CNH INDUSTRIAL NV (CNH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CNH - NL0010545661 - Common Stock
9.61 USD
-0.04 (-0.41%)
9.61 USD
0 (0%)
CNH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. There are concerns on the financial health of CNH while its profitability can be described as average. CNH has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CNH was profitable.
In the past year CNH had a positive cash flow from operations.
Of the past 5 years CNH 4 years were profitable.
Each year in the past 5 years CNH had a positive operating cash flow.
1.2 Ratios
CNH's Return On Assets of 1.38% is on the low side compared to the rest of the industry. CNH is outperformed by 62.12% of its industry peers.
CNH has a Return On Equity of 7.72%. This is comparable to the rest of the industry: CNH outperforms 53.79% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.11%, CNH is in line with its industry, outperforming 48.48% of the companies in the same industry.
CNH had an Average Return On Invested Capital over the past 3 years of 11.39%. This is in line with the industry average of 10.27%.
The 3 year average ROIC (11.39%) for CNH is well above the current ROIC(6.11%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 7.72% | ||
| ROIC | 6.11% |
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
The Profit Margin of CNH (3.35%) is comparable to the rest of the industry.
CNH's Profit Margin has improved in the last couple of years.
CNH has a better Operating Margin (17.04%) than 80.30% of its industry peers.
CNH's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 32.19%, CNH perfoms like the industry average, outperforming 53.79% of the companies in the same industry.
In the last couple of years the Gross Margin of CNH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.04% | ||
| PM (TTM) | 3.35% | ||
| GM | 32.19% |
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
CNH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CNH has been reduced compared to 1 year ago.
CNH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CNH has a worse debt to assets ratio.
2.2 Solvency
CNH has an Altman-Z score of 1.28. This is a bad value and indicates that CNH is not financially healthy and even has some risk of bankruptcy.
CNH has a Altman-Z score of 1.28. This is in the lower half of the industry: CNH underperforms 75.76% of its industry peers.
The Debt to FCF ratio of CNH is 13.40, which is on the high side as it means it would take CNH, 13.40 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CNH (13.40) is worse than 62.12% of its industry peers.
CNH has a Debt/Equity ratio of 3.51. This is a high value indicating a heavy dependency on external financing.
CNH has a Debt to Equity ratio of 3.51. This is amonst the worse of the industry: CNH underperforms 88.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.51 | ||
| Debt/FCF | 13.4 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.75
WACC8.16%
2.3 Liquidity
A Current Ratio of 1.69 indicates that CNH should not have too much problems paying its short term obligations.
CNH has a worse Current ratio (1.69) than 65.15% of its industry peers.
CNH has a Quick Ratio of 1.69. This is a bad value and indicates that CNH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CNH (0.58) is worse than 87.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for CNH have decreased strongly by -63.50% in the last year.
CNH 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, CNH shows a very negative growth in Revenue. The Revenue has decreased by -18.10% in the last year.
The Revenue has been decreasing by -6.71% on average over the past years.
EPS 1Y (TTM)-63.5%
EPS 3Y-6.6%
EPS 5Y5.29%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)-18.1%
Revenue growth 3Y0.58%
Revenue growth 5Y-6.71%
Sales Q2Q%-5.48%
3.2 Future
CNH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.74% yearly.
Based on estimates for the next years, CNH will show a small growth in Revenue. The Revenue will grow by 0.38% on average per year.
EPS Next Y-58.04%
EPS Next 2Y-26.2%
EPS Next 3Y-4.91%
EPS Next 5Y5.74%
Revenue Next Year-9.23%
Revenue Next 2Y-3.88%
Revenue Next 3Y0.56%
Revenue Next 5Y0.38%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
CNH is valuated rather expensively with a Price/Earnings ratio of 19.22.
73.48% of the companies in the same industry are more expensive than CNH, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.39. CNH is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.04 indicates a correct valuation of CNH.
76.52% of the companies in the same industry are more expensive than CNH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, CNH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.22 | ||
| Fwd PE | 16.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNH is valued a bit cheaper than 79.55% of the companies in the same industry.
CNH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CNH is cheaper than 96.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.92 | ||
| EV/EBITDA | 10.08 |
4.3 Compensation for Growth
The decent profitability rating of CNH may justify a higher PE ratio.
CNH's earnings are expected to decrease with -4.91% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.63
EPS Next 2Y-26.2%
EPS Next 3Y-4.91%
5. Dividend
5.1 Amount
CNH has a Yearly Dividend Yield of 2.59%.
CNH's Dividend Yield is rather good when compared to the industry average which is at 1.04. CNH pays more dividend than 89.39% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, CNH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
5.2 History
On average, the dividend of CNH grows each year by 17.96%, which is quite nice.
CNH has been paying a dividend for over 5 years, so it has already some track record.
CNH has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)17.96%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
55.11% of the earnings are spent on dividend by CNH. This is a bit on the high side, but may be sustainable.
The dividend of CNH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP55.11%
EPS Next 2Y-26.2%
EPS Next 3Y-4.91%
9.61
-0.04 (-0.41%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners71.94%
Inst Owner Change0%
Ins Owners0.12%
Ins Owner Change0.33%
Market Cap11.98B
Revenue(TTM)17.81B
Net Income(TTM)597.00M
Analysts75
Price Target13.58 (41.31%)
Short Float %5.67%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
Yearly Dividend0.48
Dividend Growth(5Y)17.96%
DP55.11%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.64%
Min EPS beat(2)-40.39%
Max EPS beat(2)19.11%
EPS beat(4)2
Avg EPS beat(4)-9.06%
Min EPS beat(4)-40.39%
Max EPS beat(4)19.11%
EPS beat(8)4
Avg EPS beat(8)-3.31%
EPS beat(12)6
Avg EPS beat(12)-1.23%
EPS beat(16)10
Avg EPS beat(16)3.23%
Revenue beat(2)2
Avg Revenue beat(2)11.72%
Min Revenue beat(2)11.51%
Max Revenue beat(2)11.93%
Revenue beat(4)4
Avg Revenue beat(4)9.61%
Min Revenue beat(4)6.98%
Max Revenue beat(4)11.93%
Revenue beat(8)8
Avg Revenue beat(8)6.58%
Revenue beat(12)12
Avg Revenue beat(12)5.83%
Revenue beat(16)15
Avg Revenue beat(16)6.31%
PT rev (1m)-6.74%
PT rev (3m)-10.38%
EPS NQ rev (1m)-9.33%
EPS NQ rev (3m)-45.39%
EPS NY rev (1m)-21.96%
EPS NY rev (3m)-25.84%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)5.32%
Revenue NY rev (1m)2.27%
Revenue NY rev (3m)2.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.22 | ||
| Fwd PE | 16.04 | ||
| P/S | 0.67 | ||
| P/FCF | 5.92 | ||
| P/OCF | 3.65 | ||
| P/B | 1.55 | ||
| P/tB | 4.09 | ||
| EV/EBITDA | 10.08 |
EPS(TTM)0.5
EY5.2%
EPS(NY)0.6
Fwd EY6.23%
FCF(TTM)1.62
FCFY16.9%
OCF(TTM)2.64
OCFY27.43%
SpS14.29
BVpS6.2
TBVpS2.35
PEG (NY)N/A
PEG (5Y)3.63
Graham Number8.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 7.72% | ||
| ROCE | 7.89% | ||
| ROIC | 6.11% | ||
| ROICexc | 6.5% | ||
| ROICexgc | 7.79% | ||
| OM | 17.04% | ||
| PM (TTM) | 3.35% | ||
| GM | 32.19% | ||
| FCFM | 11.36% |
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%
ROICexgc growth 3Y0.53%
ROICexgc 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-Score3
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.51 | ||
| Debt/FCF | 13.4 | ||
| Debt/EBITDA | 7.43 | ||
| Cap/Depr | 204.71% | ||
| Cap/Sales | 7.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.95% | ||
| Profit Quality | 339.03% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.28 |
F-Score3
WACC8.16%
ROIC/WACC0.75
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)-63.5%
EPS 3Y-6.6%
EPS 5Y5.29%
EPS Q2Q%-66.67%
EPS Next Y-58.04%
EPS Next 2Y-26.2%
EPS Next 3Y-4.91%
EPS Next 5Y5.74%
Revenue 1Y (TTM)-18.1%
Revenue growth 3Y0.58%
Revenue growth 5Y-6.71%
Sales Q2Q%-5.48%
Revenue Next Year-9.23%
Revenue Next 2Y-3.88%
Revenue Next 3Y0.56%
Revenue Next 5Y0.38%
EBIT growth 1Y-29.12%
EBIT growth 3Y5.37%
EBIT growth 5Y5.11%
EBIT Next Year-31.14%
EBIT Next 3Y5.14%
EBIT Next 5Y20.58%
FCF growth 1Y702.38%
FCF growth 3Y-27.46%
FCF growth 5YN/A
OCF growth 1Y293.41%
OCF growth 3Y-21.59%
OCF growth 5Y1.51%
CNH INDUSTRIAL NV / CNH FAQ
Can you provide the ChartMill fundamental rating for CNH INDUSTRIAL NV?
ChartMill assigns a fundamental rating of 4 / 10 to CNH.
Can you provide the valuation status for CNH INDUSTRIAL NV?
ChartMill assigns a valuation rating of 5 / 10 to CNH INDUSTRIAL NV (CNH). This can be considered as Fairly Valued.
Can you provide the profitability details for CNH INDUSTRIAL NV?
CNH INDUSTRIAL NV (CNH) has a profitability rating of 6 / 10.
What is the valuation of CNH INDUSTRIAL NV based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CNH INDUSTRIAL NV (CNH) is 19.22 and the Price/Book (PB) ratio is 1.55.
Can you provide the financial health for CNH stock?
The financial health rating of CNH INDUSTRIAL NV (CNH) is 2 / 10.