Operating Income Improvements And Turnaround Strategy Make Newell Brands A Buy

Summary

  • Newell Brands is showing improved operating income and productivity from restructuring, with new initiatives and products expected to drive further gains in 2025.
  • Despite risks from tariffs, interest rates, and ratings downgrades, NWL's strong free cash flow and undervaluation make it attractive at current prices.
  • Ongoing cost reduction, centralization, and product launches should boost margins and support a turnaround, with fair value estimated near $11 per share.
  • Given its long history, resilient cash flow, and low valuation at 3.4x 2029 EPS, I believe NWL is a buy for long-term investors.

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We Are

Newell Brands Inc. (NASDAQ:NWL) recently reported an increase in operating income as a result of improvements in productivity and recent restructuring actions. The company announced potential new initiatives to be implemented in 2025, new products in the L&D

This article was written by

Based in Europe, I am an independent investor with more than a decade of experience. I research cash flow statements and unlevered free cash flow figures. My articles may include a number of assumptions about the future free cash flow of companies. Many of those assumptions are based on previous financial figures reported, and my own forecasts about the future of the of the business model. My financial models could also include different financial figures including cost of capital, cost of debt, WACC, share count, net debt and other information. I will try to write about companies that reported financial figures for a long time. Hence, I usually do not write about growth stocks. With regards to trading multiples, I usually study EV/FCF, net income, and EV/EBITDA. I want to be part of this community because Seeking Alpha offers beneficial information to investors, readers, and analysts. I am here to learn from others, and from the market.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NWL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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