Newell Brands (NWL) AI Stock Analysis

• Market Cap: $1.41B
• Dividend Yield: 8.33%
• Average Volume (3M): 10.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: -5.88%
• EPS Growth: 90.23%
• Country: US
• Employees: 23,700
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.17
• Shares Outstanding: 419,200,000
• 10 Day Avg. Volume: 18,655,347
• 30 Day Avg. Volume: 10,544,327
• PEG Ratio: 0.43
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 17.46
• Enterprise Value/Market Cap: 5.19
• Enterprise Value/Revenue: 1.01
• Enterprise Value/Gross Profit: 2.96
• Enterprise Value/Ebitda: 12.26
• 1Y Price Target: $4.89
• Price Target Upside: 44.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.58
• Revenue Forecast (FY): $7.22B

• Rating: 45 Neutral
• Price Target: $3.50 ▲(3.55% Upside)

Newell Brands faces significant financial and technical challenges, with declining revenues, high leverage, and bearish market sentiment. The company's high dividend yield offers some valuation support, but profitability and cash flow issues are concerning. The stock's overall score reflects these substantial risks, despite some positive developments in cost management and innovation.

Positive Factors

Innovation Pipeline

A robust innovation pipeline can drive future growth by introducing new products that meet consumer needs, enhancing competitive positioning.

Cost Management

Effective cost management improves operational efficiency, potentially leading to better margins and profitability over time.

Domestic Manufacturing Advantage

A strong domestic manufacturing base can reduce supply chain risks and improve competitive pricing, supporting market share growth.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and consumer demand, which can impact long-term growth prospects.

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Tariff Impact

Tariff costs can erode margins and profitability, requiring strategic adjustments to pricing and sourcing to mitigate long-term impacts.

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 is facing significant financial challenges, with declining revenues, profitability issues, and high leverage. The company needs to focus on improving operational efficiency, reducing debt, and enhancing cash flow generation to stabilize its financial position and drive future growth.

Income Statement

Newell Brands has faced declining revenues, with a negative revenue growth rate of -1.91% TTM. The company is struggling with profitability, as indicated by a negative net profit margin of -0.33% TTM. Gross profit margin remains stable at 34.05% TTM, but EBIT and EBITDA margins are low at 2.25% and 6.11% TTM, respectively. The company needs to address its declining revenue and improve operational efficiency to enhance profitability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.93 TTM, indicating significant leverage. Return on equity is negative at -0.89% TTM, reflecting challenges in generating returns for shareholders. The equity ratio stands at 23.90% TTM, suggesting moderate reliance on equity financing. The company should focus on reducing debt levels to improve financial stability.

Cash Flow

Cash flow analysis reveals a concerning decline in free cash flow, with a growth rate of -80.77% TTM. The operating cash flow to net income ratio is low at 0.10 TTM, indicating limited cash generation relative to earnings. Free cash flow to net income is negative, highlighting cash flow challenges. Improving cash flow generation is crucial for financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.26B	7.58B	8.13B	9.46B	10.59B	9.38B
Gross Profit	2.47B	2.55B	2.44B	2.83B	3.36B	3.08B
EBITDA	597.00M	358.00M	107.00M	688.00M	1.34B	-375.00M
Net Income	-24.00M	-216.00M	-388.00M	197.00M	622.00M	-770.00M
Balance Sheet
Total Assets	11.29B	11.00B	12.16B	13.26B	14.27B	14.70B
Cash, Cash Equivalents and Short-Term Investments	229.00M	198.00M	332.00M	287.00M	440.00M	981.00M
Total Debt	5.21B	5.12B	5.47B	6.01B	5.51B	6.21B
Total Liabilities	8.59B	8.25B	9.05B	9.74B	10.11B	10.80B
Stockholders Equity	2.70B	2.75B	3.11B	3.52B	4.16B	3.87B
Cash Flow
Free Cash Flow	-20.00M	237.00M	646.00M	-584.00M	595.00M	1.17B
Operating Cash Flow	253.00M	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	-328.00M	-451.00M	-664.00M	-232.00M	-1.14B	-559.00M

Newell Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 3.38 is below the 20-day moving average (MA) of 4.08, below the 50-day MA of 4.90, and below the 200-day MA of 5.57, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 26.96 is Positive, neither overbought nor oversold. The STOCH value of 40.47 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
CHD	72 Outperform	$20.50B	26.88	18.59%	1.39%	1.45%	42.04%
CL	63 Neutral	$63.32B	22.01	450.35%	2.61%	-0.05%	2.49%
EPC	63 Neutral	$878.64M	13.97	4.12%	3.26%	-2.92%	-43.06%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SPB	62 Neutral	$1.32B	20.31	2.98%	3.22%	-2.78%	-17.38%
CLX	53 Neutral	$12.77B	16.41	4163.16%	4.72%	-9.35%	123.06%
NWL	45 Neutral	$1.41B	―	-0.86%	8.33%	-5.88%	90.23%

Newell Brands Corporate Events

Newell Brands Faces Mixed Earnings Outlook Amid Challenges

Newell Brands Inc. recently held its earnings call, revealing a mixed sentiment. While the company showcased positive strides in cost management, innovation, and financial health, it also faced significant hurdles such as declining sales due to tariffs and international market slowdowns, alongside competitive pricing pressures in key segments.