Spectrum Story

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SPB -- USA Stock  

USD 80.88  3.26  4.20%

Spectrum Brands Net Income Per Employee is projected to increase significantly based on the last few years of reporting. The past year's Net Income Per Employee was at 15,846.3. The current year Revenue Per Employee is expected to grow to about 402.5 K, whereas Average Assets are forecasted to decline to about 5.5 B. This post will go over Spectrum Brands. Why are we still confident in hope for a quick recovery. This post is to show some fundamental factors affecting Spectrum Brands' products and services. I will also drop some light on how it may impact the investing outlook for the firm in March.
Published over three weeks ago
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Another strong showing for Spectrum Brands
The company reported the last year's revenue of 3.96 B. Total Income to common stockholders was 83.8 M with profit before taxes, overhead, and interest of 1.38 B. About 99.0% of the company shares are owned by institutional investors. The book value of Spectrum Brands was at this time reported as 32.66. Spectrum Brands Hold has Price/Earnings To Growth (PEG) ratio of 0.81. The entity last dividend was issued on the 20th of November 2020. The firm had a split on the 16th of July 2018.

And What about 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 $0.84 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 2021
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.

How Spectrum utilizes its cash?

To perform a cash flow analysis of Spectrum Brands, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Spectrum Brands is receiving and how much cash it distributes out in a given period. The Spectrum Brands cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Spectrum Brands Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 598.86 Million

Acquisition by Anne Ward of 3533 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 grant of common stock by Anne Ward, the corporate stakeholder, on 23rd of December 2020. This event was filed by Spectrum Brands Holdings with SEC on 2020-12-23. Statement of changes in beneficial ownership - SEC Form 4 [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.

Going after Spectrum Financials

Spectrum Brands maintains a total of 42.62 Million outstanding shares. The majority of Spectrum Brands Hold outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Spectrum Brands to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Spectrum Brands Hold. Please pay attention to any change in the institutional holdings of Spectrum Brands Holdings as this could imply that something significant has changed or about to change at the company. Also note that roughly eight hundred fifty-two thousand four hundred invesors are currently shorting Spectrum Brands expressing very little confidence in its future performance.
 2014 2015 2020 2021 (projected)
Interest Expense271.9 M250 M225 M225.3 M
Gross Profit1.67 B1.92 B1.73 B1.5 B

Ownership Breakdown

Institutions
98.97%
Retail Investors-2.4
Insiders3.43
Institutions98.97

Our take on today Spectrum Brands rise

Downside variance is down to 2.3. It may suggest a possible volatility slip. Spectrum Brands Holdings has relatively low volatility with skewness of 0.13 and kurtosis of 0.17. However, we advise all investors to independently investigate Spectrum Brands Holdings to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our 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. With an optimistic outlook on your 30 days horizon, it may be a good time to acquire new shares of Spectrum or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Spectrum Brands.

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 Raphi Shpitalnik 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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