📊 NWL Key Takeaways
Is Newell Brands Inc.. (NWL) a Good Investment?
Newell Brands faces severe financial distress with negative profitability (net margin -4.0%, ROE -11.9%), collapsing net income (-31.9% YoY), and dangerously weak debt coverage (interest coverage 0.6x). The company is burning shareholder value despite modest operating cash flow, with minimal free cash flow (0.2% margin) inadequate for servicing 4.5B in long-term debt.
Newell Brands shows materially weakened fundamentals, with declining revenue, negative net income, and operating margin compressed to just 0.5%, indicating very limited earnings power. Financial flexibility also looks strained: leverage is high, interest coverage is only 0.6x, and free cash flow is nearly breakeven, leaving little cushion if operating conditions worsen. While the company still generates gross profit and positive operating cash flow, the current quality of earnings and balance sheet pressure materially weaken the outlook.
Why Buy Newell Brands Inc.. Stock? NWL Key Strengths
- Maintains positive gross margin at 33.8% indicating core product demand
- Generated 264M in operating cash flow despite net losses
- Reasonable current ratio of 1.07x provides minimal near-term liquidity buffer
- Still generating positive operating cash flow despite weak earnings
- Gross margin of 33.8% suggests underlying brand and product economics retain some value
- Current ratio above 1.0x indicates near-term obligations are not yet in acute distress
NWL Stock Risks: Newell Brands Inc.. Investment Risks
- Net income collapse of -285M with negative net margin of -4.0% indicates severe operational deterioration
- Interest coverage ratio of 0.6x is critical - company cannot cover debt obligations from operating income
- Revenue declining 5.0% YoY combined with operating margin compression to 0.5% suggests structural profitability challenges
- Debt-to-equity ratio of 1.90x is elevated with 4.5B long-term debt against only 2.4B equity
- Free cash flow of only 17M is insufficient for debt service and growth investment
- Quick ratio of 0.57x indicates potential liquidity stress if operations deteriorate further
- Revenue declined 5.0% year over year, pointing to ongoing top-line pressure
- Very weak profitability with negative net margin and operating margin of just 0.5%
- High leverage and weak interest coverage create elevated refinancing and balance sheet risk
Key Metrics to Watch
- Net income trajectory and return to profitability timeline
- Debt reduction progress and interest coverage ratio improvement
- Operating cash flow sustainability and free cash flow generation
- Revenue stabilization and operating margin recovery
- Debt service capacity and refinancing ability
- Operating margin and interest coverage
- Free cash flow generation after capital expenditures
Newell Brands Inc.. (NWL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.2% FCF margin may limit capital allocation flexibility.
NWL Profit Margin, ROE & Profitability Analysis
NWL vs Materials Sector: How Newell Brands Inc.. Compares
How Newell Brands Inc.. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Newell Brands Inc.. Stock Overvalued? NWL Valuation Analysis 2026
Based on fundamental analysis, Newell Brands Inc.. shows some fundamental concerns relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Newell Brands Inc.. Balance Sheet: NWL Debt, Cash & Liquidity
NWL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Newell Brands Inc..'s revenue has declined by 23% over the 5-year period, indicating business contraction. The most recent EPS of $-0.94 indicates the company is currently unprofitable.
NWL Revenue Growth, EPS Growth & YoY Performance
NWL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.8B | $21.0M | $0.05 |
| Q2 2025 | $1.9B | $9.0M | $0.02 |
| Q1 2025 | $1.6B | -$9.0M | $-0.02 |
| Q3 2024 | $1.9B | -$162.0M | $-0.39 |
| Q2 2024 | $2.0B | $18.0M | $0.04 |
| Q1 2024 | $1.7B | -$9.0M | $-0.02 |
| Q3 2023 | $2.0B | $19.0M | $0.05 |
| Q2 2023 | $2.2B | $18.0M | $0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Newell Brands Inc.. Dividends, Buybacks & Capital Allocation
NWL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Newell Brands Inc.. (CIK: 0000814453)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NWL
What is the AI rating for NWL?
Newell Brands Inc.. (NWL) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 90% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NWL's key strengths?
Claude: Maintains positive gross margin at 33.8% indicating core product demand. Generated 264M in operating cash flow despite net losses. ChatGPT: Still generating positive operating cash flow despite weak earnings. Gross margin of 33.8% suggests underlying brand and product economics retain some value.
What are the risks of investing in NWL?
Claude: Net income collapse of -285M with negative net margin of -4.0% indicates severe operational deterioration. Interest coverage ratio of 0.6x is critical - company cannot cover debt obligations from operating income. ChatGPT: Revenue declined 5.0% year over year, pointing to ongoing top-line pressure. Very weak profitability with negative net margin and operating margin of just 0.5%.
What is NWL's revenue and growth?
Newell Brands Inc.. reported revenue of $7.2B.
Does NWL pay dividends?
Newell Brands Inc.. pays dividends, with $120.0M distributed to shareholders in the trailing twelve months.
Where can I find NWL SEC filings?
Official SEC filings for Newell Brands Inc.. (CIK: 0000814453) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NWL's EPS?
Newell Brands Inc.. has a diluted EPS of $-0.68.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NWL a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Newell Brands Inc.. has a STRONG SELL rating with 90% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NWL stock overvalued or undervalued?
Valuation metrics for NWL: ROE of -11.9% (sector avg: 14%), net margin of -4.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy NWL stock in 2026?
Our dual AI analysis gives Newell Brands Inc.. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is NWL's free cash flow?
Newell Brands Inc..'s operating cash flow is $264.0M, with capital expenditures of $247.0M. FCF margin is 0.2%.
How does NWL compare to other Materials stocks?
Vs Materials sector averages: Net margin -4.0% (avg: 10%), ROE -11.9% (avg: 14%), current ratio 1.07 (avg: 1.6).
Is Newell Brands Inc.. carrying too much debt?
NWL has a debt-to-equity ratio of 1.90x, which is above the Materials sector average of 0.6x. However, the current ratio of 1.07 suggests adequate short-term liquidity.