Newell Brands (NWL) AI Stock Analysis

• Market Cap: $1.54B
• Dividend Yield: 7.45%
• Average Volume (3M): 11.67M
• 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: 8,917,700
• 30 Day Avg. Volume: 11,672,450
• 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: 4.76
• Enterprise Value/Revenue: 1.01
• Enterprise Value/Gross Profit: 2.96
• Enterprise Value/Ebitda: 12.26
• 1Y Price Target: $4.78
• Price Target Upside: 29.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.57
• Revenue Forecast (FY): $7.20B

• Rating: 49 Neutral
• Price Target: $4.00 ▲(8.40% Upside)

Newell Brands' overall stock score is primarily impacted by its financial performance challenges, including declining revenues and high leverage. Technical analysis indicates a bearish trend, and valuation metrics suggest potential overvaluation despite a high dividend yield. While the earnings call highlighted some positive developments, significant risks remain, particularly from tariff impacts and international market slowdowns.

Positive Factors

Innovation Pipeline

A strong innovation pipeline with new product launches can drive future growth and enhance competitive positioning, supporting long-term revenue expansion.

Cost Management

Effective cost management improves operational efficiency, potentially leading to better profit margins and financial health over the long term.

Improved Financial Health

Reduction in net debt and leverage ratio indicates improved financial stability, enhancing the company's ability to invest in growth opportunities.

Negative Factors

Sales Decline

Declining sales reflect challenges in demand and inventory management, which can impact revenue growth and market share if not addressed.

Impact of Tariffs

Increased tariff costs can erode profit margins and affect pricing strategies, posing a long-term risk to profitability and competitive positioning.

International Market Challenges

Economic slowdowns in international markets can hinder revenue growth and limit expansion opportunities, affecting the company's global strategy.

Newell Brands Business Overview & Revenue Model

Company Description

Newell Brands Inc. (NWL) is a global consumer goods company based in the United States, specializing in a diverse range of products across multiple sectors including home and outdoor, writing, and baby care. The company’s portfolio includes well-known brands such as Rubbermaid, Sharpie, Elmer's, Graco, and Coleman, which cater to various consumer needs from household organization to outdoor leisure activities. Newell Brands operates through several segments, focusing on innovation and quality to enhance everyday life for consumers.

How the Company Makes Money

Newell Brands generates revenue primarily through the sale of its wide array of consumer products. The company's revenue model is based on direct sales of its branded products to retailers, wholesalers, and online platforms. Key revenue streams include sales from categories such as home solutions, writing instruments, and baby products. The company also benefits from partnerships with major retailers, which allow for extensive distribution and visibility of its products. Seasonal demand for certain items, such as outdoor gear in the summer or school supplies in the fall, plays a significant role in revenue generation, along with ongoing marketing and promotional activities that drive consumer engagement and sales. Additionally, Newell Brands focuses on strategic acquisitions to expand its product offerings and market reach, further contributing to its earnings.

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	5.33B	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: Neutral
• Last Price: 3.69
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 3.69 is above the 20-day moving average (MA) of 3.38, below the 50-day MA of 4.16, and below the 200-day MA of 5.16, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 49.63 is Neutral, neither overbought nor oversold. The STOCH value of 67.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$20.06B	26.30	18.59%	1.41%	1.45%	42.04%
SPB	64 Neutral	$1.34B	14.88	4.92%	3.21%	-5.21%	1.96%
CL	63 Neutral	$63.53B	22.09	450.35%	2.65%	-0.05%	2.49%
EPC	63 Neutral	$789.89M	31.86	1.62%	3.42%	-1.34%	-73.59%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CLX	53 Neutral	$12.92B	16.60	4163.16%	4.68%	-9.35%	123.06%
NWL	49 Neutral	$1.54B	―	-0.86%	7.45%	-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.