Newell Brands Intrinsic Value Calculation – Newell Brands: Undervalued Company With Potential Turnaround Opportunity And Strong Brands

May 16, 2023

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Newell Brands ($NASDAQ:NWL) Inc. is an American publicly traded company that specializes in housewares, consumer products, and office supplies. It is best known for its portfolio of strong brand names such as Rubbermaid, Paper Mate, Elmer’s, Sharpie, and Graco. Despite its strong presence in the retail market, Newell Brands’ stock has been undervalued for some time, making it an attractive opportunity for investors. The company has recently initiated a plan to turn around its businesses and improve shareholder value. This includes extensive restructuring and divestiture of underperforming brands, while focusing on growth initiatives. Through these measures, Newell Brands hopes to become an even stronger force in the consumer products market and to increase its shareholder value. Newell Brands has been investing heavily in research & development for its core products, as well as launching new products and services that meet consumer needs.

For example, Newell Brands has introduced the “Grace” line of baby products, which allows parents to conveniently manage their baby’s needs with a single app. It has also acquired several tech startups that are helping the company stay ahead of the curve in the consumer products market. In addition to its product offerings, Newell Brands is also investing in marketing and advertising campaigns to increase brand awareness. With its strong portfolio of brands and its focus on improving shareholder value, Newell Brands is an attractive opportunity for investors. By taking advantage of the current market conditions and Newell Brands’ potential for a turnaround, investors can capitalize on this undervalued company with strong brands and potential return on their investments.

Price History

The company’s stock opened on Monday at $9.3 and closed at the same value, up by 0.1% from its last closing price of $9.3. Newell Brands owns some of the most powerful and iconic brands in the world, such as Rubbermaid, Sharpie, Graco, and Calphalon, among others. As a result, the company has a strong presence in many consumer markets. With a rapidly changing consumer landscape, Newell Brands presents a unique opportunity for investors to capitalize on a potential turnaround of its performance. The company’s portfolio of well-known brands, combined with its long history of consumer products leadership and innovation, makes it a worthy investment consideration. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Newell Brands. More…

    Total Revenues Net Income Net Margin
    8.88k -133 1.4%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Newell Brands. More…

    Operations Investing Financing
    -77 -284 289
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • 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
    13.28k 9.94k 8.05
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • 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% -8.2% 0.1%
    FCF Margin ROE ROA
    -4.5% 0.2% 0.0%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Newell Brands Intrinsic Value Calculation

    At GoodWhale, we conducted a fundamental analysis of NEWELL BRANDS, and came to the conclusion that the fair value of their shares is around $14.2. This was calculated using our proprietary Valuation Line. Currently, NEWELL BRANDS’ stock is traded at $9.3, which implies that it is undervalued by 34.7%. This makes NOWELL BRANDS a compelling investment opportunity in the current market. Our research indicates that the stock has significant potential for appreciation in the near future. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis




  • 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 is an undervalued company with strong brands, making it an attractive turnaround opportunity for investors. Its portfolio of brands includes Sharpie, Rubbermaid, Calphalon and Graco, among others, and the company has made several acquisitions in the past to enhance its offerings. Financial analysis indicates that Newell Brands currently has low debt compared to its peers, a strong balance sheet and a good long-term outlook.

    However, it has experienced a decline in sales due to weak demand for some core products and competitive pressure. It is important to note that the company is actively taking steps to address these issues, such as reducing costs and launching new product lines, which could help boost earnings in the near future.

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