Newell Brands Inc. (NWL) Stock Analysis and Metrics

Newell Brands

NASDAQ: NWL

$5.09 ▲ +0.05 (+1.09%)

At close: Jul 24, 2026 · 3:59 PM UTC

Financial Ratios

Market Cap2.12 Bn

P/E-7.55

P/S0.30

Div. Yield0.06

ROIC (Qtr)0.00

Total Debt (Qtr)4.97 Bn

Revenue Growth (1y) (Qtr)-1.09

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About

Newell Brands is a leading global consumer goods company with a strong portfolio of well-known brands including Rubbermaid Sharpie Graco Coleman Rubbermaid Commercial Products Yankee Candle Paper Mate FoodSaver Dymo EXPO Elmer’s Oster NUK Spontex and Campingaz The company designs manufactures sources markets and distributes a diverse range of household and personal care products across multiple categories such as kitchen appliances food storage home fragrance writing instruments baby gear and outdoor lifestyle products Newell Brands sells its products in over 150 countries worldwide and maintains operations in more than 45 of these countries

Newell Brands generates revenue through the sale of its consumer products across three primary operating segments The company’s products include kitchen appliances such as Crockpot Mr Coffee Oster and Sunbeam food storage solutions like FoodSaver Rubbermaid and Sistema home fragrance items under Chesapeake Bay WoodWick and Yankee Candle commercial cleaning products under Rubbermaid Commercial Products Mapa and Spontex writing instruments markers and highlighters from Dymo Elmer’s EXPO Paper Mate Parker and Sharpie baby gear and infant care products from Graco and NUK and outdoor active lifestyle products including technical apparel and on-the-go beverageware sold under Bubba Campingaz Coleman Contigo and Marmot brands Revenue is derived from sales to mass merchants warehouse clubs home centers department stores drug and grocery stores specialty retailers discount stores e-commerce retailers commercial distributors and direct-to-consumer channels including online platforms and Yankee Candle retail stores

The company operates through the following segments: Home and Commercial Solutions Learning and Development and Outdoor and Recreation

• The Home and Commercial Solutions segment designs manufactures sources markets and distributes household products including kitchen appliances food and home storage fresh preserving vacuum sealing gourmet cookware bakeware cutlery and home fragrance products as well as commercial cleaning and maintenance solutions closet and garage organization hygiene systems and material handling solutions This segment markets its products to mass merchants warehouse clubs home centers department stores drug and grocery stores specialty retailers discount stores e-commerce retailers commercial products distributors select contract customers professional customers and direct to consumers online and in Yankee Candle retail stores.

• The Learning and Development segment designs manufactures sources markets and distributes writing instruments including markers and highlighters pens and pencils art products activity-based products labeling solutions and baby gear and infant care products Writing instruments activity-based products and labeling solutions are sold primarily under the Dymo Elmer’s EXPO Paper Mate Parker and Sharpie brands Baby gear and infant care products are sold primarily under the Graco and NUK brands This segment markets its products to mass merchants warehouse clubs department stores drug and grocery stores office superstores office supply stores contract stationers distributors e-commerce retailers and direct to consumers online.

• The Outdoor and Recreation segment designs manufactures sources markets and distributes global consumer active lifestyle products for outdoor and outdoor-related activities including technical apparel and on-the-go beverageware Active lifestyle products are sold primarily under the Bubba Campingaz Coleman Contigo and Marmot brands This segment markets its products to warehouse clubs department stores grocery stores mass merchants sporting goods and specialty retailers distributors e-commerce retailers and direct to consumers online.

Newell Brands holds a leading position in the global consumer products industry competing against numerous large and well-established manufacturers and distributors The company maintains its competitive edge through strong brand recognition product differentiation superior customer service consistent on-time delivery and cost-effective production and procurement Its experienced management team focuses on building consumer loyalty and demand via consumer insights to develop innovative products that meet evolving needs Newell Brands also strengthens its market position by developing strong relationships with large high-volume purchasers

Newell Brands serves a broad customer base including large mass merchandisers discount stores home centers warehouse clubs office superstores specialty retailers wholesalers commercial distributors and e-commerce retailers The company’s top-ten customers in 2025 were Amazon.com Inc Costco Wholesale Corporation Grainger Inc Office Depot Inc Staples Inc Target Corporation The Home Depot Inc The Kroger Co Uline Inc and Walmart Inc and subsidiaries Amazon accounted for approximately 17% of net sales in 2025 Walmart represented approximately 13% of net sales in the same year

Investment Thesis

▲ Bull case

Newell Brands (NWL) has demonstrated early success from its turnaround strategy, with Q1 FY26 showing core sales decline of only 3.5%, a significant improvement from prior periods and ahead of expectations. This progress is driven by a revitalized innovation pipeline, including 25 Tier 1 and Tier 2 launches planned for the year—up from 18 last year—spanning all segments and directly addressing consumer needs. The company reported that 6 of its top 10 brands gained market share and 6 achieved year-over-year point-of-sale growth in Q1, the first time in over four years, providing tangible evidence that innovation and increased advertising and promotion (A&P) investments are translating into stronger consumer engagement and retail execution. These results suggest the market is underestimating the cumulative impact of Newell’s focus on consumer-preferred products, which is not only improving sell-through but also enhancing distribution opportunities and replenishment order momentum heading into Q2, traditionally a stronger quarter for back-to-school and seasonal categories like Writing, Baby, Outdoor & Recreation, and Kitchen.
Newell’s strategic shift in manufacturing footprint is creating a structural competitive advantage that the market is overlooking. The company has reduced China-sourced finished goods from a peak of 35% of global cost of goods sold to under 10%, while simultaneously building a highly automated domestic manufacturing base in the U.S. that provides excess capacity and the ability to scale up within three months in response to supply chain disruptions affecting competitors still reliant on Asian sourcing. This domestic agility, combined with the newly announced €40 million investment in France over the next three years—focused on automation, digitization, AI, and workforce development—positions Newell to modernize key international operations in Parker, Waterman, Spontex, and Campingaz production, enhancing long-term resilience and margin potential. The market appears to be missing how these supply chain upgrades, particularly the U.S. automation initiatives that reduced line labor from 6–7 workers to 1 while increasing line speed from 150 to 500 units per minute, are not just cost-saving measures but strategic assets that enable rapid response to competitor vulnerabilities and support margin expansion as volume recovers.
Newell’s financial outlook is being conservative relative to improving underlying trends, creating upside potential. The company raised its full-year core sales guidance to between negative 1% and positive 1% (from prior negative 2% to flat) and normalized EPS to $0.56–$0.60 (from $0.54–$0.60), despite Q1 core sales already improving sequentially and versus a year ago. Notably, Newell cited that category decline assumptions were revised from -2% to -1.5% for the full year based on actual year-to-date performance of -1%, yet it refrained from raising guidance further due to seasonality (Q1 being the smallest quarter), signaling prudence rather than weakness. Additionally, the company expects to generate $60 million in incremental cash from terminating U.S. nonqualified defined benefit plans and liquidating associated life insurance assets—cash not included in current operating models—which will be used to front-load inventory purchases at lower anticipated tariff rates. This combination of underestimated operating leverage, unmodeled cash infusion, and the expectation that Q2 will be the inflection point for core sales growth (supported by strong POS trends exceeding core sales and distribution wins) suggests the market is not fully pricing in the acceleration of earnings recovery as innovation, pricing discipline, and supply chain efficiencies begin to compound.

Newell Brands (NWL) has demonstrated early success from its turnaround strategy, with Q1 FY26 showing core sales decline of only 3.5%, a significant improvement from prior periods and ahead of expectations. This progress is driven by a revitalized innovation pipeline, including 25 Tier 1 and Tier 2 launches planned for the year—up from 18 last year—spanning all segments and directly addressing consumer needs. The company reported that 6 of its top 10 brands gained market share and 6 achieved year-over-year point-of-sale growth in Q1, the first time in over four years, providing tangible evidence that innovation and increased advertising and promotion (A&P) investments are translating into stronger consumer engagement and retail execution. These results suggest the market is underestimating the cumulative impact of Newell’s focus on consumer-preferred products, which is not only improving sell-through but also enhancing distribution opportunities and replenishment order momentum heading into Q2, traditionally a stronger quarter for back-to-school and seasonal categories like Writing, Baby, Outdoor & Recreation, and Kitchen.
Newell’s strategic shift in manufacturing footprint is creating a structural competitive advantage that the market is overlooking. The company has reduced China-sourced finished goods from a peak of 35% of global cost of goods sold to under 10%, while simultaneously building a highly automated domestic manufacturing base in the U.S. that provides excess capacity and the ability to scale up within three months in response to supply chain disruptions affecting competitors still reliant on Asian sourcing. This domestic agility, combined with the newly announced €40 million investment in France over the next three years—focused on automation, digitization, AI, and workforce development—positions Newell to modernize key international operations in Parker, Waterman, Spontex, and Campingaz production, enhancing long-term resilience and margin potential. The market appears to be missing how these supply chain upgrades, particularly the U.S. automation initiatives that reduced line labor from 6–7 workers to 1 while increasing line speed from 150 to 500 units per minute, are not just cost-saving measures but strategic assets that enable rapid response to competitor vulnerabilities and support margin expansion as volume recovers.
Newell’s financial outlook is being conservative relative to improving underlying trends, creating upside potential. The company raised its full-year core sales guidance to between negative 1% and positive 1% (from prior negative 2% to flat) and normalized EPS to $0.56–$0.60 (from $0.54–$0.60), despite Q1 core sales already improving sequentially and versus a year ago. Notably, Newell cited that category decline assumptions were revised from -2% to -1.5% for the full year based on actual year-to-date performance of -1%, yet it refrained from raising guidance further due to seasonality (Q1 being the smallest quarter), signaling prudence rather than weakness. Additionally, the company expects to generate $60 million in incremental cash from terminating U.S. nonqualified defined benefit plans and liquidating associated life insurance assets—cash not included in current operating models—which will be used to front-load inventory purchases at lower anticipated tariff rates. This combination of underestimated operating leverage, unmodeled cash infusion, and the expectation that Q2 will be the inflection point for core sales growth (supported by strong POS trends exceeding core sales and distribution wins) suggests the market is not fully pricing in the acceleration of earnings recovery as innovation, pricing discipline, and supply chain efficiencies begin to compound.

▼ Bear case

Newell Brands (NWL) faces persistent margin pressure from unresolved commodity cost inflation that may not be fully offset by tariff benefits or productivity gains, despite management’s optimism. The company acknowledged an additional approximately $50 million of incremental commodity and transportation costs versus plan for 2026, driven largely by higher resin prices (up 40% assumed for the balance of the year) and diesel costs (expected to average $5/gallon). While management stated that about half of this impact would be offset by lower tariff costs and the remainder by productivity savings and targeted pricing, it admitted that resin now represents only 5% of cost of goods sold—down from historical levels—limiting the ability to derive significant savings from formula changes or supplier shifts. Furthermore, the benefit from productivity initiatives is likely maturing, with restructuring charges under the global productivity plan still expected to total $75–$90 million (with $46 million already incurred), suggesting most of the easy gains have been realized. The market may be ignoring how incremental margin expansion will require difficult trade-offs: either accepting lower volumes through selective price increases or eroding margins further through promotional depth reductions, both of which could undermine the nascent share gains in key categories like Baby and Writing.
Newell’s reliance on category growth assumptions remains a critical vulnerability, as the improvement in underlying trends may be temporary and driven by transitory factors rather than sustainable demand. Management revised its full-year category decline outlook to -1.5% (from -2%) based on Q1 year-to-date performance of -1%, but explicitly noted that consumer spending remains bifurcated, with high-income cohort growth offset by low-income declines, and that the tax refund stimulus is largely offsetting higher fuel and energy costs. This delicate balance suggests the apparent stabilization in category trends is fragile and susceptible to reversal if macroeconomic headwinds—such as persistent inflation, interest rates, or labor market softening—disproportionately affect discretionary spending in Newell’s core categories. Moreover, the company’s confidence in Q2 as an inflection point hinges on distribution wins and innovation launches (e.g., Coleman Snap ‘N Go cooler, Graco car seats) that have already seen forecast increases fivefold in three months, raising concerns about over-optimism and potential sell-through disappointment if retail execution or consumer adoption does not keep pace with inflated internal projections.
Newell’s financial leverage and cash flow generation present significant downside risks that are not being adequately priced in by the market, particularly given the company’s elevated net leverage ratio of 5.4x (based on $4.8 billion net debt and $881 million trailing 12-month normalized EBITDA), which has worsened slightly from 5.3x in Q1 FY25 despite modest EBITDA stability. While management highlighted plans to reduce leverage by half a turn by year-end, this goal depends on achieving $350–$400 million in full-year operating cash flow—a range that assumes continued improvement but does not account for potential working capital strain from inventory buildup. The company noted it is “leaning in on inventory purchases” to prepare for lower tariff rates and improved business trends, yet Q1 operating cash flow was an outflow of $233 million (vs. $213 million year ago), and with seasonality typically making Q1 the weakest quarter, sustaining cash generation through the year will require stronger-than-expected conversion of earnings to cash. Furthermore, the pursuit of approximately $120 million in IEEPA tariff refunds remains uncertain, with Newell explicitly stating it is not recording a receivable due to unresolved appeals and implementation risks, meaning any potential benefit is excluded from current models—yet the market may be implicitly assuming some recovery, creating a gap between perception and reality if these refunds fail to materialize.

Newell Brands (NWL) faces persistent margin pressure from unresolved commodity cost inflation that may not be fully offset by tariff benefits or productivity gains, despite management’s optimism. The company acknowledged an additional approximately $50 million of incremental commodity and transportation costs versus plan for 2026, driven largely by higher resin prices (up 40% assumed for the balance of the year) and diesel costs (expected to average $5/gallon). While management stated that about half of this impact would be offset by lower tariff costs and the remainder by productivity savings and targeted pricing, it admitted that resin now represents only 5% of cost of goods sold—down from historical levels—limiting the ability to derive significant savings from formula changes or supplier shifts. Furthermore, the benefit from productivity initiatives is likely maturing, with restructuring charges under the global productivity plan still expected to total $75–$90 million (with $46 million already incurred), suggesting most of the easy gains have been realized. The market may be ignoring how incremental margin expansion will require difficult trade-offs: either accepting lower volumes through selective price increases or eroding margins further through promotional depth reductions, both of which could undermine the nascent share gains in key categories like Baby and Writing.
Newell’s reliance on category growth assumptions remains a critical vulnerability, as the improvement in underlying trends may be temporary and driven by transitory factors rather than sustainable demand. Management revised its full-year category decline outlook to -1.5% (from -2%) based on Q1 year-to-date performance of -1%, but explicitly noted that consumer spending remains bifurcated, with high-income cohort growth offset by low-income declines, and that the tax refund stimulus is largely offsetting higher fuel and energy costs. This delicate balance suggests the apparent stabilization in category trends is fragile and susceptible to reversal if macroeconomic headwinds—such as persistent inflation, interest rates, or labor market softening—disproportionately affect discretionary spending in Newell’s core categories. Moreover, the company’s confidence in Q2 as an inflection point hinges on distribution wins and innovation launches (e.g., Coleman Snap ‘N Go cooler, Graco car seats) that have already seen forecast increases fivefold in three months, raising concerns about over-optimism and potential sell-through disappointment if retail execution or consumer adoption does not keep pace with inflated internal projections.
Newell’s financial leverage and cash flow generation present significant downside risks that are not being adequately priced in by the market, particularly given the company’s elevated net leverage ratio of 5.4x (based on $4.8 billion net debt and $881 million trailing 12-month normalized EBITDA), which has worsened slightly from 5.3x in Q1 FY25 despite modest EBITDA stability. While management highlighted plans to reduce leverage by half a turn by year-end, this goal depends on achieving $350–$400 million in full-year operating cash flow—a range that assumes continued improvement but does not account for potential working capital strain from inventory buildup. The company noted it is “leaning in on inventory purchases” to prepare for lower tariff rates and improved business trends, yet Q1 operating cash flow was an outflow of $233 million (vs. $213 million year ago), and with seasonality typically making Q1 the weakest quarter, sustaining cash generation through the year will require stronger-than-expected conversion of earnings to cash. Furthermore, the pursuit of approximately $120 million in IEEPA tariff refunds remains uncertain, with Newell explicitly stating it is not recording a receivable due to unresolved appeals and implementation risks, meaning any potential benefit is excluded from current models—yet the market may be implicitly assuming some recovery, creating a gap between perception and reality if these refunds fail to materialize.

Geographical Breakdown of Revenue (2025)

Peer Comparison

Companies in the Household & Personal Products

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	PG	PROCTER & GAMBLE Co	341.94 Bn	20.49	3.94	37.03 Bn
2	UL	Unilever Plc	131.50 Bn	27.72	3.97	32.92 Bn
3	CL	Colgate Palmolive Co	72.27 Bn	32.63	3.48	7.94 Bn
4	KVUE	Kenvue Inc.	36.23 Bn	22.34	2.37	8.66 Bn
5	KMB	Kimberly Clark Corp	35.62 Bn	89.49	2.15	7.08 Bn
6	EL	Estee Lauder Companies Inc	28.99 Bn	-151.78	1.95	7.31 Bn
7	CHD	Church & Dwight Co Inc /De/	22.75 Bn	24.31	407.73	2.40 Bn
8	CLX	Clorox Co /De/	12.26 Bn	14.78	1.81	2.49 Bn

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Investment Thesis

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer Comparison

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Investment Thesis

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer Comparison

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