Spectrum Brands Stock Fair Value Calculation – 2023: Brokerages Give Spectrum Brands Holdings, a Moderate Buy Recommendation.
March 28, 2023
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Analysts at brokerages have recently given Spectrum Brands ($NYSE:SPB) Holdings, Inc. a “Moderate Buy” rating for 2023. This is a welcome change from the company’s previous ratings; the majority of brokerages have given the company an average rating of “Hold” in the past. Spectrum Brands Holdings, Inc. is a global multi-industry consumer products leader with a portfolio of strong, well-recognized brands that span across the home and garden, personal care, and hardware and home improvement segments. The company has a long history of success and is poised to continue its growth trajectory in the coming years. The Moderate Buy rating comes as an affirmation of Spectrum Brands Holdings, Inc.’s strong performance in recent years, particularly in terms of revenue growth, which has consistently outperformed expectations.
Furthermore, the company’s expansion into new markets and products, as well as its successful management of risk, have generated positive reviews from analysts. Investors are likely to be attracted to its potential for growth, as well as its well-established portfolio of powerful brands. As such, the Moderate Buy rating serves as a signal for investors to consider investing in the company’s future successes.
Market Price
This news has been generally positive, as the share price has steadily increased over the past few months. On Monday, SPECTRUM BRANDS‘ stock opened at $59.1 and closed at $58.5. This is a small decrease from the week before, but the overall trend is still strong. With the positive reception from brokerages, investors are likely to remain cautiously optimistic while they watch the stock’s performance in the coming months. 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 |
| 3.09k | 42.5 | -3.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Spectrum Brands. More…
| Operations | Investing | Financing |
| 153.1 | -354.4 | 234.4 |
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 |
| 5.77k | 4.53k | 30.07 |
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 |
| -6.6% | -14.7% | 0.5% |
| FCF Margin | ROE | ROA |
| 3.0% | 0.7% | 0.2% |
Analysis – Spectrum Brands Stock Fair Value Calculation
We at GoodWhale have conducted a thorough analysis of SPECTRUM BRANDS‘s financials and have determined that the fair value of the company’s share is around $66.7. This calculation was made using our proprietary Valuation Line. However, the stock of SPECTRUM BRANDS is currently being traded at the price of $58.5. This represents a 12.3% undervaluation of the company’s stock, making it an attractive investment opportunity for investors. More…
Peers
Despite the intense competition, Spectrum Brands Holdings Inc has been able to remain a top player in the industry by focusing on innovation, customer service, and providing high-quality products at competitive prices.
– Godrej Consumer Products Ltd ($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
Spectrum Brands Holdings, Inc. is a stock that has received positive coverage from brokerages, with most giving it a moderate buy recommendation. Analysts have stated that the company’s strong diversified portfolio and solid market presence have given it a competitive edge and potential for growth. Investors should note that Spectrum Brands’ share price has been on an upward trend in recent months and that the company has a strong balance sheet with a healthy cash position. Its dividend yield is also attractive and may provide investors with a steady income stream.
