NasdaqGS:NWL

Stock Analysis Report

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Executive Summary

Newell Brands Inc. designs, manufactures, sources, and distributes consumer and commercial products worldwide. More Details


Snowflake Analysis

Established dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has Newell Brands's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NWL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NWL's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

3.4%

NWL

1.7%

US Consumer Durables

2.8%

US Market


1 Year Return

9.6%

NWL

22.5%

US Consumer Durables

20.9%

US Market

Return vs Industry: NWL underperformed the US Consumer Durables industry which returned 22.5% over the past year.

Return vs Market: NWL underperformed the US Market which returned 20.9% over the past year.


Shareholder returns

NWLIndustryMarket
7 Day3.4%1.7%2.8%
30 Day19.3%11.1%11.1%
90 Day31.9%8.5%6.5%
1 Year15.8%9.6%24.0%22.5%23.6%20.9%
3 Year-22.3%-33.1%16.9%12.6%47.3%37.6%
5 Year-43.3%-53.0%52.6%42.7%94.3%72.9%

Long-Term Price Volatility Vs. Market

How volatile is Newell Brands's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Newell Brands undervalued compared to its fair value and its price relative to the market?

2.4x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NWL ($21.07) is trading above our estimate of fair value ($15.12)

Significantly Below Fair Value: NWL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NWL is unprofitable, so we can't compare its PE Ratio to the US Consumer Durables industry average.

PE vs Market: NWL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NWL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NWL is overvalued based on its PB Ratio (2.4x) compared to the US Consumer Durables industry average (1.6x).


Next Steps

Future Growth

How is Newell Brands forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

121.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: NWL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NWL's is expected to become profitable in the next 3 years.

Revenue vs Market: NWL's revenue (2.6% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: NWL's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NWL's Return on Equity is forecast to be low in 3 years time (18.4%).


Next Steps

Past Performance

How has Newell Brands performed over the past 5 years?

-37.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NWL is currently unprofitable.

Growing Profit Margin: NWL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NWL is unprofitable, and losses have increased over the past 5 years at a rate of 37.8% per year.

Accelerating Growth: Unable to compare NWL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NWL is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Durables industry (26%).


Return on Equity

High ROE: NWL has a negative Return on Equity (-3.17%), as it is currently unprofitable.


Next Steps

Financial Health

How is Newell Brands's financial position?


Financial Position Analysis

Short Term Liabilities: NWL's short term assets ($4.7B) exceed its short term liabilities ($3.1B).

Long Term Liabilities: NWL's short term assets ($4.7B) do not cover its long term liabilities ($7.9B).


Debt to Equity History and Analysis

Debt Level: NWL's debt to equity ratio (156.9%) is considered high.

Reducing Debt: NWL's debt to equity ratio has increased from 153.6% to 156.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable NWL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NWL is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 10.5% per year.


Next Steps

Dividend

What is Newell Brands's current dividend yield, its reliability and sustainability?

4.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NWL's dividend (4.37%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: NWL's dividend (4.37%) is in the top 25% of dividend payers in the US market (4.08%)


Stability and Growth of Payments

Stable Dividend: NWL's dividends per share have been stable in the past 10 years.

Growing Dividend: NWL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: NWL is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: NWL's dividends in 3 years are forecast to be covered by earnings (53.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Ravi Saligram (63 yo)

1.08yrs

Tenure

US$7,569,502

Compensation

Mr. Ravichandra K. Saligram, also known as Ravi, has been Chief Executive Officer, President and Director of Newell Brands Inc. since October 2, 2019. Mr. Saligram was the Chief Executive Officer and Non-I...


CEO Compensation Analysis

Compensation vs Market: Ravi's total compensation ($USD7.57M) is about average for companies of similar size in the US market ($USD6.89M).

Compensation vs Earnings: Insufficient data to compare Ravi's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Ravichandra Saligram
President1.08yrsUS$7.57m0.0083%
$ 737.6k
Christopher Peterson
CFO, President of Business Operations & Principal Accounting Officer1.92yrsUS$7.73m0.020%
$ 1.8m
Bradford Turner
Chief Legal & Administrative Officer and Corporate Secretary3.25yrsUS$3.82m0.011%
$ 1.0m
Laurel Hurd
President of the Learning & Development Segment1.67yrsUS$2.27m0.0088%
$ 785.8k
Dan Gustafson
Chief Information Officer0.83yrno datano data
Nancy O'Donnell
Senior Vice President of Investor Relations & Corporate Communications12.67yrsno datano data
Stephen Parsons
Chief Human Resources Officer1.08yrsno datano data
Nate Young
Senior Vice President of Design & Ideationno datano datano data
David Hammer
Business Unit CEO of Appliances & Cookware2.83yrsno data0.0057%
$ 506.0k
Steve Nikolopoulos
Chief Procurement Officer2.83yrsno datano data
Dennis Senovich
Chief Supply Chain Officer2.83yrsno datano data
Tom Russo
Business Unit CEO of Safety & Security2.83yrsno datano data

2.8yrs

Average Tenure

54yo

Average Age

Experienced Management: NWL's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ravichandra Saligram
President1.08yrsUS$7.57m0.0083%
$ 737.6k
Judith Sprieser
Independent Director2.5yrsUS$265.76kno data
James Craigie
Independent Director2.67yrsUS$283.05k0.0085%
$ 758.1k
Patrick Campbell
Independent Non-Executive Chairman of the Board2.67yrsUS$451.60k0.015%
$ 1.4m
Gerardo Lopez
Independent Director2.58yrsUS$267.67k0.0080%
$ 715.2k
Robert Steele
Independent Director2.58yrsUS$268.91k0.0036%
$ 317.4k
Steven Strobel
Independent Director14.67yrsUS$289.06k0.016%
$ 1.4m
Brett Icahn
Independent Director2.67yrsUS$265.91k0.37%
$ 32.7m
Courtney Mather
Independent Director2.67yrsUS$281.35k0.012%
$ 1.1m
Jay Johnson
Director0.17yrno datano data
Bridget Berman
Independent Director2.5yrsUS$271.93k0.0016%
$ 146.6k

2.6yrs

Average Tenure

62yo

Average Age

Experienced Board: NWL's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Newell Brands Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Newell Brands Inc.
  • Ticker: NWL
  • Exchange: NasdaqGS
  • Founded: 1903
  • Industry: Housewares and Specialties
  • Sector: Consumer Durables
  • Market Cap: US$8.940b
  • Shares outstanding: 424.30m
  • Website: https://www.newellbrands.com

Number of Employees


Location

  • Newell Brands Inc.
  • 6655 Peachtree Dunwoody Road
  • Atlanta
  • Georgia
  • 30328
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NWLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 1972
NWLDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1972
NWL *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMay 1972
0K7JLSE (London Stock Exchange)YesCommon StockGBUSDMay 1972
N1WL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Biography

Newell Brands Inc. designs, manufactures, sources, and distributes consumer and commercial products worldwide. The company operates through four segments: Appliances and Cookware, Food and Commercial, Home...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 23:31
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.