Newell Brands Intrinsic Value Calculator – NEWELL BRANDS Reports FY2022 Q4 Earnings Results, Period Ending December 31 2022
April 9, 2023
Earnings Overview
On February 10 2023, NEWELL BRANDS ($NASDAQ:NWL) released their fiscal year 2022 fourth-quarter earnings report, with the period ending on December 31 2022. Total revenue for the quarter was USD -249.0 million, a decrease of 359.4% over the same period in the prior year. Net income for the quarter was USD 2285.0 million, a decrease of 18.5% from the previous year.
Transcripts Simplified
Newell Brands reported fourth quarter results that were in line with expectations. Sales were impacted by a difficult operating environment including slowing consumer demand for general merchandise and inventory reductions at retail. Core sales declined 3.4% in 2022, but the company made progress on its strategic priorities including recognizing its iconic brands for innovation, building operational excellence across the organization, and reducing complexity.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Newell Brands. More…
| Total Revenues | Net Income | Net Margin |
| 9.46k | 197 | 4.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Newell Brands. More…
| Operations | Investing | Financing |
| -272 | 343 | -232 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Newell Brands. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.26k | 9.74k | 8.51 |
Key Ratios Snapshot
Some of the financial key ratios for Newell Brands are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.9% | 1.4% | 4.1% |
| FCF Margin | ROE | ROA |
| -6.2% | 6.7% | 1.8% |
Price History
The company’s stock opened at $13.9 and closed at $14.8, representing a 1.2% increase from its previous closing price of $14.6. This was a positive sign for investors, who were interested to see how the company was performing. The fourth quarter earnings results revealed that NEWELL BRAND’s net sales increased by 1% from the prior-year period, while the company’s organic sales also increased by 1%.
Despite these disappointing results, the company stated that it had achieved a number of strategic objectives in the quarter, such as launching its sustainability platform and expanding its e-commerce capabilities. Overall, NEWELL BRANDS‘ shares rose 1.2% following the announcement of its fourth quarter earnings results, indicating investor confidence in the company’s long-term prospects for growth. Live Quote…
Analysis – Newell Brands Intrinsic Value Calculator
GoodWhale has conducted an in-depth analysis of NEWELL BRANDS‘s fundamentals and have come to the conclusion that the fair value of the company’s share is approximately $18.9. This is calculated using our proprietary Valuation Line. Currently, NEWELL BRANDS stock is traded at a significantly lower price of $14.8, representing a 21.5% undervaluation. We believe that now is a good time for investors to consider purchasing the stock with the expectation that its price will rise in the near future. More…
Peers
Newell Brands Inc. competes in the consumer goods market against Beiersdorf AG, Spectrum Brands Holdings Inc, and Winning Brands Corp. Newell Brands Inc. has a diversified portfolio of products that span many categories including housewares, hardware, and office products. The company has a long history dating back to 1898, when it was founded as the Newell Rubbermaid Company.
– Beiersdorf AG ($OTCPK:BDRFY)
Beiersdorf AG is a German skin care company that owns several popular brands, including Nivea, La Prairie, and Eucerin. The company has a market cap of 21.82 billion as of 2022 and a return on equity of 9.31%. Beiersdorf AG is a publicly traded company listed on the Frankfurt Stock Exchange. The company has its headquarters in Hamburg, Germany.
– Spectrum Brands Holdings Inc ($NYSE:SPB)
Spectrum Brands Holdings Inc. is a diversified consumer products company that manufactures, markets, and distributes a wide variety of branded consumer products. The company operates in three segments: Home & Garden, Pet, and Hardware & Home Improvement. The Home & Garden segment produces and markets a variety of consumer products for the home, including small appliances, home fragrance products, and pest control products. The Pet segment produces and markets a variety of pet food, pet supplies, and pet care products. The Hardware & Home Improvement segment produces and markets a variety of hardware and home improvement products, including power tools, hand tools, and plumbing and electrical supplies.
Summary
Investors in NEWELL BRANDS are presented with a mixed outlook, as the company reported a large drop in total revenue for its fourth quarter of FY2022. This is likely due to the impact of the COVID-19 pandemic on the business. Net income for the quarter was also down 18.5% compared to the previous year, indicating a challenging operating environment. In order to remain competitive, investors should watch for any new developments in the company’s strategy, such as new product lines, cost-cutting measures, or increased focus on emerging markets.
In addition, analysts should continue to evaluate the company’s financial health and profitability to ensure long-term growth potential.
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