Newell Brands Inc. (NWL:NSD) Analysts rate as a Buy, $25 target

STA Research
by: STA Research
Newell Brands Inc.

NWL stock Analysis:

Based on the Newell Brands Inc stock forecasts from 8 analysts, the average analyst target price for Newell Brands Inc is USD 25.18 over the next 12 months. Newell Brands Inc’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of Newell Brands Inc is Slightly Bearish, which is based on 5 positive signals and 9 negative signals. At the last closing, Newell Brands Inc’s stock price was USD 17.52Newell Brands Inc’s stock price has changed by -10.43% over the past week, -11.52% over the past month and -31.72% over the last year.

 

About Newell Brands Inc (NWL:NSD)

Newell Brands Inc. designs, manufactures, sources, and distributes consumer and commercial products worldwide. It operates in five segments: Commercial Solutions, Home Appliances, Home Solutions, Learning and Development, and Outdoor and Recreation.

The Commercial Solutions segment provides commercial cleaning and maintenance solutions; closet and garage organization products; hygiene systems and material handling solutions; and home and security, and smoke and carbon monoxide alarms products under the BRK, First Alert, Mapa, Quickie, Rubbermaid, Rubbermaid Commercial Products, and Spontex brands.

The Home Appliances segment offers kitchen appliances under the Crock-Pot, Mr. Coffee, Oster, and Sunbeam brands. The Home Solutions segment provides food and home storage; fresh preserving; vacuum sealing; and gourmet cookware, bakeware, cutlery, and home fragrance products under the Ball, Calphalon, Chesapeake Bay Candle, FoodSaver, Rubbermaid, Sistema, WoodWick, and Yankee Candle brands.

The Learning and Development segment offers writing instruments, including markers and highlighters, pens, and pencils; art products; activity-based adhesive and cutting products; labeling solutions; and baby gear and infant care products under the Aprica, Baby Jogger, Graco, NUK, Tigex, Dymo, Elmer’s, EXPO, Graco, Mr. Sketch, NUK, Paper Mate, Parker, Prismacolor, Sharpie, Waterman, and X-Acto brands.

The Outdoor and Recreation segment provides outdoor and outdoor-related products under the Campingaz, Coleman, Contigo, ExOfficio, and Marmot brands.

It serves warehouse clubs, department and drug/grocery stores, mass merchants, home centers, office superstores and supply stores, contract stationers, and distributors, e-commerce, sporting goods, specialty, and travel retailers.

The company was formerly known as Newell Rubbermaid Inc. and changed its name to Newell Brands Inc. in April 2016. Newell Brands Inc. was founded in 1903 and is based in Atlanta, Georgia.

 

Most Recent Analyst Ratings for NWL’s Stock:

 

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced compared to earnings

NWL stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to book value

NWL stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Revenue Growth

NWL stock has shown below median revenue growth in the previous 5 years compared to its sector

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