A Look At Newell Brands (NWL) Valuation After Losses Impairments And Cautious Sales Guidance
Newell Brands (NWL) is back in focus after reporting fourth quarter and full year 2025 results that included higher net losses, larger impairment charges on acquired intangible assets, and cautious net sales guidance for 2026.
See our latest analysis for Newell Brands.
The share price has moved to US$4.74, with a 90 day share price return of 46.75% and a year to date share price return of 27.42%, even though the 1 year total shareholder return is a 27.69% loss. Recent momentum therefore contrasts with weaker long term outcomes as investors react to earnings, higher impairment charges and the dividend affirmation.
If Newell’s recent swing has you thinking about where else capital might work harder, this could be a good moment to scan 22 top founder-led companies as potential long term compounders.
So with Newell trading at US$4.74, sitting on recent double digit gains but still carrying a weak multi year return record and ongoing losses, is there real value left on the table, or is the market already pricing in future growth?
Most Popular Narrative: 6.1% Undervalued
Newell Brands last closed at $4.74 versus a most followed fair value estimate of $5.05, with that view built on detailed long term earnings and margin assumptions.
Analysts are assuming Newell Brands's revenue will grow by 1.0% annually over the next 3 years.
Analysts assume that profit margins will increase from 3.3% today to 6.3% in 3 years time.
Want to see how modest revenue growth, a margin rebuild and a lower future earnings multiple still point to upside? The full narrative lays out the step by step math behind that $5.05 figure.
Result: Fair Value of $5.05 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this upside case still leans on a few pressure points, including ongoing core sales softness and elevated leverage, which could limit flexibility if conditions stay tough.
Find out about the key risks to this Newell Brands narrative.
Next Steps
With sentiment clearly mixed, and both risks and rewards in play, it makes sense to move quickly. Review the underlying data and form your own view, starting with 3 key rewards and 1 important warning sign.
Looking for more investment ideas?
If Newell has sharpened your thinking, do not stop here. The screener can quickly surface other angles for your watchlist before the crowd catches on.
- Target resilient income by checking companies on our 13 dividend fortresses that pair higher yields with a focus on consistency.
- Hunt for mispriced quality using the screener containing 24 high quality undiscovered gems that highlights under-followed businesses with solid fundamentals.
- Prioritize capital protection first by reviewing the 80 resilient stocks with low risk scores that filters for sturdier balance sheets and fewer flagged risks.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com