Spectrum Story

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SPB -- USA Stock  

USD 55.63  1.47  2.57%

As many rational traders are trying to avoid consumer defensive space, it makes sense to go over Spectrum Brands Holdings a little further and understand how it stands against Barnes Noble and other similar entities. We are going to analyze some of the competitive aspects of both Spectrum and Barnes.
Published over a month ago
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Our viewpoint on Spectrum Brands (NYSE:SPB) and Barnes Noble (NYSE:BKS)?
By analyzing existing basic indicators between Spectrum Brands and Barnes, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Barnes with a short position in Spectrum Brands. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Spectrum Brands has an asset utilization ratio of 54.04 percent. This suggests that the company is making $0.54 for each dollar of assets. An increasing asset utilization means that Spectrum Brands Holdings is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Spectrum or Barnes is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Spectrum Brands dividends

A dividend is the distribution of a portion of Spectrum Brands earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Spectrum Brands dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Spectrum one year expected dividend income is about $1.14 per share.
The current year Dividend Yield is expected to grow to 0.0152, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (108.2 M).
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-100.3 M-108.2 M
Dividend Yield 0.0126  0.0152 
Dividends per Basic Common Share 1.32  1.17 
Investing in dividend-paying stocks, such as Spectrum Brands Holdings is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Spectrum Brands must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Spectrum Brands. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Spectrum Brands's Liquidity

Spectrum Brands financial leverage refers to using borrowed capital as a funding source to finance Spectrum Brands Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Spectrum Brands financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Spectrum Brands's total debt and its cash.

Correlation Between Spectrum and Barnes Noble

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Spectrum Brands together with similar or unrelated positions with a negative correlation. For example, you can also add Barnes Noble to your portfolio. If Barnes Noble is not perfectly correlated to Spectrum Brands it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Spectrum Brands for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between SPB and BKS for more information.

Note

Are you currently holding both Spectrum Brands and Barnes Noble in your portfolio? Please note if you are using this as a pair-trade strategy between Spectrum Brands and Barnes Noble, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Exercise or conversion by Ehsan Zargar of 13680 shares of Spectrum Brands subject to Rule 16b-3

Legal trades by Spectrum Brands insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Spectrum insider trading alert for exercise of restricted stock units by Ehsan Zargar, EVP GC & Corporate Secretary, on 29th of August 2020. This event was filed by Spectrum Brands Holdings with SEC on 2019-11-25. Statement of changes in beneficial ownership - SEC Form 4. Ehsan Zargar currently serves as executive vice president, general counsel, corporate secretary of Spectrum Brands Hold [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Detailed Perspective On Spectrum Brands

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Spectrum Brands revenue. Based on the latest financial disclosure, Spectrum Brands Holdings reported 3.82 B of revenue. This is 74.28% lower than that of the Consumer Defensive sector and 67.14% lower than that of the Household & Personal Products industry. The revenue for all United States stocks is 59.51% higher than that of Spectrum Brands. As for Barnes Noble we see revenue of 3.55 B, which is 69.46% lower than that of the Household & Personal Products

Spectrum3.82 Billion
Sector9.43 Billion
Barnes3.55 Billion
3.8 B
Spectrum
9.4 B
Sector
3.5 B
Barnes

Will Spectrum pull back in August 2020?

The skewness is down to -0.13 as of today. As of the 31st of July, Spectrum Brands has the Semi Deviation of 3.16, coefficient of variation of 723.15, and Risk Adjusted Performance of 0.2349. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Spectrum Brands Hold, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen technical drivers for Spectrum Brands Holdings, which can be compared to its competition. Please validate Spectrum Brands Hold variance, as well as the relationship between the maximum drawdown and semi variance to decide if Spectrum Brands is priced more or less accurately, providing market reflects its prevalent price of 52.88 per share. Given that Spectrum Brands Hold has jensen alpha of 0.2598, we advise you to double-check Spectrum Brands Holdings's current market performance to make sure the company can sustain itself at a future point.

The Current Takeaway on Spectrum Brands Investment

Whereas some other companies under the household & personal products industry are still a bit expensive, Spectrum Brands may offer a potential longer-term growth to investors. To sum up, as of the 31st of July 2020, we believe that Spectrum Brands is currently overvalued with below average chance of distress in the next two years. Our primary 30 days Buy-Hold-Sell recommendation on the company is Strong Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Spectrum Brands Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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