Newell Brands Inc (NWL) Stock Analysis
Verdict: HOLD
Aggressive cost-cutting and a massive Q2 earnings beat signal a turnaround, but a 13.3x Net Debt/EBITDA ratio remains a structural anchor.
Investment score: 62/100
Analysis as of
Is Newell Brands Inc stock worth reviewing? The TradeMates thesis
Newell Brands (NWL) is currently in a high-momentum recovery phase following a significant Q2 earnings beat. While valuation metrics like P/B (0.65x) suggest undervaluation, the massive debt load ($5.2B) and negative net margins (-3.05%) require caution. The model suggests holding current positions to capture the upward trend in analyst sentiment but cautions against new large entries until debt-to-equity (2.26) improves.
7-factor investment score
- Valuation: 75/100 (weight 20%)
- Financial Health: 35/100 (weight 15%)
- Technical Momentum: 80/100 (weight 15%)
- Earnings Quality: 85/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 65/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
Newell Brands Inc opportunities and risks
What speaks for NWL
- Operational Turnaround Efficacy
What speaks against NWL
- Extreme Debt Leverage
Peers and competitors
- LCUT
- YHGJ
- DGIX
- WDRP
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| NWL | n/a | 0.4x | 19.9x | 35.5% | -3.0% | 4.5% |
| LCUT | n/a | 0.3x | 46.3x | 37.5% | -4.2% | 9.1% |
| YHGJ | n/a | 0.3x | n/a | 17.8% | -11.7% | -12.7% |
| DGIX | n/a | 398.5x | 0.0x | -0.3% | -0.1% | 13.9% |
| WDRP | 207.7x | 16.7x | 264.3x | 0.0% | 8.0% | 0.0% |
| Peer median | n/a | 8.5x | 23.2x | 8.9% | -2.2% | 4.6% |
Frequently asked questions about Newell Brands Inc (NWL)
Is NWL stock a good investment?
The TradeMates model rates Newell Brands Inc as HOLD with an investment score of 62/100. Newell Brands (NWL) is currently in a high-momentum recovery phase following a significant Q2 earnings beat. While valuation metrics like P/B (0.65x) suggest undervaluation, the massive debt load ($5.2B) and negative net margins (-3.05%) require caution. The model suggests holding current positions to capture the upward trend in analyst sentiment but cautions against new large entries until debt-to-equity (2.26) improves. This is algorithmic model output, not personal investment advice.
Is NWL stock a buy?
The TradeMates model verdict for NWL is HOLD with an investment score of 62/100. Treat this as a model signal to review, not a personal buy recommendation.