Investment Thesis
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.
NWL 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
NWL 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
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
NWL Financial Metrics
NWL Profitability Ratios
NWL Balance Sheet & Liquidity
NWL 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 Growth Metrics (YoY)
NWL Quarterly 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.
NWL Capital Allocation
NWL SEC Filings
Access official SEC EDGAR filings for NEWELL BRANDS INC. (CIK: 0000814453)