Spectrum Brands Holdings (SPB) AI Stock Analysis

• Market Cap: $1.35B
• Dividend Yield: 3.37%
• Average Volume (3M): 554.88K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.94
• Revenue Growth: -2.78%
• EPS Growth: -17.38%
• Country: US
• Employees: 3,100
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Household & Personal Products
• EPS (TTM): 1.24
• Shares Outstanding: 24,207,033
• 10 Day Avg. Volume: 434,831
• 30 Day Avg. Volume: 554,885
• 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: 1.45
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 1.84
• Enterprise Value/Ebitda: 9.11
• 1Y Price Target: $76.17
• Price Target Upside: 33.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 63 Neutral
• Price Target: $61.00 ▲(7.24% Upside)

Spectrum Brands Holdings faces significant challenges, primarily due to declining profitability and cash flow issues. However, a strong balance sheet and proactive cost management provide some stability. The technical analysis suggests mixed signals, with short-term momentum but longer-term caution. Valuation is reasonable, and the dividend yield is attractive. The earnings call highlights strategic initiatives for recovery, but tariff impacts remain a concern. Overall, the stock presents a moderate risk with potential for improvement if operational challenges are addressed.

Positive Factors

Leadership Transition

The appointment of Mr. Faisal Qadir as CFO is seen as a well-planned transition to a new leader already familiar with the finance organization.

Operational Improvements

Mr. Smeltser's tenure saw the implementation of SAP S/4HANA, enhancing SPB's ability to make informed business decisions with real-time data.

Stock Buybacks

Despite a weaker quarter, management is expected to continue stock buybacks at an increased pace.

Negative Factors

Financial Performance

SPB reported weak results in Q3 with sales missing consensus by approximately 5%, largely due to decisions like stopping product imports from China.

Guidance Uncertainty

The company is unable to offer guidance for FY2025 due to continued macroeconomic unpredictability, which is unusual as most similar companies have updated their outlooks.

Tariff Impact

A ~20% tariff for southeast Asia will be challenging to mitigate.

Spectrum Brands Holdings Business Overview & Revenue Model

Company Description

Spectrum 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 Money

Spectrum 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 Financial Statement Overview

Summary

Spectrum Brands Holdings shows a mixed financial outlook with managed operational efficiency and conservative leverage. However, revenue inconsistencies and declining free cash flow growth pose challenges. The company's strong equity base supports financial resilience, but profitability and cash flow stability need improvement.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.85B	2.96B	2.92B	3.13B	3.00B	2.62B
Gross Profit	1.06B	1.11B	924.80M	990.40M	1.03B	878.10M
EBITDA	215.10M	323.90M	-72.00M	108.40M	222.40M	244.10M
Net Income	72.90M	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	122.00M	368.90M	1.86B	243.70M	187.90M	531.60M
Total Debt	759.90M	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	1.89B	2.14B	2.52B	1.26B	1.47B	1.41B
Cash Flow
Free Cash Flow	75.10M	118.60M	-468.70M	-117.80M	244.80M	246.20M
Operating Cash Flow	113.20M	162.60M	-409.70M	-53.80M	288.40M	290.30M
Investing Cash Flow	111.00M	1.02B	3.18B	-359.80M	-423.50M	108.30M
Financing Cash Flow	-259.30M	-1.58B	-2.26B	487.60M	-209.90M	-497.10M

Spectrum Brands Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 56.88
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 56.88 is above the 20-day moving average (MA) of 56.06, above the 50-day MA of 55.63, and below the 200-day MA of 68.01, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 53.75 is Neutral, neither overbought nor oversold. The STOCH value of 41.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPB.

Spectrum Brands Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHD	71 Outperform	$23.20B	44.92	12.07%	1.22%	1.13%	-34.78%
SPB	63 Neutral	$1.35B	20.84	2.98%	3.37%	-2.78%	-17.38%
Sector *	63 Neutral	$20.50B	14.76	-2.72%	3.09%	1.90%	-4.74%
CLX	62 Neutral	$15.24B	19.12	249.61%	3.86%	0.16%	191.17%
EPC	58 Neutral	$1.10B	17.42	4.12%	2.56%	-2.92%	-43.06%
HELE	52 Neutral	$589.26M	5.74	-23.99%	―	-4.39%	-326.42%
NWL	51 Neutral	$2.64B	―	-8.42%	4.38%	-5.29%	9.72%

Spectrum Brands Holdings Corporate Events

Spectrum Brands Announces New CFO Amid Leadership Change

On September 3, 2025, Spectrum Brands Holdings announced a leadership transition with the separation of Executive Vice President and CFO Jeremy W. Smeltser, who will assist with the transition until December 31, 2025, as part of a cost-reduction strategy. Faisal Qadir, previously Vice President of Strategic Finance and Enterprise Reporting, has been appointed as the new Executive Vice President and CFO, effective immediately, bringing extensive experience from his tenure at Spectrum Brands and prior roles at The Black & Decker Corporation and Stanley Black & Decker.

Spectrum Brands Holds Successful Annual Shareholder Meeting

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.