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.

Risks

  • Newell Brands has significant price volatility in the past 3 months.

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

2.6%

NasdaqGS:NWL

1.0%

US Consumer Durables

1.1%

US Market


1 Year Return

-15.2%

NasdaqGS:NWL

14.6%

US Consumer Durables

2.1%

US Market

NWL underperformed the Consumer Durables industry which returned 14% over the past year.

NWL underperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

NWLIndustryMarket
7 Day2.6%1.0%1.1%
30 Day15.4%4.8%3.7%
90 Day23.6%4.8%2.3%
1 Year-10.5%-15.2%16.1%14.6%4.4%2.1%
3 Year-60.2%-64.3%44.1%39.8%47.0%37.4%
5 Year-39.6%-47.6%36.1%27.4%61.6%43.8%

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 based on future cash flows and its price relative to the stock market?

25%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Newell Brands's share price is below the future cash flow value, and at a moderate discount (> 20%).

Newell Brands's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Newell Brands is loss making, we can't compare its value to the US Consumer Durables industry average.

Newell Brands is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Newell Brands, we can't assess if its growth is good value.


Price Based on Value of Assets

Newell Brands is good value based on assets compared to the US Consumer Durables industry average.


Next Steps

Future Growth

How is Newell Brands expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

56.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Newell Brands's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).

Newell Brands's earnings are expected to grow significantly at over 20% yearly.

Newell Brands's revenue growth is positive but not above the United States of America market average.

Newell Brands's earnings growth is expected to exceed the United States of America market average.

Newell Brands's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Newell Brands is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Newell Brands does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Newell Brands's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Newell Brands's 1-year growth to the US Consumer Durables industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Newell Brands has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Newell Brands has efficiently used its assets last year compared to the US Consumer Durables industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Newell Brands improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Newell Brands's financial position?


Financial Position Analysis

Newell Brands is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Newell Brands's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Newell Brands's level of debt (134.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (99.3% vs 134.6% today).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1x 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.

Whilst loss making Newell Brands has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Newell Brands has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 24% per year.


Next Steps

Dividend

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

5.06%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Newell Brands's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Newell Brands's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Chris Peterson (53yo)

0.3yrs

Tenure

US$3,558,492

Compensation

Mr. Christopher H. Peterson, also known as Chris, has been Interim Chief Executive Officer of Newell Brands Inc. since June 28, 2019. Mr. Peterson has been Executive Vice President and Chief Financial Offi ...


CEO Compensation Analysis

Chris's remuneration is lower than average for companies of similar size in United States of America.

Insufficient data for Chris to compare compensation growth.


Management Age and Tenure

2.1yrs

Average Tenure

48yo

Average Age

The tenure for the Newell Brands management team is about average.


Board Age and Tenure

1.5yrs

Average Tenure

60.5yo

Average Age

The average tenure for the Newell Brands board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Newell Brands individual insiders 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
Director
Shares100,000
Max PriceUS$20.05

Ownership Breakdown


Management Team

  • Russ Torres (47yo)

    Group President

    • Tenure: 3.3yrs
    • 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: 11.5yrs
  • Chris Peterson (53yo)

    Interim CEO

    • Tenure: 0.3yrs
    • 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: 2.1yrs
    • Compensation: US$4.92m
  • Robert Westreich

    Senior VP

    • Tenure: 0yrs
  • Mike Rickheim

    Chief Human Resources Officer

    • Tenure: 2.1yrs
  • Rich Mathews

    Chief Marketing Officer

    • Tenure: 0yrs
  • Robert Schmidt

    Chief Accounting Officer

    • Tenure: 0.5yrs

Board Members

  • Judy Sprieser (66yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$218.13k
  • Jim Craigie (65yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$293.32k
  • Patrick Campbell (66yo)

    Independent Non-Executive Chairman of the Board

    • Tenure: 1.5yrs
    • Compensation: US$406.09k
  • Michael Todman (61yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$282.49k
  • Gerry Lopez (60yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$239.17k
  • Steve Strobel (61yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$285.99k
  • Brett Icahn (40yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$259.73k
  • Debra Crew (48yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$279.82k
  • Courtney Mather (42yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$274.23k
  • Bridget Berman (58yo)

    Director

    • Tenure: 1.3yrs
    • 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$7.740b
  • 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 Analysis2019/09/16 23:39
End of Day Share Price2019/09/16 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.