Is Fortune Brands Innovations (NYSE:FBIN) A Risky Investment?
Is Fortune Brands Innovations (NYSE:FBIN) A Risky Investment?
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. We can see that Fortune Brands Innovations, Inc. (NYSE:FBIN) does use debt in its business. But the more important question is: how much risk is that debt creating?
作爲投資者,要考慮風險,有人認爲波動性而非債務是最好的風險考慮方式,但禾倫•巴菲特曾經說過:「波動性遠非風險的同義詞。」因此,事實上明智的投資者知道,在評估企業風險時,通常會涉及破產的債務是一個非常重要的因素。我們可以看到,Fortune Brands Innovations, Inc. (NYSE:FBIN)確實在業務中使用了債務,但更重要的問題是:這些債務產生了多少風險?
Why Does Debt Bring Risk?
爲什麼債務會帶來風險?
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. When we examine debt levels, we first consider both cash and debt levels, together.
當企業無法用自由現金流或通過以有吸引力的價格籌集資本來輕鬆地履行債務和其他負債時,債務和其他負債將對企業構成風險。資本主義的本質之一是「創造性破壞」過程,失敗的企業會被銀行家無情地清算。然而,一種更常見(但成本仍然高昂)的情況是,一家公司必須以低廉的股票價格稀釋股東,以簡單地控制債務。當然,債務可以成爲企業的重要工具,特別是重資產的企業。考慮到現金和債務水平,當我們審查債務水平時,我們首先考慮兩者合併在一起。
What Is Fortune Brands Innovations's Net Debt?
Fortune Brands Innovations的淨債務是多少?
As you can see below, Fortune Brands Innovations had US$2.90b of debt at June 2024, down from US$3.27b a year prior. However, it does have US$352.6m in cash offsetting this, leading to net debt of about US$2.55b.
正如下面所示,Fortune Brands Innovations在2024年6月有29億美元的債務,比一年前的32.7億美元減少。然而,它也有3,526萬美元的現金來抵消這些債務,導致淨債務約爲25.5億美元。
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How Strong Is Fortune Brands Innovations' Balance Sheet?
Fortune Brands Innovations的資產負債表有多健康?
Zooming in on the latest balance sheet data, we can see that Fortune Brands Innovations had liabilities of US$1.55b due within 12 months and liabilities of US$2.80b due beyond that. Offsetting this, it had US$352.6m in cash and US$593.6m in receivables that were due within 12 months. So its liabilities total US$3.40b more than the combination of its cash and short-term receivables.
聚焦最新資產負債表數據,我們可以看到Fortune Brands Innovations在未來12個月內有15.5億美元的負債,而此後的28億美元的負債。然而,它有3,526萬美元的現金和5,936萬美元的應收賬款在未來12個月內到期。因此,其負債總額比現金和短期應收賬款的組合多出34億美元。
While this might seem like a lot, it is not so bad since Fortune Brands Innovations has a market capitalization of US$9.56b, and so it could probably strengthen its balance sheet by raising capital if it needed to. But we definitely want to keep our eyes open to indications that its debt is bringing too much risk.
雖然這可能看起來很多,但由於Fortune Brands Innovations的市值爲95.6億美元,所以如果需要的話,它可能會通過籌集資金來加強資產負債表。但我們確實要密切關注其債務是否帶來了太多風險。
In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its interest cover). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
爲了比較一個公司的債務與其收益的關係,我們計算其淨債務除以利息、稅、折舊和攤銷前的收益和利息前的收益(其利息覆蓋率)。因此,我們考慮了債務的絕對數量以及支付的利率。
Fortune Brands Innovations's debt is 2.7 times its EBITDA, and its EBIT cover its interest expense 6.9 times over. This suggests that while the debt levels are significant, we'd stop short of calling them problematic. We saw Fortune Brands Innovations grow its EBIT by 5.0% in the last twelve months. That's far from incredible but it is a good thing, when it comes to paying off debt. There's no doubt that we learn most about debt from the balance sheet. But it is future earnings, more than anything, that will determine Fortune Brands Innovations's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
Fortune Brands Innovations的負債是其EBITDA的2.7倍,而其EBIt每年覆蓋利息支出6.9次。這表明儘管債務水平很高,但我們不會認爲這些債務有問題。我們看到Fortune Brands Innovations在過去12個月中的EBIT增長了5.0%。雖然這遠非令人難以置信,但這是一件好事,關於償還債務。毫無疑問,我們從資產負債表上學到的關於債務的大部分東西。但與未來的收益相比,更多的是將決定Fortune Brands Innovations保持健康資產負債表能力的東西。因此,如果您關注未來,可以查看這份免費報告,其中涵蓋了分析師的盈利預測。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. So the logical step is to look at the proportion of that EBIT that is matched by actual free cash flow. During the last three years, Fortune Brands Innovations produced sturdy free cash flow equating to 69% of its EBIT, about what we'd expect. This free cash flow puts the company in a good position to pay down debt, when appropriate.
最後,業務需要自由現金流來償還債務;會計利潤無法做到這一點。因此,邏輯上講,我們應該查看EBIt的比例與實際自由現金流的比例。在過去三年中,Fortune Brands Innovations產生了穩健的自由現金流,相當於其EBIT的69%,與我們的預期相符。這種自由現金流使該公司在合適時支付債務處於良好的位置。
Our View
我們的觀點
When it comes to the balance sheet, the standout positive for Fortune Brands Innovations was the fact that it seems able to convert EBIT to free cash flow confidently. However, our other observations weren't so heartening. For example, its net debt to EBITDA makes us a little nervous about its debt. Considering this range of data points, we think Fortune Brands Innovations is in a good position to manage its debt levels. But a word of caution: we think debt levels are high enough to justify ongoing monitoring. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. For instance, we've identified 1 warning sign for Fortune Brands Innovations that you should be aware of.
在資產負債表方面,Fortune Brands Innovations最突出的積極因素是它似乎能夠自信地將EBIt轉化爲自由現金流。然而,我們其他的觀察並不那麼令人振奮。例如,它的淨債務/ EBITDA讓我們對其債務感到有些緊張。考慮到這些數據點,我們認爲Fortune Brands Innovations能夠管理其債務水平的優勢不俗。但請注意:我們認爲債務水平足以證明持續監測的必要性。當您分析債務時,顯然資產負債表是需要關注的領域。然而,並非所有的投資風險都存在於資產負債表內--這遠遠不夠。例如,我們已經確定了1個Fortune Brands Innovations的警示標誌,您應該了解。
Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.
當然,如果您是那種喜歡購買沒有債務負擔的股票的投資者,那麼不要猶豫,立即發現我們獨家的淨現金增長股票列表。
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這篇文章是Simply Wall St的一般性文章。我們根據歷史數據和分析師預測提供評論,只使用公正的方法論,我們的文章並不意味着提供任何金融建議。文章不構成買賣任何股票的建議,也不考慮您的目標或您的財務狀況。我們的目標是帶給您基本數據驅動的長期關注分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。Simply Wall St沒有任何股票頭寸。
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