NWL
Newell Rubbermaid Inc
Consumer
11/04/2016
Presented
| Date | 11/01/2016 |
| Price | $48.16 |
| Market Cap | $23.42B |
| Ent Value | $34.26B |
| P/E Ratio | 92.49x |
| Book Value | $23.46 |
| Div Yield | 0.02% |
| Shares O/S | 486.20M |
| Ave Daily Vol | 3,764,507 |
| Short Int | 3.47% |
Current
| Price | $7.49 |
| Market Cap | $3.12B |
| Newell Brands, Inc. is engaged in the marketing of consumer and commercial products that help people flourish every day, where they live, learn, work and play. Its brands include Rubbermaid, Graco, Aprica, Levolor, Calphalon, Goody, Sharpie, Paper Mate, Dymo, Parker, Waterman, Irwin and Lenox. It operates its business through five segments: Home Solutions, Writing, Tools, Commercial Products and Baby & Parenting. The Home Solutions segment designs, manufactures or sources and distributes a wide range of consumer products under multiple brand names, primarily targeting the female head of household. The Writing segment designs, manufactures or sources and distributes writing instruments, primarily for use in business and the home. This segment's product offerings include markers, highlighters, art and office organization products, and everyday and fine writing instruments and accessories. The Tools segment designs, manufactures or sources and distributes hand tools and power tool accessories, industrial bandsaw blades, cutting tools for pipes and HVAC systems, and industrial labeling solutions. The Commercial Products segment designs, manufactures or sources and distributes cleaning and refuse products, hygiene systems, material handling solutions and medical and computer carts. The Baby & Parenting segment designs and distributes infant and juvenile products such as swings, highchairs, car seats, strollers and playards, and primarily sells its products under the trademarks Graco, Aprica and Teutonia. The company was founded in 1903 and is headquartered in Atlanta, GA. |
Public companies mentioned herein: Newell Brands Inc (NWL) and Stanley Black & Decker (SWK).
Highlights
The presenter recently reversed course and established a short position on Newell Brands after having been long the stock earlier this year, believing that recent results have materially altered the narrative on the stock. Run by highly regarded CEO Mike Polk, the company has not missed on earnings during his watch. However, while he is credited with stimulating some top line growth, EBITDA generation for the most part has remained static during the past several years, and FCF conversion has been lacking at 60-70% given that the company continues to reinvest in the business. Most recently, NWL missed on revenue by a considerable margin when it reported third quarter results late last week, calling into question the core organic growth rate of the company.
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