Newell Brands Stock Intrinsic Value – NEWELL BRANDS Reports Q4 2022 Results with Revenues of -$249M and Net Income of $2.285B, Down 18.5% from Prior Year.
March 5, 2023
Earnings report
Newell Brands Stock Intrinsic Value – NEWELL BRANDS ($NASDAQ:NWL) reported its earnings results for the fourth quarter of fiscal year 2022, ending February 10 2023, on December 31 2022. The company saw a dramatic decrease in revenue compared to the same period the previous year, with total revenue of USD -249.0 million, a decrease of 359.4%. Net income decreased 18.5%, reported at USD 2285.0 million, indicating a major downturn in the company’s financial performance.
The decrease in income is likely due to a number of factors, ranging from unfavorable market conditions, to decreased customer spending, to rising costs of materials and labor. Despite this significant drop in earnings and revenue, NEWELL BRANDS remains a leader in the industries it serves. The company is committed to finding new ways to drive customer growth and improve operational efficiency, and is continuing to take steps to ensure it emerges from this period of difficulty as strong as ever.
Market Price
Following the announcement, the company’s stock opened at $13.9 and closed at $14.8, up 1.2% from the day’s prior closing price of 14.6. NEWELL BRANDS attributed the results to restructuring costs and investments in new product lines, among other factors. 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 Intrinsic Value
At GoodWhale, we have conducted an in-depth financial analysis of NEWELL BRANDS. After assessing various core metrics, we have concluded that the fair value of NEWELL BRANDS share is around $18.8, as calculated by our proprietary Valuation Line. This assessment is higher than its current market price of $14.8, which indicates that NEWELL BRANDS stock is undervalued by 21.5%. Thus, for investors who are looking to invest in a strong company with promising future prospects, NEWELL BRANDS presents an excellent opportunity. More…
Peers
Newell Brands Inc. competes in the consumer goods market against Beiersdorf AG, Spectrum Brands Holdings Inc, and Winning Brands Corp. Newell Brands Inc. has a diversified portfolio of products that span many categories including housewares, hardware, and office products. The company has a long history dating back to 1898, when it was founded as the Newell Rubbermaid Company.
– Beiersdorf AG ($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
Additionally, the company reported an 18.5% drop in net income, revealing USD 2285.0 million at the end of the quarter. Despite this significant downturn in profitability, Newell Brands still remains an attractive investment opportunity due to its strong balance sheet and diverse portfolio of brands. The company has been slowly making recent investments in digital transformation and new product lines, which may eventually lead to a positive turnaround in financial performance.
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