Fortune Brands Home & Security (FBHS) has a market cap of $9.1 billion. It rose 0.53% to close at $58.99 per share on September 27, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 4.6%, -7.0%, and 7.2%, respectively, on the same day.
FBHS is trading 1.6% below its 20-day moving average, 4.2% below its 50-day moving average, and 5.4% above its 200-day moving average.
Related ETF and peers
The iShares Russell 3000 ETF (IWV) invests 0.04% of its holdings in FBHS. The ETF tracks a cap-weighted index that measures the investable US equities market, covering the entire market-cap spectrum, including micro-caps. The YTD price movement of IWV was 7.7% on September 27, 2016.
The market caps of FBHS’s competitors are as follows:
FBHS declared a dividend
Fortune Brands Home & Security has declared a quarterly cash dividend of $0.16 per share on its common stock. The dividend will be paid on December 14, 2016, to shareholders of record at the close of business on November 25, 2016.
Performance in 2Q16
Fortune Brands reported 2Q16 net sales of $1.3 billion, a rise of 8.3% over $1.2 billion in 2Q15. Sales from cabinets, plumbing, doors, and security rose 17.1%, 5.7%, 8.7%, and 5.8%, respectively, between 2Q15 and 2Q16. The company’s cost of products sold as a percentage of net sales fell 2.1%, and its operating income rose 46.4% in 2Q16.
Fortune Brands’ net income and EPS (earnings per share) rose to $125.2 million and $0.80, respectively, in 2Q16, compared with $79.7 million and $0.48, respectively, in 2Q15. It reported adjusted EPS of $0.82 in 2Q16, a rise of 39.0% from 2Q15.
Fortune Brands’ cash and cash equivalents and inventories rose 16.9% and 4.5%, respectively, between 4Q15 and 2Q16. Its current ratio and debt-to-equity ratio rose to 2.1x and 1.2x, respectively, in 2Q16, compared with 1.9x and 1.0x, respectively, in 4Q15.
Fortune Brands made the following projections for 2016:
- sales growth of 10%–12%, based on a rise in sales from its Norcraft acquisition and its expectation of outperforming the market
- EPS, before charges and gains, of $2.70–$2.78
- free cash flow of ~$400 million
In the next part, we’ll take a look at McCormick & Company (MKC).