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Newell Brands (NWL)
NASDAQ:NWL
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Newell Brands
(NASDAQ:NWL)
49Neutral
Positive Factors
Competitive Advantage
Newell Brands is competitively advantaged in several categories compared to peers and will be a net beneficiary when it’s all said and done.
Growth Strategy
The company is set for a return to modest, sustainable organic growth once past tariff challenges, as weaker, single-source competitors potentially drop out of the market.
Sales Growth
Both the Learning & Development segment and International business, which collectively represent ~40% of sales, posted positive core sales growth for the last five consecutive quarters.
Negative Factors
Consumer Demand
Visibility is low, and consumer demand is uncertain on NWL's semi-discretionary portfolio with weaker macros.
Market Expectations
The market clearly doesn’t expect growth to return anytime soon given the stock’s performance year-to-date.
Tariff Impact
There is a potential EPS pressure from tariffs, with 125% of China tariffs not in guidance posing a threat.
Newell Brands (NWL) vs. S&P 500 (SPY)
Market Cap
$2.38B
Dividend Yield4.92%
Average Volume (3M)9.92M
Price to Earnings (P/E)―
Beta (1Y)0.98
Revenue Growth-6.09%
EPS Growth17.71%
CountryUS
Employees23,700
SectorConsumer Cyclical
Sector Strength75
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)-0.01
Shares Outstanding417,700,000
10 Day Avg. Volume8,213,890
30 Day Avg. Volume9,918,019
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)0.81
Price to Sales (P/S)0.00
P/FCF Ratio-272.55
Enterprise Value/Market Cap3.12
Enterprise Value/Revenue0.24
Enterprise Value/Gross Profit2.90
Enterprise Value/Ebitda4.18
Forecast
1Y Price Target
$6.82Price Target Upside19.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Newell Brands Business Overview & Revenue Model
Company DescriptionNewell Brands Inc. is a leading global consumer goods company headquartered in Atlanta, Georgia. The company operates through a diversified portfolio of well-known brands across various sectors, including home and commercial products, appliances and cookware, writing instruments, outdoor and recreation products, and baby products. Some of its core brands include Rubbermaid, Sharpie, Graco, Coleman, and Yankee Candle. Newell Brands focuses on delivering innovative products that enhance the lives of consumers worldwide.
How the Company Makes MoneyNewell Brands generates revenue primarily through the sale of its diverse range of consumer products. The company operates through multiple business segments: Home Solutions, Learning & Development, Outdoor & Recreation, and others, each contributing to the overall revenue. Key revenue streams include wholesale distribution to retailers, direct-to-consumer sales through e-commerce platforms, and partnerships with major retail chains globally. The company's ability to leverage brand strength, product innovation, and strategic partnerships plays a significant role in its earnings. Additionally, Newell Brands focuses on optimizing its supply chain and expanding its market presence to drive profitability.
Newell Brands Key Performance Indicators (KPIs)
Any
Normalized Operating Income by Segment
Measures the income generated from core operations in each segment, providing insight into which segments are contributing most to overall profitability.
Measures the income generated from core operations in each segment, providing insight into which segments are contributing most to overall profitability.
Data provided by:
Main Street Data
Main Street DataNewell Brands Financial Statement Overview
Summary
Newell Brands faces significant challenges in its financial performance, characterized by declining revenue, profitability issues, and volatility in cash flow generation. The balance sheet remains stable, but the company's income and cash flow management require improvement for better long-term financial health.Income Statement
Newell Brands shows declining revenue with a negative growth trend in the latest TTM period compared to the previous year. The company struggles with profitability, evidenced by negative net profit margins and declining EBIT margins. Despite a slight improvement in EBIT in the TTM period, the overall financial performance remains challenging due to persistent net losses.45
Neutral
Balance Sheet
The company's balance sheet indicates stability in terms of debt-to-equity, which remains manageable. However, the decreasing equity ratio reflects a contraction in stockholders' equity relative to total assets, suggesting a potential risk if liabilities continue to outpace asset growth. Return on equity has been negative recently, indicating inefficiencies in generating returns on shareholders' investments.55
Neutral
Cash Flow
Newell Brands exhibits volatility in cash flow generation, with a recent decrease in free cash flow. The operating cash flow to net income ratio shows a more reliable conversion of accounting profits to cash, though the free cash flow to net income ratio highlights ongoing challenges in generating free cash flow amidst capital expenditures.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 7.50B | 7.58B | 8.13B | 9.46B | 10.59B | 9.38B | Gross Profit |
| 2.55B | 2.55B | 2.44B | 2.83B | 3.30B | 3.08B | EBIT |
| 98.00M | 67.00M | -85.00M | 882.00M | 946.00M | 812.00M | EBITDA |
| 310.00M | 385.00M | 107.00M | 1.12B | 1.45B | -368.00M | Net Income Common Stockholders |
| -244.00M | -216.00M | -388.00M | 197.00M | 622.00M | -770.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 233.00M | 198.00M | 332.00M | 287.00M | 440.00M | 981.00M | Total Assets |
| 11.28B | 11.00B | 12.16B | 13.26B | 14.18B | 14.70B | Total Debt |
| 5.46B | 5.12B | 5.47B | 5.89B | 5.39B | 6.08B | Net Debt |
| 5.23B | 4.92B | 5.14B | 5.60B | 4.95B | 5.10B | Total Liabilities |
| 8.59B | 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 | ||||
| -8.00M | 237.00M | 646.00M | -584.00M | 595.00M | 1.17B | Operating Cash Flow |
| 251.00M | 496.00M | 930.00M | -272.00M | 884.00M | 1.43B | Investing Cash Flow |
| -128.00M | -151.00M | -199.00M | 343.00M | -268.00M | -228.00M | Financing Cash Flow |
| -241.00M | -451.00M | -664.00M | -232.00M | -1.14B | -559.00M |
Newell Brands Technical Analysis
Neutral
5.71
Price Trends
5.60
Positive
7.10
Negative
7.63
Negative
Market Momentum
0.11
Negative
54.46
Neutral
69.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWL, the sentiment is Neutral. The current price of 5.71 is above the 20-day moving average (MA) of 5.37, above the 50-day MA of 5.60, and below the 200-day MA of 7.63, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 54.46 is Neutral, neither overbought nor oversold. The STOCH value of 69.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NWL.
Newell Brands Risk Analysis
Newell Brands disclosed 30 risk factors in its most recent earnings report. Newell Brands reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Newell Brands Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $1.34B | 16.63 | 5.53% | 2.11% | -2.11% | -28.79% | |
63 Neutral | $4.39B | 40.12 | -10.58% | ― | -1.68% | -302.11% | |
63 Neutral | $703.88M | 5.79 | 7.45% | ― | -4.93% | -23.61% | |
62 Neutral | $16.62B | 24.21 | 1176.27% | 3.62% | -2.64% | 189.29% | |
62 Neutral | $6.98B | 11.38 | 2.86% | 3.90% | 2.64% | -22.07% | |
54 Neutral | $1.59B | 30.44 | 2.79% | 2.80% | 1.46% | -95.70% | |
49 Neutral | $2.38B | ― | -8.46% | 4.92% | -6.09% | 17.71% |
* Consumer Cyclical Sector Average
Performance Comparison
NWL
Newell Brands
5.71
-1.98
-25.75%
CLX
Clorox
135.51
5.76
4.44%
HELE
Helen Of Troy
31.26
-74.63
-70.48%
SPB
Spectrum Brands Holdings
64.00
-26.69
-29.43%
COTY
Coty
5.05
-5.31
-51.25%
EPC
Edgewell Personal Care
28.37
-11.27
-28.43%
Newell Brands Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 10.44%|
Next Earnings Date:Jul 25, 2025
Earnings Call Sentiment Neutral
Newell Brands shows resilience with strong strategic positioning in U.S. and Mexican manufacturing and operational efficiency improvements, despite challenges posed by new tariffs on Chinese imports and reduced market growth expectations.Q1-2025 Updates
Positive Updates
Q1 Financial Performance
Core sales at minus 2.1% performed at the high end of guidance. Normalized gross margin increased by 150 basis points, and normalized earnings per share exceeded guidance by $0.05.
Strategic U.S. and Mexican Manufacturing Advantage
Newell Brands has significantly reduced dependency on China, with U.S. and Mexico facilities providing competitive advantage due to tariff-free production in key categories like Rubbermaid and Oster.
Operational Improvements
Gross productivity savings and pricing more than offset inflation and foreign exchange headwinds, with the gross margin improving for the seventh consecutive quarter.
Negative Updates
China Tariff Impact
An additional 125% tariff on Chinese imports poses a significant risk, particularly impacting the baby gear segment, which forms a substantial part of Newell's China imports.
Reduced Market Growth Expectations
The company lowered its market growth expectations from flat to a decline of 1% to 2% due to lower consumer confidence and muted macroeconomic forecasts.
Q1 Cash Flow Decline
Operating cash outflow was $213 million compared to a positive cash flow of $32 million in the prior year, impacted by higher bonus payouts and inventory purchases.
Company Guidance
During Newell Brands' first quarter 2025 earnings call, management provided guidance indicating a strong start to the year with core sales down 2.1%, which was at the high end of their guidance range. The company reported an increase in normalized gross margin by 150 basis points, marking the seventh consecutive quarter of expansion, and a normalized operating margin that exceeded expectations. Despite a challenging macroeconomic environment, Newell maintained its net sales guidance, adjusting category growth expectations to a decline of 1% to 2%, while anticipating stronger performance in the second half of the year due to product innovation and distribution gains. The company plans to mitigate the impact of a 125% China tariff, primarily affecting the baby gear segment, by leveraging domestic and Mexican manufacturing capabilities. Newell's strategy includes seizing market opportunities in tariff-advantaged categories, which are expected to offset challenges, ultimately reaffirming their full-year guidance for normalized operating margin and earnings per share.Newell Brands Corporate Events
Executive/Board ChangesShareholder Meetings
Newell Brands Stockholders Approve Key Proposals at Meeting
Neutral
May 14, 2025
On May 8, 2025, Newell Brands held its Annual Meeting where stockholders voted on several key proposals. The stockholders elected nine nominees to the Board of Directors for a one-year term and ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. They also approved the advisory resolution on executive compensation and an amendment to the 2022 Incentive Plan. However, a proposal for additional stock retention requirements for executives was not approved.
The most recent analyst rating on (NWL) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Newell Brands stock, see the NWL Stock Forecast page.
Spark’s Take on NWL Stock
According to Spark, TipRanks’ AI Analyst, NWL is a Neutral.
Newell Brands’ stock faces significant financial performance challenges, including declining revenue and profitability issues. Despite operational improvements and strategic positioning highlighted in the earnings call, technical indicators point to a bearish trend, and valuation metrics raise concerns. The company’s high dividend yield may attract some investors, but underlying financial health issues and macroeconomic risks, such as tariffs, weigh heavily on the stock’s overall performance.
To see Spark’s full report on NWL stock, click here.
Private Placements and Financing
Newell Brands Announces $1.25B Senior Notes Offering
Neutral
May 9, 2025
On May 8, 2025, Newell Brands Inc. announced the launch and pricing of a private offering of $1.25 billion in senior unsecured notes due 2028, with an interest rate of 8.50%. The proceeds from this offering, along with cash on hand, will be used to redeem its outstanding 4.20% senior notes due 2026. This financial maneuver is expected to close on May 22, 2025, and is aimed at optimizing the company’s debt structure.
Spark’s Take on NWL Stock
According to Spark, TipRanks’ AI Analyst, NWL is a Neutral.
Newell Brands’ stock faces significant financial performance challenges, including declining revenue and profitability issues. Despite operational improvements and strategic positioning highlighted in the earnings call, technical indicators point to a bearish trend, and valuation metrics raise concerns. The company’s high dividend yield may attract some investors, but underlying financial health issues and macroeconomic risks, such as tariffs, weigh heavily on the stock’s overall performance.
To see Spark’s full report on NWL stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.