CNH INDUSTRIAL NV (1CNHI.MI) Stock Fundamental Analysis
BIT:1CNHI - Euronext Milan - NL0010545661 - Common Stock - Currency: EUR
Taking everything into account, 1CNHI scores 4 out of 10 in our fundamental rating. 1CNHI was compared to 102 industry peers in the Machinery industry. 1CNHI scores excellent on profitability, but there are concerns on its financial health. 1CNHI is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
1CNHI had positive earnings in the past year.
In the past year 1CNHI had a positive cash flow from operations.
1CNHI had positive earnings in 4 of the past 5 years.
1CNHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1CNHI's Return On Assets of 2.90% is in line compared to the rest of the industry. 1CNHI outperforms 51.96% of its industry peers.
1CNHI's Return On Equity of 16.29% is amongst the best of the industry. 1CNHI outperforms 87.25% of its industry peers.
1CNHI's Return On Invested Capital of 8.19% is fine compared to the rest of the industry. 1CNHI outperforms 73.53% of its industry peers.
1CNHI had an Average Return On Invested Capital over the past 3 years of 11.39%. This is above the industry average of 8.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 16.29% | ||
| ROIC | 8.19% |
ROA(3y)4.39%
ROA(5y)3.13%
ROE(3y)25.03%
ROE(5y)18.1%
ROIC(3y)11.39%
ROIC(5y)8.98%
1.3 Margins
1CNHI has a better Profit Margin (6.28%) than 76.47% of its industry peers.
1CNHI's Profit Margin has improved in the last couple of years.
1CNHI's Operating Margin of 19.41% is amongst the best of the industry. 1CNHI outperforms 92.16% of its industry peers.
In the last couple of years the Operating Margin of 1CNHI has grown nicely.
The Gross Margin of 1CNHI (32.70%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1CNHI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.41% | ||
| PM (TTM) | 6.28% | ||
| GM | 32.7% |
OM growth 3Y4.76%
OM growth 5Y12.67%
PM growth 3Y-10.76%
PM growth 5Y4.4%
GM growth 3Y5.77%
GM growth 5Y8.01%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1CNHI is still creating some value.
1CNHI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1CNHI has been reduced compared to 5 years ago.
The debt/assets ratio for 1CNHI is higher compared to a year ago.
2.2 Solvency
1CNHI has an Altman-Z score of 1.39. This is a bad value and indicates that 1CNHI is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of 1CNHI (1.39) is worse than 64.71% of its industry peers.
The Debt to FCF ratio of 1CNHI is 34.38, which is on the high side as it means it would take 1CNHI, 34.38 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 34.38, 1CNHI is not doing good in the industry: 63.73% of the companies in the same industry are doing better.
A Debt/Equity ratio of 3.51 is on the high side and indicates that 1CNHI has dependencies on debt financing.
1CNHI has a worse Debt to Equity ratio (3.51) than 89.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.51 | ||
| Debt/FCF | 34.38 | ||
| Altman-Z | 1.39 |
ROIC/WACC1.06
WACC7.69%
2.3 Liquidity
1CNHI has a Current Ratio of 1.27. This is a normal value and indicates that 1CNHI is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.27, 1CNHI is not doing good in the industry: 69.61% of the companies in the same industry are doing better.
A Quick Ratio of 0.54 indicates that 1CNHI may have some problems paying its short term obligations.
1CNHI's Quick ratio of 0.54 is on the low side compared to the rest of the industry. 1CNHI is outperformed by 89.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for 1CNHI have decreased strongly by -35.67% in the last year.
1CNHI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.29% yearly.
Looking at the last year, 1CNHI shows a very negative growth in Revenue. The Revenue has decreased by -19.65% in the last year.
1CNHI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.71% yearly.
EPS 1Y (TTM)-35.67%
EPS 3Y-6.6%
EPS 5Y5.29%
EPS Q2Q%-64.29%
Revenue 1Y (TTM)-19.65%
Revenue growth 3Y0.58%
Revenue growth 5Y-6.71%
Sales Q2Q%-28.21%
3.2 Future
1CNHI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.49% yearly.
Based on estimates for the next years, 1CNHI will show a decrease in Revenue. The Revenue will decrease by -0.15% on average per year.
EPS Next Y-37.05%
EPS Next 2Y-6.73%
EPS Next 3Y2.44%
EPS Next 5Y-2.49%
Revenue Next Year-14%
Revenue Next 2Y-3.91%
Revenue Next 3Y-1.06%
Revenue Next 5Y-0.15%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.60, the valuation of 1CNHI can be described as reasonable.
Based on the Price/Earnings ratio, 1CNHI is valued a bit cheaper than 78.43% of the companies in the same industry.
1CNHI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.79.
The Price/Forward Earnings ratio is 16.89, which indicates a correct valuation of 1CNHI.
1CNHI's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, 1CNHI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.6 | ||
| Fwd PE | 16.89 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1CNHI.
1CNHI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.66 | ||
| EV/EBITDA | 8.59 |
4.3 Compensation for Growth
The decent profitability rating of 1CNHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2
EPS Next 2Y-6.73%
EPS Next 3Y2.44%
5. Dividend
5.1 Amount
1CNHI has a Yearly Dividend Yield of 2.25%. Purely for dividend investing, there may be better candidates out there.
1CNHI's Dividend Yield is a higher than the industry average which is at 2.71.
Compared to an average S&P500 Dividend Yield of 2.51, 1CNHI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
5.2 History
The dividend of 1CNHI is nicely growing with an annual growth rate of 17.96%!
Dividend Growth(5Y)17.96%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1CNHI pays out 48.72% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP48.72%
EPS Next 2Y-6.73%
EPS Next 3Y2.44%
BIT:1CNHI (4/25/2025, 7:00:00 PM)
10.28
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners73.24%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap12.83B
Analysts74.78
Price Target13.84 (34.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Yearly Dividend0.42
Dividend Growth(5Y)17.96%
DP48.72%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.7%
Min EPS beat(2)-15.2%
Max EPS beat(2)-12.21%
EPS beat(4)2
Avg EPS beat(4)-0.95%
Min EPS beat(4)-15.2%
Max EPS beat(4)22.3%
EPS beat(8)4
Avg EPS beat(8)0.86%
EPS beat(12)7
Avg EPS beat(12)4.85%
EPS beat(16)11
Avg EPS beat(16)19.1%
Revenue beat(2)2
Avg Revenue beat(2)3.75%
Min Revenue beat(2)0.52%
Max Revenue beat(2)6.98%
Revenue beat(4)4
Avg Revenue beat(4)5.05%
Min Revenue beat(4)0.52%
Max Revenue beat(4)10.48%
Revenue beat(8)8
Avg Revenue beat(8)3.1%
Revenue beat(12)11
Avg Revenue beat(12)4.86%
Revenue beat(16)12
Avg Revenue beat(16)-2.16%
PT rev (1m)-4.36%
PT rev (3m)3.27%
EPS NQ rev (1m)-11.11%
EPS NQ rev (3m)-42.31%
EPS NY rev (1m)-6.3%
EPS NY rev (3m)-28.14%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-11.4%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-5.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.6 | ||
| Fwd PE | 16.89 | ||
| P/S | 0.74 | ||
| P/FCF | 18.66 | ||
| P/OCF | 7.42 | ||
| P/B | 1.91 | ||
| P/tB | 5.13 | ||
| EV/EBITDA | 8.59 |
EPS(TTM)0.97
EY9.44%
EPS(NY)0.61
Fwd EY5.92%
FCF(TTM)0.55
FCFY5.36%
OCF(TTM)1.39
OCFY13.48%
SpS13.97
BVpS5.39
TBVpS2
PEG (NY)N/A
PEG (5Y)2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 16.29% | ||
| ROCE | 10.57% | ||
| ROIC | 8.19% | ||
| ROICexc | 8.97% | ||
| ROICexgc | 10.88% | ||
| OM | 19.41% | ||
| PM (TTM) | 6.28% | ||
| GM | 32.7% | ||
| FCFM | 3.94% |
ROA(3y)4.39%
ROA(5y)3.13%
ROE(3y)25.03%
ROE(5y)18.1%
ROIC(3y)11.39%
ROIC(5y)8.98%
ROICexc(3y)14.51%
ROICexc(5y)12.46%
ROICexgc(3y)20.25%
ROICexgc(5y)19.15%
ROCE(3y)14.71%
ROCE(5y)11.59%
ROICexcg growth 3Y0.53%
ROICexcg growth 5Y3.13%
ROICexc growth 3Y21.35%
ROICexc growth 5Y3.15%
OM growth 3Y4.76%
OM growth 5Y12.67%
PM growth 3Y-10.76%
PM growth 5Y4.4%
GM growth 3Y5.77%
GM growth 5Y8.01%
F-Score5
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.51 | ||
| Debt/FCF | 34.38 | ||
| Debt/EBITDA | 6.03 | ||
| Cap/Depr | 196.03% | ||
| Cap/Sales | 5.98% | ||
| Interest Coverage | 2.41 | ||
| Cash Conversion | 44.18% | ||
| Profit Quality | 62.76% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 1.39 |
F-Score5
WACC7.69%
ROIC/WACC1.06
Cap/Depr(3y)198.21%
Cap/Depr(5y)185.92%
Cap/Sales(3y)5.02%
Cap/Sales(5y)7.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-35.67%
EPS 3Y-6.6%
EPS 5Y5.29%
EPS Q2Q%-64.29%
EPS Next Y-37.05%
EPS Next 2Y-6.73%
EPS Next 3Y2.44%
EPS Next 5Y-2.49%
Revenue 1Y (TTM)-19.65%
Revenue growth 3Y0.58%
Revenue growth 5Y-6.71%
Sales Q2Q%-28.21%
Revenue Next Year-14%
Revenue Next 2Y-3.91%
Revenue Next 3Y-1.06%
Revenue Next 5Y-0.15%
EBIT growth 1Y-22.14%
EBIT growth 3Y5.37%
EBIT growth 5Y5.11%
EBIT Next Year-8.37%
EBIT Next 3Y11.62%
EBIT Next 5Y20.58%
FCF growth 1Y371.53%
FCF growth 3Y-27.46%
FCF growth 5YN/A
OCF growth 1Y116.98%
OCF growth 3Y-21.59%
OCF growth 5Y1.51%