NEWELL BRANDS INC (NWL) Stock Fundamental Analysis
USA - NASDAQ:NWL - US6512291062 - Common Stock
5.86 USD
+0.02 (+0.34%)
5.88 USD
+0.02 (+0.34%)
We assign a fundamental rating of 3 out of 10 to NWL. NWL was compared to 63 industry peers in the Household Durables industry. NWL may be in some trouble as it scores bad on both profitability and health. 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
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.
Of the past 5 years NWL 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NWL (-2.11%) is worse than 68.25% of its industry peers.
The Return On Equity of NWL (-9.03%) is worse than 73.02% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.52%, NWL is in line with its industry, outperforming 41.27% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NWL is significantly below the industry average of 10.51%.
| 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
The Operating Margin of NWL (6.75%) is comparable to the rest of the industry.
NWL's Operating Margin has declined in the last couple of years.
NWL has a better Gross Margin (34.58%) than 69.84% of its industry peers.
NWL's Gross Margin has been stable in the last couple of years.
| 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
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.
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
Based on the Altman-Z score of 0.63, we must say that NWL is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of NWL (0.63) is worse than 80.95% of its industry peers.
A Debt/Equity ratio of 1.68 is on the high side and indicates that NWL has dependencies on debt financing.
With a Debt to Equity ratio value of 1.68, NWL is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.63 |
ROIC/WACC0.51
WACC8.83%
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.
NWL's Current ratio of 1.12 is on the low side compared to the rest of the industry. NWL is outperformed by 85.71% of its industry peers.
A Quick Ratio of 0.57 indicates that NWL may have some problems paying its short term obligations.
The Quick ratio of NWL (0.57) is worse 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.
The Revenue has decreased by -5.29% in the past year.
NWL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.84% yearly.
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.
NWL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.42% yearly.
EPS Next Y1%
EPS Next 2Y4.75%
EPS Next 3Y9.13%
EPS Next 5Y19.2%
Revenue Next Year-3.28%
Revenue Next 2Y-1%
Revenue Next 3Y-0.2%
Revenue Next 5Y1.42%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 10.65, the valuation of NWL can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of NWL indicates a somewhat cheap valuation: NWL is cheaper than 65.08% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. NWL is valued rather cheaply when compared to this.
NWL is valuated cheaply with a Price/Forward Earnings ratio of 7.85.
NWL's Price/Forward Earnings ratio is rather cheap when compared to the industry. NWL is cheaper than 93.65% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, NWL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.65 | ||
| Fwd PE | 7.85 |
4.2 Price Multiples
NWL's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.01 |
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)10.65
PEG (5Y)N/A
EPS Next 2Y4.75%
EPS Next 3Y9.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.60%, NWL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.02, NWL pays a better dividend. On top of this NWL pays more dividend than 92.06% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
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
NWL has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-48.56%
EPS Next 2Y4.75%
EPS Next 3Y9.13%
5.86
+0.02 (+0.34%)
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 Change7.27%
Market Cap2.46B
Analysts70.67
Price Target7.06 (20.48%)
Short Float %8.74%
Short Ratio4.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
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)-0.07%
PT rev (3m)-2.19%
EPS NQ rev (1m)-5.64%
EPS NQ rev (3m)-30.72%
EPS NY rev (1m)-0.89%
EPS NY rev (3m)-0.89%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.65 | ||
| Fwd PE | 7.85 | ||
| P/S | 0.33 | ||
| P/FCF | N/A | ||
| P/OCF | 15.25 | ||
| P/B | 0.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.01 |
EPS(TTM)0.55
EY9.39%
EPS(NY)0.75
Fwd EY12.73%
FCF(TTM)-0.25
FCFYN/A
OCF(TTM)0.38
OCFY6.56%
SpS17.65
BVpS6.42
TBVpS-5.81
PEG (NY)10.65
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
WACC8.83%
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-3.28%
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%