| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 14.60 | -78 |
| Graham Formula | 159.60 | 140 |
Fortune Brands Innovations, Inc. (2FB.DE) is a leading provider of water, outdoor, and security products, serving residential and commercial markets under well-known brands such as Moen, House of Rohl, Aqualisa, Therma-Tru, Larson, Fiberon, Master Lock, and SentrySafe. Headquartered in Deerfield, Illinois, the company operates in the industrials sector, focusing on water management, connected products, outdoor living, material conversion, sustainability, safety, and wellness solutions. With a strong portfolio of trusted brands, Fortune Brands Innovations caters to the growing demand for home improvement and security products, positioning itself as a key player in the construction industry. The company’s diversified product offerings and commitment to innovation make it a significant contender in the global market, appealing to both DIY consumers and professional contractors.
Fortune Brands Innovations presents a compelling investment case with its diversified product portfolio and strong brand recognition in the water, outdoor, and security segments. The company reported solid financials for FY 2021, including revenue of €7.66 billion and net income of €772.4 million, with a diluted EPS of €5.54. However, investors should note the company's high beta of 1.576, indicating higher volatility compared to the broader market. The dividend yield, supported by a €2.28 per share payout, adds income appeal. Risks include exposure to cyclical construction demand and potential supply chain disruptions. Overall, Fortune Brands Innovations is well-positioned for growth in home improvement trends but remains sensitive to macroeconomic conditions.
Fortune Brands Innovations holds a competitive edge through its diversified brand portfolio, which includes market leaders like Moen (water products) and Master Lock (security solutions). The company’s focus on innovation, particularly in connected and sustainable products, strengthens its market positioning. Its strong distribution network and brand loyalty provide resilience against competitors. However, the company operates in a highly competitive industry with players like Masco Corporation and Allegion PLC, which also have strong brand equity and extensive distribution. Fortune Brands’ ability to integrate acquisitions (e.g., Fiberon) and expand into adjacent markets (e.g., outdoor living) enhances its growth prospects. Nevertheless, pricing pressure from lower-cost competitors and reliance on North American markets could pose challenges. The company’s debt level (€2.71 billion) is manageable but requires careful monitoring given rising interest rates.