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GuruFocus has detected 5 Warning Signs with Fortune Brands Home & Security Inc $FBHS.
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Fortune Brands Home & Security Inc (NYSE:FBHS)
Net Margin %
7.96% (As of Dec. 2016)

Net margin is calculated as net income divided by its revenue. Fortune Brands Home & Security Inc's net income for the three months ended in Dec. 2016 was $104 Mil. Fortune Brands Home & Security Inc's revenue for the three months ended in Dec. 2016 was $1,302 Mil. Therefore, Fortune Brands Home & Security Inc's net margin for the quarter that ended in Dec. 2016 was 7.96%.

FBHS' s Net Margin % Range Over the Past 10 Years
Min: -1.39   Max: 8.29
Current: 8.18

-1.39
8.29
FBHS's Net Margin % is ranked higher than
74% of the 728 Companies
in the Global Home Furnishings & Fixtures industry.

( Industry Median: 3.73 vs. FBHS: 8.18 )

Definition

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Fortune Brands Home & Security Inc's Net Margin for the fiscal year that ended in Dec. 2016 is calculated as

Net Margin=Net Income (A: Dec. 2016 )/Revenue (A: Dec. 2016 )
=413.2/4984.9
=8.29 %

Fortune Brands Home & Security Inc's Net Margin for the quarter that ended in Dec. 2016 is calculated as

Net Margin=Net Income (Q: Dec. 2016 )/Revenue (Q: Dec. 2016 )
=103.6/1301.6
=7.96 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company’s profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.


Related Terms

Net Income, Revenue, Cost of Goods Sold, Selling, General, & Admin. Expense, Research & Development, Depreciation, Depletion and Amortization, Interest Expense, Non-Recurring Items, Tax Expense


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Fortune Brands Home & Security Inc Annual Data

Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
netmargin 0.000.00-1.391.97-1.073.796.203.946.888.29

Fortune Brands Home & Security Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
netmargin -1.994.344.216.848.687.175.039.659.657.96
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