CNH INDUSTRIAL NV (CNH)
NL0010545661 - Common Stock
Overall CNH gets a fundamental rating of 4 out of 10. We evaluated CNH against 131 industry peers in the Machinery industry. While CNH has a great profitability rating, there are quite some concerns on its financial health. CNH has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CNH had positive earnings in the past year.
In the past year CNH had a positive cash flow from operations.
CNH had positive earnings in 4 of the past 5 years.
CNH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CNH (4.59%) is comparable to the rest of the industry.
CNH's Return On Equity of 26.76% is amongst the best of the industry. CNH outperforms 89.84% of its industry peers.
CNH has a Return On Invested Capital of 8.76%. This is in the better half of the industry: CNH outperforms 63.28% of its industry peers.
CNH had an Average Return On Invested Capital over the past 3 years of 10.34%. This is in line with the industry average of 11.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 26.76% | ||
| ROIC | 8.76% |
ROA(3y)4.58%
ROA(5y)2.81%
ROE(3y)27.98%
ROE(5y)16.77%
ROIC(3y)10.34%
ROIC(5y)7.57%
1.3 Margins
CNH has a Profit Margin of 8.74%. This is in the better half of the industry: CNH outperforms 64.06% of its industry peers.
CNH's Profit Margin has improved in the last couple of years.
CNH has a Operating Margin of 19.95%. This is amongst the best in the industry. CNH outperforms 89.06% of its industry peers.
CNH's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 32.16%, CNH perfoms like the industry average, outperforming 57.03% of the companies in the same industry.
CNH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.95% | ||
| PM (TTM) | 8.74% | ||
| GM | 32.16% |
OM growth 3Y70.97%
OM growth 5Y23.85%
PM growth 3YN/A
PM growth 5Y15.86%
GM growth 3Y24.71%
GM growth 5Y11%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CNH is creating some value.
Compared to 1 year ago, CNH has less shares outstanding
Compared to 5 years ago, CNH has less shares outstanding
CNH has a worse debt/assets ratio than last year.
2.2 Solvency
CNH has an Altman-Z score of 1.53. This is a bad value and indicates that CNH is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CNH (1.53) is worse than 71.09% of its industry peers.
The Debt to FCF ratio of CNH is 343.69, which is on the high side as it means it would take CNH, 343.69 years of fcf income to pay off all of its debts.
CNH's Debt to FCF ratio of 343.69 is on the low side compared to the rest of the industry. CNH is outperformed by 66.41% of its industry peers.
A Debt/Equity ratio of 3.56 is on the high side and indicates that CNH has dependencies on debt financing.
The Debt to Equity ratio of CNH (3.56) is worse than 96.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.56 | ||
| Debt/FCF | 343.69 | ||
| Altman-Z | 1.53 |
ROIC/WACC1.37
WACC6.4%
2.3 Liquidity
A Current Ratio of 1.88 indicates that CNH should not have too much problems paying its short term obligations.
The Current ratio of CNH (1.88) is worse than 61.72% of its industry peers.
CNH has a Quick Ratio of 1.88. This is a bad value and indicates that CNH is not financially healthy enough and could expect problems in meeting its short term obligations.
CNH has a worse Quick ratio (0.55) than 91.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
CNH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.49%.
CNH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.41% yearly.
CNH shows a decrease in Revenue. In the last year, the revenue decreased by -6.30%.
Measured over the past years, CNH shows a decrease in Revenue. The Revenue has been decreasing by -3.65% on average per year.
EPS 1Y (TTM)-5.49%
EPS 3Y82.79%
EPS 5Y16.41%
EPS Q2Q%-26.92%
Revenue 1Y (TTM)-6.3%
Revenue growth 3Y18.87%
Revenue growth 5Y-3.65%
Sales Q2Q%-16.43%
3.2 Future
The Earnings Per Share is expected to decrease by -5.29% on average over the next years.
The Revenue is expected to grow by 0.29% on average over the next years.
EPS Next Y-19.79%
EPS Next 2Y-11.31%
EPS Next 3Y-5.54%
EPS Next 5Y-5.29%
Revenue Next Year-16.23%
Revenue Next 2Y-9.57%
Revenue Next 3Y-4.91%
Revenue Next 5Y0.29%
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 decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.29, the valuation of CNH can be described as very cheap.
95.31% of the companies in the same industry are more expensive than CNH, based on the Price/Earnings ratio.
CNH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.84.
With a Price/Forward Earnings ratio of 8.40, the valuation of CNH can be described as very reasonable.
95.31% of the companies in the same industry are more expensive than CNH, based on the Price/Forward Earnings ratio.
CNH is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 8.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNH is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CNH is valued a bit more expensive than the industry average as 64.06% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 181.64 | ||
| EV/EBITDA | 7.52 |
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 -5.54% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.44
EPS Next 2Y-11.31%
EPS Next 3Y-5.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.20%, CNH is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.58, CNH pays a better dividend. On top of this CNH pays more dividend than 97.66% of the companies listed in the same industry.
CNH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
5.2 History
CNH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
29.90% of the earnings are spent on dividend by CNH. This is a low number and sustainable payout ratio.
DP29.9%
EPS Next 2Y-11.31%
EPS Next 3Y-5.54%
CNH INDUSTRIAL NV
NYSE:CNH (10/29/2024, 8:04:00 PM)
After market: 11.3 0 (0%)11.3
-0.11 (-0.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 8.4 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 26.76% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.95% | ||
| PM (TTM) | 8.74% | ||
| GM | 32.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.56 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.88 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-5.49%
EPS 3Y82.79%
EPS 5Y
EPS Q2Q%
EPS Next Y-19.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.3%
Revenue growth 3Y18.87%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y