Newell Brands Facing Multiple Headwinds, Taking Steps to Boost Margins
January 31, 2023
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Newell Brands ($NASDAQ:NWL) Inc. is a global consumer goods company that owns a variety of well-known consumer brands, including Rubbermaid, Coleman, and Sharpie. The company has been facing multiple headwinds in recent times, such as reduced consumer demand, dwindling discretionary spending, and destocking of retail inventories. These factors have led to a decrease in sales growth and margin compression due to inflationary pressures and decreased volume. In order to recover margins, the company is taking steps to boost them, such as price increases, productivity enhancements, and overhead cost reductions. The company has implemented price increases across most of its categories to combat inflationary pressures and to help recover profits.
Additionally, it has taken steps to enhance its productivity by streamlining processes and improving its supply chain. Newell Brands Inc. is also working to reduce overhead costs, such as cutting down on administrative expenses and reducing its workforce. These cost-cutting measures are expected to lead to improved margins in the latter half of FY23 and beyond. Apart from these initiatives, Newell Brands Inc. has also been focusing on its innovation strategy and portfolio management in order to create products that meet the needs of current and future customers. The company is also working on improving its customer service so that it can better serve its customers and create long-term loyalty. With these efforts, Newell Brands Inc. is looking to regain its competitive edge in the industry and to improve its margins in the coming quarters.
Price History
Newell Brands Inc. has been facing multiple headwinds in the past year but is actively taking steps to boost its margins. On Thursday, the company’s stock opened at $15.0 and closed at $14.8, down 1.7% from previous closing price of 15.1. The company has been struggling to maintain its market share due to intense competition in the consumer goods industry. The company is also facing headwinds from its costumers shifting their attention to similar products offered by its competitors. To boost its margins, Newell Brands Inc. has been taking several steps such as focusing on cost optimization, streamlining its product portfolio, and improving its operational efficiency. The company has also been exploring strategic acquisitions and partnerships to gain access to new markets and technologies.
Furthermore, the company has also been developing new product lines to diversify its portfolio. New products such as home appliances, outdoor gear, and kitchenware have helped the company to reduce its dependence on existing products. The company is also expanding its product range in existing categories such as electronics and office supplies. By taking these steps, the company hopes to boost its margins and remain competitive in the market. The company is confident that by focusing on cost optimization, streamlining its product portfolio, and improving its operational efficiency, it will be able to overcome the current headwinds and remain a major player in the consumer goods industry. 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 |
| 9.98k | 565 | 6.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Newell Brands. More…
| Operations | Investing | Financing |
| -173 | 332 | 1 |
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 |
| 14.68k | 10.9k | 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 |
| 6.3% | 21.1% | 8.5% |
| FCF Margin | ROE | ROA |
| -5.0% | 13.7% | 3.6% |
VI Analysis
NEWELL BRANDS is a medium risk investment according to the VI Risk Rating, which provides a simple and straightforward assessment of a company’s financial and business fundamentals. The rating takes into account several key factors such as profitability, liquidity, debt, cash flow, management performance, and operational efficiency. NEWELL BRANDS has been given a medium risk rating, indicating that there are some potential risks associated with investing in the company. The VI App has detected two risk warnings in the income sheet and balance sheet of the company. The income sheet shows that the company has a high debt-to-equity ratio, meaning that it is highly leveraged and may have difficulty repaying its debts. The balance sheet shows that the company has high working capital levels, indicating that it may be struggling to meet its short-term cash flow needs. Overall, the VI Risk Rating suggests that investors should proceed with caution when investing in NEWELL BRANDS. While the company has some potential for long-term growth, investors should keep an eye on the company’s financial and business fundamentals to ensure that any risks are being adequately managed. Investors should also consider registering on the VI App to get detailed insights into the company’s financials and risks. More…
VI 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
Newell Brands Inc. is facing numerous headwinds, such as declining sales and rising costs. The company is taking steps to improve its margins in order to become more competitive in the market. This includes cost-cutting measures, streamlining operations, and focusing on core businesses.
Its stock price has been volatile due to these headwinds, but investors should consider the long-term potential of the company when investing. Newell Brands has the potential to become a leader in the consumer goods sector, and its strategic moves could help it achieve that goal.
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