NasdaqGS:NWL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer with mediocre balance sheet.


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


Market Performance


7 Day Return

3.4%

NWL

0.7%

US Consumer Durables

1.3%

US Market


1 Year Return

10.3%

NWL

33.5%

US Consumer Durables

5.9%

US Market

Return vs Industry: NWL underperformed the US Consumer Durables industry which returned 33.5% over the past year.

Return vs Market: NWL exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

NWLIndustryMarket
7 Day3.4%0.7%1.3%
30 Day4.2%0.3%-1.9%
90 Day26.9%4.8%-1.8%
1 Year16.5%10.3%35.3%33.5%8.3%5.9%
3 Year-59.2%-63.3%50.0%45.4%45.6%36.2%
5 Year-34.1%-42.9%38.9%30.4%66.1%47.9%

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?

16.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NWL ($19.23) is trading below our estimate of fair value ($23.02)

Significantly Undervalued: NWL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: NWL is unprofitable, so we can't compare its PE Ratio to the 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

Low 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 (1.6x) 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 11 analysts?

62.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWL is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NWL is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NWL is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: NWL's revenue (2.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: NWL's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NWL's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

How has Newell Brands performed over the past 5 years?

-61.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NWL is unprofitable, and losses have increased over the past 5 years at a rate of -61.7% 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 (13.5%).


Return on Equity

High ROE: NWL has a negative Return on Equity (-132.82%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NWL is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NWL is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Newell Brands's financial position?


Financial Position Analysis

Short Term Liabilities: NWL's short term assets ($7.1B) exceeds its short term liabilities ($3.1B)

Long Term Liabilities: NWL's short term assets (7.1B) do not cover its long term liabilities (9.5B)


Debt to Equity History and Analysis

Debt Level: NWL's debt to equity ratio (134.6%) is considered high

Reducing Debt: NWL's debt to equity ratio has increased from 99.3% to 134.6% over the past 5 years.


Balance Sheet

Inventory Level: NWL has a low level of unsold assets or inventory.

Debt Coverage by Assets: NWL's debt is covered by short term assets (assets are 1.048300x debt).


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, even with free cash flow being positive and shrinking by -24% per year.


Next Steps

Dividend

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

4.78%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Years4.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NWL's dividend (4.78%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: NWL's dividend (4.78%) is in the top 25% of dividend payers in the US market (3.77%)

Stable Dividend: NWL's dividend payments have been volatile 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 (56.9% payout ratio).


Next Steps

Management

What is the CEO of Newell Brands's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Newell Brands has no CEO, or we have no data on them.


Management Age and Tenure

2.2yrs

Average Tenure

48yo

Average Age

Experienced Management: NWL's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

1.6yrs

Average Tenure

60.5yo

Average Age

Experienced Board: NWL's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: NWL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$78,80019 Aug 19
Michael Todman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$15.76
BuyUS$48,983,38719 Dec 18
Icahn Capital LP
EntityCompany
Shares2,419,415
Max PriceUS$20.50
SellUS$523,63728 Nov 18
James Cunningham
EntityIndividual
Shares22,331
Max PriceUS$23.60
BuyUS$2,002,50014 Nov 18
Brett Icahn
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100,000
Max PriceUS$20.05

Ownership Breakdown


Management Team

  • Russ Torres (47yo)

    Group President

    • Tenure: 3.4yrs
    • Compensation: US$4.91m
  • Ron Hardnock (49yo)

    Senior VP of Finance

    • Tenure: 0yrs
  • Nancy O'Donnell

    Senior Vice President of Investor Relations & Corporate Communications

    • Tenure: 11.6yrs
  • Chris Peterson (53yo)

    CFO & Executive VP

    • Tenure: 0.8yrs
    • Compensation: US$3.56m
  • Nate Young

    Senior Vice President of Design & Ideation

    • Tenure: 0yrs
  • Brad Turner (46yo)

    Chief Legal & Administrative Officer and Corporate Secretary

    • Tenure: 2.2yrs
    • Compensation: US$4.92m
  • Mike Rickheim

    Chief Human Resources Officer

    • Tenure: 2.2yrs
  • David Hammer

    Division CEO of Appliances & Cookware

    • Tenure: 1.8yrs
  • Rich Mathews

    Chief Marketing Officer

    • Tenure: 0yrs
  • Robert Schmidt

    Chief Accounting Officer

    • Tenure: 0.6yrs

Board Members

  • Judy Sprieser (66yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$218.13k
  • Jim Craigie (65yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$293.32k
  • Patrick Campbell (66yo)

    Independent Non-Executive Chairman of the Board

    • Tenure: 1.6yrs
    • Compensation: US$406.09k
  • Michael Todman (61yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$282.49k
  • Gerry Lopez (60yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$239.17k
  • Steve Strobel (61yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$285.99k
  • Brett Icahn (40yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$259.73k
  • Debra Crew (48yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$279.82k
  • Courtney Mather (42yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$274.23k
  • Bridget Berman (58yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$220.47k

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$8.142b
  • Shares outstanding: 423.40m
  • Website: https://www.newellbrands.com

Number of Employees


Location

  • Newell Brands Inc.
  • 221 River Street
  • Hoboken
  • New Jersey
  • 7030
  • 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

Biography

Newell Brands Inc. designs, manufactures, sources, and distributes consumer and commercial products worldwide. The company’s Food and Appliances segment offers household products, including kitchen applian ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:39
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.