Business Analysis of Newell Brands

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Newell Brands

NEWELL BRANDS

Business Overview

Newell Brands Inc. designs, sources, and distributes consumer and commercial products worldwide. The company offers markers and highlighters, pens, and pencils; art products; activity-based adhesive and cutting products; fine writing instruments; and labeling solutions under the Sharpie, Paper Mate, Expo, Prismacolor, Mr.Sketch, Elmer's, X-Acto, Parker, Waterman, and Dymo Office brands. It also provides indoor/outdoor organization, food storage, and home storage products; durable beverage containers; gourmet cookware, bakeware, and cutlery products; and hair care accessories under the Rubbermaid, Contigo, bubba, Calphalon, and Goody brands; and home fragrance products under the WoodWick Candle brand. In addition, the company offers hand and power tool accessories, industrial band saw blades, tools for HVAC systems, and industrial label makers and printers under the Irwin, Lenox, hilmor, and Dymo Industrial brands; cleaning and refuse products, hygiene systems, and material handling solutions under the Rubbermaid Commercial Products brand name; and infant and juvenile products, such as car seats, strollers, highchairs, and playards under the Graco, Baby Jogger, Aprica, and Teutonia brands. Further, it provides branded consumer products, consumables, and household staples under the Yankee Candle, Waddington, Ball, Diamond, First Alert, NUK, Quickie, and Pine Mountain brands; kitchen appliances and home environment products under the Crock-Pot, FoodSaver, Holmes, Mr. Coffee, Oster, Rainbow, and Sunbeam brands; products for outdoor and outdoor-related activities under the Coleman, Jostens, Berkley, Shakespeare, Rawlings, Volkl, K2, and Marmot brands; and plastic products under the Jarden Plastic Solutions, Jarden Applied Materials, and Jarden Zinc Products brands. The company was formerly known as Newell Rubbermaid Inc. and changed its name to Newell Brands Inc. in April 2016. Newell Brands Inc. was founded in 1903 and is headquartered in Hoboken, New Jersey.

Newell Brands

Newell Brands


R&P Rank: 211
Sector: Consumer Goods
Industry:Household Goods & Home Construction
H.Q Location:Georgia
Website: www.newellbrands.com
Company Address:
6655 PEACHTREE DUNWOODY ROAD, ATLANTA GA 30328
Ph:770-418-7000

Business Analysis of Newell Brands

The Consumer Goods Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Newell Brands compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Newell Brands to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Newell Brands with an interactive chart.

  1. Revenue Growth: Newell Brands reported a revenue growth of 124.2% year-on-year during 2016. Household Goods & Home Construction Industry grew at 18.1% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Newell Brands spent 66.8% of its total revenues on COGS. Household Goods & Home Construction industry average (COGS share of revenue) in the same period was 74.8%
  3. R&D share of Revenues: Newell Brands R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Newell Brands spent 24.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Household Goods & Home Construction industry average SG&A spending in the same period was 15.0%
  5. Inventory share of Revenues: As a percentage of revenue, Newell Brands spent 16.0% of its total revenues on Inventories. Household Goods & Home Construction industry average Inventory spending in the same period was 46.0%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Newell Brands invested 11.5% of its total revenues on Accounts Payable (A/P) Household Goods & Home Construction industry average Accounts Payable investment in the same period was 9.3%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Newell Brands invested 20.7% of its total revenues on Accounts Receivable (A/R). Household Goods & Home Construction industry average Accounts Receivable investment in the same period was 8.0%
  8. PP&E share of Revenues: As a percentage of revenue, Newell Brands invested 11.6% of its total revenues on Property, Plants, and Equipments (PP&E). Household Goods & Home Construction industry average PPE investment in the same period was 11.1%
  9. Intangibles share of Revenues: As a percentage of revenue, Newell Brands invested 183.4% of its total revenues on Intangibles. Household Goods & Home Construction industry average Intangibles investment in the same period was 31.5%
  10. Net Margins: Newell Brands Net Margins in the year 2016 were 4.0%. Household Goods & Home Construction industry average Net Margins in the same period were 5.9%

Sector and Industry Association of Newell Brands

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Newell Brands is associated with Consumer Goods Sector and Household Goods & Home Construction Industry.

Consumer Goods sector is comprised of the following industries: Beverages; Personal Goods; Food Products; Diversified Food; Household Goods & Home Construction; Food Distribution; Tobacco; Toys and Games. The definitions for each of the industries is as follows:

  • Beverages industry consists of: Brewing Companies - manufacturers of cider or malt products such as beer, ale and stout; Distillers and Vintners Companies - blenders and shippers of wine and spirits such as whisky, brandy, rum, gin or liqueurs; and Soft Drinks Companies - manufacturers, bottlers and distributors of nonalcoholic beverages, such as soda, fruit juices, tea, coffee and bottled water.
  • Personal Goods industry includes: Clothing & Accessories Companies - manufacturers and distributors of all types of clothing, jewellery, watches or textiles, sportswear, sunglasses, eyeglass frames, leather clothing and goods, and processors of hides and skins; Footwear Companies - manufacturers and distributors of shoes, boots, sandals, sneakers and other types of footwear; and Consumer Packaged Goods Companies - makers and distributors of cosmetics, toiletries and personal-care and hygiene products, including deodorants, soaps, toothpaste, perfumes, diapers, shampoos, razors and feminine hygiene products.
  • Food Products industry includes: Farming & Fishing companies - companies that grow crops or raise livestock, operate sherries or own non-tobacco plantation; Food Products Companies - food producers, including meatpacking, snacks, fruits, vegetables, dairy products and frozen seafood. It also includes producers of pet food and manufacturers of dietary supplements, vitamins and related items.
  • Diversified Food industry includes companies that offer a diverse portfolio of food products across agricultural, animal and dairy product categories.
  • Household Goods & Home Construction industry includes companies that offer: Durable Household Products - Manufacturers and distributors of domestic appliances, lighting, hand tools and power tools, hardware, cutlery, tableware, garden equipment, luggage, towels and linens; Nondurable Household Products - Producers and distributors of pens, paper goods, batteries, light bulbs, tissues, toilet paper and cleaning products such as soaps and polishes; Furnishings - Manufacturers and distributors of furniture, including chairs, tables, desks, carpeting, wallpaper and office furniture; Home Construction - constructors of residential homes, including manufacturers of mobile and prefabricated homes intended for use in one place.
  • Food Distribution industry includes companies that distribute food, beverage and consumer goods to restaurants, healthcare, educational facilities, lodging establishments; equipment and supplies for the foodservice and hospitality industries.
  • Tobacco industry includes Manufacturers and distributors of cigarettes, cigars and other tobacco products. It also includes tobacco plantations.
  • Toys and Games industry consists of manufacturers and distributors of toys and video/computer games, including such toys and games as playing cards, board games, stuffed animals and dolls.

Industry Ranking of Newell Brands

With $13.3 billion revenues, Newell Brands ranked number 2 of all the companies in the US Household Goods & Home Construction industry. There were a total of 52 public companies in the US Household Goods & Home Construction industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Household Goods & Home Construction industry by revenues during 2016 were:

  1. Whirlpool ($20.7 billion)
  2. Newell Brands ($13.3 billion)
  3. D. R. Horton ($12.2 billion)
  4. Lennar ($10.9 billion)
  5. Mohawk Industries ($9 billion)
  6. PulteGroup ($7.7 billion)
  7. CalAtlantic Group ($6.5 billion)
  8. NVR ($5.7 billion)
  9. HRG Group ($5.2 billion)
  10. Toll Brothers ($5.2 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Newell Brandsand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of newell-brands

Whirlpool (WHR) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Whirlpool Corp with $21 billion revenues in the year 2016 was the number 1 Household Goods & Home Construction company. Read this report to know the top competitors of Whirlpool and identify growth and cost optimization opportunities of Whirlpool

D. R. Horton (DHI) Business Analysis – Analyze Historical Performance, Strategic...

Horton D R Inc with $12 billion revenues in the year 2016 was the number 3 Household Goods & Home Construction company. Read this report to know the top competitors of D. R. Horton and identify growth and cost optimization opportunities of D. R. Horton

Lennar (LEN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Lennar Corp with $11 billion revenues in the year 2016 was the number 4 Household Goods & Home Construction company. Read this report to know the top competitors of Lennar and identify growth and cost optimization opportunities of Lennar

Mohawk Industries (MHK) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Mohawk Industries Inc with $9 billion revenues in the year 2016 was the number 5 Household Goods & Home Construction company. Read this report to know the top competitors of Mohawk Industries and identify growth and cost optimization opportunities of Mohawk Industries

PulteGroup (PHM) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

PulteGroup Inc with $8 billion revenues in the year 2016 was the number 6 Household Goods & Home Construction company. Read this report to know the top competitors of PulteGroup and identify growth and cost optimization opportunities of PulteGroup

CalAtlantic Group (CAA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

CalAtlantic Group, Inc. with $6 billion revenues in the year 2016 was the number 7 Household Goods & Home Construction company. Read this report to know the top competitors of CalAtlantic Group and identify growth and cost optimization opportunities of CalAtlantic Group

Revenues Analysis

Newell Brands (NWL) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Newell Brands Inc (NWL) from 2012 to 2016. Newell Brands generated a total of $13.3 billion revenues during 2016. Newell Brands reported a revenue growth of 124.2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Newell Brands (NWL) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Newell Brands Inc (NWL) from 2002 to 2016. Newell Brands generated a total of $13.3 billion revenues during 2016. Newell Brands reported a revenue growth of 124.2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Newell Brands (NWL) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Newell Brands Inc (NWL) revenue growth with Household Goods & Home Construction industry growth during the last five years from 2012 to 2016. Newell Brands repor