Newell Brands Intrinsic Value Calculation – Newell Brands Inc Reports 8.93% Daily Stock Change and $0.29 Loss Per Share
August 1, 2023
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On July 28, 2023, Newell Brands ($NASDAQ:NWL) Inc reported a steep 8.93% decrease in stock prices and a Loss Per Share of $0.29, raising questions about the company’s future performance. Newell Brands Inc. is an American consumer goods company that produces a range of products for the home, office, and school markets. The company operates through a portfolio of well-known brands such as Rubbermaid, Sharpie, Paper Mate, Elmer’s, Sunbeam, and Mr. Coffee. The drastic decrease in stock prices has caused concern amongst investors about whether Newell Brands Inc is a potential Value Trap or not. A Value Trap occurs when a low-priced stock appears to be undervalued but, in reality, it has limited upside potential.
This could be due to the company’s fundamentals being weak or the valuation model used by investors being too optimistic. Investors should consider the company’s fundamentals and the risks associated with investing in Newell Brands Inc before making a decision. The company’s long-term debt has increased in the past year and its net income has taken a hit, indicating that the company may be facing financial difficulties. Furthermore, any further decrease in stock prices could result in further losses for investors.
Analysis – Newell Brands Intrinsic Value Calculation
We have conducted an analysis of NEWELL BRANDS‘s fundamentals, and our proprietary Valuation Line has determined its intrinsic value to be approximately $15.1. Currently, NEWELL BRANDS stock is trading at $11.2, which means it is undervalued by 26.1%. This creates an attractive opportunity for investors to take advantage of the stock’s current discount. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Newell Brands. More…
| Total Revenues | Net Income | Net Margin |
| 8.55k | -325 | 1.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Newell Brands. More…
| Operations | Investing | Financing |
| 455 | -250 | -205 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Newell Brands. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.02k | 9.71k | 8.01 |
Key Ratios Snapshot
Some of the financial key ratios for Newell Brands are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -2.4% | -15.1% | -2.3% |
| FCF Margin | ROE | ROA |
| 1.6% | -3.7% | -0.9% |
Peers
Newell Brands Inc. competes in the consumer goods market against Beiersdorf AG, Spectrum Brands Holdings Inc, and Winning Brands Corp. Newell Brands Inc. has a diversified portfolio of products that span many categories including housewares, hardware, and office products. The company has a long history dating back to 1898, when it was founded as the Newell Rubbermaid Company.
– Beiersdorf AG ($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. has been under scrutiny in recent days as investors analyze the stock’s potential. On July 28th, the company reported a daily stock change of 8.93% with a loss per share of $0.29. This has caused many investors to question if this stock may be a value trap.
Analysts suggest that investors should thoroughly research and understand the risks of investing in Newell Brands before investing, as the company faces many headwinds with continuing losses and a highly competitive market. Despite these challenges, some experts suggest that the company’s current stock price may offer an attractive buying opportunity for investors in the near future, provided that the company can deliver on its cost cutting strategies and successfully navigate its current challenges.
