Spectrum Brands Holdings Inc. Common Stock (SPB)

FairStock Score: 53/100 — MIXED

Key Financials

Strengths

• Generates $242 million in annual free cash flow (12.3% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.37, providing financial flexibility
• Attractive 2.3% dividend yield providing steady income returns

Concerns

• Revenue declining at 3.3% year-over-year signals potential demand weakness or market share loss

AI Analysis

Spectrum Brands Holdings Inc. Common Stock is a micro-cap consumer defensive company valued at $2.0 billion. The business generates $2.8 billion in annual revenue with a 1.0% net margin and $242 million in free cash flow. From a quality standpoint, Spectrum shows Altman Z-Score of 2.1 in the grey zone and modest 5% ROE. On valuation, the stock is reasonably priced at 19.9x earnings, with a modest 4% margin of safety vs Graham Number. Growth dynamics show revenue growing at -3.3% and profit growth of 20.9%. The 2.3% dividend yield adds an income component for patient holders. Our composite FairStock Score of 53/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $242 million in annual free cash flow (12.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer defensive space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer