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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on NWL

Breaking News: Newell Brands reported Q4 earnings of $0.18 per share, matching estimates. This is an increase from $0.16 per share a year ago. The company announced its fourth quarter and full year 2025 financial results, stating they exited 2025 a stronger and more resilient company. Despite this, sales fell due to customer resistance to previous price hikes. The company is now cutting prices by up to 15% at its Rubbermaid and Graco brands. Analysts recommend a hold. Newell Brands CEO highlighted the company's improved capabilities.

1.c. Company Highlights

2. Newell Brands' 2025 Earnings: A Resilient Performance Amidst Challenges

Newell Brands reported a net sales decline of 2.7% to $1.9 billion in the fourth quarter of 2025, with core sales down 4.1%. Despite this, the company demonstrated resilience, with a normalized gross margin expansion of 70 basis points to 33.9% and a normalized operating margin increase of 160 basis points to 8.7%. Normalized diluted earnings per share were $0.18, in line with estimates. The company's normalized EBITDA increased nearly 12% to $241 million, driven by its focus on productivity and cost management.

Publication Date: Feb -08

📋 Highlights
  • Strategic Sourcing Shift & Productivity Gains: Reduced China sourcing exposure to below 10% and secured $40M in tariff-advantaged business wins, while a global productivity plan targets $75M in annual savings by 2026.
  • Segment Performance Variability: Learning and Development (resilient with strong domestic manufacturing) contrasted with Home and Commercial (soft demand, distribution losses), while Baby improved via innovation (+350 bps market share in Q4).
  • Margin Expansion: Normalized gross margin rose 70 bps to 33.9%, and operating margin increased 160 bps to 8.7% in 2025, with 2026 guidance targeting 8.6–9.2% margin (50 bps improvement).
  • 2026 Guidance & EBITDA Growth: Full-year core sales expected down 2%–flat, but EBITDA growth to accelerate to $241M (+12% YoY) with EPS guidance of $0.54–$.60, despite a $20M interest expense increase.
  • Innovation ROI & AI Integration: 70% hit rate on Tier 1/2 innovations (e.g., Graco EasyTurn, Sharpie relaunches), driven by AI-driven product development reducing cycle time and boosting consumer testing efficiency.

Segment Performance

The company's three business segments performed differently in 2025. The Learning and Development segment was the most resilient, driven by strong brands and consumer-preferred innovation. The Baby segment performed well behind strong innovations, while the Home and Commercial segment, particularly Kitchen, faced difficulties due to soft consumer demand and distribution losses.

Guidance and Outlook

For 2026, Newell Brands expects disciplined commercial execution to drive improved performance, with core sales in the range of down 2% to flat. The company is confident that it can outperform its categories and grow market share, driven by innovation, improving distribution, and higher levels of advertising and promotional activity. The company's guidance assumes a 2% decline in categories for the year.

Valuation and Metrics

With a P/E Ratio of -6.81 and an EV/EBITDA of 21.98, the market appears to be pricing in significant challenges for the company. However, the Dividend Yield of 6.05% could be attractive to income investors. The company's ROE of -10.89% and ROIC of 5.09% indicate that while the company is generating some return on its invested capital, it is still struggling to generate returns for its equity holders. The Net Debt / EBITDA ratio of 16.12 suggests that the company's debt burden is significant.

Operational Highlights

Newell Brands has made significant progress in its innovation pipeline, with a relative hit rate of 70% on its Tier 1 and Tier 2 innovations. The company has also revamped its strategy, culling unprofitable businesses and reducing its number of brands from 80 to 50. The company's focus on premiumization and driving category growth through innovation is expected to drive growth in 2026.

3. NewsRoom

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Newell Brands Declares Dividend on Common Stock

Feb -09

Source: businesswire.com

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Newell Q4 Earnings Meet Estimates, Core Sales Decline 4.1% Y/Y

Feb -06

Source: zacks.com

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What's Going On With Newell Brands Stock Friday?

Feb -06

Source: feeds.benzinga.com

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Newell Brands Inc. (NWL) Q4 2025 Earnings Call Transcript

Feb -06

Source: seekingalpha.com

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Newell Brands (NWL) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates

Feb -06

Source: zacks.com

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Stock Market Today: Futures Point Higher After Indexes Dive; Nasdaq, S&P 500 Poised for Weekly Losses; Bitcoin Sinks Near $60,000 Before Rebounding

Feb -06

Source: investopedia.com

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Newell Brands (NWL) Matches Q4 Earnings Estimates

Feb -06

Source: zacks.com

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Newell Brands to cut prices at Rubbermaid, Graco as consumers turn frugal

Feb -06

Source: reuters.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.21%)

6. Segments

Home and Commercial Solutions

Expected Growth: 2%

Newell Brands' Home and Commercial Solutions segment growth is driven by increasing demand for food storage and cooking products, expansion in e-commerce channels, and strategic acquisitions. Additionally, the segment benefits from a strong brand portfolio, including Rubbermaid, Graco, and FoodSaver, which enables market share gains and pricing power.

Learning and Development

Expected Growth: 3%

Newell Brands Inc.'s 3% growth in Learning and Development is driven by increasing demand for online educational resources, strategic partnerships with educational institutions, and investments in digital platforms. Additionally, the company's focus on upskilling and reskilling programs, as well as its expansion into emerging markets, contribute to this growth.

Outdoor and Recreation

Expected Growth: 1%

Newell Brands' Outdoor and Recreation segment growth is driven by increasing consumer participation in outdoor activities, rising demand for camping and hiking gear, and strategic acquisitions. Additionally, the segment benefits from innovative product launches, expanding e-commerce presence, and a growing popularity of outdoor recreation among millennials and Gen Z consumers.

7. Detailed Products

Sharpie Markers

Permanent markers used for writing, drawing, and coloring

Papermate Pens

Ballpoint pens for everyday writing and drawing

Expo Markers

Dry-erase markers for whiteboards and glass surfaces

Uniball Pens

High-quality pens for precise writing and drawing

Crock-Pot Slow Cookers

Electric slow cookers for cooking a variety of meals

FoodSaver Vacuum Sealers

Vacuum sealers for food storage and preservation

Rubbermaid Storage Containers

Plastic storage containers for organization and storage

Graco Baby Products

Strollers, car seats, and other baby gear

Calphalon Cookware

High-quality cookware for cooking and baking

WoodWick Candles

Scented candles for home decor and ambiance

8. Newell Brands Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Newell Brands Inc. operates in a market with moderate threat of substitutes. While there are some alternatives available, they are not significantly cheaper or better, limiting the threat.

Bargaining Power Of Customers

Newell Brands Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are not highly customized, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Newell Brands Inc. relies on a large number of suppliers, which reduces their bargaining power. However, some suppliers may have more negotiating power due to their size or specialized products.

Threat Of New Entrants

Newell Brands Inc. operates in a market with high barriers to entry, including significant capital requirements and established distribution networks, making it difficult for new entrants to compete.

Intensity Of Rivalry

Newell Brands Inc. operates in a highly competitive market with many established players, leading to intense rivalry and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 61.18%
Debt Cost 7.40%
Equity Weight 38.82%
Equity Cost 8.68%
WACC 7.90%
Leverage 157.58%

11. Quality Control: Newell Brands Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Inter Parfums

A-Score: 6.0/10

Value: 5.5

Growth: 8.0

Quality: 8.1

Yield: 6.0

Momentum: 1.5

Volatility: 7.0

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Clorox

A-Score: 5.7/10

Value: 6.2

Growth: 3.9

Quality: 7.1

Yield: 7.0

Momentum: 0.5

Volatility: 9.3

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Spectrum Brands

A-Score: 4.8/10

Value: 6.5

Growth: 5.4

Quality: 4.5

Yield: 5.0

Momentum: 1.0

Volatility: 6.3

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Newell Brands

A-Score: 4.0/10

Value: 8.8

Growth: 1.4

Quality: 2.3

Yield: 9.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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e.l.f. Beauty

A-Score: 3.5/10

Value: 1.6

Growth: 9.6

Quality: 5.7

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

1-Year Total Return ->

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Helen of Troy

A-Score: 2.6/10

Value: 7.7

Growth: 3.2

Quality: 2.1

Yield: 0.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.55$

Current Price

4.55$

Potential

-0.00%

Expected Cash-Flows