NEWELL BRANDS INC (NWL) Stock Fundamental Analysis
NASDAQ:NWL - Nasdaq - US6512291062 - Common Stock - Currency: USD
Taking everything into account, NWL scores 3 out of 10 in our fundamental rating. NWL was compared to 64 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
In the past year NWL was profitable.
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
NWL has a worse Return On Assets (-2.16%) than 68.75% of its industry peers.
NWL has a Return On Equity of -9.07%. This is in the lower half of the industry: NWL underperforms 71.88% of its industry peers.
NWL has a Return On Invested Capital of 4.64%. This is comparable to the rest of the industry: NWL outperforms 43.75% of its industry peers.
NWL had an Average Return On Invested Capital over the past 3 years of 4.99%. This is significantly below the industry average of 10.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.16% | ||
| ROE | -9.07% | ||
| ROIC | 4.64% |
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
Looking at the Operating Margin, with a value of 6.74%, NWL is in line with its industry, outperforming 46.88% of the companies in the same industry.
NWL's Operating Margin has declined in the last couple of years.
The Gross Margin of NWL (34.40%) is better than 71.88% 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 | 6.74% | ||
| PM (TTM) | N/A | ||
| GM | 34.4% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NWL is destroying value.
The number of shares outstanding for NWL has been increased compared to 1 year ago.
Compared to 5 years ago, NWL has less shares outstanding
Compared to 1 year ago, NWL has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.64, we must say that NWL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.64, NWL is doing worse than 79.69% of the companies in the same industry.
A Debt/Equity ratio of 1.68 is on the high side and indicates that NWL has dependencies on debt financing.
The Debt to Equity ratio of NWL (1.68) is worse than 89.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.64 |
ROIC/WACC0.53
WACC8.77%
2.3 Liquidity
A Current Ratio of 1.13 indicates that NWL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.13, NWL is doing worse than 87.50% of the companies in the same industry.
A Quick Ratio of 0.54 indicates that NWL may have some problems paying its short term obligations.
The Quick ratio of NWL (0.54) is worse than 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
NWL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.18%.
The earnings per share for NWL have been decreasing by -17.13% on average. This is quite bad
The Revenue has decreased by -6.09% in the past year.
Measured over the past years, NWL shows a decrease in Revenue. The Revenue has been decreasing by -4.84% on average per year.
EPS 1Y (TTM)-21.18%
EPS 3Y-27.98%
EPS 5Y-17.13%
EPS Q2Q%-309.22%
Revenue 1Y (TTM)-6.09%
Revenue growth 3Y-10.54%
Revenue growth 5Y-4.84%
Sales Q2Q%-5.26%
3.2 Future
Based on estimates for the next years, NWL will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.92% on average per year.
The Revenue is expected to grow by 1.60% on average over the next years.
EPS Next Y1.9%
EPS Next 2Y4.64%
EPS Next 3Y7.08%
EPS Next 5Y19.92%
Revenue Next Year-3.23%
Revenue Next 2Y-0.89%
Revenue Next 3Y-0.11%
Revenue Next 5Y1.6%
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
With a Price/Earnings ratio of 8.12, the valuation of NWL can be described as very reasonable.
65.63% of the companies in the same industry are more expensive than NWL, based on the Price/Earnings ratio.
NWL is valuated cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.31, the valuation of NWL can be described as very cheap.
NWL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NWL is cheaper than 75.00% of the companies in the same industry.
NWL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.12 | ||
| Fwd PE | 7.31 |
4.2 Price Multiples
NWL's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NWL does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)4.26
PEG (5Y)N/A
EPS Next 2Y4.64%
EPS Next 3Y7.08%
5. Dividend
5.1 Amount
NWL has a Yearly Dividend Yield of 5.16%, which is a nice return.
Compared to an average industry Dividend Yield of 3.54, NWL pays a better dividend. On top of this NWL pays more dividend than 92.19% of the companies listed in the same industry.
NWL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.16% |
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
The earnings of NWL are negative and hence is the payout ratio. NWL will probably not be able to sustain this dividend level.
DP-48.36%
EPS Next 2Y4.64%
EPS Next 3Y7.08%
5.44
+0.02 (+0.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners101.03%
Inst Owner Change3.86%
Ins Owners0.46%
Ins Owner Change8.05%
Market Cap2.27B
Analysts68.24
Price Target7.22 (32.72%)
Short Float %6.36%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.16% |
Yearly Dividend0.28
Dividend Growth(5Y)-20.97%
DP-48.36%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)47.49%
Min EPS beat(2)10.71%
Max EPS beat(2)84.26%
EPS beat(4)4
Avg EPS beat(4)40.59%
Min EPS beat(4)0.42%
Max EPS beat(4)84.26%
EPS beat(8)8
Avg EPS beat(8)54.17%
EPS beat(12)11
Avg EPS beat(12)36.37%
EPS beat(16)15
Avg EPS beat(16)32.93%
Revenue beat(2)1
Avg Revenue beat(2)-0.62%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)0.38%
Revenue beat(4)1
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-1.62%
Max Revenue beat(4)0.38%
Revenue beat(8)3
Avg Revenue beat(8)-0.51%
Revenue beat(12)4
Avg Revenue beat(12)-0.38%
Revenue beat(16)7
Avg Revenue beat(16)0.52%
PT rev (1m)0%
PT rev (3m)-29.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.21%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.12 | ||
| Fwd PE | 7.31 | ||
| P/S | 0.3 | ||
| P/FCF | N/A | ||
| P/OCF | 9.05 | ||
| P/B | 0.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.51 |
EPS(TTM)0.67
EY12.32%
EPS(NY)0.74
Fwd EY13.69%
FCF(TTM)-0.02
FCFYN/A
OCF(TTM)0.6
OCFY11.05%
SpS17.94
BVpS6.44
TBVpS-5.69
PEG (NY)4.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.16% | ||
| ROE | -9.07% | ||
| ROCE | 5.88% | ||
| ROIC | 4.64% | ||
| ROICexc | 4.77% | ||
| ROICexgc | 12.11% | ||
| OM | 6.74% | ||
| PM (TTM) | N/A | ||
| GM | 34.4% | ||
| FCFM | N/A |
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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.53 | ||
| Cap/Depr | 82.75% | ||
| Cap/Sales | 3.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 30.68% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.64 |
F-Score5
WACC8.77%
ROIC/WACC0.53
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)-21.18%
EPS 3Y-27.98%
EPS 5Y-17.13%
EPS Q2Q%-309.22%
EPS Next Y1.9%
EPS Next 2Y4.64%
EPS Next 3Y7.08%
EPS Next 5Y19.92%
Revenue 1Y (TTM)-6.09%
Revenue growth 3Y-10.54%
Revenue growth 5Y-4.84%
Sales Q2Q%-5.26%
Revenue Next Year-3.23%
Revenue Next 2Y-0.89%
Revenue Next 3Y-0.11%
Revenue Next 5Y1.6%
EBIT growth 1Y2.85%
EBIT growth 3Y-22.84%
EBIT growth 5Y-7.72%
EBIT Next Year50.74%
EBIT Next 3Y18.1%
EBIT Next 5Y18.37%
FCF growth 1Y98.01%
FCF growth 3Y-26.42%
FCF growth 5Y-21.18%
OCF growth 1Y425.97%
OCF growth 3Y-17.52%
OCF growth 5Y-13.83%