Latest news with #FortuneBrandsInnovations'
Yahoo
21-05-2025
- Business
- Yahoo
Is Fortune Brands Innovations, Inc. (NYSE:FBIN) Trading At A 40% Discount?
Using the 2 Stage Free Cash Flow to Equity, Fortune Brands Innovations fair value estimate is US$93.35 Fortune Brands Innovations is estimated to be 40% undervalued based on current share price of US$56.44 Our fair value estimate is 42% higher than Fortune Brands Innovations' analyst price target of US$65.90 Does the May share price for Fortune Brands Innovations, Inc. (NYSE:FBIN) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. Our free stock report includes 2 warning signs investors should be aware of before investing in Fortune Brands Innovations. Read for free now. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$530.6m US$557.5m US$595.2m US$643.3m US$704.9m US$749.4m US$788.7m US$824.1m US$856.9m US$887.8m Growth Rate Estimate Source Analyst x3 Analyst x6 Analyst x2 Analyst x1 Analyst x1 Est @ 6.31% Est @ 5.24% Est @ 4.50% Est @ 3.97% Est @ 3.61% Present Value ($, Millions) Discounted @ 8.6% US$488 US$472 US$464 US$462 US$466 US$456 US$441 US$425 US$406 US$388 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$4.5b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.8%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.6%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$888m× (1 + 2.8%) ÷ (8.6%– 2.8%) = US$15b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$15b÷ ( 1 + 8.6%)10= US$6.8b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$11b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of US$56.4, the company appears quite good value at a 40% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Fortune Brands Innovations as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.6%, which is based on a levered beta of 1.361. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Fortune Brands Innovations Strength Earnings growth over the past year exceeded the industry. Debt is well covered by earnings and cashflows. Dividends are covered by earnings and cash flows. Weakness Dividend is low compared to the top 25% of dividend payers in the Building market. Opportunity Annual earnings are forecast to grow for the next 3 years. Good value based on P/E ratio and estimated fair value. Threat Annual earnings are forecast to grow slower than the American market. Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Can we work out why the company is trading at a discount to intrinsic value? For Fortune Brands Innovations, we've put together three essential aspects you should further research: Risks: Be aware that Fortune Brands Innovations is showing 2 warning signs in our investment analysis , you should know about... Future Earnings: How does FBIN's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
16-05-2025
- Business
- Yahoo
Moen Raises the Alarm on the Health Risks of Cheap, Off-brand Faucets
NINETY PERCENT OF CHEAP, OFF-BRAND FAUCETS TESTED CONTAIN LEAD AND OTHER TOXIC CHEMICALS DEERFIELD, Ill., May 16, 2025 /PRNewswire/ -- Moen, one of Fortune Brands Innovations' (NYSE: FBIN) leading brands and a leader in water experiences, is calling attention to concerning new findings that show cheap, off-brand, foreign-made faucets present serious health risks for consumers. Moen commissioned independent, third-party laboratory tests of top selling cheap, off-brand, foreign-made faucets.* The tests were conducted by the International Association of Plumbing and Mechanical Officials ("IAPMO") and found that 90% of faucets tested failed to meet American safe drinking water standards. Unfortunately, market data indicates up to 35 million cheap, off-brand, foreign-made faucets were imported into the United States between 2020 and 2024, potentially leaving millions of Americans exposed to high levels of lead and chemicals. "In recent years, off-brand, foreign-made faucets have entered the American market with prices so low that we were skeptical that the products were safe for use, and we were right," said Aaron Bores, executive vice president, product development at Fortune Brands Innovations. "The third-party testing results were more egregious than we had expected. Nearly all the tested products failed one or more American safe drinking water testing standards, and several had levels of lead and chemicals that far exceeded our American safety standards. These cheap off-brand products aren't just pushing the limits of our safety standards – they are obliterating them, and the consumer is paying the price." The majority of faucets tested in the recent study were found to leach lead at high levels, far exceeding today's American safe drinking water standards. In addition to lead, water running through a vast majority of the tested faucets was found to contain elevated levels of chemicals. Some of the results for dangerous substances showed levels 356% to 591% higher than the safety standards. On May 14, 2025, the Consumer Product Safety Commission issued nine product warnings against these off-brand, foreign-made faucets, urging consumers to immediately stop using these products due to the presence of lead. The notices can be found here and here.* Lead exposure is well known for its negative health effects throughout life, particularly for younger children, and consumption over time of the types of chemicals found during testing could result in serious health concerns, including an increased risk of certain types of cancer.*** "People are buying off-brand, foreign-made faucets because they are cheap, but the team behind Moen wants them to know that cutting costs on a faucet isn't worth the health risks to them and their families. Everyone should be free from worrying about lead or chemical contamination from an off-brand faucet in their water. With Moen® products, people can have peace of mind," Bores said. In contrast to certain cheap, off-brand, foreign-made faucets, Moen products undergo rigorous safety testing. The brand's deep knowledge of water dynamics and challenges enables Moen to deliver water safely through high-quality, long-lasting products. Moen stands behind its faucets with a lifetime limited warranty**** and best-in-class customer service. These factors have contributed to Moen's recognition as America's Most Trusted® Faucet Brand for 10 consecutive years.***** Moen is part of Fortune Brands Innovations' portfolio of industry-leading home, security and digital products. The Fortune Brands portfolio is increasingly focused on solutions that have a lasting and positive impact on both people and the planet. "As part of Fortune Brands Innovations, our purpose is to elevate every life by transforming spaces into havens, and the way in which Moen provides faucets that are safe and reliable shows how we are living up to that purpose every day," Bores said. For additional details on the findings, visit and view the full study and data here. About the ResearchThe independent study was conducted by the International Association of Plumbing and Mechanical Officials ("IAPMO"), a third-party laboratory. The IAPMO tested 19 top selling cheap, off-brand, foreign-made faucets through NSF Metals and Organics testing and 6 top selling foreign-made, off-brand pressure balancing valves for shower temperature performance testing. *View the full study and data here. ** *** Based on data found at as of February 7, 2025. ****For complete warranty information, visit Important exclusions apply. Warranty only applies to the original purchaser. ***** ABOUT MOEN Moen is the #1 consumer faucet brand in North America, offering a vast array of stylish and innovative kitchen and bath faucets, showerheads, accessories, bath safety products, kitchen sinks, garbage disposals, leak detection products and connected home offerings for residential applications that give consumers more power than ever before to understand and control the water that flows through their homes. These thoughtful designs deliver an exceptional user experience and elevate how people interact with water daily. In addition, Moen® Commercial offers superior-performing products that can deliver lower lifetime costs for today's facilities. ABOUT FORTUNE BRANDS INNOVATIONS Fortune Brands Innovations, Inc. is an industry-leading home, security and digital products company whose purpose is to elevate every life by transforming spaces into havens. The Company is a brand, innovation and channel leader focused on exciting, supercharged categories in the home products, security and commercial building markets. The Company's portfolio of brands includes Moen, House of Rohl, Aqualisa, SpringWell, Therma-Tru, Larson, Fiberon, Master Lock, SentrySafe and Yale residential. Fortune Brands is headquartered in Deerfield, Illinois and trades on the NYSE as FBIN. To learn more, visit View original content to download multimedia: SOURCE Moen Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
07-05-2025
- Business
- Business Wire
Fortune Brands Innovations and Augury Forge a New Standard for Trusted AI in Manufacturing
NEW YORK & DEERFIELD, Ill.--(BUSINESS WIRE)-- Augury, a leader in AI solutions for reliability and process optimization that help industrial companies increase operation-wide productivity, and Fortune Brands Innovations Inc. (NYSE: FBIN), an industry-leading innovation company whose purpose is to elevate every life by transforming spaces into havens, today announced the results of Fortune Brands Innovations' seamless deployment of Augury's full-stack Machine Health solution at its Fiberon sites and on-going enterprise-wide rollout across 1,000+ machines internationally. As part of their collaboration, the companies have shared details with Bloomberg Originals about how cutting-edge AI capabilities are reshaping the future of manufacturing. The video, which is an episode within the Genbiz Video Series, can be found here: 'At Fortune Brands Innovations, innovation is core to everything we do. But as a global manufacturer of home and security products that millions count on to make their homes and commercial buildings safe, beautiful, and functional, there is no room for error on our factory floors. Every technology we deploy must be fully trusted,' said Todd Piatt, VP, Global Manufacturing Operations. 'That trust was built quickly as we saw the accuracy of Augury's AI firsthand and experienced the team's responsive, collaborative support, laying the groundwork for a 2.5x ROI during the pilot. The AI strategy we've continuously built in partnership with Augury has amplified these measurable results. Augury consistently delivers unparalleled visibility into our equipment health and performance, and the digital transformation we're powering together will revolutionize our operations into a truly proactive, resilient system.' To boost uptime, increase capacity, extend equipment lifecycles and reduce the cost of asset care, Fortune Brands Innovations turned to Augury's Machine Health solution, an industrial-grade IoT and AI platform trained on the world's largest data library. Augury's full-stack solutions use sensors that capture vibration, temperature, and magnetic data from machines; advanced AI diagnostics; and human reliability experts to improve the health and performance of industrial assets. The partnership began with a pilot at Fortune Brands Innovations' Fiberon facility in North Carolina, where 40 machines were connected to Augury's AI. After achieving 2.5x ROI in just eight months, the success of the pilot led Fortune Brands Innovations to leverage Augury's Fast Track methodology for a 12-month enterprise-wide rollout. Now at the halfway mark, Augury's Machine Health solution is already deployed on two-thirds of the 1,000 machines targeted across 16 sites in the U.S., UK, and Mexico. 'Implementing Augury's predictive maintenance solution has been a game-changer for our Fiberon operations,' said Pat Knox, Machine Health Program Owner and Director of Manufacturing Intelligence Systems at Fortune Brands Innovations. 'There are a lot of predictive maintenance solutions out there that make empty promises – solutions that require heavy upfront investment – yet they rarely deliver. Augury was different. Early in the pilot, it helped us prevent a catastrophic melt-pump failure, which set the stage for a 2.5 times payback. This fast time-to-value, combined with Augury's seamless integration into every level of our technology stack, made the decision to scale across 16 plants a no-brainer. Augury has truly transformed the way we approach maintenance, ensuring our equipment runs at peak performance.' 'It's inspiring to see how much Fortune Brands Innovations has been able to accomplish on the digital transformation front,' said Saar Yoskovitz, co-founder and CEO of Augury. 'The entire business has embraced a culture of tech innovation and proven the value of data-driven decision making with benefits across the organization – from asset health and lifespan improvements to team engagement and energizing frontline adoption. Augury is proud to be a part of those accomplishments.' As global manufacturers navigate market volatility, Fortune Brands Innovations charts a different path. By tapping into a bold digital transformation strategy, the company delivers tangible impact across its bottom-line, strengthens its supply chain and ensures the consistent delivery of high-quality products to its customers. Its strategic approach to scaling AI offers a compelling blueprint industrial leaders can use to avoid pilot purgatory and truly futureproof their factories. Learn more about how Augury is helping manufacturers unlock production predictability here. About Augury A leader in Machine Health and Process Health solutions, Augury uses purpose-built AI technology, trained by industry experts and the world's largest data library, to help manufacturing and industrial companies eliminate production downtime, improve process efficiency, maximize yield, and reduce waste and emissions. Our global customers achieve 5-20x ROI, often in a matter of months. Together with our customers, we are pioneering Production Health to transform how people and machines work together to push the boundaries of human productivity. For more information, visit About Fortune Brands Innovations Fortune Brands Innovations, Inc. is an industry-leading innovation company dedicated to creating smarter, safer and more beautiful homes and improving lives. The Company's driving purpose is to elevate every life by transforming spaces into havens. The Company is a brand, innovation and channel leader focused on exciting, supercharged categories in the home products, security and commercial building markets. The Company's portfolio of brands includes Moen, House of Rohl, Aqualisa, SpringWell, Therma-Tru, Larson, Fiberon, Master Lock, SentrySafe and Yale residential. Fortune Brands is headquartered in Deerfield, Illinois and trades on the NYSE as FBIN. To learn more, visit
