Taking a Fresh Look at Fortune Brands Home & Security, Inc. (FBHS)

Fortune Brands Home & Security, Inc. (NYSE:FBHS) is an interesting player in the Consumer Goods space, with a focus on Home Furnishings & Fixtures. The stock has been active on the tape, currently trading at $54.47, up from yesterday’s close by 0.55%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

This company has been competing with others in the space and offers its own combination of interesting factors Fortune Brands Home & Security, Inc. (FBHS) currently trades with a market capitalization of $8.41B. That value represents a market adjusting for revenues that have been growing by 3.20% on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For FBHS, the company currently has $278.60M of cash on the books, which is offset by $1.59B current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $387.67M over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of 0.69 on a per share basis this quarter. Perhaps, that suggests something about why 90.50% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, Fortune Brands Home & Security, Inc. recorded a 52-week high of 64.47. It is now trading 10.3 off that level. The stock is trading 55.05 its 50-day moving average by 0.88. The stock carved out a 52-week low down at 44.19.

In recent action, Fortune Brands Home & Security, Inc. (FBHS) has made a move of -1.45% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 5.41, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 153.27M with 4.05% sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of FBHS.

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