CNH INDUSTRIAL NV (CNH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CNH - NL0010545661 - Common Stock
9.4 USD
-0.32 (-3.29%)
9.32 USD
-0.08 (-0.85%)
Overall CNH gets a fundamental rating of 4 out of 10. We evaluated CNH against 130 industry peers in the Machinery industry. CNH has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
Each year in the past 5 years CNH had a positive operating cash flow.
1.2 Ratios
CNH has a worse Return On Assets (1.38%) than 63.08% of its industry peers.
The Return On Equity of CNH (7.72%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 6.11%, CNH perfoms like the industry average, outperforming 48.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CNH is in line with the industry average of 10.34%.
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
CNH has a Profit Margin (3.35%) which is comparable to the rest of the industry.
CNH's Profit Margin has improved in the last couple of years.
CNH's Operating Margin of 17.04% is fine compared to the rest of the industry. CNH outperforms 79.23% of its industry peers.
In the last couple of years the Operating Margin of CNH has grown nicely.
CNH's Gross Margin of 32.19% is in line compared to the rest of the industry. CNH outperforms 53.85% of its industry peers.
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.
CNH has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that CNH is in the distress zone and has some risk of bankruptcy.
CNH has a Altman-Z score of 1.27. This is in the lower half of the industry: CNH underperforms 77.69% of its industry peers.
CNH has a debt to FCF ratio of 13.40. This is a negative value and a sign of low solvency as CNH would need 13.40 years to pay back of all of its debts.
CNH has a worse Debt to FCF ratio (13.40) than 61.54% of its industry peers.
A Debt/Equity ratio of 3.51 is on the high side and indicates that CNH has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.51, CNH is doing worse than 89.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.51 | ||
| Debt/FCF | 13.4 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.77
WACC7.96%
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 Current ratio of 1.69. This is in the lower half of the industry: CNH underperforms 65.38% 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 86.92% 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.
The Earnings Per Share has been growing slightly by 5.29% on average over the past years.
Looking at the last year, CNH shows a very negative growth in Revenue. The Revenue has decreased by -18.10% in the last year.
Measured over the past years, CNH shows a decrease in Revenue. The Revenue has been decreasing by -6.71% on average per year.
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
Based on estimates for the next years, CNH will show a decrease in Earnings Per Share. The EPS will decrease by -3.53% on average per year.
CNH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.43% yearly.
EPS Next Y-46.23%
EPS Next 2Y-15.37%
EPS Next 3Y-1.09%
EPS Next 5Y-3.53%
Revenue Next Year-11.24%
Revenue Next 2Y-4.76%
Revenue Next 3Y-0.35%
Revenue Next 5Y0.43%
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 18.80, the valuation of CNH can be described as rather expensive.
CNH's Price/Earnings ratio is a bit cheaper when compared to the industry. CNH is cheaper than 71.54% of the companies in the same industry.
When comparing the Price/Earnings ratio of CNH to the average of the S&P500 Index (26.15), we can say CNH is valued slightly cheaper.
CNH is valuated reasonably with a Price/Forward Earnings ratio of 11.93.
Based on the Price/Forward Earnings ratio, CNH is valued cheaply inside the industry as 87.69% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.12. CNH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 11.93 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNH indicates a somewhat cheap valuation: CNH is cheaper than 77.69% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CNH indicates a rather cheap valuation: CNH is cheaper than 96.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.81 | ||
| EV/EBITDA | 10.02 |
4.3 Compensation for Growth
CNH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.55
EPS Next 2Y-15.37%
EPS Next 3Y-1.09%
5. Dividend
5.1 Amount
CNH has a Yearly Dividend Yield of 2.66%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.97, CNH pays a better dividend. On top of this CNH pays more dividend than 87.69% of the companies listed in the same industry.
CNH's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
The dividend of CNH is nicely growing with an annual growth rate of 17.96%!
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.
CNH's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP55.11%
EPS Next 2Y-15.37%
EPS Next 3Y-1.09%
9.4
-0.32 (-3.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners72.99%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change0.33%
Market Cap11.76B
Revenue(TTM)17.81B
Net Income(TTM)597.00M
Analysts75.83
Price Target13.69 (45.64%)
Short Float %5.95%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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)-8.59%
PT rev (3m)-10.56%
EPS NQ rev (1m)-36.07%
EPS NQ rev (3m)-43.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.98%
Revenue NQ rev (1m)5.98%
Revenue NQ rev (3m)3.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 11.93 | ||
| P/S | 0.66 | ||
| P/FCF | 5.81 | ||
| P/OCF | 3.58 | ||
| P/B | 1.52 | ||
| P/tB | 4.01 | ||
| EV/EBITDA | 10.02 |
EPS(TTM)0.5
EY5.32%
EPS(NY)0.79
Fwd EY8.38%
FCF(TTM)1.62
FCFY17.21%
OCF(TTM)2.63
OCFY27.94%
SpS14.24
BVpS6.18
TBVpS2.34
PEG (NY)N/A
PEG (5Y)3.55
Graham Number8.34
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 | 1.27 |
F-Score3
WACC7.96%
ROIC/WACC0.77
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-46.23%
EPS Next 2Y-15.37%
EPS Next 3Y-1.09%
EPS Next 5Y-3.53%
Revenue 1Y (TTM)-18.1%
Revenue growth 3Y0.58%
Revenue growth 5Y-6.71%
Sales Q2Q%-5.48%
Revenue Next Year-11.24%
Revenue Next 2Y-4.76%
Revenue Next 3Y-0.35%
Revenue Next 5Y0.43%
EBIT growth 1Y-29.12%
EBIT growth 3Y5.37%
EBIT growth 5Y5.11%
EBIT Next Year-16.87%
EBIT Next 3Y10.04%
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 6 / 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 18.8 and the Price/Book (PB) ratio is 1.52.
Can you provide the financial health for CNH stock?
The financial health rating of CNH INDUSTRIAL NV (CNH) is 2 / 10.