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Spectrum Brands: A Compelling Long Candidate

Spectrum Brands (SPB), engages in the supply of batteries, shaving and grooming products, personal care products, specialty pet supplies, lawn, garden and home pest control products. It operates through the following segments: Global Batteries and Appliances, Global Pet Supplies, Home and Garden, and Hardware and Home Improvement.

The company presents a compelling long investment thesis for the next 12-24 months, given its attractive industry trends in its diverse segment profile, its strong EBITDA margins and cash flow generation/compelling valuation story, its focus on returns to shareholders, its excellent management team, its acquisition strategy, and its loyal and "sticky" customer base".

Attractive Segment Profile & Industry Trends

Spectrum has 4 key subsegments:

-Global Batteries and Appliances: Sales $2.2B, EBITDA $327M

-Global Pet Supplies: Sales $600M, EBITDA $113M

-Home and Garden: Sales $432M, EBITDA $102M

-Hardware and Home Improvement: Sales $1.2B, EBITDA $210M

The company's diverse portfolio of products helps mitigate risk… Read More …