NEWELL BRANDS INC (NWL)
US6512291062 - Common Stock
We assign a fundamental rating of 3 out of 10 to NWL. NWL was compared to 68 industry peers in the Household Durables industry. NWL may be in some trouble as it scores bad on both profitability and health. NWL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NWL was profitable.
NWL had a positive operating cash flow in the past year.
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 (-3.19%) is worse than 79.10% of its industry peers.
With a Return On Equity value of -12.47%, NWL is not doing good in the industry: 82.09% of the companies in the same industry are doing better.
NWL's Return On Invested Capital of 3.85% is on the low side compared to the rest of the industry. NWL is outperformed by 64.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NWL is below the industry average of 10.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.19% | ||
| ROE | -12.47% | ||
| ROIC | 3.85% |
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 of 5.55%. This is comparable to the rest of the industry: NWL outperforms 44.78% of its industry peers.
NWL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 29.99%, NWL is in line with its industry, outperforming 59.70% of the companies in the same industry.
NWL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.55% | ||
| PM (TTM) | N/A | ||
| GM | 29.99% |
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
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 about the same amount of shares outstanding.
NWL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NWL has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.72, we must say that NWL is in the distress zone and has some risk of bankruptcy.
NWL's Altman-Z score of 0.72 is on the low side compared to the rest of the industry. NWL is outperformed by 82.09% of its industry peers.
The Debt to FCF ratio of NWL is 7.59, which is on the high side as it means it would take NWL, 7.59 years of fcf income to pay off all of its debts.
NWL has a Debt to FCF ratio of 7.59. This is in the lower half of the industry: NWL underperforms 64.18% of its industry peers.
A Debt/Equity ratio of 1.47 is on the high side and indicates that NWL has dependencies on debt financing.
With a Debt to Equity ratio value of 1.47, NWL is not doing good in the industry: 85.07% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 7.59 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.44
WACC8.8%
2.3 Liquidity
A Current Ratio of 1.16 indicates that NWL should not have too much problems paying its short term obligations.
The Current ratio of NWL (1.16) is worse than 91.04% 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's Quick ratio of 0.63 is on the low side compared to the rest of the industry. NWL is outperformed by 79.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.63 |
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
Based on estimates for the next years, NWL will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.16% on average per year.
NWL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.40% yearly.
EPS Next Y-26.93%
EPS Next 2Y-1.66%
EPS Next 3Y5.37%
EPS Next 5Y15.16%
Revenue Next Year-5.24%
Revenue Next 2Y-2.12%
Revenue Next 3Y-0.64%
Revenue Next 5Y3.4%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 8.91, which indicates a very decent valuation of NWL.
Compared to the rest of the industry, the Price/Earnings ratio of NWL indicates a rather cheap valuation: NWL is cheaper than 82.09% of the companies listed in the same industry.
NWL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.25.
The Price/Forward Earnings ratio is 12.20, which indicates a correct valuation of NWL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NWL is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.67. NWL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.91 | ||
| Fwd PE | 12.2 |
4.2 Price Multiples
NWL's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, NWL is valued cheaply inside the industry as 89.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.52 | ||
| EV/EBITDA | 9.55 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.66%
EPS Next 3Y5.37%
5. Dividend
5.1 Amount
NWL has a Yearly Dividend Yield of 4.05%, which is a nice return.
NWL's Dividend Yield is rather good when compared to the industry average which is at 3.34. 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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
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.
Dividend Growth(5Y)-14.23%
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-47.42%
EPS Next 2Y-1.66%
EPS Next 3Y5.37%
NEWELL BRANDS INC
NASDAQ:NWL (4/24/2024, 7:20:13 PM)
Premarket: 7.03 -0.01 (-0.14%)7.04
-0.09 (-1.26%)
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 Cap2.92B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
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)
Max EPS beat(4)
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 | 8.91 | ||
| Fwd PE | 12.2 | ||
| 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 | -3.19% | ||
| ROE | -12.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.55% | ||
| PM (TTM) | N/A | ||
| GM | 29.99% | ||
| 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 Rank | Sector 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 Y-26.93%
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