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Newell Rubbermaid Declared Dividend of $0.19 Per Share

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Price movement of Newell Rubbermaid

Newell Rubbermaid (NWL) has a market cap of $9.3 billion. NWL rose by 3.1% to close at $34.79 per share as of February 12, 2016. The price movements on weekly, monthly, and year-to-date (or YTD) bases are -4.5%, -8.4%, and -21.1%, respectively.

Technically, the stock has broken the support and is trading below all moving day averages. Currently, NWL is trading 5.1% below its 20-day moving average, 15.0% below its 50-day moving average, and 15.9% below its 200-day moving average.

The PowerShares DWA Consumer Staples Momentum ETF (PSL) invests 3.0% of its holdings in Newell Rubbermaid. The ETF tracks an index of US consumer cyclical companies selected and weighted by price momentum. The YTD price movement of PSL is -7.3% as of February 11, 2016.

The competitors of Newell Rubbermaid (NWL) and their market caps are:

  • Fortune Brands Home & Security (FBHS) — $7.5 billion
  • Avery Dennison (AVY) — $5.8 billion
  • Tupperware Brands (TUP) — $2.4 billion
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Newell Rubbermaid declared dividend

Newell Rubbermaid has declared a quarterly cash dividend of $0.19 per share on its common stock. The dividend will be paid on March 15, 2016, to common shareholders of record at the close of business on February 29, 2016.

Performance of Newell Rubbermaid in fiscal 4Q15

Newell Rubbermaid reported fiscal 4Q15 net sales of $1,560.8 million, a rise of 2.3% compared to net sales of $1,526.0 million. The company’s gross margin rose by 4.0%, and its operating income fell by 10.2% in fiscal 4Q15 compared to fiscal 4Q14.

Its net income and EPS (earnings per share) fell to $13.2 million and $0.05, respectively, in fiscal 4Q15, compared to $52.0 million and $0.19, respectively, in fiscal 4Q14.

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Fiscal 2015 results

In fiscal 2015, NWL reported net sales of $5915.7 million, a rise of 3.3% YoY (year-over-year). Its net income and EPS fell to $350.0 million and $1.29, respectively, in fiscal 4Q15, compared to $377.8 million and $1.35, respectively, in fiscal 4Q14.

Meanwhile, its cash and cash equivalents and inventories rose by 37.8% and 1.9%, respectively, in fiscal 2015. Its current ratio and long-term debt-to-equity ratio rose to 1.25 and 1.5, respectively, in fiscal 4Q15, compared to 1.21 and 1.1, respectively, in fiscal 4Q14.

At the end of 2015, the company deconsolidated the assets and liabilities of its Venezuelan business from its balance sheet. Now it will use the cost method of accounting for its operations. It reported an after-tax charge of $165.1 million in fiscal 4Q15 due to foreign exchange and challenging conditions in the country. This charge included the $74.7 million of net assets of its subsidiary along with $58.3 million of Venezuela-related assets held by other subsidiaries. It resulting in $133.0 million of total charges with the deconsolidation of Venezuela’s net assets.

The PE (price-to-earnings) and PBV (price-to-book value) ratios of Newell Rubbermaid are 36.6x and 5.1x, respectively, as of February 12, 2016.

Projection

The company has made the following projections for fiscal 2016:

  • core sales growth in the range of 4.0% to 5.0%
  • net sales growth in the range of 2.5% to 3.5%
  • normalized EPS in the range of $2.21 to $2.30
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