NEWELL BRANDS INC (NWL)
US6512291062 - Common Stock
NWL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 64 industry peers in the Household Durables industry. Both the profitability and financial health of NWL have multiple concerns. 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.
In the past year NWL had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: NWL reported negative net income in multiple years.
Of the past 5 years NWL 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NWL (-2.11%) is worse than 72.58% of its industry peers.
With a Return On Equity value of -8.67%, NWL is not doing good in the industry: 75.81% of the companies in the same industry are doing better.
NWL has a Return On Invested Capital (4.96%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for NWL is below the industry average of 10.82%.
| 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 in line with its industry peers.
In the last couple of years the Operating Margin of NWL has declined.
NWL has a Gross Margin of 33.31%. This is in the better half of the industry: NWL outperforms 67.74% of its industry peers.
NWL's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NWL is destroying value.
NWL has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for NWL has been reduced compared to 5 years ago.
The debt/assets ratio for NWL has been reduced compared to a year ago.
2.2 Solvency
NWL has an Altman-Z score of 0.71. 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 88.71% 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 46.77% of the companies in the same industry.
NWL has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.43, NWL is doing worse than 82.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 13.82 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.56
WACC8.82%
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.
The Current ratio of NWL (0.99) is worse than 91.94% of its industry peers.
A Quick Ratio of 0.50 indicates that NWL may have some problems paying its short term obligations.
NWL's Quick ratio of 0.50 is on the low side compared to the rest of the industry. NWL is outperformed by 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
NWL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.37%.
The earnings per share for NWL have been decreasing by -21.68% on average. This is quite bad
NWL shows a decrease in Revenue. In the last year, the revenue decreased by -7.59%.
NWL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.34% yearly.
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
NWL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.96% yearly.
Based on estimates for the next years, NWL will show a small growth in Revenue. The Revenue will grow by 0.02% on average per year.
EPS Next Y-15.47%
EPS Next 2Y-0.47%
EPS Next 3Y6.73%
EPS Next 5Y6.96%
Revenue Next Year-5.23%
Revenue Next 2Y-2.48%
Revenue Next 3Y-1.16%
Revenue Next 5Y0.02%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
NWL is valuated correctly with a Price/Earnings ratio of 12.32.
NWL's Price/Earnings is on the same level as the industry average.
NWL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.20.
NWL is valuated reasonably with a Price/Forward Earnings ratio of 11.65.
NWL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NWL is cheaper than 62.90% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.00. NWL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.32 | ||
| Fwd PE | 11.65 |
4.2 Price Multiples
NWL's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NWL indicates a rather cheap valuation: NWL is cheaper than 83.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.57 | ||
| EV/EBITDA | 9.46 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.47%
EPS Next 3Y6.73%
5. Dividend
5.1 Amount
NWL has a Yearly Dividend Yield of 3.13%. Purely for dividend investing, there may be better candidates out there.
NWL's Dividend Yield is rather good when compared to the industry average which is at 2.47. NWL pays more dividend than 90.32% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, NWL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
5.2 History
The dividend of NWL decreases each year by -14.23%.
NWL has been paying a dividend for at least 10 years, so it has 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 3Y6.73%
NEWELL BRANDS INC
NASDAQ:NWL (11/22/2024, 8:00:02 PM)
After market: 9.2 +0.08 (+0.88%)9.12
+0.18 (+2.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.79B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.13% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.32 | ||
| Fwd PE | 11.65 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.11% | ||
| ROE | -8.67% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.82% | ||
| PM (TTM) | N/A | ||
| GM | 33.31% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)1.37%
EPS 3Y-23.86%
EPS 5Y
EPS Q2Q%
EPS Next Y-15.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.59%
Revenue growth 3Y-4.66%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y