Stocks breaking to new annual highs
S&P 500 oversold value screener
Relative strength momentum leaders
Upcoming earnings dates & reports
Filter and sort all 500 stocks
Continuous multi-factor scoring & catalyst forensics
Today's biggest gainers and losers
Newell Brands is a global consumer products company operating a portfolio of household and commercial brands including Rubbermaid, Sharpie, Paper Mate, Coleman, Contigo, and Yankee Candle. The company is in the midst of a multi-year turnaround following aggressive portfolio rationalization, having divested non-core assets and reduced debt from peak levels above $10B. The stock trades at distressed valuations (0.2x sales, 0.7x book) reflecting negative profitability, declining revenues, and investor skepticism about management's ability to stabilize core categories amid intense private label competition and shifting retail dynamics.
Newell generates revenue through mass-market distribution of branded consumer products across retail channels (Walmart, Target, Amazon, specialty retailers). The business model relies on brand equity built over decades, manufacturing scale in plastics/writing instruments, and shelf space relationships with major retailers. Pricing power has eroded significantly due to private label penetration in categories like food storage and writing instruments. The company operates a hybrid manufacturing model with owned facilities for core products (Sharpie, Rubbermaid) and contract manufacturing for seasonal/lower-margin items. Gross margins of 33.8% are compressed by promotional intensity, input cost inflation, and unfavorable product mix shift toward lower-margin categories.
Core brand market share trends in key categories (Sharpie markers, Rubbermaid storage, Yankee Candle) versus private label alternatives
Gross margin trajectory driven by input costs (resins, petroleum-based plastics, freight) and pricing realization in promotional retail environment
Free cash flow generation and debt reduction progress (current net debt estimated $4-5B with 2.36x debt/equity ratio)
E-commerce penetration rate and Amazon relationship dynamics as brick-and-mortar retail share declines
Portfolio optimization announcements including potential divestitures of underperforming brands or categories
Secular shift to private label in commodity categories (food storage, basic writing instruments) where Newell lacks meaningful functional differentiation, with private label share reaching 30-40% in key categories
Retail channel disruption as traditional mass merchants (Walmart, Target) lose share to Amazon and direct-to-consumer brands, reducing Newell's historical shelf space advantages and increasing customer concentration risk
Permanent work-from-home trends reducing demand for office supplies and writing instruments, a core profit pool representing estimated 20-25% of company EBITDA
Intense competition from Spectrum Brands (battery-powered products), 3M (office supplies), and Energizer Holdings (household products) with stronger balance sheets and innovation pipelines
Amazon private label expansion (Amazon Basics) directly targeting Newell's core categories with 20-30% price discounts and Prime shipping advantages
Direct-to-consumer brands (Hydro Flask in drinkware, YETI in outdoor coolers) capturing premium segments and millennial consumers through digital marketing
Elevated debt/equity ratio of 2.36x with estimated $4-5B net debt creates refinancing risk, particularly if EBITDA continues declining and leverage ratios approach covenant thresholds
Negative free cash flow generation ($0.0B FCF on $0.3B operating cash flow) limits financial flexibility for brand investment, M&A, or accelerated debt paydown
Potential goodwill impairment risk on acquired brands if revenue declines persist, which could trigger covenant violations or credit rating downgrades
moderate - Newell's product portfolio spans defensive categories (writing instruments, food storage) and discretionary items (Yankee Candle, Coleman camping gear). During recessions, consumers trade down to private label in commodity categories but maintain spending on established brands with functional superiority. The company's revenue declined through 2020-2023 period despite strong consumer spending, suggesting structural share loss rather than pure cyclical pressure. However, discretionary categories like candles and outdoor recreation equipment show clear correlation to consumer confidence and discretionary spending levels.
Rising interest rates create dual pressure: (1) Higher debt service costs on $4-5B net debt position, with estimated $250-300M annual interest expense sensitive to floating rate exposure and refinancing needs; (2) Reduced consumer discretionary spending as mortgage rates and credit card rates rise, particularly impacting higher-ticket Coleman outdoor products and Yankee Candle gift purchases. Valuation multiples compress as investors rotate from low-growth consumer staples to higher-yielding fixed income alternatives. However, the stock's distressed valuation (0.2x sales) suggests rate sensitivity is already reflected in price.
Moderate credit exposure through both consumer demand and corporate financing. Consumer credit conditions affect big-ticket purchases (Coleman camping equipment $200-500 per transaction) and discretionary home goods. On corporate side, the company requires ongoing access to credit markets for debt refinancing and working capital facilities. High yield credit spreads widening would increase refinancing costs and potentially trigger covenant concerns if EBITDA deteriorates further. The 2.36x debt/equity ratio and negative ROE indicate balance sheet stress that makes the company vulnerable to credit market dislocations.
value/distressed - The stock attracts deep value investors and potential activist investors given 0.2x sales and 0.7x book valuations trading below liquidation value. Turnaround specialists focus on potential for margin expansion through restructuring, debt reduction, and portfolio optimization. The negative profitability and declining revenues deter growth and momentum investors. Minimal dividend yield (likely suspended or minimal given negative FCF) eliminates income-oriented investors. High volatility and execution risk make this unsuitable for conservative portfolios.
high - The stock exhibits elevated volatility driven by quarterly earnings misses, restructuring announcements, and sector rotation dynamics. Small market cap of $1.7B increases susceptibility to large institutional position changes. The -23.6% one-year return and -19.9% six-month return demonstrate significant downside volatility. Beta likely exceeds 1.3-1.5x given leverage to consumer discretionary spending and financial leverage amplifying earnings volatility.
