Newell Brands Inc. (NWL) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

Newell Brands's EV/EBITDA of 18.0 is above its 5-year median of 17.6.

P/B below the industry

Newell Brands's price-to-book of 1.06 is below the Miscellaneous Plastics Products median of 3.56.

Trading above fair value

The share price of $5.86 is above our fair value estimate of $5.74.

Margin of safety under 20%

The price is 2.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -8.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 0.8% over the last twelve months; the Miscellaneous Plastics Products median is 9.2%.

Guidance raised

Newell Brands raised its Full Year 2026 Net Sales outlook on Jul 31, 2026.

Gross margin improving

Gross margin was 35.6% over the last twelve months, against 34.0% a year earlier.

Return on equity under 15%

Return on equity was -12.8% over the last twelve months and averaged -1.9% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 0.8%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Newell Brands's return on equity of -12.8% is below the Miscellaneous Plastics Products median of 7.1%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -4.4% over the last twelve months, against a 5-year average of -0.7%.

Net margin below the industry

Newell Brands's net margin of -4.4% is below the Miscellaneous Plastics Products median of 5.0%.

High debt

Debt is 205% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 145% five years ago to 205%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 5.2% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.27 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.53; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Newell Brands paid dividends worth 4.8% of the share price over the last twelve months.

Yield above Treasuries

The 4.8% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Newell Brands yields 4.8%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Not covered by free cash flow

Dividends take 240% of free cash flow.