With Fortune Brands Innovations Stock Sliding, Have You Assessed The Risk?
Fortune Brands Innovations (FBIN) stock is down 17.6% in a day. The recent slide reflects renewed concerns around missed earnings, cautious guidance, and segment weakness, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Fortune Brands Innovations stands today.
- Size: Fortune Brands Innovations is a $6.2 Bil company with $4.5 Bil in revenue currently trading at $51.32.
- Fundamentals: Last 12 month revenue growth of -3.8% and operating margin of 14.8%.
- Liquidity: Has Debt to Equity ratio of 0.46 and Cash to Assets ratio of 0.03
- Valuation: Fortune Brands Innovations stock is currently trading at P/E multiple of 18.8 and P/EBIT multiple of 11.0
- Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 88.7% within a year. See FBIN Dip Buy Analysis.
These metrics point to a Weak operational performance, alongside Moderate valuation – making the stock Unattractive. For details, see Buy or Sell FBIN Stock
That brings us to the key consideration for investors worried about this fall: how resilient is FBIN stock if markets turn south? This is where our downturn resilience framework comes in. Suppose FBIN stock falls another 20-30% to $36 – can investors comfortably hold on? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- FBIN stock fell 52.3% from a high of $97.11 on 10 May 2021 to $46.35 on 20 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $90.01 on 20 October 2024 , and currently trades at $51.32
| FBIN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -52.3% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- FBIN stock fell 52.3% from a high of $63.31 on 14 February 2020 to $30.21 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 27 July 2020
| FBIN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -52.3% | -33.9% |
| Time to Full Recovery | 126 days | 148 days |
2018 Correction
- FBIN stock fell 50.8% from a high of $63.43 on 24 January 2018 to $31.19 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 27 July 2020
| FBIN | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -50.8% | -19.8% |
| Time to Full Recovery | 581 days | 120 days |
Feeling jittery about FBIN stock? Consider portfolio approach.
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