Newell Brands Stock Fair Value – NEWELL BRANDS Reports FY2022 Q4 Revenue Decrease of 359.4% Year-Over-Year
February 27, 2023
Earnings report
Newell Brands Stock Fair Value – NEWELL BRANDS ($BER:NWL) recently released their FY2022 Q4 earnings results on February 10th 2023 with a total revenue of USD -249.0 million, compared to the same quarter the previous year which saw an increase of 359.4%. This decrease in revenue is largely attributed to the effects of the coronavirus pandemic which has led to economic uncertainty and a decrease in consumer spending. The company’s net income for the same period was USD 2285.0 million, a decrease of 18.5% year over year.
This decrease could be attributed to the lower demand for some of NEWELL BRANDS’ products, as well as increased costs associated with manufacturing and supply chain logistics. Overall, NEWELL BRANDS is facing a challenging fiscal year as the consequences of the pandemic linger. While the company is taking appropriate steps to adjust and adapt to these circumstances, their current performance is a stark reminder of the difficulty these changes have caused.
Stock Price
On Friday, NEWELL BRANDS reported a significant decrease in revenue for the fourth quarter of 2022 of 359.4% year-over-year. This had an adverse effect on the company’s stock, which opened at €13.5 and closed at €13.5, down by 3.9% from its prior closing price of 14.0. The cause of the decrease was attributed to a multitude of factors such as an increase in product costs, tightened cost controls and a decrease in consumer demand due to the global pandemic.
The overall effect of this resulted in an overall decrease in sales. Management at NEWELL BRANDS continues to take steps to increase efficiency and limit risks in order to reduce the impact of future downturns, however it is clear this will not fully mitigate the impact felt in the fourth quarter of 2022. Live Quote…
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 | 5.2% |
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 | 9.13 |
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% |
Analysis – Newell Brands Stock Fair Value
At GoodWhale, we have conducted an in-depth analysis of NEWELL BRANDS’s financials to gain an understanding of its true worth. Our proprietary Valuation Line model indicates that the fair value of NEWELL BRANDS’s share price is around €29.8. Currently, NEWELL BRANDS stock is trading at €13.5, which means that investors are getting it at a discount of 54.7%. This presents a great opportunity for investors to buy in and wait for the stock price to rise to its fair value. More…
Summary
NEWELL BRANDS has reported a decline of 18.5% year-on-year in net income for the same reporting period, amounting to USD 2285.0 million. This news has been reflected in the decline of the stock’s price, revealing that investors have reacted negatively to the lower profitability. Investors considering investing in NEWELL BRANDS should be aware of this decline and consider if it is a sign of a prolonged period of reduced returns or just a temporary issue that the company can soon move past. An in-depth analysis of its financials and industry trends may provide better insight for decision-making.
