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Spectrum Brands Stock: Still Some Steam Left, Buy (NYSE:SPB)

6 Mins read

Investment Thesis

We ascribe a Buy rating on Spectrum Brands (NYSE:SPB) primarily driven by its long term positioning within its pet care business with focused portfolio post product rationalization along with easing industry wide headwinds within its Home and

EV/ Fwd EBITDA
Hamilton Beach Brands
Newell Brands 8.7x
SharkNinja 8.9x
De’Longhi America 8.1x
Helen of Troy 9.7x
Average 8.8x

EV/ Fwd EBITDA
Scotts Miracle-Gro 13.6x
Central Garden and Pet 9.6x
Henkel 8.6x
Average 10.6x

EV/ Fwd EBITDA
Chewy 20.0x
Freshpet NM
JM Smuckers 9.2x
Central Garden & Pet 9.6x
Petco 8.0x
Average 11.7x

($mn) Valuation Basis Enterprise Value
HPC 6.2x Fwd EBITDA $370 mn
Home & Garden 10.6x Fwd EBITDA $864 mn
Pet Care 10.0x Fwd EBITDA $1,320 mn
Total EV
(+) Net Cash $800 mn
Equity Value $3,354
Implied Price $95

Read the full article here

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