecasts on Fortune Brands Innovations stock, see the FBIN Stock Forecast page.

Fortune Brands Innovations Extends $1.25 Billion Credit Facility

On January 16, 2026, Fortune Brands Innovations, Inc. executed an extension of its existing five-year senior unsecured revolving credit facility, maintaining the facility size at $1.25 billion and pushing its maturity out to January 16, 2031. The renewed agreement, with JPMorgan Chase Bank, N.A. as administrative agent and Bank of America, N.A. as syndication agent, bolsters the company’s financial flexibility and liquidity, supporting its ongoing operations and strategic initiatives in the home, security and digital products markets without altering the core size of its available credit. The company publicly disclosed the extension in a press release dated January 20, 2026.

The most recent analyst rating on (FBIN) stock is a Hold with a $66.00 price target. To see the full list of analyst forecasts on Fortune Brands Innovations stock, see the FBIN Stock Forecast page.