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Intrinsic ValueFortune Brands Innovations, Inc. (2FB.DE)

Previous Close66.50
Intrinsic Value
Upside potential
Previous Close
66.50

VALUATION INPUT DATA

This valuation is based on fiscal year data as of 2021 and quarterly data as of .

Data is not available at this time.

Stock Valuation Context

Business Model And Market Position

Fortune Brands Innovations, Inc. operates in the construction sector, specializing in water management, outdoor living, and security solutions. The company’s diversified portfolio includes premium brands like Moen, Therma-Tru, and Master Lock, which cater to residential and commercial markets. Its revenue model is driven by product innovation, brand equity, and a focus on sustainability, positioning it as a leader in connected home and safety products. Fortune Brands leverages its strong distribution network and R&D capabilities to maintain competitive differentiation in fragmented markets. The company’s emphasis on material conversion and wellness aligns with growing consumer demand for eco-friendly and smart home technologies. Its market position is reinforced by strategic acquisitions and partnerships, enhancing its ability to address evolving industry trends.

Revenue Profitability And Efficiency

In FY 2021, Fortune Brands reported revenue of EUR 7.66 billion, with net income of EUR 772.4 million, reflecting a solid 10.1% net margin. Operating cash flow stood at EUR 688.7 million, supported by disciplined cost management. Capital expenditures of EUR 214.2 million indicate ongoing investments in innovation and capacity expansion, aligning with long-term growth objectives.

Earnings Power And Capital Efficiency

The company’s diluted EPS of EUR 5.54 underscores its earnings strength, driven by premium branding and operational leverage. With a balanced approach to reinvestment and shareholder returns, Fortune Brands demonstrates efficient capital allocation, though its beta of 1.576 suggests higher volatility relative to the market.

Balance Sheet And Financial Health

Fortune Brands maintains a robust liquidity position, with EUR 471.5 million in cash and equivalents. Total debt of EUR 2.71 billion reflects leverage used for strategic initiatives, but the company’s strong cash flow generation supports manageable debt levels. The balance sheet remains well-structured to fund growth and navigate macroeconomic uncertainties.

Growth Trends And Dividend Policy

The company’s focus on connected products and sustainability aligns with secular growth trends. A dividend of EUR 2.28 per share highlights its commitment to returning capital to shareholders, though payout ratios remain sustainable. Future growth may hinge on innovation and market expansion in water and outdoor segments.

Valuation And Market Expectations

Given the lack of disclosed market capitalization, valuation metrics are unclear. However, the company’s premium branding and sector tailwinds likely support investor confidence. Earnings multiples and cash flow trends would be critical for intrinsic valuation analysis.

Strategic Advantages And Outlook

Fortune Brands’ diversified product lineup and strong brand recognition provide resilience against cyclical downturns. Its focus on smart technologies and sustainability positions it well for long-term growth, though competitive pressures and input cost volatility remain key monitorables.

Sources

Company description, financial data provided

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FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

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