- Newell Brands began in 2019 a company restructuring with the aim to increase top-line growth, improve operating margins, accelerate cash conversion and strengthen the portfolio.
- The most visible result of the company's restructuring has been so far the better-than-expected increase of revenue. Improving operating margins is the missing piece to a full success story.
- The decline of the net debt/EBITDA ratio below 3x by 2021x could lead the Company to implement a buyback program or to raise the dividend.
- Combining a DCF model and a multiple analysis, we derive a USD31/share target price on the stock, which represents a 22% upside potential.
For further details see:
Newell Brands: A Restructuring Story Worth A Bet