NEWELL BRANDS INC (NWL)
US6512291062 - Common Stock
We assign a fundamental rating of 3 out of 10 to NWL. NWL was compared to 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 on the other hand it scores bad on growth.
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.
Of the past 5 years NWL 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.11%, NWL is doing worse than 64.06% of the companies in the same industry.
NWL's Return On Equity of -8.67% is on the low side compared to the rest of the industry. NWL is outperformed by 68.75% of its industry peers.
The Return On Invested Capital of NWL (4.96%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for NWL is significantly below the industry average of 12.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.11% | ||
| ROE | -8.67% | ||
| ROIC | 4.96% |
ROA(3y)0.88%
ROA(5y)-0.38%
ROE(3y)2.7%
ROE(5y)-1.93%
ROIC(3y)6.11%
ROIC(5y)5.89%
1.3 Margins
NWL has a Operating Margin (6.82%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of NWL has declined.
Looking at the Gross Margin, with a value of 33.31%, NWL is in the better half of the industry, outperforming 65.63% of the companies in the same industry.
In the last couple of years the Gross Margin of NWL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.82% | ||
| PM (TTM) | N/A | ||
| GM | 33.31% |
OM growth 3Y-16.38%
OM growth 5Y-8.33%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.95%
GM growth 5Y-2.85%
2. Health
2.1 Basic Checks
NWL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NWL has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, NWL has less shares outstanding
The debt/assets ratio for NWL has been reduced compared to a year ago.
2.2 Solvency
NWL has an Altman-Z score of 0.73. This is a bad value and indicates that NWL is not financially healthy and even has some risk of bankruptcy.
NWL's Altman-Z score of 0.73 is on the low side compared to the rest of the industry. NWL is outperformed by 84.38% of its industry peers.
The Debt to FCF ratio of NWL is 13.82, which is on the high side as it means it would take NWL, 13.82 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.82, NWL is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 1.43 is on the high side and indicates that NWL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.43, NWL is doing worse than 85.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 13.82 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.59
WACC8.48%
2.3 Liquidity
NWL has a Current Ratio of 0.99. This is a bad value and indicates that NWL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.99, NWL is not doing good in the industry: 92.19% of the companies in the same industry are doing better.
NWL has a Quick Ratio of 0.99. This is a bad value and indicates that NWL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of NWL (0.50) is worse than 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.37% over the past year.
The earnings per share for NWL have been decreasing by -21.68% on average. This is quite bad
The Revenue has decreased by -7.59% in the past year.
The Revenue has been decreasing by -4.34% on average over the past years.
EPS 1Y (TTM)1.37%
EPS 3Y-23.86%
EPS 5Y-21.68%
EPS Q2Q%-58.97%
Revenue 1Y (TTM)-7.59%
Revenue growth 3Y-4.66%
Revenue growth 5Y-4.34%
Sales Q2Q%-4.93%
3.2 Future
The Earnings Per Share is expected to grow by 8.13% on average over the next years. This is quite good.
NWL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.23% yearly.
EPS Next Y-15.63%
EPS Next 2Y-0.47%
EPS Next 3Y7.09%
EPS Next 5Y8.13%
Revenue Next Year-5.24%
Revenue Next 2Y-2.54%
Revenue Next 3Y-1.21%
Revenue Next 5Y-0.23%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.53, NWL is valued correctly.
NWL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.17. NWL is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.79 indicates a correct valuation of NWL.
NWL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.59. NWL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.53 | ||
| Fwd PE | 12.79 |
4.2 Price Multiples
NWL's Enterprise Value to EBITDA ratio is in line with the industry average.
82.81% of the companies in the same industry are more expensive than NWL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.6 | ||
| EV/EBITDA | 9.95 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.47%
EPS Next 3Y7.09%
5. Dividend
5.1 Amount
NWL has a Yearly Dividend Yield of 2.75%.
Compared to an average industry Dividend Yield of 2.94, NWL pays a better dividend. On top of this NWL pays more dividend than 87.50% of the companies listed in the same industry.
NWL's Dividend Yield is comparable with the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
5.2 History
The dividend of NWL decreases each year by -14.23%.
NWL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-14.23%
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-47.58%
EPS Next 2Y-0.47%
EPS Next 3Y7.09%
NEWELL BRANDS INC
NASDAQ:NWL (1/2/2025, 12:13:53 PM)
10.01
+0.05 (+0.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners101.22%
Inst Owner Change-4.43%
Ins Owners0.35%
Ins Owner Change2.41%
Market Cap4.16B
Analysts67.06
Price Target10.94 (9.29%)
Short Float %3.02%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
Dividend Growth(5Y)-14.23%
DP-47.58%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)33.7%
Min EPS beat(2)0.42%
Max EPS beat(2)66.98%
EPS beat(4)4
Avg EPS beat(4)48.63%
Min EPS beat(4)0.42%
Max EPS beat(4)100%
EPS beat(8)7
Avg EPS beat(8)38.57%
EPS beat(12)11
Avg EPS beat(12)33.45%
EPS beat(16)15
Avg EPS beat(16)35.56%
Revenue beat(2)0
Avg Revenue beat(2)-1.58%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-1.57%
Revenue beat(4)1
Avg Revenue beat(4)0.08%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)3.96%
Revenue beat(8)3
Avg Revenue beat(8)-0.17%
Revenue beat(12)5
Avg Revenue beat(12)0.43%
Revenue beat(16)8
Avg Revenue beat(16)1.28%
PT rev (1m)14.12%
PT rev (3m)18.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.34%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)2.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.04%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.53 | ||
| Fwd PE | 12.79 | ||
| P/S | 0.54 | ||
| P/FCF | 11.6 | ||
| P/OCF | 6.98 | ||
| P/B | 1.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.95 |
EPS(TTM)0.74
EY7.39%
EPS(NY)0.78
Fwd EY7.82%
FCF(TTM)0.86
FCFY8.62%
OCF(TTM)1.44
OCFY14.34%
SpS18.53
BVpS6.88
TBVpS-5.69
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.11% | ||
| ROE | -8.67% | ||
| ROCE | 6.28% | ||
| ROIC | 4.96% | ||
| ROICexc | 5.28% | ||
| ROICexgc | 15.69% | ||
| OM | 6.82% | ||
| PM (TTM) | N/A | ||
| GM | 33.31% | ||
| FCFM | 4.66% |
ROA(3y)0.88%
ROA(5y)-0.38%
ROE(3y)2.7%
ROE(5y)-1.93%
ROIC(3y)6.11%
ROIC(5y)5.89%
ROICexc(3y)6.33%
ROICexc(5y)6.17%
ROICexgc(3y)17.12%
ROICexgc(5y)18.28%
ROCE(3y)7.73%
ROCE(5y)7.46%
ROICexcg growth 3Y-23.51%
ROICexcg growth 5Y-9.76%
ROICexc growth 3Y-16.95%
ROICexc growth 5Y-4.18%
OM growth 3Y-16.38%
OM growth 5Y-8.33%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.95%
GM growth 5Y-2.85%
F-Score5
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 13.82 | ||
| Debt/EBITDA | 4.73 | ||
| Cap/Depr | 70.21% | ||
| Cap/Sales | 3.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.02% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 0.73 |
F-Score5
WACC8.48%
ROIC/WACC0.59
Cap/Depr(3y)93.12%
Cap/Depr(5y)82.26%
Cap/Sales(3y)3.17%
Cap/Sales(5y)3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.37%
EPS 3Y-23.86%
EPS 5Y-21.68%
EPS Q2Q%-58.97%
EPS Next Y-15.63%
EPS Next 2Y-0.47%
EPS Next 3Y7.09%
EPS Next 5Y8.13%
Revenue 1Y (TTM)-7.59%
Revenue growth 3Y-4.66%
Revenue growth 5Y-4.34%
Sales Q2Q%-4.93%
Revenue Next Year-5.24%
Revenue Next 2Y-2.54%
Revenue Next 3Y-1.21%
Revenue Next 5Y-0.23%
EBIT growth 1Y33.84%
EBIT growth 3Y-20.27%
EBIT growth 5Y-12.31%
EBIT Next Year60.84%
EBIT Next 3Y24.08%
EBIT Next 5Y17.11%
FCF growth 1Y171.51%
FCF growth 3Y-18.03%
FCF growth 5Y16.92%
OCF growth 1Y445.09%
OCF growth 3Y-13.4%
OCF growth 5Y6.46%