Newell Brands Return On Equity vs. Profit Margin
| NWL Stock | USD 9.12 0.18 2.01% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (0.12) | Current Value (0.12) | Quarterly Volatility 0.38538076 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.36 | 0.1854 |
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For Newell Brands profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Newell Brands to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Newell Brands utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Newell Brands's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Newell Brands over time as well as its relative position and ranking within its peers.
Newell |
Newell Brands' Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
Is Housewares & Specialties space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Newell Brands. If investors know Newell will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Newell Brands listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.71 | Dividend Share 0.28 | Earnings Share (0.60) | Revenue Per Share 18.576 | Quarterly Revenue Growth (0.05) |
The market value of Newell Brands is measured differently than its book value, which is the value of Newell that is recorded on the company's balance sheet. Investors also form their own opinion of Newell Brands' value that differs from its market value or its book value, called intrinsic value, which is Newell Brands' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Newell Brands' market value can be influenced by many factors that don't directly affect Newell Brands' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Newell Brands' value and its price as these two are different measures arrived at by different means. Investors typically determine if Newell Brands is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Newell Brands' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Newell Brands Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Newell Brands's current stock value. Our valuation model uses many indicators to compare Newell Brands value to that of its competitors to determine the firm's financial worth. Newell Brands is considered to be number one stock in return on equity category among its peers. It also is considered to be number one stock in profit margin category among its peers . At this time, Newell Brands' Return On Equity is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Newell Brands by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Newell Profit Margin vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Newell Brands |
| = | -0.0829 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Newell Brands |
| = | (0.03) % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Newell Profit Margin Comparison
Newell Brands is currently under evaluation in profit margin category among its peers.
Newell Brands Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Newell Brands, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Newell Brands will eventually generate negative long term returns. The profitability progress is the general direction of Newell Brands' change in net profit over the period of time. It can combine multiple indicators of Newell Brands, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -890 M | -845.5 M | |
| Operating Income | -85 M | -80.8 M | |
| Income Before Tax | -543 M | -515.9 M | |
| Total Other Income Expense Net | -458 M | -480.9 M | |
| Net Loss | -388 M | -368.6 M | |
| Income Tax Expense | -155 M | -147.2 M | |
| Net Income Applicable To Common Shares | 177.3 M | 186.2 M | |
| Net Loss | -551 M | -523.5 M | |
| Interest Income | 355 M | 377.3 M | |
| Net Interest Income | -277 M | -290.9 M | |
| Non Operating Income Net Other | 72 M | 79.7 M | |
| Change To Netincome | -21.6 M | -22.7 M | |
| Net Loss | (0.94) | (0.89) | |
| Income Quality | (2.40) | (2.28) | |
| Net Income Per E B T | 0.71 | 0.75 |
Newell Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Newell Brands. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Newell Brands position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Newell Brands' important profitability drivers and their relationship over time.
Use Newell Brands in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Newell Brands position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Newell Brands will appreciate offsetting losses from the drop in the long position's value.Newell Brands Pair Trading
Newell Brands Pair Trading Analysis
The ability to find closely correlated positions to Newell Brands could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Newell Brands when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Newell Brands - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Newell Brands to buy it.
The correlation of Newell Brands is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Newell Brands moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Newell Brands moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Newell Brands can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Newell Brands position
In addition to having Newell Brands in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Correlation Analysis. For more information on how to buy Newell Stock please use our How to buy in Newell Stock guide.You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
To fully project Newell Brands' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Newell Brands at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Newell Brands' income statement, its balance sheet, and the statement of cash flows.