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. 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.
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.
In multiple years NWL reported negative net income over the last 5 years.
NWL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.96%, NWL is doing worse than 64.06% of the companies in the same industry.
Looking at the Return On Equity, with a value of -7.85%, NWL is doing worse than 71.88% of the companies in the same industry.
NWL has a Return On Invested Capital (4.74%) which is comparable to the rest of the industry.
NWL had an Average Return On Invested Capital over the past 3 years of 4.99%. This is significantly below the industry average of 11.96%.
| 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
Looking at the Operating Margin, with a value of 6.78%, NWL is in line with its industry, outperforming 48.44% of the companies in the same industry.
In the last couple of years the Operating Margin of NWL has declined.
With a decent Gross Margin value of 34.08%, NWL is doing good in the industry, outperforming 68.75% of the companies in the same industry.
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.
NWL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, NWL has less shares outstanding
The debt/assets ratio for NWL is higher compared to a year ago.
2.2 Solvency
NWL has an Altman-Z score of 0.69. This is a bad value and indicates that NWL is not financially healthy and even has some risk of bankruptcy.
NWL has a worse Altman-Z score (0.69) than 78.13% of its industry peers.
The Debt to FCF ratio of NWL is 19.39, which is on the high side as it means it would take NWL, 19.39 years of fcf income to pay off all of its debts.
NWL has a Debt to FCF ratio of 19.39. This is in the lower half of the industry: NWL underperforms 60.94% 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 worse Debt to Equity ratio (1.64) than 85.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 19.39 | ||
| Altman-Z | 0.69 |
ROIC/WACC0.52
WACC9.04%
2.3 Liquidity
A Current Ratio of 1.14 indicates that NWL should not have too much problems paying its short term obligations.
The Current ratio of NWL (1.14) is worse than 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's Quick ratio of 0.56 is on the low side compared to the rest of the industry. NWL is outperformed by 65.63% 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 -21.18% in the last year.
The earnings per share for NWL have been decreasing by -17.13% on average. This is quite bad
NWL shows a decrease in Revenue. In the last year, the revenue decreased by -6.77%.
The Revenue has been decreasing by -4.84% on average over the past years.
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.
NWL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.89% yearly.
EPS Next Y2.11%
EPS Next 2Y7.6%
EPS Next 3Y11.77%
EPS Next 5Y9%
Revenue Next Year-3.26%
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
Based on the Price/Earnings ratio of 9.04, the valuation of NWL can be described as reasonable.
The rest of the industry has a similar Price/Earnings ratio as NWL.
Compared to an average S&P500 Price/Earnings ratio of 24.95, NWL is valued rather cheaply.
A Price/Forward Earnings ratio of 7.70 indicates a rather cheap valuation of NWL.
Based on the Price/Forward Earnings ratio, NWL is valued a bit cheaper than 73.44% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.99. NWL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 7.7 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NWL.
NWL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NWL is cheaper than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.68 | ||
| EV/EBITDA | 8.28 |
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)4.29
PEG (5Y)N/A
EPS Next 2Y7.6%
EPS Next 3Y11.77%
5. Dividend
5.1 Amount
NWL has a Yearly Dividend Yield of 5.32%, which is a nice return.
NWL's Dividend Yield is rather good when compared to the industry average which is at 3.58. NWL pays more dividend than 92.19% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, NWL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
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%
6.06
+0.05 (+0.83%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners97.06%
Inst Owner Change0%
Ins Owners0.34%
Ins Owner Change6.03%
Market Cap2.53B
Analysts68.24
Price Target7.22 (19.14%)
Short Float %6%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.32% |
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)2.68%
EPS NQ rev (3m)-329.93%
EPS NY rev (1m)-5.62%
EPS NY rev (3m)-9.84%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)-3.29%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-2.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 7.7 | ||
| P/S | 0.33 | ||
| P/FCF | 10.68 | ||
| P/OCF | 5.1 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.28 |
EPS(TTM)0.67
EY11.06%
EPS(NY)0.79
Fwd EY12.99%
FCF(TTM)0.57
FCFY9.36%
OCF(TTM)1.19
OCFY19.6%
SpS18.15
BVpS6.59
TBVpS-5.49
PEG (NY)4.29
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 | 0.69 |
F-Score5
WACC9.04%
ROIC/WACC0.52
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 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%-5.26%
Revenue Next Year-3.26%
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%