NEWELL BRANDS INC (NWL)
US6512291062 - Common Stock
NWL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 66 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NWL had positive earnings in the past year.
NWL had a positive operating cash flow in the past year.
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
The Return On Assets of NWL (-2.44%) is worse than 72.31% of its industry peers.
Looking at the Return On Equity, with a value of -9.59%, NWL is doing worse than 76.92% of the companies in the same industry.
NWL's Return On Invested Capital of 4.24% is on the low side compared to the rest of the industry. NWL is outperformed by 60.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NWL is below the industry average of 10.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.44% | ||
| ROE | -9.59% | ||
| ROIC | 4.24% |
ROA(3y)0.88%
ROA(5y)-0.38%
ROE(3y)2.7%
ROE(5y)-1.93%
ROIC(3y)6.11%
ROIC(5y)5.89%
1.3 Margins
NWL has a Operating Margin (6.15%) which is in line with its industry peers.
NWL's Operating Margin has declined in the last couple of years.
NWL's Gross Margin of 30.87% is fine compared to the rest of the industry. NWL outperforms 61.54% of its industry peers.
In the last couple of years the Gross Margin of NWL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.15% | ||
| PM (TTM) | N/A | ||
| GM | 30.87% |
OM growth 3Y-16.38%
OM growth 5Y-8.33%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.95%
GM growth 5Y-2.85%
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.
Compared to 1 year ago, NWL has about the same amount of shares outstanding.
NWL has less shares outstanding than it did 5 years ago.
NWL has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.70, we must say that NWL is in the distress zone and has some risk of bankruptcy.
NWL has a worse Altman-Z score (0.70) than 84.62% of its industry peers.
NWL has a debt to FCF ratio of 6.40. This is a slightly negative value and a sign of low solvency as NWL would need 6.40 years to pay back of all of its debts.
NWL has a Debt to FCF ratio (6.40) which is in line with its industry peers.
NWL has a Debt/Equity ratio of 1.48. This is a high value indicating a heavy dependency on external financing.
NWL has a Debt to Equity ratio of 1.48. This is amonst the worse of the industry: NWL underperforms 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 6.4 | ||
| Altman-Z | 0.7 |
ROIC/WACC0.5
WACC8.41%
2.3 Liquidity
NWL has a Current Ratio of 1.15. This is a normal value and indicates that NWL is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.15, NWL is not doing good in the industry: 90.77% of the companies in the same industry are doing better.
NWL has a Quick Ratio of 1.15. 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's Quick ratio of 0.58 is on the low side compared to the rest of the industry. NWL is outperformed by 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for NWL have decreased strongly by -29.17% 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 -21.68% yearly.
NWL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.08%.
NWL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.34% yearly.
EPS 1Y (TTM)-29.17%
EPS 3Y-23.86%
EPS 5Y-21.68%
EPS Q2Q%100%
Revenue 1Y (TTM)-10.08%
Revenue growth 3Y-4.66%
Revenue growth 5Y-4.34%
Sales Q2Q%-8.42%
3.2 Future
The Earnings Per Share is expected to grow by 6.96% on average over the next years.
Based on estimates for the next years, NWL will show a small growth in Revenue. The Revenue will grow by 0.02% on average per year.
EPS Next Y-23.8%
EPS Next 2Y-1.14%
EPS Next 3Y5.73%
EPS Next 5Y6.96%
Revenue Next Year-5%
Revenue Next 2Y-1.95%
Revenue Next 3Y-0.5%
Revenue Next 5Y0.02%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
NWL is valuated reasonably with a Price/Earnings ratio of 10.46.
Compared to the rest of the industry, the Price/Earnings ratio of NWL indicates a rather cheap valuation: NWL is cheaper than 84.62% of the companies listed in the same industry.
NWL is valuated cheaply when we compare the Price/Earnings ratio to 24.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.52 indicates a reasonable valuation of NWL.
Based on the Price/Forward Earnings ratio, NWL is valued cheaply inside the industry as 90.77% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of NWL to the average of the S&P500 Index (20.35), we can say NWL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 11.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NWL is valued a bit cheaper than 66.15% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NWL is valued cheaply inside the industry as 96.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.74 | ||
| EV/EBITDA | 8.74 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.14%
EPS Next 3Y5.73%
5. Dividend
5.1 Amount
NWL has a Yearly Dividend Yield of 4.29%, which is a nice return.
Compared to an average industry Dividend Yield of 2.48, NWL pays a better dividend. On top of this NWL pays more dividend than 92.31% 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 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
5.2 History
The dividend of NWL decreases each year by -14.23%.
NWL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-14.23%
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-40%
EPS Next 2Y-1.14%
EPS Next 3Y5.73%
NEWELL BRANDS INC
NASDAQ:NWL (7/26/2024, 11:29:07 AM)
8.895
+2.55 (+40.3%)
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 Cap3.69B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.29% |
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)
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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)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 11.52 | ||
| 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)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.44% | ||
| ROE | -9.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.15% | ||
| PM (TTM) | N/A | ||
| GM | 30.87% | ||
| 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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.58 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-29.17%
EPS 3Y-23.86%
EPS 5Y
EPS Q2Q%
EPS Next Y-23.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.08%
Revenue growth 3Y-4.66%
Revenue growth 5Y
Sales 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