CNH INDUSTRIAL NV (CNH) Stock Fundamental Analysis
USA - NYSE:CNH - NL0010545661 - Common Stock
9.66 USD
-0.6 (-5.85%)
9.635 USD
-0.03 (-0.26%)
Taking everything into account, CNH scores 4 out of 10 in our fundamental rating. CNH was compared to 130 industry peers in the Machinery industry. There are concerns on the financial health of CNH while its profitability can be described as average. CNH is valued correctly, 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.
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
With a Return On Assets value of 1.88%, CNH is not doing good in the industry: 62.31% of the companies in the same industry are doing better.
CNH's Return On Equity of 10.67% is in line compared to the rest of the industry. CNH outperforms 59.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.87%, CNH is in line with its industry, outperforming 51.54% 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 10.24%.
The 3 year average ROIC (11.39%) for CNH is well above the current ROIC(6.87%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 10.67% | ||
| ROIC | 6.87% |
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's Profit Margin of 4.55% is in line compared to the rest of the industry. CNH outperforms 48.46% of its industry peers.
In the last couple of years the Profit Margin of CNH has grown nicely.
With an excellent Operating Margin value of 18.21%, CNH belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Operating Margin of CNH has grown nicely.
CNH has a Gross Margin (32.40%) which is in line with its industry peers.
In the last couple of years the Gross Margin of CNH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.21% | ||
| PM (TTM) | 4.55% | ||
| GM | 32.4% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CNH is creating some value.
CNH has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CNH has been reduced compared to 5 years ago.
CNH has a worse debt/assets ratio than last year.
2.2 Solvency
CNH has an Altman-Z score of 1.25. This is a bad value and indicates that CNH is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.25, CNH is doing worse than 76.92% of the companies in the same industry.
The Debt to FCF ratio of CNH is 12.84, which is on the high side as it means it would take CNH, 12.84 years of fcf income to pay off all of its debts.
CNH's Debt to FCF ratio of 12.84 is on the low side compared to the rest of the industry. CNH is outperformed by 62.31% of its industry peers.
CNH has a Debt/Equity ratio of 3.55. This is a high value indicating a heavy dependency on external financing.
CNH's Debt to Equity ratio of 3.55 is on the low side compared to the rest of the industry. CNH is outperformed by 90.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.55 | ||
| Debt/FCF | 12.84 | ||
| Altman-Z | 1.25 |
ROIC/WACC0.86
WACC7.95%
2.3 Liquidity
CNH has a Current Ratio of 1.24. This is a normal value and indicates that CNH is financially healthy and should not expect problems in meeting its short term obligations.
CNH's Current ratio of 1.24 is on the low side compared to the rest of the industry. CNH is outperformed by 83.85% of its industry peers.
CNH has a Quick Ratio of 1.24. 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's Quick ratio of 0.45 is on the low side compared to the rest of the industry. CNH is outperformed by 90.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The earnings per share for CNH have decreased strongly by -57.42% 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 -21.73% in the last year.
The Revenue has been decreasing by -6.71% on average over the past years.
EPS 1Y (TTM)-57.42%
EPS 3Y-6.6%
EPS 5Y5.29%
EPS Q2Q%-55.26%
Revenue 1Y (TTM)-21.73%
Revenue growth 3Y0.58%
Revenue growth 5Y-6.71%
Sales Q2Q%-14.16%
3.2 Future
The Earnings Per Share is expected to decrease by -3.53% on average over the next years.
Based on estimates for the next years, CNH will show a small growth in Revenue. The Revenue will grow by 0.43% on average per year.
EPS Next Y-46.23%
EPS Next 2Y-15.31%
EPS Next 3Y-1.03%
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
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
A Price/Earnings ratio of 14.64 indicates a correct valuation of CNH.
Based on the Price/Earnings ratio, CNH is valued a bit cheaper than 80.00% of the companies in the same industry.
CNH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.
The Price/Forward Earnings ratio is 12.24, which indicates a correct valuation of CNH.
Based on the Price/Forward Earnings ratio, CNH is valued cheaper than 83.85% of the companies in the same industry.
CNH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 12.24 |
4.2 Price Multiples
CNH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CNH is cheaper than 76.15% of the companies in the same industry.
96.15% of the companies in the same industry are more expensive than CNH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.66 | ||
| EV/EBITDA | 9.67 |
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)2.77
EPS Next 2Y-15.31%
EPS Next 3Y-1.03%
5. Dividend
5.1 Amount
CNH has a Yearly Dividend Yield of 2.41%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of CNH has falen by -22.28%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CNH's Dividend Yield is rather good when compared to the industry average which is at 1.83. CNH pays more dividend than 87.69% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, CNH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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
CNH pays out 40.58% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP40.58%
EPS Next 2Y-15.31%
EPS Next 3Y-1.03%
9.66
-0.6 (-5.85%)
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 Change-0.76%
Market Cap12.08B
Revenue(TTM)18.07B
Net Income(TTM)823.00M
Analysts74.78
Price Target14.56 (50.72%)
Short Float %6.1%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend0.48
Dividend Growth(5Y)17.96%
DP40.58%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.67%
Min EPS beat(2)0.22%
Max EPS beat(2)19.11%
EPS beat(4)2
Avg EPS beat(4)-2.02%
Min EPS beat(4)-15.2%
Max EPS beat(4)19.11%
EPS beat(8)4
Avg EPS beat(8)1.32%
EPS beat(12)7
Avg EPS beat(12)4.43%
EPS beat(16)11
Avg EPS beat(16)9.24%
Revenue beat(2)2
Avg Revenue beat(2)9.97%
Min Revenue beat(2)8.01%
Max Revenue beat(2)11.93%
Revenue beat(4)4
Avg Revenue beat(4)6.86%
Min Revenue beat(4)0.52%
Max Revenue beat(4)11.93%
Revenue beat(8)8
Avg Revenue beat(8)5.17%
Revenue beat(12)12
Avg Revenue beat(12)5.89%
Revenue beat(16)14
Avg Revenue beat(16)3.4%
PT rev (1m)-3.91%
PT rev (3m)-2.87%
EPS NQ rev (1m)-5.14%
EPS NQ rev (3m)-19.68%
EPS NY rev (1m)-1.62%
EPS NY rev (3m)-4.98%
Revenue NQ rev (1m)-1.65%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)2.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 12.24 | ||
| P/S | 0.67 | ||
| P/FCF | 5.66 | ||
| P/OCF | 3.54 | ||
| P/B | 1.57 | ||
| P/tB | 4.24 | ||
| EV/EBITDA | 9.67 |
EPS(TTM)0.66
EY6.83%
EPS(NY)0.79
Fwd EY8.17%
FCF(TTM)1.71
FCFY17.67%
OCF(TTM)2.73
OCFY28.28%
SpS14.45
BVpS6.17
TBVpS2.28
PEG (NY)N/A
PEG (5Y)2.77
Graham Number9.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.88% | ||
| ROE | 10.67% | ||
| ROCE | 8.87% | ||
| ROIC | 6.87% | ||
| ROICexc | 7.37% | ||
| ROICexgc | 8.91% | ||
| OM | 18.21% | ||
| PM (TTM) | 4.55% | ||
| GM | 32.4% | ||
| FCFM | 11.82% |
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-Score4
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.55 | ||
| Debt/FCF | 12.84 | ||
| Debt/EBITDA | 7.02 | ||
| Cap/Depr | 209.48% | ||
| Cap/Sales | 7.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.57% | ||
| Profit Quality | 259.42% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 1.25 |
F-Score4
WACC7.95%
ROIC/WACC0.86
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)-57.42%
EPS 3Y-6.6%
EPS 5Y5.29%
EPS Q2Q%-55.26%
EPS Next Y-46.23%
EPS Next 2Y-15.31%
EPS Next 3Y-1.03%
EPS Next 5Y-3.53%
Revenue 1Y (TTM)-21.73%
Revenue growth 3Y0.58%
Revenue growth 5Y-6.71%
Sales Q2Q%-14.16%
Revenue Next Year-11.24%
Revenue Next 2Y-4.76%
Revenue Next 3Y-0.35%
Revenue Next 5Y0.43%
EBIT growth 1Y-28.56%
EBIT growth 3Y5.37%
EBIT growth 5Y5.11%
EBIT Next Year-16.87%
EBIT Next 3Y10.04%
EBIT Next 5Y20.58%
FCF growth 1Y1200.52%
FCF growth 3Y-27.46%
FCF growth 5YN/A
OCF growth 1Y290.51%
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 14.64 and the Price/Book (PB) ratio is 1.57.
Can you provide the financial health for CNH stock?
The financial health rating of CNH INDUSTRIAL NV (CNH) is 2 / 10.