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Newell Brands
(NASDAQ:NWL)
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Rating:52Neutral
Price Target:
$6.00
▲(38.57% Upside)
Action:Reiterated
Date:06/27/26
The score is primarily held back by weak financial performance: steep TTM revenue decline, ongoing losses, high leverage, and thin free cash flow. Technicals are supportive with price above major moving averages and positive MACD, but momentum is overextended (high RSI/Stoch), adding pullback risk. Valuation is mixed—an attractive dividend yield is offset by a negative P/E due to losses. The latest earnings call was cautiously constructive with raised guidance and operational progress, but leverage and cost/tariff pressures remain key near-term constraints.
Positive Factors
Brand portfolio and retail execution
Consistent market-share gains across core brands and improving point-of-sale trends indicate durable consumer demand and stronger retailer placement. This supports sustainable revenue recovery prospects and pricing power as top brands drive share gains long-term.
Negative Factors
Elevated leverage
High absolute debt and reduced equity cushion constrain financial flexibility and limit the firm's ability to invest or absorb shocks. Elevated leverage increases interest sensitivity, makes deleveraging multi-quarter, and heightens execution risk if sales recovery stalls.
Read all positive and negative factors
Positive Factors
Negative Factors
Brand portfolio and retail execution
Consistent market-share gains across core brands and improving point-of-sale trends indicate durable consumer demand and stronger retailer placement. This supports sustainable revenue recovery prospects and pricing power as top brands drive share gains long-term.
Read all positive factors
Newell Brands Key Performance Indicators (KPIs)
Any
Normalized Operating Income by Segment
Shows the profitability of each business segment, highlighting which areas are driving earnings and which may need strategic adjustments.
Shows the profitability of each business segment, highlighting which areas are driving earnings and which may need strategic adjustments.
Data provided by:
The Fly
The FlyNewell Brands (NWL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.09B
Dividend Yield7.76%
Average Volume (3M)9.47M
Price to Earnings (P/E)―
Beta (1Y)1.34
Revenue Growth-4.11%
EPS Growth-14.23%
CountryUS
Employees23,700
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)-0.67
Shares Outstanding424,900,000
10 Day Avg. Volume12,894,991
30 Day Avg. Volume9,473,422
Financial Highlights & Ratios
PEG Ratio-0.18
Price to Book (P/B)0.65
Price to Sales (P/S)0.22
P/FCF Ratio91.51
Enterprise Value/Market Cap3.56
Enterprise Value/Revenue1.03
Enterprise Value/Gross Profit3.04
Enterprise Value/Ebitda21.36
Forecast
1Y Price Target
$4.93Price Target Upside13.82% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)0.58
Revenue Forecast (FY)$7.29B
Newell Brands Business Overview & Revenue Model
Company Description
Headquartered in Atlanta, Georgia, and established in 1903, Newell Brands Inc. is a global enterprise specializing in the development, manufacturing, sourcing, and distribution of a broad spectrum of consumer and commercial products. Its operation...
How the Company Makes Money
Newell Brands makes money primarily by selling branded consumer products to retail and e-commerce customers (and, in some cases, distributors/wholesalers) at wholesale prices; those customers then sell to end consumers. Revenue is generated across...
Newell Brands Earnings Call Summary
Earnings Call Date:May 01, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Positive
The call conveyed a cautiously optimistic tone: management reported a stronger-than-expected Q1 with margin expansion, significant brand and POS momentum, and the decision to raise full-year net sales, core sales and EPS guidance. These positives are tempered by continued YoY core sales decline in Q1, a negative normalized EPS in the quarter, elevated net leverage (~5.4x), and a dynamic external cost/tariff environment that adds roughly $50 million of incremental cost risk (partially offset by an improved tariff outlook). Management highlighted meaningful operational improvements (pricing/deduction management, productivity, domestic automation) and a robust innovation pipeline that support their confidence in a Q2 inflection and the raised guidance, but cash outflows, commodity/diesel exposure and tariff fluidity remain notable near-term risks.Positive Updates
Q1 Results Above Expectations
First quarter results came in ahead of expectations across key metrics: net sales down 1.1% YoY but core sales improved sequentially and were only -3.5% YoY; normalized operating margin expanded 30 bps YoY to 4.8% and normalized gross margin expanded 70 bps to 33.2%. Normalized EPS outperformed prior guidance (management noted EPS was $0.03 better than the upper end of prior guidance and Mark reported a normalized -$0.05 loss per diluted share, ahead of previous guidance).
Negative Updates
Core Sales Still Declined YoY
Core sales declined 3.5% YoY in Q1 despite sequential improvement. Net sales declined 1.1% YoY (favorable FX of ~2.7 points and 0.3 points of exits/other helped the net figure). Management only expects a return to top-line growth in Q2.
Read all updates
Q1-2026 Updates
Positive
Negative
Q1 Results Above Expectations
First quarter results came in ahead of expectations across key metrics: net sales down 1.1% YoY but core sales improved sequentially and were only -3.5% YoY; normalized operating margin expanded 30 bps YoY to 4.8% and normalized gross margin expanded 70 bps to 33.2%. Normalized EPS outperformed prior guidance (management noted EPS was $0.03 better than the upper end of prior guidance and Mark reported a normalized -$0.05 loss per diluted share, ahead of previous guidance).
Read all positive updates
Company Guidance
Management raised full-year targets: net sales now expected flat to +2% (prior -1% to +1%), core sales -1% to +1% (prior -2% to 0%), and normalized diluted EPS raised to $0.56–$0.60 (bottom end +$0.02); normalized operating margin guidance is unchanged at 8.6%–9.2% and the effective tax rate is expected in the high teens. For Q2 management expects net and core sales flat to +2%, normalized operating margin 9.6%–10.2% and normalized EPS $0.16–$0.19 (Q2 includes ~ $25M incremental year‑over‑year tariff costs, higher diesel and increased A&P). Company-wide 2026 tariff P&L costs are now estimated at ~$120M (~$0.24/sh) with quarterly impacts of ~$0.10 in Q1, $0.07 in Q2, $0.05 in Q3 and $0.03 in Q4; commodities and transportation are expected to add roughly $50M versus the original plan (resin costs assumed ~40% higher versus a year ago for the balance of the year; diesel assumed ~ $5/gal), and sensitivity is about $5M of P&L impact per $5/barrel move in oil. Cash and capital assumptions: operating cash flow $350M–$400M (now expected toward the lower end), CapEx ~$200M, an incremental ~$60M investing cash inflow from liquidating life‑insurance assets, and a plan to reduce year‑end leverage by about half a turn.Newell Brands Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
38
Negative
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.19B | 7.20B | 7.58B | 8.13B | 9.46B | 10.59B |
| Gross Profit | 2.44B | 2.43B | 2.55B | 2.44B | 2.83B | 3.36B |
| EBITDA | 348.00M | 331.00M | 358.00M | 107.00M | 688.00M | 1.34B |
| Net Income | -281.00M | -285.00M | -216.00M | -388.00M | 197.00M | 622.00M |
Balance Sheet | ||||||
| Total Assets | 10.86B | 10.71B | 11.00B | 12.16B | 13.26B | 14.27B |
| Cash, Cash Equivalents and Short-Term Investments | 201.00M | 203.00M | 198.00M | 332.00M | 287.00M | 440.00M |
| Total Debt | 5.52B | 5.65B | 5.12B | 5.47B | 6.01B | 5.51B |
| Total Liabilities | 8.52B | 8.32B | 8.25B | 9.05B | 9.74B | 10.11B |
| Stockholders Equity | 2.34B | 2.39B | 2.75B | 3.11B | 3.52B | 4.16B |
Cash Flow | ||||||
| Free Cash Flow | 19.00M | 17.00M | 237.00M | 646.00M | -584.00M | 595.00M |
| Operating Cash Flow | 244.00M | 264.00M | 496.00M | 930.00M | -272.00M | 884.00M |
| Investing Cash Flow | -166.00M | -164.00M | -151.00M | -199.00M | 343.00M | -268.00M |
| Financing Cash Flow | -85.00M | -101.00M | -451.00M | -664.00M | -232.00M | -1.14B |
Newell Brands Technical Analysis
Positive
4.33
Price Trends
4.20
Positive
4.11
Positive
4.11
Positive
Market Momentum
0.47
Negative
78.12
Negative
90.86
Negative
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 4.33 is below the 20-day moving average (MA) of 4.52, above the 50-day MA of 4.20, and above the 200-day MA of 4.11, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 78.12 is Negative, neither overbought nor oversold. The STOCH value of 90.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $2.03B | 16.54 | 6.65% | 3.15% | -3.76% | 148.09% | |
65 Neutral | $22.66B | 30.86 | 17.45% | 1.38% | 2.22% | 29.40% | |
64 Neutral | $71.60B | 34.40 | 475.13% | 2.67% | 4.26% | -27.12% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $11.58B | 15.38 | 2826.17% | 5.05% | -3.69% | 10.26% | |
56 Neutral | $1.28B | -16.40 | -5.14% | 3.51% | -5.30% | -196.78% | |
52 Neutral | $2.09B | ― | -11.10% | 7.76% | -4.11% | -14.23% |
* Consumer Defensive Sector Average
NWL
Newell Brands
5.82
0.77
15.22%
CHD
Church & Dwight
99.58
4.71
4.97%
CLX
Clorox
97.54
-17.35
-15.10%
CL
Colgate-Palmolive
92.07
3.41
3.85%
SPB
Spectrum Brands Holdings
87.49
35.68
68.87%
EPC
Edgewell Personal Care
27.72
4.99
21.93%
Newell Brands Corporate Events
Executive/Board ChangesShareholder Meetings
Newell Brands Shareholders Approve Directors, Auditor and Compensation
Positive
May 13, 2026
At its annual meeting held on May 7, 2026, Newell Brands shareholders voted 368,135,426 of 424,927,772 eligible shares and elected eight directors, including Christopher H. Peterson and Bridget Ryan Berman, to one-year terms on the board. Investor...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.