Newell Brands (NWL)
NASDAQConsumer DiscretionaryHousehold & Personal ProductsSnapshot 2026-09-04
$6.11+0.66%
Close 2026-09-04 · 1-day change
NASDAQConsumer DiscretionaryHousehold & Personal ProductsSnapshot 2026-09-04
Warn: Primary pillar under pressure — Improve cash flow from operations: Q1 OCF -233M vs target positive by FY26; Q2 OCF not reported.
Newell Brands aims to improve cash flow from operations. Management raised full-year EPS to about $0.58. Dividend payout stayed stable at $0.07 per share. The company plans to grow revenue around 0% in 2026.
Cost inflation and weak demand hurt profits. Cash flow remains negative. Dividend cuts are possible. Revenue may decline more than expected.
The price is about 10% below our fair value near $6. Analysts expect 2% revenue growth. Our fair value is 45% above the Street median of $4.25.
Breaks if: Cash flow from operations remains negative through FY26
Breaks if: Dividend per share falls below $0.07 in FY26
Breaks if: EPS falls below $0.54 in FY26
Breaks if: Revenue growth falls below -1% in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This is a turnaround investment with a focus on returning to sales growth and improving profitability. The current thesis state is cautious, as management is making progress on margins but faces challenges in cash flow and overall market conditions.
The market seems to have priced in a neutral valuation, with expectations that are slightly below peers. The current valuation reflects a divergence, indicating that NWL is seen as cheap compared to its competitors.
Management is on track to improve operating margins, which have shown recent gains. However, operating cash flow has been mixed, and there is a low probability of missing earnings expectations, although recent earnings surprises have been erratic.
The thesis hinges on management's ability to maintain guidance and improve cash flow. Additionally, external factors like inflation trends and performance of sector leaders could significantly impact NWL's trajectory.
Over the next 1 to 3 years, NWL's performance will depend on its execution of growth strategies and external economic conditions. Not investment advice.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a more positive outlook. Higher sales and a tariff refund improve the operating income outlook. The company also issued $600 million in senior notes to redeem 2027 bonds, enhancing cash flow management.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.