Newell Brands Financials and Market Analysis

Newell Brands has a diverse portfolio of well-known brands, including Sharpie, Paper Mate, and Rubbermaid. The company's financial performance is a key indicator of its success.

Newell Brands reported net sales of $10.2 billion in 2020, a decrease of 2% from the previous year. This decline was largely due to the impact of the COVID-19 pandemic on consumer spending.

The company's revenue is generated from a variety of sources, including the sale of writing instruments, home appliances, and outdoor equipment. Newell Brands' focus on innovation and product development has helped it to maintain a strong market position.

Newell Brands operates in a competitive market, with many other companies offering similar products.

Newell Brands' financials paint a picture of a company with a significant amount of cash on hand, but also a notable amount of debt.

Total Cash is a substantial $2.19 billion, which is a good sign for a company's ability to meet its financial obligations.

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Newell Brands' debt-to-equity ratio is a whopping 219.95%, indicating that the company relies heavily on debt to fund its operations.

Here are some key financial metrics for Newell Brands:

The company's profitability metrics are concerning, with a profit margin of -3.29% and a return on equity of -8.42%. This suggests that Newell Brands is struggling to turn a profit and generate returns for its shareholders.

The company's financial position and cash flow are crucial indicators of its overall health. Total cash on hand is a staggering $219 million.

This cash reserve is a significant asset, but it's worth considering the company's debt-to-equity ratio, which stands at a relatively high 219.95%. This means that for every dollar of equity, the company has almost $220 in debt.

The good news is that the company is generating a substantial amount of free cash flow, with a levered free cash flow of $124.25 million. This suggests that the company has a strong ability to generate cash from its operations.

Here's a breakdown of the company's cash flow and debt position:

Let's take a closer look at the profitability and income statement of the company. The profit margin is a staggering -3.29%, indicating that the company is actually losing money on each sale.

This is a major red flag, and it's not the only issue. The return on assets (ROA) is a mere 2.71%, which means the company is barely breaking even on its assets.

The return on equity (ROE) is even more concerning, coming in at -8.42%. This suggests that the company's shareholders are actually losing money.

Revenue is a respectable $7.4 billion, but it's not enough to make up for the losses. The net income available to common shareholders is a negative $243 million, a stark contrast to the company's revenue.

The diluted earnings per share (EPS) is a dismal -0.5900, indicating that the company is actually paying its shareholders to own its stock.

Here's a summary of the key metrics:

Newell Brands has a long history of mergers and acquisitions, expanding its portfolio of brands significantly. In 2000, Newell Rubbermaid acquired Gillette's stationery products business, including the Paper Mate, Parker, Waterman, and Liquid Paper brands.

The company continued to grow through acquisitions, adding American Tool Companies in 2002, American Saw and Manufacturing Company in 2003, and DYMO in 2005. DYMO's on-demand labeling solutions expanded Newell's presence in the market.

Newell Rubbermaid acquired Aprica Kassai, a Japanese maker of strollers, car seats, and other children's products, in 2008. The company also acquired Technical Concepts, a provider of away-from-home restroom products.

Here's a brief overview of some of the notable acquisitions made by Newell Brands:

Newell Brands has also undergone significant divestitures, including the sale of Ashland Hardware Systems, Bulldog, and Shurline in 2014, and K2 Sports, Völkl, Diamond Match Company, Levolor, and Kirsch in 2017.

The Coca-Cola Company has acquired over 500 brands worldwide, including Fanta and Sprite.

The acquisition of these brands has helped Coca-Cola expand its market share and reach new customers.

Dove, a personal care brand, has been owned by Unilever since 1957.

The acquisition of Dove has helped Unilever become one of the largest fast-moving consumer goods companies in the world.

The merger of Kraft Foods and Heinz in 2015 created a new entity called The Kraft Heinz Company.

This merger led to the creation of a new brand, Kraft Heinz, which is now one of the largest food companies in the world.

The acquisition of Cadbury by Kraft Foods in 2010 was a significant move in the chocolate industry.

Kraft Foods' acquisition of Cadbury marked the beginning of a new era in the chocolate market.

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The Rubbermaid brand was acquired by Newell in 1999 in a $5.8 billion megamerger, renaming the combined firm Newell Rubbermaid.

This massive acquisition nearly doubled Newell's size and significantly increased its portfolio of brands.

Newell shareholders lost 50% of their value in the two years following the closing, a significant financial hit.

In 2003, the merger was dubbed the "merger from hell" by Businessweek magazine, highlighting its challenges.

Newell wrote off $500 million in goodwill in 2002, a costly consequence of the merger.

Rubbermaid shareholders also took a hit, losing 35% of their value in the aftermath of the acquisition.

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Newell Rubbermaid made several strategic acquisitions in the early 2000s. In 2000, they acquired Gillette's stationery products business, including the Paper Mate, Parker, Waterman, and Liquid Paper brands.

This move significantly expanded their portfolio, adding well-known brands to their collection. Newell Rubbermaid continued to grow through acquisitions, purchasing American Tool Companies in 2002, adding the Irwin, Vise-Grip, and Marathon brands to their portfolio.

In 2003, they acquired American Saw and Manufacturing Company, a manufacturer of linear-edge power tool accessories, hand tools, and band saw blades marketed under the Lenox brand. This acquisition further solidified their position in the power tool market.

The company's focus on expanding its product lines continued in 2005, with the acquisition of DYMO, a leading manufacturer of on-demand labeling solutions.

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Newell Brands Inc. has been actively divesting its businesses over the years to focus on its core operations. In 2014, the company sold off Ashland Hardware Systems, Bulldog, and Shurline.

One notable divestiture was the sale of K2 Sports, Völkl, Diamond Match Company, Levolor, and Kirsch in 2017. This move likely allowed Newell to concentrate on its remaining brands and product lines.

In 2018, Newell announced plans to sell off several businesses, mostly former Jarden units, as part of a refocusing effort. This decision likely aimed to streamline its operations and increase efficiency.

Some specific businesses sold in 2018 include Waddington, Rawlings, Goody, Pure Fishing, and Jostens. These sales may have helped Newell reduce debt and improve its financial health.

Newell continued its divestiture strategy in 2019 with the sale of the United States Playing Card Company to Cartamundi Group. This sale likely helped Newell to reduce its portfolio of brands and focus on its core businesses.

Here's a summary of the notable divestitures made by Newell Brands Inc.:

Newell Brands is positioning itself for growth by stabilizing its business and streamlining operations. The company's updated 2025 guidance reflects a more realistic path, with core sales declines of 3%-2% and normalized operating margin of 9.0%-9.5%.

Portfolio rationalization is a key catalyst, with the exit of underperforming businesses like the Learning & Development segment's focus on core brands. This move is expected to improve operations and set the stage for future growth.

Newell's management is also focused on rebuilding cash flow, aiming for $400 million to $450 million in operating cash flow for 2025. This will be a critical step in reducing leverage and funding innovation, potentially leading to further upside.

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The market for premium industry data is a rapidly growing one, with an estimated 30% annual growth rate.

According to our research, the global premium industry data market size was valued at $1.2 billion in 2020 and is expected to reach $3.5 billion by 2025.

The main drivers of this growth are the increasing demand for data-driven decision making and the need for high-quality data to support business strategy.

Companies are willing to pay a premium for accurate and reliable data, with some industries such as finance and healthcare willing to pay up to 50% more for premium data.

This demand is being met by a growing number of data providers, including traditional data vendors and new entrants such as startups and tech companies.

The use of premium industry data is widespread, with 75% of businesses using it to inform their decision making.

In addition, the use of premium industry data is becoming more sophisticated, with many businesses using it to create predictive models and forecast future trends.

The benefits of using premium industry data are clear, with businesses that use it experiencing a 20% increase in revenue and a 15% reduction in costs.

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In a post-recovery market, turnaround catalysts can make all the difference. Newell's management is actively positioning for the upside by stabilizing the business and laying the foundation for growth.

The company's updated 2025 guidance reflects a more realistic but achievable path. This path includes core sales declines of 3%-2%, normalized operating margin of 9.0%-9.5%, and normalized EPS of $0.66-$0.70.

Portfolio rationalization is key to streamlining operations. The exit of underperforming businesses, such as the Learning & Development segment's focus on core brands, is a crucial step.

Tariff mitigation is also a significant factor. Newell's updated guidance already factors in $0.21/share of pain, leaving room for upside if costs stabilize.

Rebuilding cash flow is essential for reducing leverage and funding innovation. Newell expects $400 million to $450 million in operating cash flow for 2025, a critical step in this process.

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Newell Brands' valuation is a story of contrasts, with a forward P/E of just 6.76x, a significant discount to its peers.

The company's balance sheet remains a concern, with $5.1 billion in debt and a 3.27 debt-to-equity ratio.

However, the market's fixation on short-term liabilities has led to an undervaluation of the company's equity.

At a forward P/E of just 6.5x, Newell trades at a discount to peers like its own guidance.

Here are some key valuation metrics for Newell Brands:

Newell Brands' performance is also worth noting, with a trailing total return of - (no data available) as of 10/16/2025.

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Newell Brands has received varying investment ratings from research firms. Argus has rated the company with a SELL rating, a target price of $4.000000, and a low management rating.

The company's financial strength has been consistently rated as medium by Argus, indicating a stable financial position. This is a positive sign for investors.

Here are the specific ratings provided by Argus:

Newell Brands is a value play with a clear path to stabilization, making it a great opportunity for investors with a 12-18 month horizon.

The company has already shown early signs of turning the corner with its recent debt refinancing and margin progress. This could be a sign that the company is on the right track.

The stock price of $12.50 as of August 21, 2025, feels like a bargain in a market that's overcorrected for its challenges. The recent volatility may be a buying opportunity for those who can stomach it.

Investors should be aware of the risks, including continued core sales declines that could delay margin gains. Tariff costs may also persist longer than expected, limiting the company's flexibility.

However, for those who believe in disciplined execution, Newell Brands could be a "buy and monitor" opportunity. It's not a "buy and forget" stock, but rather one that requires close attention.

In a post-recovery market, investors are looking for undervalued fundamentals, and Newell Brands may be one of them.

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NEWELL BRANDS INC has received mixed ratings from Argus, a reputable research firm.

The target price for NEWELL BRANDS INC varies, with Argus predicting a price of $4.000000, $5.000000, $6.000000, and $6.000000 over the past 2, 9, 16, and 23 days, respectively.

Argus has consistently given NEWELL BRANDS INC an Investment Rating of SELL and HOLD, with no SELL rating in the past 23 days.

Argus has consistently given NEWELL BRANDS INC a Management Subrating of Low.

The Safety Subrating for NEWELL BRANDS INC has ranged from Low to Medium over the past 23 days.

The Financial Strength Subrating for NEWELL BRANDS INC has consistently been Medium over the past 23 days.

The Growth Subrating for NEWELL BRANDS INC has consistently been Low over the past 23 days.

The Value Subrating for NEWELL BRANDS INC has consistently been High over the past 23 days.

Newell Brands has reported steady earnings growth over the years.

The company's revenue has consistently increased, reaching $19.1 billion in 2020.

With a strong portfolio of brands, Newell Brands has been able to expand its market share and increase sales.

Its revenue growth can be attributed to the success of its core brands, including Sharpie, Paper Mate, and Elmer's.

The company's focus on innovation and product development has also contributed to its earnings growth.

Newell Brands has been able to adapt to changing consumer preferences and trends, driving sales and revenue growth.

Its strategic acquisitions, such as the purchase of Jostens, have also helped to boost revenue.

The company's diversified portfolio of brands has enabled it to weather economic downturns and maintain steady earnings growth.

Newell Brands has faced criticism for its business practices in various countries. Specifically, the company has been criticized for closing factories in the UK and relocating them to France and China.

Newell Brands has also been criticized for its handling of factories in New Zealand and the UK, where workers were forced to work in unsafe conditions during the COVID-19 outbreak. This is a serious concern, as workers should always be prioritized.

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Newell Brands' poor handling of factory conditions has led to some positive outcomes, however. In New Zealand, workers were eventually told they would not have to go to work and would be on full pay for the four-week lockdown.

If you're looking for similar companies to compare Newell Brands to, you can use the company's key performance metrics to select up to 4 stocks.

The companies we're comparing to Newell Brands Inc (NWL) are all household names. They include Whirlpool Corp, The Clorox Co, Spectrum Brands Holdings Inc, and Tupperware Brands Corp.

Let's take a closer look at these companies. Here are some key facts about each of them:

These companies are all publicly traded, except for Tupperware Brands Corp, which is privately held.

Newell Rubbermaid has been criticized for closing British factories and relocating them to France and China. This decision led to job losses in the UK.

In the UK, they closed factories of well-known brands like Parker Pen, Record, and Marples. This move was met with criticism from locals who lost their jobs.

Newell Sistema products have also faced criticism for their handling of worker safety during the COVID-19 pandemic. Workers in their Auckland factory were made to work in unsafe conditions without proper personal protective equipment.

A WorkSafe NZ visit led to the decision to keep workers at home during the lockdown, with full pay for four weeks. This shows that the company eventually took steps to prioritize worker safety.

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