NEWELL BRANDS INC (NWL) Stock Fundamental Analysis
USA - NASDAQ:NWL - US6512291062 - Common Stock
3.23 USD
+0.06 (+1.89%)
3.24 USD
+0.01 (+0.31%)
We assign a fundamental rating of 3 out of 10 to NWL. NWL was compared to 61 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 on the other hand it scores bad on growth.
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
The Return On Assets of NWL (-0.21%) is worse than 67.21% of its industry peers.
NWL's Return On Equity of -0.89% is on the low side compared to the rest of the industry. NWL is outperformed by 68.85% of its industry peers.
The Return On Invested Capital of NWL (4.20%) is worse than 60.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NWL is below the industry average of 9.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.21% | ||
| ROE | -0.89% | ||
| ROIC | 4.2% |
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 6.37%, NWL is in line with its industry, outperforming 47.54% of the companies in the same industry.
NWL's Operating Margin has declined in the last couple of years.
NWL's Gross Margin of 34.21% is fine compared to the rest of the industry. NWL outperforms 68.85% of its industry peers.
NWL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.37% | ||
| PM (TTM) | N/A | ||
| GM | 34.21% |
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
Compared to 5 years ago, NWL has less shares outstanding
Compared to 1 year ago, NWL has a worse debt to assets ratio.
2.2 Solvency
A Debt/Equity ratio of 1.68 is on the high side and indicates that NWL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.68, NWL is doing worse than 88.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.55
WACC7.62%
2.3 Liquidity
NWL has a Current Ratio of 1.14. 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 (1.14) is worse than 85.25% of its industry peers.
A Quick Ratio of 0.57 indicates that NWL may have some problems paying its short term obligations.
NWL has a Quick ratio of 0.57. This is in the lower half of the industry: NWL underperforms 65.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for NWL have decreased strongly by -24.32% 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 -5.88% 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)-24.32%
EPS 3Y-27.98%
EPS 5Y-17.13%
EPS Q2Q%6.25%
Revenue 1Y (TTM)-5.88%
Revenue growth 3Y-10.54%
Revenue growth 5Y-4.84%
Sales Q2Q%-7.24%
3.2 Future
The Earnings Per Share is expected to grow by 17.06% on average over the next years. This is quite good.
NWL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.03% yearly.
EPS Next Y-1.11%
EPS Next 2Y4.41%
EPS Next 3Y7.76%
EPS Next 5Y17.06%
Revenue Next Year-3.75%
Revenue Next 2Y-1.23%
Revenue Next 3Y-0.39%
Revenue Next 5Y1.03%
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 5.77, which indicates a rather cheap valuation of NWL.
Based on the Price/Earnings ratio, NWL is valued cheaply inside the industry as 91.80% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.28, NWL is valued rather cheaply.
The Price/Forward Earnings ratio is 4.36, which indicates a rather cheap valuation of NWL.
NWL's Price/Forward Earnings ratio is rather cheap when compared to the industry. NWL is cheaper than 96.72% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.61, NWL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.77 | ||
| Fwd PE | 4.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NWL indicates a somewhat cheap valuation: NWL is cheaper than 63.93% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.65 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.41%
EPS Next 3Y7.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.00%, NWL is a good candidate for dividend investing.
In the last 3 months the price of NWL has falen by -40.84%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.32, NWL pays a better dividend. On top of this NWL pays more dividend than 96.72% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, NWL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9% |
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-495.83%
EPS Next 2Y4.41%
EPS Next 3Y7.76%
3.23
+0.06 (+1.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners104.45%
Inst Owner Change-1.31%
Ins Owners0.57%
Ins Owner Change5.82%
Market Cap1.35B
Revenue(TTM)7.26B
Net Income(TTM)-24.00M
Analysts70.67
Price Target6.98 (116.1%)
Short Float %10.45%
Short Ratio6.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9% |
Yearly Dividend0.28
Dividend Growth(5Y)-20.97%
DP-495.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.11%
Min EPS beat(2)-5.83%
Max EPS beat(2)-0.39%
EPS beat(4)2
Avg EPS beat(4)22.19%
Min EPS beat(4)-5.83%
Max EPS beat(4)84.26%
EPS beat(8)6
Avg EPS beat(8)35.41%
EPS beat(12)9
Avg EPS beat(12)33.11%
EPS beat(16)13
Avg EPS beat(16)30.63%
Revenue beat(2)0
Avg Revenue beat(2)-3.31%
Min Revenue beat(2)-5%
Max Revenue beat(2)-1.63%
Revenue beat(4)1
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-5%
Max Revenue beat(4)0.38%
Revenue beat(8)2
Avg Revenue beat(8)-0.94%
Revenue beat(12)4
Avg Revenue beat(12)-0.76%
Revenue beat(16)6
Avg Revenue beat(16)-0.17%
PT rev (1m)-1.92%
PT rev (3m)-1.29%
EPS NQ rev (1m)-26.68%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)-2.22%
EPS NY rev (3m)-2.95%
Revenue NQ rev (1m)-2.93%
Revenue NQ rev (3m)-1.89%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.77 | ||
| Fwd PE | 4.36 | ||
| P/S | 0.19 | ||
| P/FCF | N/A | ||
| P/OCF | 5.35 | ||
| P/B | 0.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.65 |
EPS(TTM)0.56
EY17.34%
EPS(NY)0.74
Fwd EY22.95%
FCF(TTM)-0.05
FCFYN/A
OCF(TTM)0.6
OCFY18.69%
SpS17.31
BVpS6.44
TBVpS-5.73
PEG (NY)N/A
PEG (5Y)N/A
Graham Number9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.21% | ||
| ROE | -0.89% | ||
| ROCE | 5.31% | ||
| ROIC | 4.2% | ||
| ROICexc | 4.31% | ||
| ROICexgc | 10.83% | ||
| OM | 6.37% | ||
| PM (TTM) | N/A | ||
| GM | 34.21% | ||
| 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%
ROICexgc growth 3Y-20.48%
ROICexgc 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 | 5.89 | ||
| Cap/Depr | 88.35% | ||
| Cap/Sales | 3.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 32.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | N/A |
F-Score5
WACC7.62%
ROIC/WACC0.55
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)-24.32%
EPS 3Y-27.98%
EPS 5Y-17.13%
EPS Q2Q%6.25%
EPS Next Y-1.11%
EPS Next 2Y4.41%
EPS Next 3Y7.76%
EPS Next 5Y17.06%
Revenue 1Y (TTM)-5.88%
Revenue growth 3Y-10.54%
Revenue growth 5Y-4.84%
Sales Q2Q%-7.24%
Revenue Next Year-3.75%
Revenue Next 2Y-1.23%
Revenue Next 3Y-0.39%
Revenue Next 5Y1.03%
EBIT growth 1Y-12.17%
EBIT growth 3Y-22.84%
EBIT growth 5Y-7.72%
EBIT Next Year52.12%
EBIT Next 3Y18.63%
EBIT Next 5Y17.83%
FCF growth 1Y-102.97%
FCF growth 3Y-26.42%
FCF growth 5Y-21.18%
OCF growth 1Y-74.02%
OCF growth 3Y-17.52%
OCF growth 5Y-13.83%
NEWELL BRANDS INC / NWL FAQ
Can you provide the ChartMill fundamental rating for NEWELL BRANDS INC?
ChartMill assigns a fundamental rating of 3 / 10 to NWL.
What is the valuation status of NEWELL BRANDS INC (NWL) stock?
ChartMill assigns a valuation rating of 5 / 10 to NEWELL BRANDS INC (NWL). This can be considered as Fairly Valued.
How profitable is NEWELL BRANDS INC (NWL) stock?
NEWELL BRANDS INC (NWL) has a profitability rating of 2 / 10.
What is the valuation of NEWELL BRANDS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for NEWELL BRANDS INC (NWL) is 5.77 and the Price/Book (PB) ratio is 0.5.
How financially healthy is NEWELL BRANDS INC?
The financial health rating of NEWELL BRANDS INC (NWL) is 1 / 10.