NEWELL BRANDS INC (NWL) Stock Fundamental Analysis
NASDAQ:NWL - Nasdaq - US6512291062 - Common Stock - Currency: USD
NWL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 66 industry peers in the Household Durables industry. NWL may be in some trouble as it scores bad on both profitability and health. NWL has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NWL had positive earnings in the past year.
NWL had a positive operating cash flow in the past year.
In multiple years NWL reported negative net income over the last 5 years.
NWL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NWL has a Return On Assets of -1.96%. This is in the lower half of the industry: NWL underperforms 60.61% of its industry peers.
NWL has a Return On Equity of -7.85%. This is in the lower half of the industry: NWL underperforms 66.67% of its industry peers.
NWL's Return On Invested Capital of 4.74% is in line compared to the rest of the industry. NWL outperforms 43.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NWL is significantly below the industry average of 12.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.96% | ||
| ROE | -7.85% | ||
| ROIC | 4.74% |
ROA(3y)-1.22%
ROA(5y)-0.91%
ROE(3y)-4.91%
ROE(5y)-3.93%
ROIC(3y)4.99%
ROIC(5y)5.88%
1.3 Margins
NWL's Operating Margin of 6.78% is in line compared to the rest of the industry. NWL outperforms 50.00% of its industry peers.
NWL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 34.08%, NWL is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
In the last couple of years the Gross Margin of NWL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.78% | ||
| PM (TTM) | N/A | ||
| GM | 34.08% |
OM growth 3Y-13.75%
OM growth 5Y-3.03%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.16%
GM growth 5Y0.56%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NWL is destroying value.
NWL has more shares outstanding than it did 1 year ago.
NWL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NWL has a worse debt to assets ratio.
2.2 Solvency
NWL has an Altman-Z score of 0.71. This is a bad value and indicates that NWL is not financially healthy and even has some risk of bankruptcy.
NWL has a Altman-Z score of 0.71. This is amonst the worse of the industry: NWL underperforms 81.82% of its industry peers.
NWL has a debt to FCF ratio of 19.39. This is a negative value and a sign of low solvency as NWL would need 19.39 years to pay back of all of its debts.
NWL's Debt to FCF ratio of 19.39 is in line compared to the rest of the industry. NWL outperforms 42.42% of its industry peers.
A Debt/Equity ratio of 1.64 is on the high side and indicates that NWL has dependencies on debt financing.
NWL's Debt to Equity ratio of 1.64 is on the low side compared to the rest of the industry. NWL is outperformed by 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 19.39 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.55
WACC8.62%
2.3 Liquidity
NWL has a Current Ratio of 1.14. This is a normal value and indicates that NWL is financially healthy and should not expect problems in meeting its short term obligations.
NWL's Current ratio of 1.14 is on the low side compared to the rest of the industry. NWL is outperformed by 87.88% of its industry peers.
A Quick Ratio of 0.56 indicates that NWL may have some problems paying its short term obligations.
The Quick ratio of NWL (0.56) is worse than 74.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The earnings per share for NWL have decreased strongly by -13.92% in the last year.
NWL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.13% yearly.
The Revenue has decreased by -6.77% in the past year.
NWL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.84% yearly.
EPS 1Y (TTM)-13.92%
EPS 3Y-27.98%
EPS 5Y-17.13%
EPS Q2Q%-27.27%
Revenue 1Y (TTM)-6.77%
Revenue growth 3Y-10.54%
Revenue growth 5Y-4.84%
Sales Q2Q%-6.12%
3.2 Future
NWL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.26% yearly.
The Revenue is expected to grow by 4.89% on average over the next years.
EPS Next Y8.18%
EPS Next 2Y13.15%
EPS Next 3Y14.79%
EPS Next 5Y13.26%
Revenue Next Year-3.13%
Revenue Next 2Y-0.69%
Revenue Next 3Y0.03%
Revenue Next 5Y4.89%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.93 indicates a reasonable valuation of NWL.
62.12% of the companies in the same industry are more expensive than NWL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.35. NWL is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.18, the valuation of NWL can be described as reasonable.
Based on the Price/Forward Earnings ratio, NWL is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, NWL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 9.18 |
4.2 Price Multiples
NWL's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, NWL is valued cheaply inside the industry as 80.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.85 | ||
| EV/EBITDA | 8.61 |
4.3 Compensation for Growth
NWL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
NWL's earnings are expected to grow with 14.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.21
PEG (5Y)N/A
EPS Next 2Y13.15%
EPS Next 3Y14.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.19%, NWL is a good candidate for dividend investing.
In the last 3 months the price of NWL has falen by -34.53%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.15, NWL pays a better dividend. On top of this NWL pays more dividend than 90.91% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, NWL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
5.2 History
The dividend of NWL decreases each year by -20.97%.
NWL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-20.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
NWL has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-54.63%
EPS Next 2Y13.15%
EPS Next 3Y14.79%
6.75
+0.06 (+0.9%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners97.06%
Inst Owner Change4.51%
Ins Owners0.34%
Ins Owner Change5.71%
Market Cap2.81B
Analysts68.24
Price Target10.23 (51.56%)
Short Float %4.32%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
Yearly Dividend0.28
Dividend Growth(5Y)-20.97%
DP-54.63%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.57%
Min EPS beat(2)0.42%
Max EPS beat(2)10.71%
EPS beat(4)4
Avg EPS beat(4)44.53%
Min EPS beat(4)0.42%
Max EPS beat(4)100%
EPS beat(8)7
Avg EPS beat(8)35.12%
EPS beat(12)11
Avg EPS beat(12)31.99%
EPS beat(16)15
Avg EPS beat(16)35.23%
Revenue beat(2)0
Avg Revenue beat(2)-1.59%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)-1.57%
Revenue beat(4)0
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-1.62%
Max Revenue beat(4)-0.48%
Revenue beat(8)2
Avg Revenue beat(8)-0.56%
Revenue beat(12)4
Avg Revenue beat(12)-0.1%
Revenue beat(16)7
Avg Revenue beat(16)1.1%
PT rev (1m)-11.28%
PT rev (3m)4.43%
EPS NQ rev (1m)-336.26%
EPS NQ rev (3m)-268.77%
EPS NY rev (1m)-4.47%
EPS NY rev (3m)-6.01%
Revenue NQ rev (1m)-3.53%
Revenue NQ rev (3m)-5.06%
Revenue NY rev (1m)-2.48%
Revenue NY rev (3m)-3.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 9.18 | ||
| P/S | 0.37 | ||
| P/FCF | 11.85 | ||
| P/OCF | 5.66 | ||
| P/B | 1.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.61 |
EPS(TTM)0.68
EY10.07%
EPS(NY)0.74
Fwd EY10.9%
FCF(TTM)0.57
FCFY8.44%
OCF(TTM)1.19
OCFY17.66%
SpS18.22
BVpS6.61
TBVpS-5.51
PEG (NY)1.21
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.96% | ||
| ROE | -7.85% | ||
| ROCE | 6% | ||
| ROIC | 4.74% | ||
| ROICexc | 4.85% | ||
| ROICexgc | 12.22% | ||
| OM | 6.78% | ||
| PM (TTM) | N/A | ||
| GM | 34.08% | ||
| FCFM | 3.13% |
ROA(3y)-1.22%
ROA(5y)-0.91%
ROE(3y)-4.91%
ROE(5y)-3.93%
ROIC(3y)4.99%
ROIC(5y)5.88%
ROICexc(3y)5.14%
ROICexc(5y)6.16%
ROICexgc(3y)13.09%
ROICexgc(5y)17.43%
ROCE(3y)6.32%
ROCE(5y)7.44%
ROICexcg growth 3Y-20.48%
ROICexcg growth 5Y-5.76%
ROICexc growth 3Y-16.75%
ROICexc growth 5Y-0.31%
OM growth 3Y-13.75%
OM growth 5Y-3.03%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.16%
GM growth 5Y0.56%
F-Score5
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 19.39 | ||
| Debt/EBITDA | 5.39 | ||
| Cap/Depr | 80.19% | ||
| Cap/Sales | 3.42% | ||
| Interest Coverage | 1.61 | ||
| Cash Conversion | 59.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 0.71 |
F-Score5
WACC8.62%
ROIC/WACC0.55
Cap/Depr(3y)90.21%
Cap/Depr(5y)86.42%
Cap/Sales(3y)3.4%
Cap/Sales(5y)3.14%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.92%
EPS 3Y-27.98%
EPS 5Y-17.13%
EPS Q2Q%-27.27%
EPS Next Y8.18%
EPS Next 2Y13.15%
EPS Next 3Y14.79%
EPS Next 5Y13.26%
Revenue 1Y (TTM)-6.77%
Revenue growth 3Y-10.54%
Revenue growth 5Y-4.84%
Sales Q2Q%-6.12%
Revenue Next Year-3.13%
Revenue Next 2Y-0.69%
Revenue Next 3Y0.03%
Revenue Next 5Y4.89%
EBIT growth 1Y13.97%
EBIT growth 3Y-22.84%
EBIT growth 5Y-7.72%
EBIT Next Year54.16%
EBIT Next 3Y27.39%
EBIT Next 5Y18.34%
FCF growth 1Y-63.31%
FCF growth 3Y-26.42%
FCF growth 5Y-21.18%
OCF growth 1Y-46.67%
OCF growth 3Y-17.52%
OCF growth 5Y-13.83%