Newell Brands (NWL) AI Stock Analysis

• Market Cap: $2.27B
• Dividend Yield: 5.16%
• Average Volume (3M): 9.66M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: -6.09%
• EPS Growth: 17.71%
• Country: US
• Employees: 23,700
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Household & Personal Products
• EPS (TTM): -0.01
• Shares Outstanding: 417,700,000
• 10 Day Avg. Volume: 11,458,400
• 30 Day Avg. Volume: 9,656,662
• PEG Ratio: -0.41
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.31
• Enterprise Value/Market Cap: 4.87
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 4.32
• Enterprise Value/Ebitda: 6.22
• 1Y Price Target: $6.94
• Price Target Upside: 32.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 52 Neutral
• Price Target: $5.50 ▲(4.96%Upside)

Newell Brands' overall stock score reflects its financial challenges, particularly in profitability and cash flow, despite some operational strengths highlighted in the earnings call. The technical analysis suggests a cautious outlook, and the valuation remains pressured by negative earnings.

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.

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.

Tariff advantage

The company is tariff advantaged with more U.S.-based manufacturing facilities, which provides a competitive edge over peers who source abroad.

Negative Factors

Core sales growth guidance

Guidance was largely reiterated apart from core sales growth where the company prudently adjusted its expectation for category growth to -1% to -2%.

Stock performance

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

Tariff uncertainty

The company used the term ‘preliminary’ to characterize its guidance, which spooked the market due to uncertainties about tariffs.

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 through the sale of its consumer products across various retail and online channels. The company's key revenue streams include sales to retail partners like Walmart, Amazon, and Target, as well as direct-to-consumer sales through brand-specific websites. Newell Brands also benefits from strategic partnerships and licensing agreements, which help to expand their market reach and product offerings. The company's earnings are influenced by its ability to innovate and adapt to consumer trends, manage supply chain efficiencies, and execute effective marketing strategies to maintain brand loyalty and capture market share.

Newell Brands Financial Statement Overview

Summary

Newell Brands faces significant financial challenges, with declining revenue, profitability issues, and volatile cash flow generation. Although certain balance sheet metrics provide stability, the negative net profit margins and declining EBIT margins highlight the need for improved income generation and cash flow efficiency.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 5.24
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 5.24 is below the 20-day moving average (MA) of 5.46, above the 50-day MA of 5.20, and below the 200-day MA of 7.40, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 45.11 is Neutral, neither overbought nor oversold. The STOCH value of 60.23 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
EPC	65 Neutral	$1.17B	13.52	5.53%	2.42%	-2.11%	-28.79%
HELE	64 Neutral	$620.83M	5.01	7.45%	―	-4.93%	-23.61%
Sector *	62 Neutral	$6.90B	11.05	2.80%	4.27%	2.67%	-24.92%
CLX	62 Neutral	$15.69B	22.10	1176.27%	3.96%	-2.64%	189.29%
COTY	61 Neutral	$4.39B	40.12	-10.58%	―	-1.68%	-302.11%
SPB	58 Neutral	$1.36B	24.74	2.79%	3.63%	1.46%	-95.70%
NWL	52 Neutral	$2.27B	―	-8.46%	5.16%	-6.09%	17.71%

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.

Newell Brands Announces $1.25B Senior Notes Offering

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.