Fortune Brands EBITDA vs. Return On Asset
| FBIN Stock | 80.96 4.46 5.83% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 873 M | Current Value 714.5 M | Quarterly Volatility 283.3 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.28 | 0.37 |
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For Fortune Brands profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fortune Brands to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fortune Brands Innovations utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fortune Brands's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fortune Brands Innovations over time as well as its relative position and ranking within its peers.
Fortune |
Fortune Brands' Revenue Breakdown by Earning Segment
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Is Building Products space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Fortune Brands. If investors know Fortune will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Fortune Brands listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.019 | Dividend Share 0.95 | Earnings Share 3.55 | Revenue Per Share 37.269 | Quarterly Revenue Growth (0.08) |
The market value of Fortune Brands Innov is measured differently than its book value, which is the value of Fortune that is recorded on the company's balance sheet. Investors also form their own opinion of Fortune Brands' value that differs from its market value or its book value, called intrinsic value, which is Fortune Brands' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Fortune Brands' market value can be influenced by many factors that don't directly affect Fortune Brands' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Fortune Brands' value and its price as these two are different measures arrived at by different means. Investors typically determine if Fortune Brands is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fortune Brands' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Fortune Brands Innov Return On Asset vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Fortune Brands's current stock value. Our valuation model uses many indicators to compare Fortune Brands value to that of its competitors to determine the firm's financial worth. Fortune Brands Innovations is one of the top stocks in ebitda category among its peers. It is rated below average in return on asset category among its peers . The ratio of EBITDA to Return On Asset for Fortune Brands Innovations is about 12,024,793,388 . At this time, Fortune Brands' EBITDA is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Fortune Brands' earnings, one of the primary drivers of an investment's value.Fortune Brands' Earnings Breakdown by Geography
Fortune Return On Asset vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Fortune Brands |
| = | 873 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Fortune Brands |
| = | 0.0726 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Fortune Return On Asset Comparison
Fortune Brands is currently under evaluation in return on asset category among its peers.
Fortune Brands Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Fortune Brands, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fortune Brands will eventually generate negative long term returns. The profitability progress is the general direction of Fortune Brands' change in net profit over the period of time. It can combine multiple indicators of Fortune Brands, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 63.3 M | 66.5 M | |
| Operating Income | 614.9 M | 552.9 M | |
| Income Before Tax | 517.9 M | 483.6 M | |
| Total Other Income Expense Net | -97 M | -92.2 M | |
| Net Income | 404.5 M | 361.8 M | |
| Income Tax Expense | 112.4 M | 124.1 M | |
| Net Interest Income | -121.8 M | -127.9 M | |
| Net Income From Continuing Ops | 452.2 M | 575.7 M | |
| Net Income Applicable To Common Shares | 789.7 M | 672.1 M | |
| Interest Income | 14.2 M | 8.1 M | |
| Change To Netincome | 252 M | 187.2 M | |
| Net Income Per Share | 3.73 | 3.92 | |
| Income Quality | 0.74 | 0.48 | |
| Net Income Per E B T | 0.93 | 0.84 |
Fortune Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Fortune Brands. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Fortune Brands position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Fortune Brands' important profitability drivers and their relationship over time.
Use Fortune Brands in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Fortune Brands position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fortune Brands will appreciate offsetting losses from the drop in the long position's value.Fortune Brands Pair Trading
Fortune Brands Innovations Pair Trading Analysis
The ability to find closely correlated positions to Fortune Brands could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fortune Brands when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Fortune Brands - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Fortune Brands Innovations to buy it.
The correlation of Fortune Brands is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Fortune Brands moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fortune Brands Innov moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Fortune Brands can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Fortune Brands position
In addition to having Fortune Brands in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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To fully project Fortune Brands' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Fortune Brands Innov at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Fortune Brands' income statement, its balance sheet, and the statement of cash flows.