Newell Brands Inc (NWL) Financial Statements

A value investor analyzing Newell Brands through the GoodMoat Quality Indicators finds multiple points of weakness. The company is not GAAP profitable, with a negative EPS of -$0.68 and a profit margin of -4.0%. Revenue growth is negative at -2.7% YoY, indicating contraction rather than the consistent double-digit growth sought in the framework. The balance sheet is a major concern, with a Debt/Equity ratio of 2.14, far exceeding the favourable threshold of less than 1.0x Debt/EBITDA. This high leverage creates significant financial risk. Free cash flow generation is weak, with a FCF Yield of only 1.1%, which does not meet the framework's >10-15% FCF margin benchmark. The meager cash flow struggles to support the company's substantial debt and its high 8.04% dividend yield, raising sustainability questions. The only neutral data point is a slightly positive operating margin of 0.5%, but this is insufficient to offset the broader negative trends. In the Growth Assessment, the trajectory is unfavourable with revenue declining, and there is no evidence of the high incremental returns on capital or market expansion that would signal durable, profitable growth. The financial profile suggests a company facing fundamental challenges with quality metrics that are largely unfavourable.