NEWELL BRANDS INC (NWL) Stock Fundamental Analysis
USA - NASDAQ:NWL - US6512291062 - Common Stock
4.98 USD
-0.05 (-0.99%)
5 USD
+0.02 (+0.4%)
We assign a fundamental rating of 3 out of 10 to NWL. NWL was compared to 63 industry peers in the Household Durables industry. Both the profitability and financial health of NWL have multiple concerns. 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.
NWL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NWL has a worse Return On Assets (-2.11%) than 66.67% of its industry peers.
NWL's Return On Equity of -9.03% is on the low side compared to the rest of the industry. NWL is outperformed by 69.84% 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.
The Average Return On Invested Capital over the past 3 years for NWL is significantly below the industry average of 10.32%.
| 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 (6.75%) which is in line with its industry peers.
In the last couple of years the Operating Margin of NWL has declined.
NWL's Gross Margin of 34.58% is fine compared to the rest of the industry. NWL outperforms 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.
NWL has more shares outstanding than it did 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
NWL has an Altman-Z score of 0.61. This is a bad value and indicates that NWL is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NWL (0.61) is worse than 84.13% of its industry peers.
NWL has a Debt/Equity ratio of 1.68. This is a high value indicating a heavy dependency on external 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 | 0.61 |
ROIC/WACC0.53
WACC8.49%
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.
Looking at the Current ratio, with a value of 1.12, NWL is doing worse than 85.71% of the companies in the same industry.
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's Quick ratio of 0.57 is on the low side compared to the rest of the industry. NWL is outperformed by 63.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
NWL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.30%.
The earnings per share for NWL have been decreasing by -17.13% on average. This is quite bad
NWL shows a decrease in Revenue. In the last year, the revenue decreased by -5.29%.
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
Based on estimates for the next years, NWL will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.20% on average per year.
The Revenue is expected to grow by 1.42% on average over the next years.
EPS Next Y1.14%
EPS Next 2Y4.94%
EPS Next 3Y8.4%
EPS Next 5Y19.2%
Revenue Next Year-3.33%
Revenue Next 2Y-1.05%
Revenue Next 3Y-0.24%
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.
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 9.05, which indicates a very decent valuation of NWL.
Based on the Price/Earnings ratio, NWL is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.70. NWL is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.65 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 96.83% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.15. NWL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 6.65 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NWL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.55 |
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)7.98
PEG (5Y)N/A
EPS Next 2Y4.94%
EPS Next 3Y8.4%
5. Dividend
5.1 Amount
NWL has a Yearly Dividend Yield of 5.38%, which is a nice return.
NWL's Dividend Yield is rather good when compared to the industry average which is at 2.76. NWL pays more dividend than 95.24% of the companies in the same industry.
NWL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
5.2 History
The dividend of NWL decreases each year by -20.97%.
NWL has paid a dividend for at least 10 years, which is 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 2Y4.94%
EPS Next 3Y8.4%
4.98
-0.05 (-0.99%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners104.45%
Inst Owner Change0%
Ins Owners0.57%
Ins Owner Change7.27%
Market Cap2.09B
Analysts70.67
Price Target7.11 (42.77%)
Short Float %8.5%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
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)0.72%
PT rev (3m)-1.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.96%
EPS NY rev (1m)0.13%
EPS NY rev (3m)-0.76%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 6.65 | ||
| P/S | 0.28 | ||
| P/FCF | N/A | ||
| P/OCF | 12.96 | ||
| P/B | 0.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.55 |
EPS(TTM)0.55
EY11.04%
EPS(NY)0.75
Fwd EY15.04%
FCF(TTM)-0.25
FCFYN/A
OCF(TTM)0.38
OCFY7.71%
SpS17.65
BVpS6.42
TBVpS-5.81
PEG (NY)7.98
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 | 0.61 |
F-Score5
WACC8.49%
ROIC/WACC0.53
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 Y1.14%
EPS Next 2Y4.94%
EPS Next 3Y8.4%
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-3.33%
Revenue Next 2Y-1.05%
Revenue Next 3Y-0.24%
Revenue Next 5Y1.42%
EBIT growth 1Y-2.16%
EBIT growth 3Y-22.84%
EBIT growth 5Y-7.72%
EBIT Next Year52.12%
EBIT Next 3Y18.63%
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%