Fortune Brands Innovations (FBIN) AI Stock Analysis

• Market Cap: $6.50B
• Dividend Yield: 1.91%
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 20.2
• Beta (1Y): 1.17
• 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: 1,497,219
• 30 Day Avg. Volume: 1,490,695
• 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: 1.40
• Enterprise Value/Revenue: 2.03
• Enterprise Value/Gross Profit: 4.50
• Enterprise Value/Ebitda: 12.00
• 1Y Price Target: $67.50
• Price Target Upside: 24.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $67.00 ▲(23.84% Upside)

The score is driven primarily by steady financial quality—healthy margins and strong free cash flow—supported by generally constructive earnings-call commentary and guidance. It is held back by revenue decline and leverage, plus technically overbought indicators that increase near-term volatility risk; valuation and dividend support are only moderate.

Positive Factors

Strong margins & cash generation

High gross and EBITDA margins coupled with 21.9% free cash flow growth indicate durable operating efficiency and excellent cash conversion (free cash flow to net income ~0.90). This sustains capital allocation flexibility for reinvestment, dividends, and accretive M&A over the medium term.

Digital portfolio & subscription growth

A growing digital and subscription mix creates recurring revenue and reduces cyclicality tied to new-build cycles. Approaching $300M annualized sales suggests meaningful diversification, higher lifetime value per customer, and scalable channels that can improve long-term revenue durability and margins.

Extended revolving credit facility

Pushing the $1.25B facility to 2031 materially lowers near-term refinancing risk and preserves liquidity. This structural financing flexibility supports working capital, tariff-related cash needs, and strategic investments or tuck-in acquisitions without immediate balance-sheet strain.

Negative Factors

Revenue decline

Sustained top-line contraction reduces operating leverage and limits the runway for organic growth. A 13.6% TTM revenue decline pressures SKU investment, channel coverage, and long-term market share, forcing heavier reliance on pricing, cost cuts, or M&A to restore growth.

High leverage

A debt-to-equity ratio around 1.2 signals elevated reliance on borrowed funds. Higher leverage constrains financial flexibility, increases interest exposure in a rising-rate environment, and limits ability to pursue larger strategic initiatives without further debt or equity issuance.

Outdoor margin pressure

A 250bp margin hit in Outdoor from lower volumes, higher material costs, and mix demonstrates vulnerability to input-cost inflation and end-market weakness. Persisting material cost or tariff pressures could erode consolidated margins and offset gains from other segments over the medium term.

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

Solid profitability and cash generation support the score (gross margin 45.1%, EBITDA margin 16.9%, free cash flow growth 21.9%). Offsetting this are declining revenue growth (-13.6%) and a somewhat leveraged balance sheet (debt-to-equity 1.19), which temper the financial outlook.

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: Negative
• Last Price: 54.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 54.1 is below the 20-day moving average (MA) of 56.86, above the 50-day MA of 52.81, and above the 200-day MA of 52.96, indicating a neutral trend. The MACD of 0.84 indicates Positive momentum. The RSI at 44.62 is Neutral, neither overbought nor oversold. The STOCH value of 11.79 is Positive, 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
AWI	79 Outperform	$7.92B	26.31	38.03%	0.66%	15.10%	23.35%
SSD	71 Outperform	$7.33B	21.51	17.82%	0.69%	4.26%	8.52%
FBIN	67 Neutral	$6.50B	20.21	13.72%	1.91%	-3.78%	-24.77%
TREX	67 Neutral	$4.44B	22.46	20.50%	―	0.10%	-15.99%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AAON	61 Neutral	$7.43B	75.59	12.08%	0.53%	8.77%	-47.50%
ROCK	60 Neutral	$1.51B	692.70	13.29%	―	-9.21%	-97.43%

Fortune Brands Innovations Corporate Events

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.