NEWELL BRANDS INC (NWL)

US6512291062 - Common Stock

7.25  -0.27 (-3.59%)

After market: 7.25 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to NWL. NWL was compared to 68 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 it does not seem to be growing.



2

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

With a Return On Assets value of -3.19%, NWL is not doing good in the industry: 76.12% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -12.47%, NWL is doing worse than 80.60% of the companies in the same industry.
NWL's Return On Invested Capital of 3.47% is on the low side compared to the rest of the industry. NWL is outperformed by 65.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NWL is below the industry average of 9.95%.
Industry RankSector Rank
ROA -3.19%
ROE -12.47%
ROIC 3.47%
ROA(3y)0.88%
ROA(5y)-0.38%
ROE(3y)2.7%
ROE(5y)-1.93%
ROIC(3y)5.82%
ROIC(5y)5.72%

1.3 Margins

NWL has a Operating Margin of 5.00%. This is comparable to the rest of the industry: NWL outperforms 43.28% of its industry peers.
In the last couple of years the Operating Margin of NWL has declined.
The Gross Margin of NWL (29.53%) is better than 62.69% of its industry peers.
NWL's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 5%
PM (TTM) N/A
GM 29.53%
OM growth 3Y-23.01%
OM growth 5Y-12.77%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.1%
GM growth 5Y-3.54%

2

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.
The number of shares outstanding for NWL remains at a similar level compared to 1 year ago.
The number of shares outstanding for NWL has been reduced compared to 5 years ago.
Compared to 1 year ago, NWL has an improved debt to assets ratio.

2.2 Solvency

NWL has a debt to FCF ratio of 7.59. This is a slightly negative value and a sign of low solvency as NWL would need 7.59 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.59, NWL is doing worse than 67.16% of the companies in the same industry.
NWL has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.47, NWL is not doing good in the industry: 86.57% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.47
Debt/FCF 7.59
Altman-Z N/A
ROIC/WACC0.41
WACC8.37%

2.3 Liquidity

NWL has a Current Ratio of 1.16. 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 (1.16) than 92.54% of its industry peers.
NWL has a Quick Ratio of 1.16. This is a bad value and indicates that NWL is not financially healthy enough and could expect problems in meeting its short term obligations.
NWL has a Quick ratio of 0.63. This is amonst the worse of the industry: NWL underperforms 82.09% of its industry peers.
Industry RankSector Rank
Current Ratio 1.16
Quick Ratio 0.63

3

3. Growth

3.1 Past

The earnings per share for NWL have decreased strongly by -51.23% 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 -21.68% on average per year.
Looking at the last year, NWL shows a very negative growth in Revenue. The Revenue has decreased by -14.02% in the last year.
NWL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.34% yearly.
EPS 1Y (TTM)-51.23%
EPS 3Y-23.86%
EPS 5Y-21.68%
EPS growth Q2Q37.5%
Revenue 1Y (TTM)-14.02%
Revenue growth 3Y-4.66%
Revenue growth 5Y-4.34%
Revenue growth Q2Q-9.15%

3.2 Future

The Earnings Per Share is expected to grow by 15.16% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.39% on average over the next years.
EPS Next Y0.11%
EPS Next 2Y10.16%
EPS Next 3Y16.88%
EPS Next 5Y15.16%
Revenue Next Year-4.14%
Revenue Next 2Y-1.06%
Revenue Next 3Y0.39%
Revenue Next 5Y3.39%

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.

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 9.18, the valuation of NWL can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of NWL indicates a somewhat cheap valuation: NWL is cheaper than 79.10% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.35, NWL is valued rather cheaply.
A Price/Forward Earnings ratio of 9.17 indicates a reasonable valuation of NWL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWL indicates a rather cheap valuation: NWL is cheaper than 83.58% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.63. NWL is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.18
Fwd PE 9.17

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as NWL.
86.57% of the companies in the same industry are more expensive than NWL, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 4.65
EV/EBITDA 10.22

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as NWL's earnings are expected to grow with 16.88% in the coming years.
PEG (NY)87.35
PEG (5Y)N/A
EPS Next 2Y10.16%
EPS Next 3Y16.88%

5

5. Dividend

5.1 Amount

NWL has a Yearly Dividend Yield of 3.72%. 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 3.19. NWL pays more dividend than 89.55% of the companies in the same industry.
NWL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
Industry RankSector Rank
Dividend Yield 3.72%

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.
NWL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-14.23%
Div Incr Years0
Div Non Decr Years12

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-47.42%
EPS Next 2Y10.16%
EPS Next 3Y16.88%

NEWELL BRANDS INC

NASDAQ:NWL (2/23/2024, 7:03:01 PM)

After market: 7.25 0 (0%)

7.25

-0.27 (-3.59%)

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 Cap3.00B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.72%
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 9.18
Fwd PE 9.17
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)87.35
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3.19%
ROE -12.47%
ROCE
ROIC
ROICexc
ROICexgc
OM 5%
PM (TTM) N/A
GM 29.53%
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 Turnover0.67
Health
Industry RankSector Rank
Debt/Equity 1.47
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.16
Quick Ratio 0.63
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)
Growth
EPS 1Y (TTM)-51.23%
EPS 3Y-23.86%
EPS 5Y
EPS growth Q2Q
EPS Next Y0.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-14.02%
Revenue growth 3Y-4.66%
Revenue growth 5Y
Revenue growth 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