NEWELL BRANDS INC (NWL) Stock Fundamental Analysis
NASDAQ:NWL - Nasdaq - US6512291062 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to NWL. NWL was compared to 67 industry peers in the Household Durables industry. NWL has a bad profitability rating. Also its financial health evaluation is rather negative. 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 63.08% 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 67.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.96%, NWL is in line with its industry, outperforming 44.62% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NWL is significantly below the industry average of 12.07%.
| 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 of 6.82%. This is comparable to the rest of the industry: NWL outperforms 47.69% of 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 66.15% of its industry peers.
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.
Compared to 1 year ago, NWL has about the same amount of shares outstanding.
Compared to 5 years ago, NWL has less shares outstanding
NWL has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.73, we must say that NWL is in the distress zone and has some risk of bankruptcy.
NWL has a worse Altman-Z score (0.73) than 81.54% of its industry peers.
NWL has a debt to FCF ratio of 13.82. This is a negative value and a sign of low solvency as NWL would need 13.82 years to pay back of all of its debts.
The Debt to FCF ratio of NWL (13.82) is comparable to the rest of the 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 86.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | 13.82 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.58
WACC8.49%
2.3 Liquidity
A Current Ratio of 0.99 indicates that NWL may have some problems paying its short term obligations.
The Current ratio of NWL (0.99) is worse than 90.77% of its industry peers.
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 80.00% 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%.
Measured over the past years, NWL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -21.68% on average per year.
Looking at the last year, NWL shows a decrease in Revenue. The Revenue has decreased by -7.59% in the last year.
Measured over the past years, NWL shows a decrease in Revenue. The Revenue has been decreasing by -4.34% on average per year.
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 7.21% on average over the next years.
Based on estimates for the next years, NWL will show a decrease in Revenue. The Revenue will decrease by -0.35% on average per year.
EPS Next Y-15.63%
EPS Next 2Y-1.27%
EPS Next 3Y6.92%
EPS Next 5Y7.21%
Revenue Next Year-5.25%
Revenue Next 2Y-2.67%
Revenue Next 3Y-1.29%
Revenue Next 5Y-0.35%
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 reasonably with a Price/Earnings ratio of 9.64.
Compared to the rest of the industry, the Price/Earnings ratio of NWL is on the same level as its industry peers.
When comparing the Price/Earnings ratio of NWL to the average of the S&P500 Index (28.12), we can say NWL is valued rather cheaply.
The Price/Forward Earnings ratio is 9.26, which indicates a very decent valuation of NWL.
NWL's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 94.77, NWL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.64 | ||
| Fwd PE | 9.26 |
4.2 Price Multiples
NWL's Enterprise Value to EBITDA is on the same level as the industry average.
84.62% 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 | 8.26 | ||
| EV/EBITDA | 9.82 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.27%
EPS Next 3Y6.92%
5. Dividend
5.1 Amount
NWL has a Yearly Dividend Yield of 2.68%. Purely for dividend investing, there may be better candidates out there.
The stock price of NWL dropped by -22.67% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
NWL's Dividend Yield is rather good when compared to the industry average which is at 2.94. NWL pays more dividend than 87.69% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, NWL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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
The earnings of NWL are negative and hence is the payout ratio. NWL will probably not be able to sustain this dividend level.
DP-47.58%
EPS Next 2Y-1.27%
EPS Next 3Y6.92%
NEWELL BRANDS INC
NASDAQ:NWL (2/7/2025, 6:26:06 PM)
After market: 7.15 +0.02 (+0.28%)7.13
-2.56 (-26.42%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners101.22%
Inst Owner Change1.67%
Ins Owners0.35%
Ins Owner Change-0.29%
Market Cap2.97B
Analysts68.24
Price Target11.53 (61.71%)
Short Float %2.96%
Short Ratio2.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
Yearly Dividend0.44
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)5.34%
PT rev (3m)27.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.99%
EPS NY rev (1m)0%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-1.39%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.64 | ||
| Fwd PE | 9.26 | ||
| P/S | 0.38 | ||
| P/FCF | 8.26 | ||
| P/OCF | 4.97 | ||
| P/B | 1.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.82 |
EPS(TTM)0.74
EY10.38%
EPS(NY)0.77
Fwd EY10.8%
FCF(TTM)0.86
FCFY12.1%
OCF(TTM)1.44
OCFY20.13%
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
WACC8.49%
ROIC/WACC0.58
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-1.27%
EPS Next 3Y6.92%
EPS Next 5Y7.21%
Revenue 1Y (TTM)-7.59%
Revenue growth 3Y-4.66%
Revenue growth 5Y-4.34%
Sales Q2Q%-4.93%
Revenue Next Year-5.25%
Revenue Next 2Y-2.67%
Revenue Next 3Y-1.29%
Revenue Next 5Y-0.35%
EBIT growth 1Y33.84%
EBIT growth 3Y-20.27%
EBIT growth 5Y-12.31%
EBIT Next Year60.83%
EBIT Next 3Y24.27%
EBIT Next 5Y16.63%
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%