NWL – Market expectations are for Uniform ROA to compress, but management is confident about competition, productivity, and growth

April 21, 2022

  • Newell Brands (NWL) currently trades near corporate, but above historical averages relative to Uniform earnings, with a 24.5x Uniform P/E (Fwd. V/E’).
  • At these levels, markets are pricing in expectations for Uniform ROA to compress to 13% in 2026, accompanied by 3% Uniform asset growth.

  • Similarly, analysts expect Uniform ROA to contract to 12% by 2023, accompanied by 2% Uniform asset contraction.

  • If sustained going forward, these levels would imply a stock price closer to $13, representing approximately 40% equity downside for the firm.

  • However, the firm’s most recent earnings call suggests management is confident about competition, productivity, and growth.

You don’t have access to the Valens Research Premium Application.

To get access to our best content including the highly regarded Conviction Long List and Market Phase Cycle macro newsletter, please contact our Client Relations Team at 630-841-0683 or email

Please fill out the fields below so that our client relations team can contact you

Or contact our Client Relationship Team at 630-841-0683