Spectrum Brands Holdings, Inc. (SPB) stock analysis

P/E above its 5-year median

Spectrum Brands's P/E of 27.0 is above its own 5-year median of 20.4.

P/E below the industry

Spectrum Brands's P/E of 27.0 is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 32.5.

EV/EBITDA below its 5-year median

Spectrum Brands's EV/EBITDA of 11.1 is below its 5-year median of 17.0.

P/B below the industry

Spectrum Brands's price-to-book of 1.10 is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 1.79.

Trading below fair value

The share price of $88.29 is below our fair value estimate of $121.48.

Margin of safety over 20%

The price is 27.3% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -3.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 30.2% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 8.8% over the last twelve months, against a 5-year average of 0.4% a year.

Growing slower than the industry

Revenue grew 0.8% over the last twelve months; the Electronic and Other Electrical Equipment and Components, except Computer Equipment median is 1.6%.

Guidance unchanged

The latest outlook (fiscal 2026 Adjusted free cash flow, Aug 7, 2026) was maintained, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 39.6% over the last twelve months, against 37.3% a year earlier.

Return on equity under 15%

Return on equity was 4.2% over the last twelve months and averaged 24.8% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 5.0%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Spectrum Brands's return on equity of 4.2% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -31.2%.

Earnings grew over 5 years

Net income grew 0.4% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 2.8% over the last twelve months, against a 5-year average of 15.6%.

Net margin above the industry

Spectrum Brands's net margin of 2.8% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -64.6%.

Low debt

Debt is 33.3% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 172% five years ago to 33.3%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 53.9% of total debt.

Interest not well covered

Operating income covers interest expense 3.8 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 2.41 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.80; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Spectrum Brands paid dividends worth 2.1% of the share price over the last twelve months.

Yield below Treasuries

The 2.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Spectrum Brands yields 2.1%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 8 fiscal years.

Covered by earnings

Dividends take 55.4% of net income.

Covered by free cash flow

Dividends take 15.1% of free cash flow.