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1. Company Snapshot

1.a. Company Description

Spectrum Brands Holdings, Inc.operates as a branded consumer products company worldwide.It operates through three segments: Home and Personal Care; Global Pet Care; and Home and Garden.


The Home and Personal Care segment provides home appliances under the Black & Decker, Russell Hobbs, George Foreman, Toastmaster, Juiceman, Farberware, and Breadman brands; and personal care products under the Remington and LumaBella brands.The Global Pet Care segment provides rawhide chewing, dog and cat clean-up and food, training, health and grooming, small animal food and care, and rawhide-free products under the 8IN1 (8-in-1), Dingo, Nature's Miracle, Wild Harvest, Littermaid, Jungle, Excel, FURminator, IAMS, Eukanuba, Healthy-Hide, DreamBone, SmartBones, ProSense, Perfect Coat, eCOTRITION, Birdola, Good Boy, Meowee!, Wildbird, and Wafcol brands.This segment also offers aquarium kits, stand-alone tanks, and aquatics equipment and consumables under the Tetra, Marineland, Whisper, Instant Ocean, GloFish, OmegaOne, and OmegaSea brands.


The Home and Garden segment provides outdoor insect and weed control solutions, and animal repellents under the Spectracide, Garden Safe, Liquid Fence, and EcoLogic brands; household pest control solutions under the Hot Shot, Black Flag, Real-Kill, Ultra Kill, The Ant Trap, and Rid-A-Bug brand names; household surface cleaning, maintenance, and restoration products, including bottled liquids, mops, wipes, and markers under the Rejuvenate brand name; and personal-use pesticides and insect repellent products under the Cutter and Repel brands.The company sells its products through retailers, e-commerce and online retailers, wholesalers, and distributors.Spectrum Brands Holdings, Inc.


was incorporated in 2009 and is headquartered in Middleton, Wisconsin.

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1.b. Last Insights on SPB

Spectrum Brands Holdings, Inc.'s recent performance was negatively driven by a Q4 earnings miss, with earnings per share of $0.97, missing the consensus estimate of $1.13. The company's organic sales increased 4.8% year-over-year, but soft demand for small kitchen appliances and higher costs offset this growth. Additionally, the company's pricing actions and cost efficiencies were expected to aid results, but ultimately did not sufficiently mitigate the earnings miss.

1.c. Company Highlights

2. Spectrum Brands Holdings' Q1 Earnings: A Closer Look

Publication Date: Mar -09

📋 Highlights
  • Strong Adjusted Free Cash Flow:: Generated $660 million in Q1, returning $1.4 billion to shareholders via share repurchases since 2022.
  • Global Pet Care Growth:: Achieved 8.3% sales increase (organic 5.8%), with companion animal brands driving high-single-digit growth and market share gains.
  • Home and Garden Turnaround:: 19.8% Q1 sales decline, but outlook for fastest growth in 2026 due to strong category trends and new product launches.
  • EBITDA Margin Pressure:: Global pet care’s adjusted EBITDA dropped to 17.4% (vs. 19.8% prior year) due to tariffs, inflation, and trade investments.

Segment Performance

The global pet care business was a bright spot, with sales in companion animal increasing high single digits and aquatics showing signs of recovery. The home and garden business, on the other hand, reported a 19.8% decline in net sales, although this is typically the slowest sales quarter for the business. The company's results were in line with its expectations, with adjusted EBITDA declining year-over-year due to higher tariff costs, inflation, and additional trade investment spend.

Financial Position and Outlook

Spectrum Brands generated nearly $660 million of adjusted free cash flow in the first quarter and repurchased approximately 600,000 shares. The company's strong financial position affords it flexibility to capitalize on market opportunities and invest in its businesses. The company reiterated its expectations for full-year net sales, adjusted EBITDA, and adjusted free cash flow. With a current price-to-earnings ratio of around 17, the company's valuation appears reasonable, especially considering its expected growth prospects.

Valuation Metrics

Using key valuation metrics, we can assess the company's relative attractiveness. The price-to-sales ratio is around 0.64, indicating that the company's shares are reasonably valued relative to its sales. The return on equity (ROE) is 5.52%, which is a respectable figure. With a dividend yield of around 2.46%, the company also offers a relatively attractive income stream to investors.

Growth Prospects

The company's growth prospects appear promising, with the global pet care business expected to continue growing in the second quarter. The home and garden business is also expected to see strong growth, driven by new product launches and increased demand. Analysts estimate revenue growth of 1.6% for the next year, which is a relatively modest pace. However, with the company's focus on delivering sustainable growth and its strong financial position, there is potential for upside surprises.

3. NewsRoom

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Superior Plus Announces Timing of 2026 First Quarter Results Conference Call and Webcast

Mar -31

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Spectrum Brands Bolsters Growth via Digital & Portfolio Transformation

Mar -31

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Superior Plus Corp. (TSE:SPB) Receives Average Recommendation of “Hold” from Analysts

Mar -29

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Can Spectrum Brands' Digital and Portfolio Transformation Aid Growth?

Mar -18

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Financial Analysis: Kaya (OTCMKTS:KAYS) versus Spectrum Brands (NYSE:SPB)

Mar -11

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3 Stocks That Could Be Easy Wealth Builders

Mar -08

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Spectrum Brands: A Compelling Story With Long-Term Tailwinds But Near-Term Headwinds

Feb -24

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Superior Plus Corp. (SPB:CA) Q4 2025 Earnings Call Transcript

Feb -20

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.00%)

6. Segments

Home and Personal Care

Expected Growth: 2.0%

Spectrum Brands Holdings, Inc.'s Home and Personal Care segment growth of 2.0% is driven by increasing demand for household essentials, innovative product launches, and strategic marketing initiatives. Additionally, the segment benefits from a strong brand portfolio, including Black+Decker and Russell Hobbs, and a growing e-commerce presence.

Global Pet Care

Expected Growth: 2.0%

The 2.0% growth of Global Pet Care from Spectrum Brands Holdings, Inc. is driven by increasing pet humanization, premiumization of pet food and supplies, and rising demand for online pet care services. Additionally, the growing popularity of pet adoption and pet owners' willingness to spend on pet health and wellness products contribute to the segment's growth.

Home & Garden

Expected Growth: 2.0%

Spectrum Brands Holdings, Inc.'s Home & Garden segment growth of 2.0% is driven by increasing consumer spending on home improvement, gardening, and outdoor living. Additionally, the company's focus on innovative products, e-commerce expansion, and strategic acquisitions have contributed to the growth. Furthermore, the rising popularity of DIY projects and home decor has also boosted demand for the segment's products.

7. Detailed Products

Remington Shavers

Electric shavers and grooming products for men and women

Russell Hobbs Appliances

Small kitchen appliances, including toasters, kettles, and blenders

Black+Decker Power Tools

Power tools, including drills, saws, and sanders, for DIY and professional use

George Foreman Grills

Indoor and outdoor electric grills for healthy cooking

Spectracide Pest Control

Insecticides, rodenticides, and other pest control products

Arm & Hammer Pet Food

Natural pet food and treats for dogs and cats

IAMS Pet Food

Premium pet food for dogs and cats

Tetra Aquarium Products

Aquarium fish food, filters, and other aquarium supplies

8. Spectrum Brands Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Spectrum Brands Holdings, Inc. is medium due to the presence of alternative products in the market, but the company's strong brand portfolio and product differentiation mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for Spectrum Brands Holdings, Inc. due to the company's diversified customer base and lack of concentration of customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Spectrum Brands Holdings, Inc. due to the presence of multiple suppliers, but the company's large scale of operations and long-term contracts mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low for Spectrum Brands Holdings, Inc. due to the high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high for Spectrum Brands Holdings, Inc. due to the presence of several established players in the industry, leading to intense competition and pricing pressure.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.61%
Debt Cost 9.55%
Equity Weight 60.39%
Equity Cost 9.89%
WACC 9.76%
Leverage 65.58%

11. Quality Control: Spectrum Brands Holdings, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Inter Parfums

A-Score: 6.0/10

Value: 5.5

Growth: 8.0

Quality: 8.1

Yield: 6.0

Momentum: 1.5

Volatility: 7.0

1-Year Total Return ->

Stock-Card
Clorox

A-Score: 5.7/10

Value: 6.2

Growth: 3.9

Quality: 7.1

Yield: 7.0

Momentum: 0.5

Volatility: 9.3

1-Year Total Return ->

Stock-Card
Spectrum Brands

A-Score: 4.8/10

Value: 6.5

Growth: 5.4

Quality: 4.5

Yield: 5.0

Momentum: 1.0

Volatility: 6.3

1-Year Total Return ->

Stock-Card
Newell Brands

A-Score: 4.0/10

Value: 8.8

Growth: 1.4

Quality: 2.3

Yield: 9.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

Stock-Card
e.l.f. Beauty

A-Score: 3.5/10

Value: 1.6

Growth: 9.6

Quality: 5.7

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

1-Year Total Return ->

Stock-Card
Helen of Troy

A-Score: 2.6/10

Value: 7.7

Growth: 3.2

Quality: 2.1

Yield: 0.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

73.72$

Current Price

73.72$

Potential

-0.00%

Expected Cash-Flows