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. NWL has a bad profitability rating. Also its financial health evaluation is rather negative. NWL has a valuation in line with the averages, but it does not seem to be growing.
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 has a Return On Assets of -1.96%. This is in the lower half of the industry: NWL underperforms 64.06% of its industry peers.
NWL's Return On Equity of -7.85% is on the low side compared to the rest of the industry. NWL is outperformed by 71.88% of its industry peers.
NWL's Return On Invested Capital of 4.74% is in line compared to the rest of the industry. NWL outperforms 43.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NWL is significantly below the industry average of 11.93%.
| 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
The Operating Margin of NWL (6.78%) is comparable to the rest of the industry.
NWL's Operating Margin has declined in the last couple of years.
NWL's Gross Margin of 34.08% is fine compared to the rest of the industry. NWL outperforms 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NWL is destroying value.
NWL has more shares outstanding than it did 1 year ago.
NWL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NWL has a worse debt to assets ratio.
2.2 Solvency
NWL has an Altman-Z score of 0.68. This is a bad value and indicates that NWL is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.68, NWL is not doing good in the industry: 78.13% of the companies in the same industry are doing better.
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.
With a Debt to FCF ratio value of 19.39, NWL is not doing good in the industry: 60.94% of the companies in the same industry are doing better.
NWL has a Debt/Equity ratio of 1.64. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.64, NWL is not doing good in the industry: 85.94% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 19.39 | ||
| Altman-Z | 0.68 |
ROIC/WACC0.54
WACC8.79%
2.3 Liquidity
A Current Ratio of 1.14 indicates that NWL should not have too much problems paying its short term obligations.
NWL has a Current ratio of 1.14. This is amonst the worse of the industry: NWL underperforms 85.94% 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 Quick ratio of 0.56. This is in the lower half of the industry: NWL underperforms 67.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.56 |
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%.
NWL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.13% yearly.
Looking at the last year, NWL shows a decrease in Revenue. The Revenue has decreased by -6.77% in the last year.
NWL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.84% yearly.
EPS 1Y (TTM)-21.18%
EPS 3Y-27.98%
EPS 5Y-17.13%
EPS Q2Q%N/A
Revenue 1Y (TTM)-6.77%
Revenue growth 3Y-10.54%
Revenue growth 5Y-4.84%
Sales Q2Q%-5.26%
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.
Based on estimates for the next years, NWL will show a small growth in Revenue. The Revenue will grow by 4.89% on average per year.
EPS Next Y1.9%
EPS Next 2Y4.64%
EPS Next 3Y7.08%
EPS Next 5Y9%
Revenue Next Year-3.23%
Revenue Next 2Y-0.89%
Revenue Next 3Y-0.11%
Revenue Next 5Y4.89%
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
A Price/Earnings ratio of 8.12 indicates a reasonable valuation of NWL.
Compared to the rest of the industry, the Price/Earnings ratio of NWL indicates a somewhat cheap valuation: NWL is cheaper than 60.94% of the companies listed in the same industry.
NWL is valuated cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
NWL is valuated cheaply with a Price/Forward Earnings ratio of 7.31.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWL indicates a somewhat cheap valuation: NWL is cheaper than 68.75% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NWL to the average of the S&P500 Index (21.94), we can say NWL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.12 | ||
| Fwd PE | 7.31 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NWL.
Based on the Price/Free Cash Flow ratio, NWL is valued a bit cheaper than 79.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.59 | ||
| EV/EBITDA | 8.1 |
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 4.69%, which is a nice return.
Compared to an average industry Dividend Yield of 3.47, NWL pays a better dividend. On top of this NWL pays more dividend than 90.63% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, NWL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
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 2Y4.64%
EPS Next 3Y7.08%
5.44
-0.27 (-4.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners97.06%
Inst Owner Change3.78%
Ins Owners0.34%
Ins Owner Change7.45%
Market Cap2.27B
Analysts68.24
Price Target7.22 (32.72%)
Short Float %6%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.69% |
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)-29.38%
PT rev (3m)-37.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.42%
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-6.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-2.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.12 | ||
| Fwd PE | 7.31 | ||
| P/S | 0.3 | ||
| P/FCF | 9.59 | ||
| P/OCF | 4.58 | ||
| P/B | 0.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.1 |
EPS(TTM)0.67
EY12.32%
EPS(NY)0.74
Fwd EY13.69%
FCF(TTM)0.57
FCFY10.43%
OCF(TTM)1.19
OCFY21.83%
SpS18.15
BVpS6.59
TBVpS-5.49
PEG (NY)4.26
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 | 0.68 |
F-Score5
WACC8.79%
ROIC/WACC0.54
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%N/A
EPS Next Y1.9%
EPS Next 2Y4.64%
EPS Next 3Y7.08%
EPS Next 5Y9%
Revenue 1Y (TTM)-6.77%
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 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%