Is Newell Brands Inc. (NWL) Stock Cheap Or Risky?

As of Friday close, Newell Brands Inc.’s (NASDAQ:NWL) stock was up $0.52, moving up 2.35 percent to $22.69. The average number of shares traded per day over the past five days has been 5,118,540 shares. 1 time new highs have been achieved over the past 5 days, with a $0.21 gain in that time frame. In the last twenty days, the average volume was 3,356,200, while in the previous 50 days, it was 3,046,846.

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Since last month, NWL stock rose 1.02%. Shares of the company fell to $21.72 on 05/12/22, the lowest level in the past month. A 52-week high of $29.50 was reached on 02/16/22 after having rallying from a 52-week low of $20.36. Since the beginning of this year, NWL’s stock price has risen by 3.89% or $0.85, and marked a new high 9 times. However, the stock has declined by -23.08% since its 52-week high.

Newell Brands Inc. (NWL) last reported insider trading activity 82 days ago on Feb 21. ICAHN CARL C, the 10% Owner of the company, disposed of 10,634,184 shares for $25.86 on Feb 21. It resulted in a $274,999,998 divestment by the insider. Malkoski Kristine Kay added 400 shares at an average price of $24.37 on Aug 19. The insider now owns 10,750 shares following the transaction. On Aug 18, Business Unit CEO – Food Malkoski Kristine Kay bought 200 shares at $24.77 apiece. The transaction was valued at $4,954.

Valuation Metrics

Right now, Newell Brands Inc. (NWL) has a P/E ratio of about 13.51. The stock’s beta is 0.71. Besides these, the trailing price-to-sales (P/S) ratio of 0.88, the price-to-book (PB) ratio of 2.41.

The latest dividend of $0.23 per share was paid out, remained unchanged from last year’s $0.23. On Monday May 8 2017, a $0.04 dividend increase was announced.

Financial Health

In the three months ended September 29, Newell Brands Inc.’s quick ratio stood at 0.70, while its current ratio was 1.40, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 1.23, and the total debt-to-equity ratio was 1.23. On the profitability front, the trailing twelve-month gross margin is 30.90% percent. In the year ended September 29, operating margins totaled 9.00%. Based on annual data, NWL earned $3.3 billion in gross profit and brought in $10.59 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 9.00%. Return on equity (ROE) for the past 12 months was 17.80%.

In Newell Brands Inc.’s quarter-end financial report for September 29, it reported total debt of $4.88 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. NWL’s revenue rose 4.19% to $2.81 billion during the quarter, while net income inched up to $2.39 billion. While analysts expected Newell Brands Inc. to report $0.5 quarterly earnings, the actual figure was $0.54 per share, beating the consensus estimate by 8.00%. During the quarter, the company generated $293.0 million in EBITDA. The liabilities of Newell Brands Inc. were 10.22 billion at the end of its most recent quarter ended September 29, and its total debt was $5.74 billion. The value of shareholders’ equity is $413.5 million.

Technical Picture

This quick technical analysis looks at Newell Brands Inc.’s (NWL) price momentum. With a historical volatility rate of 66.32%, the RSI 9-day stood at 49.93% on 13 May.

With respect to its five-day moving average, the current Newell Brands Inc. price is up by +0.93% percent or $0.21. At present, NWL shares trade +1.25% above its 20-day simple moving average and +10.31% percent above its 100-day simple moving average. However, the stock is currently trading approximately -4.74% below its SMA50 and -16.64% below its SMA200.

Stochastic coefficient K was 16.45% and Stochastic coefficient D was 21.80%, while ATR was 1.02. Given the Stochastic reading of 32.55% for the 14-day period, the RSI (14) reading has been calculated as 50.09%. As of today, the MACD Oscillator reading stands at -0.59, while the 14-day reading stands at -0.58.

Analyst Ratings

JP Morgan reiterated its an Overweight rating on Newell Brands Inc. (NASDAQ: NWL) in a note to investors. The analysts firm has however raised their price target to $26, representing a possible 21.76% increase in the stock price. Newell Brands Inc. (NWL) has been rated Overweight by analysts. According to 0 brokerage firms , NWL is a sell, and 7 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Newell Brands Inc. stock as buy, with 6 recommending it as overweight.

With a median target price of $26.50, the current consensus forecast for the stock is $23.00 – $38.00. Based on these forecasts, analysts predict Newell Brands Inc. (NWL) will achieve an average price target of $28.00.


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