Newell Brands (NWL) AI Stock Analysis

• Market Cap: $2.42B
• Dividend Yield: 4.85%
• Average Volume (3M): 7.75M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: -5.29%
• EPS Growth: 9.72%
• Country: US
• Employees: 23,700
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Household & Personal Products
• EPS (TTM): 0.24
• Shares Outstanding: 419,100,000
• 10 Day Avg. Volume: 7,282,895
• 30 Day Avg. Volume: 7,750,390
• 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: 3.18
• Enterprise Value/Revenue: 1.04
• Enterprise Value/Gross Profit: 3.03
• Enterprise Value/Ebitda: 28.06
• 1Y Price Target: $6.81
• Price Target Upside: 18.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 51 Neutral
• Price Target: $6.00 ▲(3.99% Upside)

Newell Brands' overall stock score is primarily impacted by its financial performance challenges, including declining revenues and high leverage. While technical indicators and valuation metrics provide a mixed view, the earnings call highlights some strategic improvements and optimism for future growth. However, the company's financial constraints and market conditions remain significant risks.

Positive Factors

Innovation and Distribution

Newell Brands is experiencing increased speed of relevant innovation and distribution gains in key retailers, contributing to a positive outlook.

Margin Expansion

There have been eight consecutive quarters of significant year-over-year gross margin expansion as management focuses on improving structural economics.

Operational Efficiency

The company has prioritized investment to its largest and most profitable brands, cutting the number of master brands from 80 to 55.

Negative Factors

Earnings Guidance

The company lowered its EPS guidance mostly due to higher China tariffs that were in effect for several weeks.

Market Expectations

The market clearly doesn’t expect growth to return anytime soon given the stock’s performance year-to-date.

Sales Performance

Core sales trends showed improvement but experienced a setback with a decrease in the first half of 2025, interrupting steady progress.

Newell Brands Business Overview & Revenue Model

Company Description

Newell Brands Inc. is a global consumer goods company that designs, manufactures, and distributes a diverse portfolio of products across multiple sectors, including home and outdoor living, writing, and baby care. The company's well-known brands include Rubbermaid, Sharpie, Elmer's, and Graco, among others. Newell operates through various segments such as Home & Outdoor Living, Learning & Development, and Baby, providing a wide range of household, office, and personal care products to consumers and businesses worldwide.

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: Positive
• Last Price: 5.77
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 5.77 is above the 20-day moving average (MA) of 5.37, above the 50-day MA of 5.53, and below the 200-day MA of 6.95, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.15 is Neutral, neither overbought nor oversold. The STOCH value of 68.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NWL.

Newell Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLX	71 Outperform	$14.72B	18.46	249.61%	4.07%	0.16%	191.17%
Sector *	63 Neutral	$20.84B	14.73	-4.08%	3.07%	2.70%	-8.60%
SPB	62 Neutral	$1.32B	20.35	2.98%	3.19%	-2.78%	-17.38%
COTY	61 Neutral	$3.43B	40.12	-9.98%	―	-3.68%	-631.67%
EPC	58 Neutral	$1.11B	17.70	4.12%	2.50%	-2.92%	-43.06%
NWL	51 Neutral	$2.42B	―	-8.42%	4.85%	-5.29%	9.72%
HELE	49 Neutral	$531.19M	5.74	-23.99%	―	-4.39%	-326.42%

Newell Brands Corporate Events

Newell Brands Stockholders Approve Key Proposals at Meeting

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.