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Spectrum Brands Holdings (SPB)
NYSE:SPB
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Spectrum Brands Holdings
(NYSE:SPB)
Rating:63Neutral
Price Target:
$56.00
▼(-3.81% Downside)
Positive Factors
Market Trends
Trends improved for both the Pet and Lawn & Garden categories in the June quarter.
Stock Buybacks
Despite a weaker quarter, management is expected to continue stock buybacks at an increased pace.
Stock Rating
Analyst reiterates a BUY rating for SPB, suggesting confidence in the stock's future performance.
Negative Factors
Earnings Performance
Spectrum Brands reported weak earnings with sales missing consensus by approximately 5%.
Pet Ownership Trends
21% of surveyed locations reported worse pet ownership trends, with cost being the main driver.
Tariffs Impact
A ~20% tariff for southeast Asia will be challenging to mitigate.
Spectrum Brands Holdings (SPB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.41B
Dividend Yield3.14%
Average Volume (3M)568.48K
Price to Earnings (P/E)21.7
Beta (1Y)0.92
Revenue Growth-2.78%
EPS Growth-17.38%
CountryUS
Employees3,100
SectorConsumer Defensive
Sector Strength59
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)1.24
Shares Outstanding24,207,033
10 Day Avg. Volume732,938
30 Day Avg. Volume568,475
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 Cap1.39
Enterprise Value/Revenue0.67
Enterprise Value/Gross Profit1.78
Enterprise Value/Ebitda8.10
Forecast
1Y Price Target
$73.29Price Target Upside25.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Spectrum Brands Holdings Business Overview & Revenue Model
Company DescriptionSpectrum Brands Holdings, Inc. is a diversified global consumer products company that operates across several sectors, including home appliances, personal care, pet supplies, and home improvement. The company is known for its strong portfolio of well-recognized brands such as Remington, George Foreman, and Tetra, which cater to a wide range of consumer needs and preferences. Spectrum Brands is committed to innovation and sustainability, providing high-quality products that enhance the lives of consumers worldwide.
How the Company Makes MoneySpectrum Brands generates revenue through various channels, primarily by selling its branded consumer products through retail and wholesale channels. The company has a diverse revenue model that includes direct sales to major retailers, e-commerce platforms, and distributors. Key revenue streams are derived from its core product categories, with significant contributions from personal care products, pet supplies, and home appliances. Additionally, Spectrum Brands often engages in strategic partnerships and collaborations with retailers to enhance product visibility and sales. The company also invests in marketing and promotions to drive brand awareness and consumer engagement, which are critical for sustaining its revenue growth.
Spectrum Brands Holdings Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q3-2025)
| % Change Since: 10.02%|
Next Earnings Date:Nov 14, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Spectrum Brands' proactive measures to address tariff-related challenges and the positive impact of new product launches and share repurchases. However, the company faced significant revenue losses and gross margin contraction due to tariffs and supply constraints, as well as challenges in its Global Pet Care and Home & Garden segments. Despite these challenges, the strong sales rebound in July and effective cost management indicate a cautious optimism for the future.Q3-2025 Updates
Positive Updates
Successful Tariff Mitigation
Spectrum Brands successfully navigated the tariff challenges, reducing its tariff exposure by implementing $50 million in cost reductions and establishing pricing and supplier concessions.
Strong Start to Q4
A strong rebound in sales was reported for July, with both Global Pet Care and Home & Garden divisions showing growth over the prior year.
Share Repurchase Program
Spectrum Brands repurchased approximately 4 million shares for roughly $300 million year-to-date, and since closing the HHI transaction, it has returned approximately $1.32 billion to shareholders.
Positive Consumer Response to New Products
New products such as the Spectracide Wasp, Hornet & Yellowjacket Trap and Hotshot Flying Insect Trap are driving category growth and gaining market share.
Negative Updates
Significant Revenue Loss Due to Tariffs
The company experienced a 10.2% decline in net sales, with organic sales decreasing by 11.1% due to targeted stop shipments and supply constraints. This included a $30 million estimated impact from stopped shipments.
Gross Margin Contraction
Gross margins decreased by 110 basis points due to negative mix, tariffs, and inflation, despite efforts to control costs.
Challenges in Global Pet Care
The Global Pet Care segment faced a sales decline of 9.6%, driven by stop shipments during tariff-related pricing negotiations and category softness.
Home & Garden Sales Impacted by Weather
The segment saw a 10.3% decrease in net sales due to a cold and wet start to the season, which delayed POS and retailer reorder patterns.
Company Guidance
During the third quarter of fiscal year 2025, Spectrum Brands Holdings faced a challenging period due to what CEO David Maura termed the "tariff torpedo," which severely impacted their operations. The company experienced a 10.2% decline in net sales, with organic sales dropping by 11.1% when excluding foreign exchange benefits. This decline was largely attributed to the suspension of shipments to certain customers during tariff-related pricing negotiations and supply constraints due to halting Chinese imports when tariffs surged to 145% and higher. Despite these challenges, Spectrum Brands implemented cost reduction measures, saving over $50 million in fiscal 2025, and managed to return to more normalized operations by the start of the fourth quarter. The adjusted EBITDA for the quarter was $76.6 million, a decrease of $17 million compared to the previous year when excluding investment income. The company remains focused on maintaining a strong balance sheet and is targeting $160 million in free cash flow for the fiscal year. Looking forward, Spectrum Brands is optimistic about the future, with a strong start to the fourth quarter, as they continue to navigate through the volatile trade environment and plan strategic investments and potential M&A activities.Spectrum Brands Holdings Financial Statement Overview
Summary
Spectrum Brands Holdings presents a mixed financial outlook. While operational efficiency and leverage are managed well, revenue inconsistencies and declining free cash flow growth pose challenges. The company's financial resilience is supported by a strong equity base and conservative debt usage, but profitability and cash flow stability need improvement to enhance overall financial health.Income Statement
The TTM revenue shows a slight decline compared to previous annual data, with a gross profit margin of 37.64% and a net profit margin of 2.02%. The EBIT margin is 4.57%, reflecting a moderate operational efficiency, while EBITDA margin stands at 8.26%. Revenue growth has been inconsistent, with recent declines indicating some volatility in sales performance.65
Positive
Balance Sheet
The debt-to-equity ratio is 0.38, indicating a conservative leverage position. ROE is 3.14%, which is relatively low, suggesting limited returns for shareholders. The equity ratio is 53.30%, reflecting a strong equity buffer against liabilities. The balance sheet reveals a stable financial structure but limited profitability growth.60
Neutral
Cash Flow
Free cash flow has decreased recently, with a TTM operating cash flow to net income ratio of 1.93, suggesting strong cash generation relative to net income. The free cash flow to net income ratio is 1.28, indicating efficient cash use. However, the decline in free cash flow growth reflects challenges in maintaining cash flow stability.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.93B | 2.96B | 2.92B | 3.13B | 3.00B | 2.62B |
| Gross Profit | 1.10B | 1.11B | 924.80M | 990.40M | 1.03B | 878.10M |
| EBITDA | 242.00M | 323.90M | -72.00M | 108.40M | 222.40M | 244.10M |
| Net Income | 59.10M | 124.80M | 1.80B | 71.60M | 189.60M | 97.80M |
Balance Sheet | ||||||
| Total Assets | 3.54B | 3.84B | 5.26B | 5.78B | 5.34B | 5.11B |
| Cash, Cash Equivalents and Short-Term Investments | 96.00M | 368.90M | 1.86B | 243.70M | 187.90M | 531.60M |
| Total Debt | 715.80M | 647.80M | 1.65B | 3.21B | 2.55B | 2.47B |
| Total Liabilities | 1.65B | 1.70B | 2.74B | 4.51B | 3.86B | 3.69B |
| Stockholders Equity | 1.88B | 2.14B | 2.52B | 1.26B | 1.47B | 1.41B |
Cash Flow | ||||||
| Free Cash Flow | 75.90M | 118.60M | -468.70M | -117.80M | 244.80M | 246.20M |
| Operating Cash Flow | 114.10M | 162.60M | -409.70M | -53.80M | 288.40M | 290.30M |
| Investing Cash Flow | 461.90M | 1.02B | 3.18B | -359.80M | -423.50M | 108.30M |
| Financing Cash Flow | -1.22B | -1.58B | -2.26B | 487.60M | -209.90M | -497.10M |
Spectrum Brands Holdings Technical Analysis
Positive
58.22
Price Trends
55.35
Positive
59.02
Negative
71.10
Negative
Market Momentum
0.34
Negative
56.17
Neutral
85.15
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPB, the sentiment is Positive. The current price of 58.22 is above the 20-day moving average (MA) of 56.41, above the 50-day MA of 55.35, and below the 200-day MA of 71.10, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 56.17 is Neutral, neither overbought nor oversold. The STOCH value of 85.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPB.
Spectrum Brands Holdings Risk Analysis
Spectrum Brands Holdings disclosed 57 risk factors in its most recent earnings report. Spectrum Brands Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Spectrum Brands Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $14.87B | 18.66 | 249.61% | 4.01% | 0.16% | 191.17% | |
68 Neutral | $22.56B | 43.68 | 12.07% | 1.26% | 1.13% | -34.78% | |
63 Neutral | $1.41B | 21.75 | 2.98% | 3.14% | -2.78% | -17.38% | |
63 Neutral | $20.97B | 14.56 | -8.07% | 3.14% | 2.79% | -9.90% | |
57 Neutral | $1.08B | 17.18 | 4.12% | 2.58% | -2.92% | -43.06% | |
48 Neutral | $2.07B | ― | -8.42% | 5.19% | -5.29% | 9.72% | |
47 Neutral | $541.06M | 5.74 | -23.99% | ― | -4.39% | -326.42% |
* Consumer Defensive Sector Average
Performance Comparison
SPB
Spectrum Brands Holdings
58.22
-30.71
-34.53%
CHD
Church & Dwight
92.60
-6.56
-6.62%
CLX
Clorox
121.58
-18.94
-13.48%
HELE
Helen Of Troy
23.07
-28.45
-55.22%
NWL
Newell Brands
5.46
-1.58
-22.44%
EPC
Edgewell Personal Care
22.93
-14.69
-39.05%
Spectrum Brands Holdings Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
Spectrum Brands Holds Successful Annual Shareholder Meeting
Positive
Aug 5, 2025
On August 5, 2025, Spectrum Brands Holdings, Inc. held its Annual Meeting of shareholders, where 87.71% of the outstanding shares participated. The meeting resulted in the election of directors, ratification of KPMG LLP as the independent auditor, and approval of executive compensation, reflecting strong shareholder support for the company’s governance and strategic direction.
The most recent analyst rating on (SPB) stock is a Buy with a $105.00 price target. To see the full list of analyst forecasts on Spectrum Brands Holdings stock, see the SPB 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.