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