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Fortune Brands Innovations (FBIN)
NYSE:FBIN
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Fortune Brands Innovations
(NYSE:FBIN)
Rating:74Outperform
Price Target:
$64.00
▲(8.60% Upside)
Positive Factors
Financial Stability
The company's strong balance sheet enhances its financial stability and attractiveness to investors.
Growth Opportunities
Medium-term growth and margin expansion opportunities in Connected Products present a positive outlook.
Valuation
The company's valuation is becoming more attractive, which could entice investors looking for value.
Negative Factors
Earnings Performance
4Q24 earnings fell below expectations, driven by misses across all three sales segments.
Market Demand
Demand softness is expected to persist, raising concerns over future performance.
Revenue and Margin Outlook
1Q25 guidance indicates a projected revenue decline and operating margin that may underperform consensus expectations.
Fortune Brands Innovations (FBIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.87B
Dividend Yield1.62%
Average Volume (3M)1.94M
Price to Earnings (P/E)18.0
Beta (1Y)1.25
Revenue Growth-5.79%
EPS Growth-9.90%
CountryUS
Employees11,000
SectorIndustrials
Sector Strength83
IndustryConstruction
Share Statistics
EPS (TTM)1.00
Shares Outstanding120,038,870
10 Day Avg. Volume2,349,768
30 Day Avg. Volume1,939,486
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.30
Enterprise Value/Revenue1.99
Enterprise Value/Gross Profit8.63
Enterprise Value/Ebitda12.15
Forecast
1Y Price Target
$66.11Price Target Upside12.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
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 MoneyFBIN 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 Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: 8.05%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong performance and strategic progress in key segments such as Water and Outdoors, as well as significant growth in the digital business. However, challenges remain, particularly in the Security segment and the impact of tariffs on the Chinese market. Overall, the highlights outweigh the lowlights, showcasing resilience and strategic execution.Q2-2025 Updates
Positive Updates
Strong Performance in Water and Outdoors Segments
Fortune Brands delivered solid execution, significantly outperformed the core North American market, and won new business with large national builders. Water segment saw net sales growth of 2%, excluding China, and the Outdoors segment had low-single-digit point-of-sale growth.
Digital Business Growth
The digital business showed strong momentum with around 220,000 digital device activations and expects to reach a run rate of $300 million by the end of 2025. A new subscription model for digital products is being piloted, and the business continues to secure new partnerships with leading insurance companies.
Successful Brand Campaigns and Innovations
The Master It campaign for Master Lock led to a 60% increase in website traffic. The launch of the Yale Smart Lock with Matter designed for Google Home marks a significant milestone in the partnership with Google.
Efficient Tariff Mitigation Strategy
The company remains on track to fully offset the anticipated impact of tariffs through supply chain actions, cost-out opportunities, and strategic pricing actions.
Operational Excellence and Cost Management
The company maintained a strong balance sheet, with a net debt-to-EBITDA leverage of 2.8x, and returned $93 million to shareholders in the second quarter. Operating margin for the Water segment was 25.6%, an increase of 230 basis points.
Negative Updates
Revenue Decline in China
Net sales for the Water segment declined 2% including the impact of China, with the Chinese residential construction market weaker than anticipated.
Challenges in Security Segment
Security segment sales decreased by 7%, primarily due to market softness, destocking, and prior execution challenges from 2024. Operating income was down 27%.
Overall Revenue Decline
Net revenue was $1.2 billion, down 3% versus the second quarter of 2024. Consolidated operating income was $199 million, down 8%.
Tariff-Driven Pricing Concerns
The tariff landscape continues to evolve, impacting consumer demand and necessitating ongoing pricing adjustments.
Company Guidance
During the Fortune Brands Second Quarter 2025 Earnings Call, the company provided several key metrics and guidance for the remainder of the fiscal year. Fortune Brands reported net revenue of $1.2 billion, a 3% decline compared to the previous year, but noted it outperformed its end market with over 200 basis points of market share gains in its core water and outdoors businesses. Operating income was $199 million with an operating margin of 16.5%, and earnings per share were $1. The company's digital business is expected to reach $250 million in sales for 2025, with an annualized run rate approaching $300 million. The company also noted a 70% growth in its digital business in the second quarter. For the full year, Fortune Brands adjusted its net sales forecast to flat to down 2%, with an earnings per share range of $3.75 to $3.95. Tariff impacts were discussed, with an anticipated unmitigated impact of $80 million for 2025, and the company remains on track to offset this through various mitigation strategies. The company's effective tax rate for the full year is expected to be between 26.5% and 27.5%.Fortune Brands Innovations Financial Statement Overview
Summary
Fortune Brands Innovations shows moderate revenue stability with efficient cost management, as indicated by a Gross Profit Margin of 23.08%. However, the Net Profit Margin of 8.75% suggests potential issues in managing operational costs. The balance sheet reveals a debt-heavy structure with a Debt-to-Equity Ratio of 1.28, but strong cash conversion efficiency is evident with an Operating Cash Flow to Net Income Ratio of 1.38.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.72
Positive
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.68
Positive
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.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.50B | 4.61B | 4.63B | 4.72B | 4.80B | 3.62B |
| Gross Profit | 1.04B | 2.07B | 1.91B | 1.93B | 1.96B | 1.46B |
| EBITDA | 736.80M | 919.60M | 803.20M | 977.90M | 999.80M | 746.50M |
| Net Income | 393.30M | 471.90M | 404.50M | 686.70M | 772.40M | 553.10M |
Balance Sheet | ||||||
| Total Assets | 6.60B | 6.56B | 6.57B | 6.12B | 7.94B | 7.36B |
| Cash, Cash Equivalents and Short-Term Investments | 234.70M | 381.10M | 366.40M | 642.50M | 471.50M | 419.10M |
| Total Debt | 3.00B | 2.79B | 2.81B | 2.67B | 2.71B | 2.57B |
| Total Liabilities | 4.26B | 4.14B | 4.27B | 4.04B | 4.87B | 4.58B |
| Stockholders Equity | 2.34B | 2.42B | 2.29B | 2.08B | 3.06B | 2.78B |
Cash Flow | ||||||
| Free Cash Flow | 450.90M | 474.50M | 799.30M | 320.20M | 474.50M | 675.20M |
| Operating Cash Flow | 543.60M | 667.80M | 1.06B | 566.30M | 688.70M | 825.70M |
| Investing Cash Flow | -129.70M | -302.90M | -1.04B | -455.50M | -207.10M | -923.50M |
| Financing Cash Flow | -538.40M | -363.40M | -271.30M | 72.50M | -428.60M | 111.60M |
Fortune Brands Innovations Technical Analysis
Positive
58.93
Price Trends
53.73
Positive
53.71
Positive
62.53
Negative
Market Momentum
1.25
Negative
62.09
Neutral
84.74
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 58.93 is above the 20-day moving average (MA) of 56.09, above the 50-day MA of 53.73, and below the 200-day MA of 62.53, indicating a neutral trend. The MACD of 1.25 indicates Negative momentum. The RSI at 62.09 is Neutral, neither overbought nor oversold. The STOCH value of 84.74 is Negative, 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 (63)
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% | |
75 Outperform | $1.45B | 33.75 | 7.93% | ― | -14.06% | -65.38% | |
74 Outperform | $6.87B | 18.00 | 16.84% | 1.62% | -5.79% | -9.90% | |
72 Outperform | $6.66B | 22.55 | 17.53% | 1.10% | -1.44% | -31.12% | |
71 Outperform | $7.96B | 24.35 | 17.88% | 0.58% | 2.95% | 0.76% | |
68 Neutral | $6.55B | 37.92 | 19.81% | ― | -9.65% | -28.30% | |
63 Neutral | $10.80B | 16.55 | 6.58% | 2.06% | 2.37% | -15.86% |
* Industrials Sector Average
Performance Comparison
FBIN
Fortune Brands Innovations
58.93
-16.99
-22.38%
LPX
Louisiana-Pacific
100.37
7.31
7.86%
SSD
Simpson Manufacturing Co
191.19
15.27
8.68%
TREX
Trex Company
65.00
1.60
2.52%
JBI
Janus International Group
10.42
-0.19
-1.79%
AZEK
AZEK Company
54.35
13.31
32.43%
Fortune Brands Innovations Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Fortune Brands Innovations Announces Leadership Changes
Positive
Jul 17, 2025
On July 17, 2025, Fortune Brands Innovations announced key leadership changes to align with its growth strategy. John D. Lee was appointed as Executive Vice President, Chief Digital and Innovation Officer, tasked with leading product development and digital technology teams. Anuja Perkins will expand her role to Executive Vice President and Chief Growth and Transformation Officer, overseeing corporate strategy and M&A. These changes aim to enhance the company’s strategic execution and accelerate growth opportunities.
The most recent analyst rating on (FBIN) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on Fortune Brands Innovations stock, see the FBIN Stock Forecast page.
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.