Newell Brands (NWL) AI Stock Analysis

• Market Cap: $2.09B
• Dividend Yield: 5.62%
• Average Volume (3M): 6.78M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -5.29%
• EPS Growth: 9.72%
• Country: US
• Employees: 23,700
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.24
• Shares Outstanding: 419,100,000
• 10 Day Avg. Volume: 6,638,905
• 30 Day Avg. Volume: 6,781,496
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.68
• Enterprise Value/Revenue: 1.04
• Enterprise Value/Gross Profit: 3.03
• Enterprise Value/Ebitda: 28.06
• 1Y Price Target: $6.71
• Price Target Upside: 34.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 45 Neutral
• Price Target: $4.50 ▼(-9.64% Downside)

Newell Brands' overall stock score is primarily impacted by its financial performance challenges, including declining revenues, negative profitability, and high leverage. Technical analysis indicates bearish momentum, further weighing on the score. While the earnings call highlighted some strategic improvements, these are overshadowed by ongoing sales and cash flow issues. The valuation is somewhat supported by a high dividend yield, but risks remain significant.

Positive Factors

U.S. Manufacturing Shift

The shift to U.S. manufacturing for Sharpies enhances supply chain resilience and cost efficiency, leveraging tariff advantages and supporting long-term competitiveness.

Margin Improvement

Sustained margin improvement indicates enhanced operational efficiency and cost management, contributing to better profitability prospects over time.

International Sales Growth

Consistent international sales growth diversifies revenue streams and reduces dependency on domestic markets, supporting long-term stability and expansion.

Negative Factors

Declining Revenues

Continued revenue decline reflects challenges in market demand and competitive positioning, potentially impacting long-term growth and market share.

High Leverage

High leverage limits financial flexibility and increases risk, potentially constraining strategic investments and operational agility in the long term.

Operating Cash Flow Outflow

Negative operating cash flow signals liquidity challenges, which could hinder the company's ability to fund operations and growth initiatives sustainably.

Newell Brands Business Overview & Revenue Model

Company Description

Newell Brands Inc. designs, manufactures, sources, and distributes consumer and commercial products worldwide. It operates in five segments: Commercial Solutions, Home Appliances, Home Solutions, Learning and Development, and Outdoor and Recreation. The Commercial Solutions segment provides commercial cleaning and maintenance solutions; closet and garage organization products; hygiene systems and material handling solutions; and home and security, and smoke and carbon monoxide alarms products under the BRK, First Alert, Mapa, Quickie, Rubbermaid, Rubbermaid Commercial Products, and Spontex brands. The Home Appliances segment offers kitchen appliances under the Crock-Pot, Mr. Coffee, Oster, and Sunbeam brands. The Home Solutions segment provides food and home storage; fresh preserving; vacuum sealing; and gourmet cookware, bakeware, cutlery, and home fragrance products under the Ball, Calphalon, Chesapeake Bay Candle, FoodSaver, Rubbermaid, Sistema, 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, Graco, NUK, Tigex, Dymo, Elmer's, EXPO, Graco, Mr. Sketch, NUK, Paper Mate, Parker, Prismacolor, Sharpie, Waterman, and X-Acto brands. The Outdoor and Recreation segment provides outdoor and outdoor-related products under the Campingaz, Coleman, Contigo, ExOfficio, and Marmot brands. It serves warehouse clubs, department and drug/grocery stores, mass merchants, home centers, office superstores and supply stores, contract stationers, and distributors, e-commerce, sporting goods, specialty, and travel retailers. The company was formerly known as Newell Rubbermaid Inc. and changed its name to Newell Brands Inc. in April 2016. Newell Brands Inc. was founded in 1903 and is based in Atlanta, Georgia.

How the Company Makes Money

Newell Brands generates revenue primarily through the sale of its consumer products across various retail channels, including e-commerce, mass merchandising, and specialty stores. The company has a diversified revenue model with key streams coming from its distinct product categories, such as home organization, writing instruments, and infant products. Newell's strategy includes leveraging its strong brand portfolio and innovation in product development to drive consumer demand. Additionally, the company often engages in strategic partnerships and collaborations with retailers and distributors to enhance market penetration and drive sales. Factors contributing to its earnings include brand recognition, product innovation, and effective supply chain management.

Newell Brands Financial Statement Overview

Summary

Newell Brands faces significant financial challenges, including declining revenues, negative profitability, and high leverage. While the company maintains stable gross margins, consistent net losses and reduced cash flow generation raise concerns about long-term sustainability. The balance sheet shows high debt levels, which could limit financial flexibility.

Income Statement

Newell Brands has experienced declining revenues, with TTM revenue at $7.40 billion compared to $9.46 billion in 2022. The gross profit margin is approximately 34.25% for TTM, which is stable but reflects reduced operational efficiency over time. The net profit margin is negative due to consistent net losses, indicating ongoing profitability challenges. EBIT and EBITDA margins have also declined, highlighting reduced operational effectiveness.

Balance Sheet

The company's debt-to-equity ratio stands at roughly 2.05 for TTM, indicating high leverage and potential financial risk. The equity ratio is about 23.40%, suggesting a moderate reliance on equity financing. Return on equity is negative due to losses, reflecting poor shareholder returns. Overall, the balance sheet shows stability but is constrained by high debt levels.

Cash Flow

Operating cash flow has decreased significantly over the years, with a TTM value of $161 million, down from $496 million in 2024. Free cash flow is negative, indicating cash outflows from operations. The operating cash flow to net income ratio suggests operational cash generation issues, compounded by losses. These factors suggest liquidity constraints and potential challenges in sustaining operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.40B	7.58B	8.13B	9.46B	10.59B	9.38B
Gross Profit	2.53B	2.55B	2.44B	2.83B	3.38B	3.08B
EBITDA	274.00M	385.00M	107.00M	713.00M	1.35B	-368.00M
Net Income	-243.00M	-216.00M	-388.00M	197.00M	622.00M	-770.00M
Balance Sheet
Total Assets	11.51B	11.00B	12.16B	13.26B	14.18B	14.70B
Cash, Cash Equivalents and Short-Term Investments	219.00M	198.00M	332.00M	287.00M	440.00M	981.00M
Total Debt	5.63B	5.12B	5.47B	6.01B	5.51B	6.21B
Total Liabilities	8.81B	8.25B	9.05B	9.74B	10.09B	10.80B
Stockholders Equity	2.69B	2.75B	3.11B	3.52B	4.09B	3.87B
Cash Flow
Free Cash Flow	-104.00M	237.00M	646.00M	-584.00M	595.00M	1.17B
Operating Cash Flow	161.00M	496.00M	930.00M	-272.00M	884.00M	1.43B
Investing Cash Flow	-159.00M	-151.00M	-199.00M	343.00M	-268.00M	-228.00M
Financing Cash Flow	-147.00M	-451.00M	-664.00M	-232.00M	-1.14B	-559.00M

Newell Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWL, the sentiment is Negative. The current price of 4.98 is below the 20-day moving average (MA) of 5.00, below the 50-day MA of 5.47, and below the 200-day MA of 5.99, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 42.35 is Neutral, neither overbought nor oversold. The STOCH value of 71.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NWL.

Newell Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CL	68 Neutral	$63.40B	22.05	705.21%	2.64%	0.05%	3.55%
CHD	67 Neutral	$21.47B	40.90	12.07%	1.36%	1.13%	-34.78%
EPC	63 Neutral	$920.92M	14.64	4.12%	3.05%	-2.92%	-43.06%
SPB	63 Neutral	$1.34B	20.64	2.98%	3.40%	-2.78%	-17.38%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CLX	62 Neutral	$14.17B	17.85	249.61%	4.25%	0.16%	191.17%
NWL	45 Neutral	$2.09B	―	-8.42%	5.62%	-5.29%	9.72%

Newell Brands Corporate Events

Newell Brands Reports Q2 2025 Earnings and Updates Outlook

Newell Brands Inc., a prominent global consumer goods company, is known for its diverse portfolio of brands, including Rubbermaid, Sharpie, and Yankee Candle, operating primarily in the consumer products sector.

Newell Brands Earnings Call: Mixed Sentiments and Strategic Wins

The recent earnings call for Newell Brands Inc. presented a mixed sentiment, reflecting both significant operational improvements and ongoing challenges. The company showcased notable strides in gross margin and innovation, yet it continues to grapple with core sales decline, tariff impacts, and a sluggish growth environment. This narrative underscores a company in transition, with promising growth and efficiency gains, but also facing external pressures and economic uncertainties.