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Fortune Brands Innovations (FBIN)
NYSE:FBIN
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Fortune Brands Innovations
(NYSE:FBIN)
Rating:63Neutral
Price Target:
$56.00
▲(3.11%Upside)
Positive Factors
Financial Efficiency
The consolidation of regional offices into a centralized headquarters is expected to bring efficiencies and unify operations across all brands.
Growth Opportunities
Medium-term growth and margin expansion opportunities in Connected Products present a promising outlook.
Negative Factors
Earnings Performance
4Q24 earnings came in below estimates, driven by misses in all three sales segments.
Market Conditions
Demand softness is likely to persist, contributing to a cautious market outlook.
Fortune Brands Innovations (FBIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.53B
Dividend Yield1.84%
Average Volume (3M)2.49M
Price to Earnings (P/E)15.9
Beta (1Y)1.27
Revenue Growth-3.48%
EPS Growth4.55%
CountryUS
Employees11,000
SectorIndustrials
Sector Strength86
IndustryConstruction
Share Statistics
EPS (TTM)0.66
Shares Outstanding120,260,640
10 Day Avg. Volume2,640,133
30 Day Avg. Volume2,489,471
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)2.66
Price to Sales (P/S)0.00
P/FCF Ratio12.18
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue0.47
Enterprise Value/Gross Profit4.35
Enterprise Value/Ebitda2.44
Forecast
1Y Price Target
$62.11Price Target Upside14.36% Upside
Rating ConsensusHold
Number of Analyst Covering9
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 makes money through the sale of its diverse portfolio of home and security products. The company's revenue model is primarily based on direct sales to retailers, wholesalers, and professional contractors in the home improvement and construction industries. Key revenue streams include the sale of kitchen and bath cabinetry, plumbing products like faucets and fixtures, and doors and security products. FBIN also benefits from strategic partnerships with home improvement chains and builders, which help distribute its products to a broad customer base. Additionally, the company invests in innovation and brand development to maintain a competitive edge and drive consumer demand.
Fortune Brands Innovations Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 3.37%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in the digital business and strategic partnerships, which bolster future prospects. However, challenges such as sales declines, particularly in the water innovations and security segments, and uncertainties surrounding tariff impacts and consumer demand, indicate a balanced outlook.Q1-2025 Updates
Positive Updates
Strong Performance in Digital Business
The digital business remains robust with over 200,000 device activations in the first quarter and is on track to deliver around $300 million in sales in 2025. Notably, the Flow sales increased by 180% over the first quarter of 2024.
Insurance Partnerships Boost Flow Business
The Flow business added three new major insurance partnerships in the first quarter, including Liberty Mutual Insurance. This is expected to drive strong momentum due to the product's value proposition of protecting homes and lowering insurance premiums.
US Manufacturing Advantage
60% of COGS are from the US, and 70% from North America, providing a competitive advantage especially in mitigating tariff impacts and taking share from competitors heavily reliant on China.
Positive Brand Developments
Moen was recognized as the most trusted brand of faucets for the 10th consecutive year. Master Lock and SentrySafe brand campaigns launched with positive upticks in sales and website traffic.
Negative Updates
Decline in Sales
First quarter sales were $1 billion, down 7% compared to the first quarter of 2024, reflecting a softer demand environment and inventory reductions across channels.
Challenges in Water Innovations Segment
Sales decreased by 10% or 7% organically, excluding China and FX. There were low single-digit POS declines and channel inventory reductions at wholesale and retail.
Uncertain Impact of Tariffs
The company expects to fully offset the $200 million tariff impact for 2025, but faces uncertainty in consumer demand, affecting the ability to provide detailed full-year financial guidance.
Security Segment Sales Decline
First quarter sales in the security segment declined 4%, reflecting low single-digit POS declines and continued destocking of older product lines.
Company Guidance
During the Fortune Brands First Quarter 2025 Earnings Conference Call, the company provided guidance indicating that despite the uncertainty of the external environment, they are focused on mitigating the anticipated $200 million tariff impact for 2025. They aim to offset this through supply chain opportunities, cost-out activities, and strategic pricing actions. The company expects the full annualized impact of tariffs in 2026 to be around $525 million, which they also plan to fully mitigate. Although they did not provide detailed full-year financial guidance due to consumer demand uncertainties, they outlined a framework where full-year EPS could range from $3.70 to $4.20, based on different volume scenarios. Fortune Brands Innovations remains committed to maintaining a strong balance sheet and leveraging their predominantly North American-based manufacturing footprint, with 60% of their COGS from the U.S. and 70% from North America, to drive market share growth and sustain strategic investments.Fortune Brands Innovations Financial Statement Overview
Summary
Fortune Brands Innovations demonstrates stable profitability with a decent level of profitability despite revenue challenges. The company effectively manages leverage with a reasonable debt-to-equity ratio and a solid equity base, although it faces challenges with revenue growth and inconsistent cash flow.Income Statement
The company has faced revenue decline over recent years, with a notable drop from 2021 to 2022. However, margins remain relatively stable, with a TTM gross profit margin of 44.45% and net profit margin of 9.42%. This indicates a decent level of profitability despite revenue challenges.68
Positive
Balance Sheet
The balance sheet reflects a reasonable debt-to-equity ratio of 1.33, indicating manageable leverage. The equity ratio stands at 35.00%, showing a solid base of assets funded by equity. Return on Equity (ROE) is moderate at 18.52%, suggesting effective use of equity to generate profits.75
Positive
Cash Flow
Cash flow generation is strong with a TTM free cash flow of $495 million. The operating cash flow to net income ratio is robust at 1.54, reflecting good cash generation relative to profits. However, the free cash flow growth rate has been inconsistent over the years, indicating some volatility in cash flow management.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.53B | 4.61B | 4.63B | 4.72B | 7.66B | 6.09B |
| Gross Profit | 2.01B | 2.07B | 1.93B | 1.93B | 2.75B | 2.16B |
| EBITDA | 870.60M | 932.20M | 812.20M | 964.70M | 982.70M | 1.02B |
| Net Income | 427.00M | 471.90M | 404.50M | 539.90M | 772.40M | 553.10M |
Balance Sheet | ||||||
| Total Assets | 6.58B | 6.56B | 6.57B | 6.12B | 7.94B | 7.36B |
| Cash, Cash Equivalents and Short-Term Investments | 340.00M | 381.10M | 366.40M | 642.50M | 471.50M | 419.10M |
| Total Debt | 3.07B | 2.79B | 2.81B | 2.67B | 2.71B | 2.57B |
| Total Liabilities | 4.28B | 4.14B | 4.27B | 4.04B | 4.87B | 4.58B |
| Stockholders Equity | 2.30B | 2.42B | 2.29B | 2.08B | 3.06B | 2.78B |
Cash Flow | ||||||
| Free Cash Flow | 495.00M | 474.50M | 799.30M | 320.20M | 474.50M | 675.20M |
| Operating Cash Flow | 655.70M | 667.80M | 1.06B | 566.30M | 688.70M | 825.70M |
| Investing Cash Flow | 7.50M | -302.90M | -1.04B | -455.50M | -207.10M | -923.50M |
| Financing Cash Flow | -534.10M | -363.40M | -271.30M | 72.50M | -428.60M | 111.60M |
Fortune Brands Innovations Technical Analysis
Positive
54.31
Price Trends
52.07
Positive
56.46
Negative
67.21
Negative
Market Momentum
0.19
Negative
60.64
Neutral
77.50
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 54.31 is above the 20-day moving average (MA) of 51.46, above the 50-day MA of 52.07, and below the 200-day MA of 67.21, indicating a neutral trend. The MACD of 0.19 indicates Negative momentum. The RSI at 60.64 is Neutral, neither overbought nor oversold. The STOCH value of 77.50 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
Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $7.82B | 52.67 | 10.62% | ― | 5.93% | 3.50% | |
77 Outperform | $6.70B | 20.84 | 18.10% | 0.70% | 1.38% | -3.80% | |
75 Outperform | $1.26B | 25.70 | 9.51% | ― | -13.95% | -63.37% | |
73 Outperform | $6.35B | 16.04 | 24.41% | 1.23% | 8.09% | 55.08% | |
71 Outperform | ¥254.81B | 12.92 | 8.49% | 3.09% | 6.34% | 12.88% | |
68 Neutral | $6.18B | 32.43 | 23.07% | ― | -9.10% | -21.50% | |
63 Neutral | $6.53B | 15.91 | 18.62% | 1.84% | -3.48% | 4.55% |
* Industrials Sector Average
Performance Comparison
FBIN
Fortune Brands Innovations
54.31
-7.40
-11.99%
LPX
Louisiana-Pacific
92.58
13.22
16.66%
SSD
Simpson Manufacturing Co
164.58
2.93
1.81%
TREX
Trex Company
59.29
-11.74
-16.53%
JBI
Janus International Group
8.98
-3.27
-26.69%
AZEK
AZEK Company
54.35
13.47
32.95%
Fortune Brands Innovations Corporate Events
Executive/Board ChangesShareholder Meetings
Fortune Brands Innovations Holds Annual Stockholders Meeting
Neutral
May 19, 2025
On May 14, 2025, Fortune Brands Innovations, Inc. held its Annual Meeting of Stockholders, where several key proposals were voted on. Stockholders elected three Class II directors for a term expiring in 2028, ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025, approved executive compensation on an advisory basis, and voted on a proposal to eliminate supermajority voting requirements.
The most recent analyst rating on (FBIN) stock is a Hold with a $84.00 price target. To see the full list of analyst forecasts on Fortune Brands Innovations stock, see the FBIN Stock Forecast page.
Executive/Board ChangesBusiness Operations and Strategy
Fortune Brands Innovations Expands Board with New Election
Positive
May 14, 2025
On May 13, 2025, Fortune Brands Innovations announced the election of Brendan Foley to its Board of Directors, effective July 1, 2025, expanding the Board from nine to ten members. Foley, currently the CEO of McCormick & Company, brings extensive leadership experience in consumer packaged goods and food industries, which Fortune Brands CEO Nicholas Fink believes will significantly contribute to the company’s strategic execution and shareholder value. This move underscores the company’s commitment to board refreshment and succession planning.
The most recent analyst rating on (FBIN) stock is a Hold with a $84.00 price target. To see the full list of analyst forecasts on Fortune Brands Innovations stock, see the FBIN Stock Forecast page.
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.