Spectrum Brands Receives Approval from Mexico to Finalize HHI Sale, SPB Stock Up
June 10, 2023
☀️Trending News
Spectrum Brands ($NYSE:SPB) Holdings, Inc. (SPB), a diversified global consumer products company, has received approval from Mexico to complete the sale of its Hardware & Home Improvement (HHI) business. SPB stock has jumped as a result of the news, as the company takes a step closer to focusing on its core business of consumer products. The company boasts a portfolio of leading brands such as Rayovac, Remington, Black+Decker, George Foreman, and Kwikset, among others. The completion of the HHI sale marks a major milestone in Spectrum Brands’ efforts to focus on its core consumer product business.
The proceeds from the sale will be used to pay down debt and free up cash for future investments and acquisitions. This news has certainly been welcomed by SPB shareholders, who have seen their stock rise since the announcement.
Market Price
On Friday, SPECTRUM BRANDS, a branded consumer products company, received approval from the Mexican government to finalize its sale of the Hardware & Home Improvement (HHI) business. This news caused the SPB stock to open at $74.8 and close at $73.8, representing a 1.3% decrease from its prior closing price of 74.8. The approval follows a previously announced agreement for SPECTRUM BRANDS to sell its HHI business to Stanley Black & Decker in July. With the approval from Mexico, SPECTRUM BRANDS is now able to move forward with the sale.
The divestment of the HHI business will enable SPECTRUM BRANDS to focus on its core consumer-focused businesses such as Global Auto Care, Global Pet Care, Home & Garden, and Home Appliances. The company is also looking to further strengthen its balance sheet, and is considering strategic acquisitions and share repurchases, in addition to potential divestitures. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Spectrum Brands. More…
| Total Revenues | Net Income | Net Margin |
| 3.01k | -27.1 | -3.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Spectrum Brands. More…
| Operations | Investing | Financing |
| 330.7 | -42.6 | -148.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Spectrum Brands. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.79k | 4.6k | 28.83 |
Key Ratios Snapshot
Some of the financial key ratios for Spectrum Brands are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -7.7% | -14.7% | -1.9% |
| FCF Margin | ROE | ROA |
| 8.8% | -2.9% | -0.6% |
Analysis
GoodWhale recently conducted an analysis of SPECTRUM BRANDS. This would likely be of interest to value investors who prioritize asset-rich companies. Our analysis of SPECTRUM BRANDS showed that they are relatively strong in asset, medium in dividend, and profitability, but weak in growth. Furthermore, their health score with regard to cashflows and debt is 6/10, indicating that they are likely to safely ride out any crisis without the risk of bankruptcy. More…
Peers
Despite the intense competition, Spectrum Brands Holdings Inc has been able to remain a top player in the industry by focusing on innovation, customer service, and providing high-quality products at competitive prices.
– Godrej Consumer Products Ltd ($BSE:532424)
Godrej Consumer Products Ltd is a leading Indian fast-moving consumer goods company, headquartered in Mumbai. It manufactures and markets a wide range of products across food, personal care, and home care segments. The company has a market cap of 937.97B as of 2023, which is indicative of its strong performance in the market. Its Return on Equity (ROE), which is an indicator of how effectively the company uses its shareholders’ equity to generate profits, is 10.44%. This high ROE reflects the company’s ability to generate profits for its shareholders.
– Ontex Group NV ($OTCPK:ONXYY)
Ontex Group NV is a leading global hygiene company with over 20 years of experience in the hygiene and personal care market. It is headquartered in Belgium and serves markets in Europe, Africa, Latin America, the Middle East, and Asia Pacific. The company’s market cap as of 2023 stands at 593.34M, indicating a strong financial standing in the market. Its Return on Equity (ROE) is -7.25%, which is a measure of how efficient the company utilizes its assets to generate profits. Ontex Group NV is engaged in the production, distribution and marketing of products such as baby diapers, adult incontinence products, feminine care products, and wet wipes.
– Henkel AG & Co KGaA ($OTCPK:HENOY)
Henkel AG & Co KGaA is a multinational consumer goods company based in Düsseldorf, Germany. It specializes in the production of laundry detergents, beauty care products, and adhesives, among other products. As of 2023, the company’s market capitalization was 28.76 billion euros. This figure reflects the company’s success in increasing shareholder value over the past year. Henkel’s return on equity (ROE) was 4.84%, which indicates that the company is efficiently utilizing its assets to generate a return. Henkel’s strong financial performance is testament to its business model and commitment to innovation.
Summary
Investors can expect to see a definite boost to Spectrum Brands’ stock prices after the completion of this sale. According to analysts, the HHI sale will be very beneficial for Spectrum Brands’ shareholders, as it will allow the company to focus on its core businesses and potentially increase its revenue. Furthermore, investors will be pleased that the company is divesting from non-core assets and using the proceeds to reduce debt and increase liquidity. In conclusion, investors should closely watch Spectrum Brands in the upcoming weeks to take advantage of potential price increases after the closing of this sale.
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