NEWELL BRANDS INC (NWL) Stock Fundamental Analysis
NASDAQ:NWL - US6512291062 - Common Stock
5.77 USD
+0.28 (+5.1%)
5.76 USD
-0.01 (-0.17%)
Taking everything into account, NWL scores 3 out of 10 in our fundamental rating. NWL was compared to 63 industry peers in the Household Durables industry. NWL has a bad profitability rating. Also its financial health evaluation is rather negative. NWL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NWL had positive earnings in the past year.
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
NWL's Return On Assets of -2.11% is on the low side compared to the rest of the industry. NWL is outperformed by 68.25% of its industry peers.
With a Return On Equity value of -9.03%, NWL is not doing good in the industry: 73.02% of the companies in the same industry are doing better.
NWL has a Return On Invested Capital (4.52%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for NWL is significantly below the industry average of 10.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.11% | ||
| ROE | -9.03% | ||
| ROIC | 4.52% |
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
NWL has a Operating Margin of 6.75%. This is comparable to the rest of the industry: NWL outperforms 46.03% of its industry peers.
NWL's Operating Margin has declined in the last couple of years.
NWL has a Gross Margin of 34.58%. This is in the better half of the industry: NWL outperforms 69.84% 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 | 6.75% | ||
| PM (TTM) | N/A | ||
| GM | 34.58% |
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.
Compared to 1 year ago, NWL has more shares outstanding
The number of shares outstanding for NWL has been reduced compared to 5 years ago.
The debt/assets ratio for NWL is higher compared to a year ago.
2.2 Solvency
NWL has an Altman-Z score of 0.63. This is a bad value and indicates that NWL is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.63, NWL is doing worse than 79.37% 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.
NWL has a Debt to Equity ratio of 1.68. This is amonst the worse of the industry: NWL underperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.63 |
ROIC/WACC0.51
WACC8.87%
2.3 Liquidity
NWL has a Current Ratio of 1.12. This is a normal value and indicates that NWL is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NWL (1.12) is worse than 85.71% of its industry peers.
NWL has a Quick Ratio of 1.12. 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 worse Quick ratio (0.57) than 63.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for NWL have decreased strongly by -43.30% in the last year.
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 -5.29% in the last 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)-43.3%
EPS 3Y-27.98%
EPS 5Y-17.13%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)-5.29%
Revenue growth 3Y-10.54%
Revenue growth 5Y-4.84%
Sales Q2Q%-4.82%
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 19.20% yearly.
Based on estimates for the next years, NWL will show a small growth in Revenue. The Revenue will grow by 1.42% on average per year.
EPS Next Y1%
EPS Next 2Y4.75%
EPS Next 3Y9.13%
EPS Next 5Y19.2%
Revenue Next Year-3.31%
Revenue Next 2Y-1%
Revenue Next 3Y-0.2%
Revenue Next 5Y1.42%
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
The Price/Earnings ratio is 10.49, which indicates a very decent valuation of NWL.
Based on the Price/Earnings ratio, NWL is valued a bit cheaper than 63.49% of the companies in the same industry.
NWL is valuated cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.73, the valuation of NWL can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWL indicates a rather cheap valuation: NWL is cheaper than 93.65% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, NWL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.49 | ||
| Fwd PE | 7.73 |
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 | 8.96 |
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)10.49
PEG (5Y)N/A
EPS Next 2Y4.75%
EPS Next 3Y9.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.10%, NWL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.26, NWL pays a better dividend. On top of this NWL pays more dividend than 90.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, NWL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.1% |
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-48.56%
EPS Next 2Y4.75%
EPS Next 3Y9.13%
5.77
+0.28 (+5.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners100.95%
Inst Owner Change2.98%
Ins Owners0.56%
Ins Owner Change7.23%
Market Cap2.42B
Analysts70.67
Price Target7.06 (22.36%)
Short Float %7.8%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.1% |
Yearly Dividend0.28
Dividend Growth(5Y)-20.97%
DP-48.56%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)41.94%
Min EPS beat(2)-0.39%
Max EPS beat(2)84.26%
EPS beat(4)3
Avg EPS beat(4)23.75%
Min EPS beat(4)-0.39%
Max EPS beat(4)84.26%
EPS beat(8)7
Avg EPS beat(8)44.69%
EPS beat(12)10
Avg EPS beat(12)34.66%
EPS beat(16)14
Avg EPS beat(16)31.47%
Revenue beat(2)1
Avg Revenue beat(2)-0.62%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)0.38%
Revenue beat(4)1
Avg Revenue beat(4)-1.11%
Min Revenue beat(4)-1.63%
Max Revenue beat(4)0.38%
Revenue beat(8)2
Avg Revenue beat(8)-0.88%
Revenue beat(12)4
Avg Revenue beat(12)-0.42%
Revenue beat(16)6
Avg Revenue beat(16)0.1%
PT rev (1m)-4.88%
PT rev (3m)-2.19%
EPS NQ rev (1m)-27.19%
EPS NQ rev (3m)-29.06%
EPS NY rev (1m)-0.89%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)-0.99%
Revenue NQ rev (3m)-1.55%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.49 | ||
| Fwd PE | 7.73 | ||
| P/S | 0.33 | ||
| P/FCF | N/A | ||
| P/OCF | 15.02 | ||
| P/B | 0.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.96 |
EPS(TTM)0.55
EY9.53%
EPS(NY)0.75
Fwd EY12.93%
FCF(TTM)-0.25
FCFYN/A
OCF(TTM)0.38
OCFY6.66%
SpS17.65
BVpS6.42
TBVpS-5.81
PEG (NY)10.49
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.11% | ||
| ROE | -9.03% | ||
| ROCE | 5.72% | ||
| ROIC | 4.52% | ||
| ROICexc | 4.63% | ||
| ROICexgc | 11.66% | ||
| OM | 6.75% | ||
| PM (TTM) | N/A | ||
| GM | 34.58% | ||
| 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 Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.58 | ||
| Cap/Depr | 84.66% | ||
| Cap/Sales | 3.58% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 19.83% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.63 |
F-Score5
WACC8.87%
ROIC/WACC0.51
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)-43.3%
EPS 3Y-27.98%
EPS 5Y-17.13%
EPS Q2Q%-33.33%
EPS Next Y1%
EPS Next 2Y4.75%
EPS Next 3Y9.13%
EPS Next 5Y19.2%
Revenue 1Y (TTM)-5.29%
Revenue growth 3Y-10.54%
Revenue growth 5Y-4.84%
Sales Q2Q%-4.82%
Revenue Next Year-3.31%
Revenue Next 2Y-1%
Revenue Next 3Y-0.2%
Revenue Next 5Y1.42%
EBIT growth 1Y-2.16%
EBIT growth 3Y-22.84%
EBIT growth 5Y-7.72%
EBIT Next Year51.32%
EBIT Next 3Y18.48%
EBIT Next 5Y18.09%
FCF growth 1Y-173.76%
FCF growth 3Y-26.42%
FCF growth 5Y-21.18%
OCF growth 1Y-64.62%
OCF growth 3Y-17.52%
OCF growth 5Y-13.83%