Newell Rubbermaid (NYSE:NWL) sealed a deal with North Castle Partner, LLC, over the acquisition of Ignite Holdings (NASDAQ:IRG)

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According to the latest news, Newell Rubbermaid (NYSE:NWL) has sealed a deal with North Castle Partners, LLC over the acquisition of Ignite Holdings (NASDAQ:IRG) for a total of $308 million. The company will add Avex and Contigo to many of its brands, including Levolor, Goody, Calphalon and Rubbermaid, in order to expand its Home Solutions units. Ignite Holdings (NASDAQ:IRG) is a marketer and designer of beverage containers and the sales of the company are expected to reach $125 million by the end of 2014. The stock of Newell Rubbermaid (NYSE:NWL) is currently at $31.13.

Ratings team of TheStreet has given Newell Rubbermaid (NYSE:NWL) a score of B+ with a rating of ‘Buy’. The team, when asked about their ratings and score, said that the company has a number of strengths and it is the consideration of these strengths that has given rise to such high ratings. The company’s ROE (returns on equity) is quite high together with a strong financial position with practical debt level. Moreover, the company’s profit margin is on a rise and its operating cash flow is good. The company’s shares prices have increased over the last year. Newell Rubbermaid (NYSE:NWL) might experience some jerks due to its minor weaknesses, but these jolts will have no considerable affect onto the prices of company’s stocks.

Highlights from the Reports:

  • The ROE of the company has increased if compared with the same time period a year back. The increase in returns can be seen as a moderate strength of the company since its return rate surpasses the Standard and Poor’s 500 as well as the industry average.
  • Newell Rubbermaid (NYSE:NWL)’s gross profit margin has increased considerably, on a yearly basis. The figures are currently at 41.88 percent, which can be considered a valid strength of the company. The company’s net profit margin of 4.29 percent is also above the industry average.
  • The cash flow has also increased significantly when compared with the figures of the same time period a year ago. It has increased by 25.18 percent and reached the value of -$92.10 million. The company, however, is still below the industry average of 209.23 percent.
  • The stocks of the company are also on a rise, and they have been trading at quite high prices if compared with the prices of last year. The company’s earnings are not very strong and if the stock is still flying high, chances are that it has a potential upside.
  • The earnings of the company have decreased by 18.2 percent over the recent quarter if compared with the figures of the same quarter a year back. It will not be wrong to say that the company has somewhat volatile earnings.

On the last trade day, July 21, Newell Rubbermaid (NYSE:NWL) opened its stocks at a price of $31.25 and closed at a price of $31.15. The company’s intraday range was $31.09 to $31.55. Newell Rubbermaid (NYSE:NWL) has a market capitalization of 8.62 billion with a dividend yield of 2.18 percent. As far as the beta of the company is concerned, it is recorded to be at 1.46.

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