Newell Brands manufactures and markets consumer and commercial products worldwide. It operates through five segments: Writing, Home Solutions, Tools, Commercial Products, and Baby & Parenting. The company was founded in 1903 and is based in Atlanta, Georgia.
NWL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for NWL, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Newell Brands Inc ranked in the 41th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for NWL, they are:
The company's balance sheet shows it gets 53% of its capital from equity, and 47% of its capital from debt. Its equity weight surpasses that of only 20.92% of free cash flow generating stocks in the Consumer Defensive sector.
Newell Brands Inc's effective tax rate, as measured by taxes paid relative to net income, is at 38 -- greater than 92% of US stocks with positive free cash flow.
Newell Brands Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -7.18. This coverage rate is greater than that of merely 9.86% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BUD, WMT, STZ, DL, and HSY can be thought of as valuation peers to NWL, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
At the end of February we announced the arrival of the first US recession since 2009 and we predicted that the market will decline by at least 20% in (see why hell is coming). We reversed our stance on March 25th after seeing unprecedented fiscal and monetary stimulus unleashed by the Fed and the Congress. […]
ATLANTA--(BUSINESS WIRE)--Newell Brands (NASDAQ: NWL) today announced that Jay L. Johnson, Executive Vice President, Chief Financial Officer and Treasurer of Lamar Advertising Company, has been elected to the company’s Board of Directors, effective September 8, 2020. He will serve as a member of the Audit Committee. “We are delighted to welcome Jay to the Board. He has distinguished himself as a leader with in-depth financial expertise in consumer facing industries,” said Patrick Campbell, Chai
With consumer brands, as an investor, I am intrigued by just how easily some products come into everyday life. Back in June, for Father's Day, my wife and kids made my day special in part by getting me a couple of black Contigo (Newell Brands NWL) auto-seal travel mugs for...
Larry Saunders on Seeking Alpha | September 7, 2020
ATLANTA--(BUSINESS WIRE)--Newell Brands Inc. (NASDAQ: NWL) announced today that President and Chief Executive Officer, Ravi Saligram, and Chief Financial Officer and President, Business Operations, Chris Peterson, will present at the Barclays Global Consumer Staples Conference at 4:00 P.M. ET on Wednesday, September 9, 2020. The virtual presentation will be webcast live and may be accessed by selecting Events & Presentations from the Investors tab of the Newell Brands website at www.newellb