A Look At Fortune Brands Innovations (FBIN) Valuation After Recent Share Price Swings

Event context and recent share performance Fortune Brands Innovations (FBIN) has been drawing attention after recent share price swings, including a 3.6% decline over the past day and a 5.2% drop over the past week. Even with that short term pressure, the stock shows a gain over the past month and past 3 months, alongside reported annual revenue of US$4.49b and net income of US$327.5m. These figures give investors concrete data to assess. See our latest analysis for Fortune Brands Innovations. Those recent share price moves sit against a stronger run over the past few months, with a 30 day share price return of 13.67% and a 90 day share price return of 14.88%. However, the 1 year total shareholder return of 17.96% and 5 year total shareholder return of 14.89% indicate that longer term holders have seen weaker outcomes and changing sentiment around the company’s risk and growth profile. If Fortune Brands Innovations has you rethinking where you look for opportunities in the market, this could be a good moment to branch out into fast growing stocks with high insider ownership. So with annual revenue of US$4.49b, net income of US$327.5m and the shares trading below both analyst targets and one intrinsic value estimate, is Fortune Brands Innovations on sale right now, or is the market already pricing in future growth? Most Popular Narrative: 6.7% Undervalued At a last close of $58.36 versus a narrative fair value of $62.56, the most followed storyline frames Fortune Brands Innovations as modestly undervalued and driven by a specific view on future cash flows and earnings quality. Ongoing operational transformation, moving to an integrated, agile HQ with enhanced supply chain resilience, cost controls, and targeted SG&A savings, is expected to deliver sustained improvement in operating margins and free cash flow, supporting financial flexibility for reinvestment and buybacks. Read the complete narrative. Curious what kind of earnings build is needed to back that view, and how much profit margin expansion is baked into the $62.56 fair value? The narrative leans heavily on a step up in profitability, compounded revenue growth and a future valuation multiple that does not assume blue sky outcomes. If you want to see exactly how those moving parts fit together, the full story lays out the numbers in black and white. Result: Fair Value of $62.56 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this hinges on U.S. housing and renovation trends improving, as well as on smart home products gaining traction fast enough to support margins and earnings expectations. Find out about the key risks to this Fortune Brands Innovations narrative. Build Your Own Fortune Brands Innovations Narrative If you see the numbers differently, or prefer to stress test your own assumptions against the data, you can build a tailored narrative in minutes by starting with Do it your way. A great starting point for your Fortune Brands Innovations research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision. Looking for more investment ideas? If Fortune Brands Innovations has sparked your interest, do not stop here. Broaden your watchlist with other focused ideas that could sharpen your overall portfolio decisions. Spot potential turnaround candidates early by checking out these 3523 penny stocks with strong financials that combine smaller market caps with stronger financial foundations. Explore the expansion of real world AI adoption by reviewing these 109 healthcare AI stocks that are applying data and automation to healthcare problems. Adjust your income strategy by scanning these 13 dividend stocks with yields > 3% that offer higher yields while still passing key fundamental checks. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.