NasdaqGS:NWL

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 45.7% below its fair value

Earnings are forecast to grow 40.35% per year

Became profitable this year

Pays a high and reliable dividend of 7.43%

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 7.43% is not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Established dividend payer and fair value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.9%

NWL

-14.6%

US Consumer Durables

-2.8%

US Market


1 Year Return

-24.4%

NWL

-33.9%

US Consumer Durables

-15.9%

US Market

Return vs Industry: NWL exceeded the US Consumer Durables industry which returned -25.9% over the past year.

Return vs Market: NWL underperformed the US Market which returned -13.6% over the past year.


Shareholder returns

NWLIndustryMarket
7 Day-11.9%-14.6%-2.8%
30 Day-14.2%-41.8%-18.8%
90 Day-36.6%-43.0%-24.0%
1 Year-19.9%-24.4%-33.0%-33.9%-14.2%-15.9%
3 Year-70.6%-74.1%-31.8%-34.9%9.9%2.8%
5 Year-64.9%-70.1%-27.9%-32.7%27.2%13.3%

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?

46.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NWL ($12.39) is trading below our estimate of fair value ($22.84)

Significantly Below Fair Value: NWL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NWL is poor value based on its PE Ratio (28.2x) compared to the Consumer Durables industry average (7.2x).

PE vs Market: NWL is poor value based on its PE Ratio (28.2x) compared to the US market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: NWL is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: NWL is overvalued based on its PB Ratio (1.1x) compared to the US Consumer Durables industry average (0.8x).


Next Steps

Future Growth

How is Newell Brands forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

40.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWL's forecast earnings growth (40.4% per year) is above the savings rate (1.7%).

Earnings vs Market: NWL's earnings (40.4% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NWL's revenue is expected to decline over the next 3 years (-1.1% per year).

High Growth Revenue: NWL's revenue is forecast to decline over the next 3 years (-1.1% 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 (13.8%).


Next Steps

Past Performance

How has Newell Brands performed over the past 5 years?

-50.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NWL has a large one-off loss of $1.3B impacting its December 31 2019 financial results.

Growing Profit Margin: NWL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NWL has become profitable over the past 5 years, growing earnings by -50.4% per year.

Accelerating Growth: NWL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NWL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Durables industry (10%).


Return on Equity

High ROE: NWL's Return on Equity (3.7%) is considered low.


Next Steps

Financial Health

How is Newell Brands's financial position?


Financial Position Analysis

Short Term Liabilities: NWL's short term assets ($4.1B) exceed its short term liabilities ($3.0B).

Long Term Liabilities: NWL's short term assets ($4.1B) do not cover its long term liabilities ($7.7B).


Debt to Equity History and Analysis

Debt Level: NWL's debt to equity ratio (114.3%) is considered high.

Reducing Debt: NWL's debt to equity ratio has reduced from 134.8% to 114.3% over the past 5 years.


Balance Sheet

Inventory Level: NWL has a high level of physical assets or inventory.

Debt Coverage by Assets: NWL's debt is not covered by short term assets (assets are 0.7x 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: NWL is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: NWL is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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

7.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NWL's dividend (7.43%) is higher than the bottom 25% of dividend payers in the US market (2%).

High Dividend: NWL's dividend (7.43%) is in the top 25% of dividend payers in the US market (5.56%)


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: With its high payout ratio (209.3%), NWL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NWL's dividends in 3 years are forecast to be covered by earnings (60.4% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Ravi Saligram (62yo)

0.50

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 ($USD0.00) is below average for companies of similar size in the US market ($USD7.59M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ravichandra Saligram
President0.50yrUS$7.57m0.0078% $419.5k
Christopher Peterson
CFO & President of Business Operations1.33yrsUS$7.73m0.011% $591.9k
Bradford Turner
Chief Legal & Administrative Officer and Corporate Secretary2.67yrsUS$3.82m0.0098% $525.8k
Laurel Hurd
President of the Learning & Development Segment1.17yrsUS$2.27m0.0083% $447.4k
Robert Schmidt
Chief Accounting Officer1.08yrsno data0.00056% $30.1k
Nancy O'Donnell
Senior Vice President of Investor Relations & Corporate Communications12.08yrsno datano data
Stephen Parsons
Chief Human Resources Officer0.50yrno datano data
Ronald Hardnock
Senior VP of Financeno datano datano data
Nate Young
Senior Vice President of Design & Ideationno datano datano data
David Hammer
Business Unit CEO of Appliances & Cookware2.25yrsno datano data

1.3yrs

Average Tenure

51yo

Average Age

Experienced Management: NWL's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ravichandra Saligram
President0.50yrUS$7.57m0.0078% $419.5k
Judith Sprieser
Independent Director1.92yrsUS$265.76kno data
James Craigie
Independent Director2.17yrsUS$283.05k0.0080% $431.3k
Patrick Campbell
Independent Non-Executive Chairman of the Board2.08yrsUS$451.60k0.011% $605.3k
Michael Todman
Independent Director13.25yrsUS$285.06k0.016% $865.3k
Robert Steele
Independent Director2yrsUS$268.91k0.0013% $71.4k
Steven Strobel
Independent Director14.08yrsUS$289.06k0.013% $706.9k
Brett Icahn
Independent Director2.08yrsUS$265.91k0.34% $18.5m
Debra Crew
Independent Director2.17yrsUS$269.00k0.0015% $82.7k
Courtney Mather
Independent Director2.08yrsUS$281.35k0.011% $599.4k

2.1yrs

Average Tenure

61.5yo

Average Age

Experienced Board: NWL's board of directors are not considered experienced ( 2.1 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: NWL 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$5.371b
  • Shares outstanding: 447.97m
  • 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 and Outdoor Living, and Learning and Development. The Appliances and Cookware segment offers household products, including kitchen appliances, gourmet cookware, bakeware, and cutlery under the Calphalon, Crock-Pot, Mr. Coffee, Oster, and Sunbeam brands. The Food and Commercial segment offers food storage and home storage products, and fresh preserving products, vacuum sealing products, commercial cleaning and maintenance solutions, hygiene systems, and material handling solutions under the Ball, FoodSaver, Rubbermaid, Sistema, Rubbermaid Commercial Products, Mapa, Quickie, and Spontex brands. The Home and Outdoor Living segment offers products for outdoor and outdoor-related activities, home fragrance, and connected home and security products under the Chesapeake Bay Candle, Coleman, Contigo, ExOfficio, First Alert, Marmot, WoodWick, and Yankee Candle brands. The Learning and Development segment offers writing instruments, including markers and highlighters, pens, and pencils; art products; activity-based adhesive and cutting products; labeling solutions; and baby gear and infant care products under the Aprica, Baby Jogger, Dymo, Elmer’s, EXPO, Graco, Mr. Sketch, NUK, Paper Mate, Parker, Prismacolor, Sharpie, Tigex Waterman, and X-Acto brands. It markets its products to clubs, department stores, drug/grocery stores, mass merchants, specialty retailers, distributors and e-commerce companies, home centers, sporting goods retailers, warehouse clubs, office superstores and supply stores, contract stationers, and travel retail, as well as sells directly to consumers via on-line. Newell Brands Inc. was formerly known as Newell Rubbermaid Inc. and changed its name to Newell Brands Inc. in April 2016. The company was founded in 1903 and is based in Atlanta, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 04:43
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.