Fortune Brands Innovations (FBIN) AI Stock Analysis

• Market Cap: $6.90B
• Dividend Yield: 1.63%
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 18.1
• Beta (1Y): 1.24
• Revenue Growth: -5.79%
• EPS Growth: -9.90%
• Country: US
• Employees: 11,000
• Sector: Industrials
• Sector Strength: 74
• Industry: Construction
• EPS (TTM): 1.00
• Shares Outstanding: 120,038,870
• 10 Day Avg. Volume: 1,263,561
• 30 Day Avg. Volume: 1,763,414
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 1.99
• Enterprise Value/Gross Profit: 4.40
• Enterprise Value/Ebitda: 10.67
• 1Y Price Target: $65.67
• Price Target Upside: 7.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 72 Outperform
• Price Target: $66.00 ▲(8.52% Upside)

Fortune Brands Innovations has a stable financial performance with strong cash flow metrics, though it faces challenges with debt levels and net profit margins. Technical indicators show positive momentum, and recent leadership changes support strategic growth. The valuation is reasonable, and the earnings call highlighted both opportunities and challenges.

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 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 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	4.50B	4.61B	4.63B	4.72B	4.80B	3.62B
Gross Profit	2.04B	2.07B	1.91B	1.93B	1.96B	1.46B
EBITDA	838.90M	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	425.60M	419.10M
Total Debt	3.00B	2.79B	2.81B	2.77B	2.82B	2.71B
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	453.70M	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

• Technical Analysis Sentiment: Positive
• Last Price: 60.82
• 50DMA: Positive
• 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 Positive. The current price of 60.82 is above the 20-day moving average (MA) of 58.54, above the 50-day MA of 55.90, and above the 200-day MA of 60.65, indicating a bullish trend. The MACD of 0.94 indicates Positive momentum. The RSI at 60.78 is Neutral, neither overbought nor oversold. The STOCH value of 45.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FBIN.

Fortune Brands Innovations Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AWI	80 Outperform	$8.53B	29.19	39.29%	0.62%	15.59%	23.46%
SSD	77 Outperform	$8.03B	24.56	17.88%	0.58%	2.95%	0.76%
FBIN	72 Outperform	$6.90B	18.08	16.84%	1.63%	-5.79%	-9.90%
ROCK	72 Outperform	$1.83B	14.86	12.97%	―	-7.49%	10.79%
TREX	66 Neutral	$6.68B	37.21	19.81%	―	-9.65%	-28.30%
AAON	66 Neutral	$6.64B	55.50	15.52%	0.47%	5.39%	-34.28%
Sector *	64 Neutral	$10.73B	15.74	7.56%	2.01%	2.76%	-15.10%

Fortune Brands Innovations Corporate Events

Fortune Brands Innovations Announces Leadership Changes

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.