Newell Brands Inc
Exchange: NASDAQSector: Consumer DefensiveIndustry: Household & Personal Products
Newell Rubbermaid Inc. is a global marketer of consumer and commercial products. The Company's products are marketed under a portfolio of brands, including Rubbermaid, Levolor, Goody, Calphalon, Sharpie, Paper Mate, Parker, Waterman, Irwin, Lenox, Graco, Aprica and Dymo. The Company's segments and the brands included in each of the six business segments includes Home Solutions, which includes Rubbermaid, Calphalon, Levolor, Kirsch and Goody; Writing, which includes Sharpie, Paper Mate, Expo, Prismacolor, Parker and Waterman; Tools, which include Irwin and Lenox tools, and Dymo Industrial; Commercial Products, which include Rubbermaid Commercial Products and Rubbermaid Healthcare; Baby & Parenting, which include Graco, Aprica and Teutonia, and Specialty, which include Dymo Office and Endicia. In September 2013, Newell Rubbermaid Inc closed the sale of its Hardware business, which includes the Amerock, Ashland, Bulldog and Shur-Line brands, to Nova Capital.
Did you know?
Carries 25.2x more debt than cash on its balance sheet.
Current Price
$3.39
-3.97%GoodMoat Value
$0.21
93.9% overvaluedProfile
Valuation (TTM)
Market Cap$1.42B
P/E-4.99
EV$6.40B
P/B0.59
Shares Out419.20M
P/Sales0.20
Revenue$7.20B
EV/EBITDA19.11
Newell Brands Inc (NWL) Stock Analysis
GoodMoat Analysis
Newell Brands fails the GoodMoat Decision Framework's initial gate. The company shows a weak competitive moat and concerning quality metrics, including negative profitability and high debt, while trading at a price that our model suggests is significantly overvalued.
Read full analysis
Newell Brands is a consumer goods company selling household and personal products, a sector where brand and scale are key. Applying the GoodMoat Moat Identification framework, the company likely scores low. While it may have some brand recognition, it faces intense competition, lacks pricing power (evidenced by a -2.7% YoY revenue decline), and shows no durable advantages like high switching costs or proprietary technology. The Quality Indicators are predominantly weak: the company is not GAAP profitable (EPS of -$0.68, ROE of -11.9%), carries high debt (Debt/Equity of 2.14), and has a low Free Cash Flow Yield of 1.1%. This profile fails the 'Moat & Quality Gate' in Section 6 of the framework, as it lacks a durable moat and shows multiple weak fundamental ratings. The valuation assessment is also unfavourable. The GoodMoat Target price of $0.21 implies the current price of $3.56 represents a significant premium. While the high dividend yield of 8.04% may attract attention, it is not sustainable given the negative earnings and cash flow profile. For a value investor seeking a margin of safety in a high-quality business, Newell Brands does not meet the basic criteria for further investigation under this framework. Analysis based on data as of 2024-05-15.
Market Cap$1.42B
Current Price$3.39
P/E Ratio-4.99
Forward P/E—
PEG Ratio-0.01
EPS$-0.68
Book Value$5.70
P/B Ratio0.59
NWL Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -47.1% FCF growth (CAGR)
Cash vs Debt
Net Debt: 4.9B
Revenue
9.7B
FY19
9.4B
FY20
10.6B
FY21
9.5B
FY22
8.1B
FY23
7.6B
FY24
7.2B
FY25
Net Income
107M
FY19
—
FY20
622M
FY21
197M
FY22
—
FY23
—
FY24
—
FY25
NWL 52-Week Range
$3.01
$6.17
50-Day MA: $4.16200-Day MA: $4.53
Did you know?
Pays a 8.44% dividend yield.
Newell Brands Inc (NWL) Financial Summary
Newell Brands Inc (NWL) is a Consumer Defensive company in the Household & Personal Products industry, listed on NASDAQ. The stock currently trades at $3.39 with a market capitalization of $1.42B.
Key valuation metrics include a P/E ratio of -4.99, price-to-book ratio of 0.59, and EPS of $-0.68. The company reports a profit margin of -4.0% and return on equity of -11.9%.
NWL Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $1.42B |
| P/E Ratio | -4.99 |
| EPS | $-0.68 |
| P/B Ratio | 0.59 |
| P/S Ratio | 0.20 |
| EV/EBITDA | 19.11 |
| Dividend Yield | 8.44% |
| Profit Margin | -4.0% |
| Return on Equity | -11.9% |
| Debt/Equity | 2.14 |
NWL Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $9.71B | $107.00M |
| FY20 | $9.38B | $-766.00M |
| FY21 | $10.59B | $622.00M |
| FY22 | $9.46B | $197.00M |
| FY23 | $8.13B | $-388.00M |
| FY24 | $7.58B | $-216.00M |
| FY25 | $7.20B | $-285.00M |
Newell Brands Inc (NWL) Valuation
Based on GoodMoat's DCF model, Newell Brands Inc has a fair value estimate of $0.21. At the current price of $3.39, the stock appears 1530.4% overvalued relative to our intrinsic value estimate.
NWL Quality Indicators
Newell Brands Inc maintains a profit margin of -4.0% and an operating margin of 0.5%. Return on equity stands at -11.9%. The current ratio is 1.07. Debt-to-equity ratio is 2.14.
About Newell Brands Inc
Newell Rubbermaid Inc. is a global marketer of consumer and commercial products. The Company's products are marketed under a portfolio of brands, including Rubbermaid, Levolor, Goody, Calphalon, Sharpie, Paper Mate, Parker, Waterman, Irwin, Lenox, Graco, Aprica and Dymo. The Company's segments and the brands included in each of the six business segments includes Home Solutions, which includes Rubbermaid, Calphalon, Levolor, Kirsch and Goody; Writing, which includes Sharpie, Paper Mate, Expo, Prismacolor, Parker and Waterman; Tools, which include Irwin and Lenox tools, and Dymo Industrial; Commercial Products, which include Rubbermaid Commercial Products and Rubbermaid Healthcare; Baby & Parenting, which include Graco, Aprica and Teutonia, and Specialty, which include Dymo Office and Endicia. In September 2013, Newell Rubbermaid Inc closed the sale of its Hardware business, which includes the Amerock, Ashland, Bulldog and Shur-Line brands, to Nova Capital.
NWL Free Cash Flow
Newell Brands Inc generated $17.00M in trailing twelve-month free cash flow, representing an FCF yield of 1.20%. This low FCF yield may reflect heavy reinvestment or growth spending.
NWL Shares Outstanding
Newell Brands Inc has 0.42 billion shares outstanding at a share price of $3.39, giving it a market capitalization of $1.42B.