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 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
In the past year NWL was profitable.
NWL had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: NWL reported negative net income in multiple years.
NWL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NWL's Return On Assets of -1.96% is on the low side compared to the rest of the industry. NWL is outperformed by 62.50% of its industry peers.
The Return On Equity of NWL (-7.85%) is worse than 70.31% of its industry peers.
NWL has a Return On Invested Capital (4.74%) which 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 12.31%.
| 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 has a Operating Margin (6.78%) which is in line with its industry peers.
NWL's Operating Margin has declined in the last couple of years.
The Gross Margin of NWL (34.08%) is better than 68.75% of its industry peers.
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
NWL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, NWL has more shares outstanding
NWL has less shares outstanding than it did 5 years ago.
NWL has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.65, we must say that NWL is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of NWL (0.65) is worse than 79.69% 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 has a Debt to FCF ratio of 19.39. This is comparable to the rest of the industry: NWL outperforms 40.63% 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 has a Debt to Equity ratio of 1.64. This is amonst the worse of the industry: NWL underperforms 85.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 19.39 | ||
| Altman-Z | 0.65 |
ROIC/WACC0.57
WACC8.35%
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 has a worse Current ratio (1.14) than 89.06% of its industry peers.
A Quick Ratio of 0.56 indicates that NWL may have some problems paying its short term obligations.
NWL has a worse Quick ratio (0.56) than 73.44% 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.
Measured over the past years, NWL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.13% on average per year.
NWL shows a decrease in Revenue. In the last year, the revenue decreased by -6.77%.
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 9.00% yearly.
The Revenue is expected to grow by 4.89% on average over the next years.
EPS Next Y2.11%
EPS Next 2Y7.6%
EPS Next 3Y11.77%
EPS Next 5Y9%
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.
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 6.69, the valuation of NWL can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of NWL indicates a somewhat cheap valuation: NWL is cheaper than 67.19% of the companies listed in the same industry.
NWL is valuated cheaply when we compare the Price/Earnings ratio to 27.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.55, the valuation of NWL can be described as very cheap.
Based on the Price/Forward Earnings ratio, NWL is valued a bit cheaper than 79.69% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.85. NWL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.69 | ||
| Fwd PE | 6.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NWL is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, NWL is valued cheaper than 84.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.02 | ||
| EV/EBITDA | 7.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.17
PEG (5Y)N/A
EPS Next 2Y7.6%
EPS Next 3Y11.77%
5. Dividend
5.1 Amount
NWL has a Yearly Dividend Yield of 5.96%, which is a nice return.
In the last 3 months the price of NWL has falen by -57.32%. 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 3.73, NWL pays a better dividend. On top of this NWL pays more dividend than 93.75% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, NWL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.96% |
5.2 History
The dividend of NWL decreases each year by -20.97%.
NWL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-20.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of NWL are negative and hence is the payout ratio. NWL will probably not be able to sustain this dividend level.
DP-54.63%
EPS Next 2Y7.6%
EPS Next 3Y11.77%
4.55
-0.15 (-3.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners97.06%
Inst Owner Change0.08%
Ins Owners0.34%
Ins Owner Change5.71%
Market Cap1.90B
Analysts68.24
Price Target10.23 (124.84%)
Short Float %4.52%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.96% |
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)0%
PT rev (3m)-6.55%
EPS NQ rev (1m)2.68%
EPS NQ rev (3m)-264.26%
EPS NY rev (1m)-5.62%
EPS NY rev (3m)-11.27%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)-4.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.69 | ||
| Fwd PE | 6.55 | ||
| P/S | 0.25 | ||
| P/FCF | 8.02 | ||
| P/OCF | 3.83 | ||
| P/B | 0.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.6 |
EPS(TTM)0.68
EY14.95%
EPS(NY)0.69
Fwd EY15.26%
FCF(TTM)0.57
FCFY12.47%
OCF(TTM)1.19
OCFY26.1%
SpS18.15
BVpS6.59
TBVpS-5.49
PEG (NY)3.17
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 | 0.65 |
F-Score5
WACC8.35%
ROIC/WACC0.57
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 Y2.11%
EPS Next 2Y7.6%
EPS Next 3Y11.77%
EPS Next 5Y9%
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 Year50.68%
EBIT Next 3Y20.59%
EBIT Next 5Y14.47%
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%