Newell Brands, Inc. (NWL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

PlayAGS, Inc.

3M Co.

Lifetime Brands, Inc.

Hillenbrand, Inc.

Ispire Technology, Inc.

Newell Brands, Inc.

Tupperware Brands Corp.

Toughbuilt Industries, Inc.

Why is Newell Brands, Inc. ?

Poor Management Efficiency with a low ROCE of 9.07%

The company has been able to generate a Return on Capital Employed (avg) of 9.07% signifying low profitability per unit of total capital (equity and debt)

With a fall in Net Sales of -18.34%, the company declared Very Negative results in Mar 26

OPERATING CASH FLOW(Y) Lowest at USD 244 MM
ROCE(HY) Lowest at -11.17%
INTEREST COVERAGE RATIO(Q) Lowest at 141.76

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 5.35%, its profits have fallen by -31.1%

Underperformed the market in the last 1 year

The stock has generated a return of 5.35% in the last 1 year, much lower than market (S&P 500) returns of 20.78%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Diversified)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Newell Brands, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Newell Brands, Inc.

5.35%

-0.43

58.66%

S&P 500

20.78%

1.56

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.15%

EBIT Growth (5y)

-11.29%

EBIT to Interest (avg)

2.90

Debt to EBITDA (avg)

4.80

Net Debt to Equity (avg)

1.78

Sales to Capital Employed (avg)

0.98

Tax Ratio

4.31%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

9.07%

ROE (avg)

13.67%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.63

EV to EBIT

12.52

EV to EBITDA

7.63

EV to Capital Employed

0.87

EV to Sales

0.84

PEG Ratio

Dividend Yield

7.72%

ROCE (Latest)

6.97%

ROE (Latest)

6.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 3.08 times

RAW MATERIAL COST(Y)

Fallen by -2.59% (YoY

-23What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 244 MM

ROCE(HY)

Lowest at -11.17%

INTEREST COVERAGE RATIO(Q)

Lowest at 141.76

DEBT-EQUITY RATIO (HY)

Highest at 225.45 %

NET SALES(Q)

Lowest at USD 1,549 MM

INTEREST(Q)

Highest at USD 91 MM

PRE-TAX PROFIT(Q)

Lowest at USD -52 MM

NET PROFIT(Q)

Lowest at USD -24 MM

Here's what is working for Newell Brands, Inc.

Inventory Turnover Ratio

Highest at 3.08 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -2.59% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Newell Brands, Inc.

Pre-Tax Profit

At USD -52 MM has Fallen at -231.65%

over average net sales of the previous four periods of USD 39.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -24 MM has Fallen at -159.55%

over average net sales of the previous four periods of USD 40.3 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 244 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales

At USD 1,549 MM has Fallen at -13.99%

over average net sales of the previous four periods of USD 1,801 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Interest Coverage Ratio

Lowest at 141.76

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at USD 1,549 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Interest

Highest at USD 91 MM

in the last five periods and Increased by 8.33% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

Lowest at USD -52 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -24 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 225.45 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio