Newell Beneish M Score

NWL
 Stock
  

USD 21.08  0.33  1.59%   

This module uses fundamental data of Newell Brands to approximate the value of its Beneish M Score. Newell Brands M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Additionally, see Newell Brands Piotroski F Score and Newell Brands Altman Z Score analysis.
  
Debt Current is expected to hike to about 418.6 M this year, although the value of Total Debt will most likely fall to nearly 6.7 B. Newell Brands Inventory Turnover is relatively stable at the moment as compared to the past year. The company's current value of Inventory Turnover is estimated at 4.82. Accounts Payable Turnover is expected to hike to 9.08 this year, although the value of Accrued Expenses Turnover will most likely fall to 6.69.
At this time, it appears that Newell Brands is an unlikely manipulator. The earnings manipulation may begin if Newell Brands' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Newell Brands executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Newell Brands' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.73
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.1Focus
Asset QualityN/AFocus
Expense Coverage1.07Focus
Gross Margin Strengs1.19Focus
Accruals Factor1.07Focus
Depreciation Resistance1.21Focus
Net Sales Growth0.86Focus
Financial Leverage Condition0.98Focus

Newell Brands Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Newell Brands' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues9.1 B10.6 B
Fairly Down
Increasing
Slightly volatile
Selling General and Administrative Expense2.6 B2.8 B
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations829.1 M884 M
Notably Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion440 M512.9 M
Fairly Down
Increasing
Slightly volatile
Total Assets13.4 B14.2 B
Notably Down
Increasing
Slightly volatile
Property Plant and Equipment Net2.2 BB
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade ReceivablesB2.1 B
Notably Down
Increasing
Slightly volatile
Total Liabilities9.3 B10.1 B
Significantly Down
Increasing
Slightly volatile
Current Assets3.9 B4.3 B
Significantly Down
Increasing
Slightly volatile
Assets Non Current12.6 B13.3 B
Notably Down
Increasing
Slightly volatile
Current Liabilities2.9 B3.3 B
Fairly Down
Increasing
Slightly volatile
Liabilities Non Current8.5 B8.8 B
Sufficiently Down
Increasing
Slightly volatile
Total Debt6.7 B7.2 B
Significantly Down
Increasing
Slightly volatile
Debt Current418.6 M381.8 M
Significantly Up
Increasing
Stable
Debt Non Current6.2 B6.8 B
Significantly Down
Increasing
Slightly volatile
Operating IncomeB946 M
Significantly Up
Decreasing
Stable
Gross Margin37.0531.1266
Fairly Up
Decreasing
Slightly volatile

Newell Brands Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Newell Brands' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Newell Brands in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Newell Brands' degree of accounting gimmicks and manipulations.

About Newell Brands Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

3.98 Billion

Newell Brands Operating Expenses is relatively stable at the moment as compared to the past year. The company's current value of Operating Expenses is estimated at 3.98 Billion

Newell Brands Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Newell Brands. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues14.74 B8.63 B9.71 B9.38 B10.59 B9.12 B
Total Assets33.14 B17.72 B15.64 B14.7 B14.18 B13.36 B
Current Assets6.08 B7.75 B4.11 B4.63 B4.26 B3.93 B
Assets Non Current26.35 B22.41 B11.76 B11.53 B13.26 B12.6 B
Total Liabilities18.99 B12.47 B10.68 B10.83 B10.09 B9.27 B
Current Liabilities4.32 B3.33 B2.98 B3.62 B3.32 B2.88 B
Total Debt11.89 B10.55 B7.01 B6.26 B7.2 B6.66 B
Debt Current601.9 M661.8 M318.7 M332 M381.8 M418.62 M
Debt Non Current11.29 B9.89 B6.7 B5.93 B6.82 B6.24 B
Operating Income1.23 B(7.83 B)(481.7 M)(634 M)946 M1.02 B
Gross Margin34.5234.8633.1432.8131.1337.05

Newell Brands ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Newell Brands' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Newell Brands' managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Newell Brands Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Newell Brands's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Newell Brands using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Newell Brands based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Newell Brands Inc. designs, manufactures, sources, and distributes consumer and commercial products worldwide. Newell Brands Inc. was founded in 1903 and is based in Atlanta, Georgia. Newell Brands operates under Household Personal Products classification in the United States and is traded on NASDAQ Exchange. It employs 32000 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Newell Brands without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

Did you try this?

Run Portfolio Rebalancing Now

   

Portfolio Rebalancing

Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
All  Next Launch Module

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Newell Brands using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

Build Optimal Portfolios

Align your risk with return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Additionally, see Newell Brands Piotroski F Score and Newell Brands Altman Z Score analysis. Note that the Newell Brands information on this page should be used as a complementary analysis to other Newell Brands' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Complementary Tools for Newell Stock analysis

When running Newell Brands price analysis, check to measure Newell Brands' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Newell Brands is operating at the current time. Most of Newell Brands' value examination focuses on studying past and present price action to predict the probability of Newell Brands' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Newell Brands' price. Additionally, you may evaluate how the addition of Newell Brands to your portfolios can decrease your overall portfolio volatility.
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Is Newell Brands' industry 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 YOY
0.065
Market Capitalization
8.6 B
Quarterly Revenue Growth YOY
-0.065
Return On Assets
0.0466
Return On Equity
0.18
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 Newell Brands value 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.