Market Cap : 8.86 B | Enterprise Value : 14.28 B | PE Ratio : 12.59 | PB Ratio : 2.25 |
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The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Good Sign:
Beneish M-Score -2.41 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Newell Brands's Beneish M-Score or its related term are showing as below:
During the past 13 years, the highest Beneish M-Score of Newell Brands was 5.63. The lowest was -3.51. And the median was -2.51.
The historical data trend for Newell Brands's Beneish M-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Household & Personal Products subindustry, Newell Brands's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Consumer Packaged Goods industry and Consumer Defensive sector, Newell Brands's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Newell Brands's Beneish M-Score falls into.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of Newell Brands for today is based on a combination of the following eight different indices:
M | = | -4.84 | + | 0.92 * DSRI | + | 0.528 * GMI | + | 0.404 * AQI | + | 0.892 * SGI | + | 0.115 * DEPI |
= | -4.84 | + | 0.92 * 0.8986 | + | 0.528 * 1.0632 | + | 0.404 * 0.9722 | + | 0.892 * 1.0124 | + | 0.115 * 1.1402 | |
- | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI | |||||||
- | 0.172 * 0.9576 | + | 4.679 * 0.0226 | - | 0.327 * 0.9929 | |||||||
= | -2.41 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
This Year (Jun22) TTM: | Last Year (Jun21) TTM: |
Total Receivables was $1,562 Mil. Revenue was 2534 + 2388 + 2805 + 2787 = $10,514 Mil. Gross Profit was 825 + 740 + 835 + 848 = $3,248 Mil. Total Current Assets was $4,757 Mil. Total Assets was $14,448 Mil. Property, Plant and Equipment(Net PPE) was $1,701 Mil. Depreciation, Depletion and Amortization(DDA) was $306 Mil. Selling, General, & Admin. Expense(SGA) was $2,190 Mil. Total Current Liabilities was $4,630 Mil. Long-Term Debt & Capital Lease Obligation was $4,293 Mil. Net Income was 204 + 234 + 96 + 190 = $724 Mil. Non Operating Income was -12 + 119 + -60 + -7 = $40 Mil. Cash Flow from Operations was -178 + -272 + 394 + 414 = $358 Mil. |
Total Receivables was $1,717 Mil. Revenue was 2709 + 2288 + 2689 + 2699 = $10,385 Mil. Gross Profit was 882 + 731 + 884 + 914 = $3,411 Mil. Total Current Assets was $4,655 Mil. Total Assets was $14,620 Mil. Property, Plant and Equipment(Net PPE) was $1,649 Mil. Depreciation, Depletion and Amortization(DDA) was $347 Mil. Selling, General, & Admin. Expense(SGA) was $2,259 Mil. Total Current Liabilities was $3,776 Mil. Long-Term Debt & Capital Lease Obligation was $5,318 Mil. |
1. DSRI = Days Sales in Receivables Index
Measured as the ratio of Revenue in Total Receivables in year t to year t-1.
A large increase in DSR could be indicative of revenue inflation.
DSRI | = | (Receivables_t / Revenue_t) | / | (Receivables_t-1 / Revenue_t-1) |
= | (1562 / 10514) | / | (1717 / 10385) | |
= | 0.14856382 | / | 0.16533462 | |
= | 0.8986 |
2. GMI = Gross Margin Index
Measured as the ratio of gross margin in year t-1 to gross margin in year t.
Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.
GMI | = | GrossMargin_t-1 | / | GrossMargin_t |
= | (GrossProfit_t-1 / Revenue_t-1) | / | (GrossProfit_t / Revenue_t) | |
= | (3411 / 10385) | / | (3248 / 10514) | |
= | 0.3284545 | / | 0.30892144 | |
= | 1.0632 |
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.
AQI | = | (1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) | / | (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1) |
= | (1 - (4757 + 1701) / 14448) | / | (1 - (4655 + 1649) / 14620) | |
= | 0.55301772 | / | 0.56880985 | |
= | 0.9722 |
4. SGI = Sales Growth Index
Ratio of Revenue in year t to sales in year t-1.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
SGI | = | Sales_t | / | Sales_t-1 |
= | Revenue_t | / | Revenue_t-1 | |
= | 10514 | / | 10385 | |
= | 1.0124 |
5. DEPI = Depreciation Index
Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI | = | (Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) | / | (Depreciation_t / (Depreciaton_t + PPE_t)) |
= | (347 / (347 + 1649)) | / | (306 / (306 + 1701)) | |
= | 0.1738477 | / | 0.15246637 | |
= | 1.1402 |
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.
SGA expenses index > 1 means that the company is becoming less efficient in generate sales.
SGAI | = | (SGA_t / Sales_t) | / | (SGA_t-1 /Sales_t-1) |
= | (2190 / 10514) | / | (2259 / 10385) | |
= | 0.2082937 | / | 0.21752528 | |
= | 0.9576 |
7. LVGI = Leverage Index
The ratio of total debt to Total Assets in year t relative to yeat t-1.
An LVGI > 1 indicates an increase in leverage
LVGI | = | ((LTD_t + CurrentLiabilities_t) / TotalAssets_t) | / | ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1) |
= | ((4293 + 4630) / 14448) | / | ((5318 + 3776) / 14620) | |
= | 0.61759413 | / | 0.62202462 | |
= | 0.9929 |
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA | = | (IncomefromContinuingOperations_t | - | CashFlowsfromOperations_t) | / | TotalAssets_t |
= | (NetIncome_t - NonOperatingIncome_t | - | CashFlowsfromOperations_t) | / | TotalAssets_t | |
= | (724 - 40 | - | 358) | / | 14448 | |
= | 0.0226 |
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Newell Brands has a M-score of -2.41 suggests that the company is unlikely to be a manipulator.
Thank you for viewing the detailed overview of Newell Brands's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Mejia Maria Fernanda | officer: CEO, International | ONE KELLOGG SQUARE PO BOX 3599 BATTLE CREEK MI 49016-3599 |
Icahn Partners Lp | 10 percent owner | 16690 COLLINS AVE. PH SUNNY ISLES FL 33160 |
Icahn Partners Master Fund Lp | 10 percent owner | 16690 COLLINS AVE. PH SUNNY ISLES FL 33160 |
Icahn Carl C | 10 percent owner | C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH-1 SUNNY ISLES BEACH FL 33160 |
Geller Michal J. | officer: President, eCommerce & Digital | 6655 PEACHTREE DUNWOODY ROAD ATLANTA GA 30328 |
Sesplankis Jeffrey M | officer: Chief Accounting Officer | 6655 PEACHTREE DUNWOODY ROAD ATLANTA GA 30328 |
Johnson Jay Lecoryelle | director | C/O DIAMONDROCK HOSPITALITY COMPANY 2 BETHESDA METRO CENTER, SUITE 1400 BETHESDA MD 20814 |
Robins Christine Marie | officer: Business Unit CEO - A&C | 6655 PEACHTREE DUNWOODY ROAD ATLANTA GA 30328 |
Mcdermott Michael P | officer: Business Unit CEO - Commercial | 6655 PEACHTREE DUNWOODY ROAD ATLANTA GA 30328 |
Pisani James Anthony | officer: Bus. Unit CEO - Outdoor & Rec. | 6655 PEACHTREE DUNWOODY ROAD ATLANTA GA 30328 |
Malkoski Kristine Kay | officer: Business Unit CEO - Food | 6655 PEACHTREE DUNWOODY ROAD ATLANTA GA 30328 |
Hayes Michael Mchugh | officer: Chief Customer Officer | 6655 PEACHTREE DUNWOODY ROAD ATLANTA GA 30328 |
Hammer David Mark | officer: Business Unit CEO - A&C | 6655 PEACHTREE DUNWOODY ROAD ATLANTA GA 30328 |
High River Limited Partnership | 10 percent owner | 16690 COLLINS AVE. PH SUNNY ISLES FL 33160 |
Parsons Stephen B | officer: Chief Human Resources Officer | NEWELL BRANDS INC. 6655 PEACHTEE DUNWOODY ROAD ATLANTA GA 30328 |
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