CNH INDUSTRIAL NV (CNH) Stock Fundamental Analysis
NYSE:CNH - New York Stock Exchange, Inc. - NL0010545661 - Common Stock - Currency: USD
Overall CNH gets a fundamental rating of 4 out of 10. We evaluated CNH against 128 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.
CNH had a positive operating cash flow in the past year.
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
The Return On Assets of CNH (2.90%) is comparable to the rest of the industry.
With a decent Return On Equity value of 16.15%, CNH is doing good in the industry, outperforming 71.20% of the companies in the same industry.
CNH has a Return On Invested Capital of 8.61%. This is in the better half of the industry: CNH outperforms 61.60% of its industry peers.
CNH had an Average Return On Invested Capital over the past 3 years of 10.38%. This is in line with the industry average of 11.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 16.15% | ||
| ROIC | 8.61% |
ROA(3y)4.39%
ROA(5y)3.13%
ROE(3y)24.99%
ROE(5y)18.07%
ROIC(3y)10.38%
ROIC(5y)8.37%
1.3 Margins
CNH has a Profit Margin (6.28%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CNH has grown nicely.
CNH has a Operating Margin of 19.41%. This is amongst the best in the industry. CNH outperforms 86.40% of its industry peers.
CNH's Operating Margin has improved in the last couple of years.
CNH has a Gross Margin of 32.70%. This is comparable to the rest of the industry: CNH outperforms 53.60% of its industry peers.
In the last couple of years the Gross Margin of CNH 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 CNH is still creating some value.
Compared to 1 year ago, CNH has less shares outstanding
Compared to 5 years ago, CNH has less shares outstanding
The debt/assets ratio for CNH is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of CNH is 34.38, which is on the high side as it means it would take CNH, 34.38 years of fcf income to pay off all of its debts.
CNH's Debt to FCF ratio of 34.38 is on the low side compared to the rest of the industry. CNH is outperformed by 68.00% of its industry peers.
A Debt/Equity ratio of 3.49 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 3.49, CNH is doing worse than 95.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | 34.38 | ||
| Altman-Z | N/A |
ROIC/WACC1.27
WACC6.76%
2.3 Liquidity
A Current Ratio of 0.98 indicates that CNH may have some problems paying its short term obligations.
CNH has a Current ratio of 0.98. This is amonst the worse of the industry: CNH underperforms 92.00% of its industry peers.
CNH has a Quick Ratio of 0.98. 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 Quick ratio of 0.41. This is amonst the worse of the industry: CNH underperforms 93.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
CNH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.67%.
CNH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.29% yearly.
CNH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.65%.
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)-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
CNH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.03% yearly.
Based on estimates for the next years, CNH will show a decrease in Revenue. The Revenue will decrease by -0.99% on average per year.
EPS Next Y-32.58%
EPS Next 2Y-5.92%
EPS Next 3Y-0.01%
EPS Next 5Y-1.03%
Revenue Next Year-11.12%
Revenue Next 2Y-4.32%
Revenue Next 3Y-0.89%
Revenue Next 5Y-0.99%
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.
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 reasonably with a Price/Earnings ratio of 11.80.
Based on the Price/Earnings ratio, CNH is valued cheaper than 86.40% of the companies in the same industry.
When comparing the Price/Earnings ratio of CNH to the average of the S&P500 Index (29.63), we can say CNH is valued rather cheaply.
CNH is valuated rather expensively with a Price/Forward Earnings ratio of 17.50.
Based on the Price/Forward Earnings ratio, CNH is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
CNH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 17.5 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNH indicates a rather cheap valuation: CNH is cheaper than 81.60% of the companies listed in the same industry.
71.20% 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 | 20.73 | ||
| EV/EBITDA | 9.05 |
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)2.23
EPS Next 2Y-5.92%
EPS Next 3Y-0.01%
5. Dividend
5.1 Amount
CNH has a Yearly Dividend Yield of 3.77%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.67, CNH pays a better dividend. On top of this CNH pays more dividend than 96.80% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, CNH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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
48.72% of the earnings are spent on dividend by CNH. This is a bit on the high side, but may be sustainable.
DP48.72%
EPS Next 2Y-5.92%
EPS Next 3Y-0.01%
12.98
-0.33 (-2.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners66.38%
Inst Owner Change0%
Ins Owners0.14%
Ins Owner Change0%
Market Cap16.21B
Analysts76.52
Price Target14.5 (11.71%)
Short Float %5.09%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
Yearly Dividend0.48
Dividend Growth(5Y)17.96%
DP48.72%
Div Incr Years3
Div Non Decr Years3
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)3.98%
PT rev (3m)5.87%
EPS NQ rev (1m)-27.2%
EPS NQ rev (3m)-57.23%
EPS NY rev (1m)-23.03%
EPS NY rev (3m)-42.15%
Revenue NQ rev (1m)-12.35%
Revenue NQ rev (3m)-20.59%
Revenue NY rev (1m)-2.35%
Revenue NY rev (3m)-11.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 17.5 | ||
| P/S | 0.82 | ||
| P/FCF | 20.73 | ||
| P/OCF | 8.24 | ||
| P/B | 2.1 | ||
| P/tB | 5.57 | ||
| EV/EBITDA | 9.05 |
EPS(TTM)1.1
EY8.47%
EPS(NY)0.74
Fwd EY5.71%
FCF(TTM)0.63
FCFY4.82%
OCF(TTM)1.58
OCFY12.14%
SpS15.88
BVpS6.18
TBVpS2.33
PEG (NY)N/A
PEG (5Y)2.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 16.15% | ||
| ROCE | 11.11% | ||
| ROIC | 8.61% | ||
| ROICexc | 9.48% | ||
| ROICexgc | 12.52% | ||
| OM | 19.41% | ||
| PM (TTM) | 6.28% | ||
| GM | 32.7% | ||
| FCFM | 3.94% |
ROA(3y)4.39%
ROA(5y)3.13%
ROE(3y)24.99%
ROE(5y)18.07%
ROIC(3y)10.38%
ROIC(5y)8.37%
ROICexc(3y)13.24%
ROICexc(5y)11.69%
ROICexgc(3y)18.42%
ROICexgc(5y)18.05%
ROCE(3y)13.39%
ROCE(5y)10.8%
ROICexcg growth 3Y-10.91%
ROICexcg growth 5Y-4.08%
ROICexc growth 3Y8.36%
ROICexc growth 5Y-3.62%
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 | 3.49 | ||
| Debt/FCF | 34.38 | ||
| Debt/EBITDA | 6.03 | ||
| Cap/Depr | 196.03% | ||
| Cap/Sales | 5.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 44.18% | ||
| Profit Quality | 62.76% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | N/A |
F-Score5
WACC6.76%
ROIC/WACC1.27
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-32.58%
EPS Next 2Y-5.92%
EPS Next 3Y-0.01%
EPS Next 5Y-1.03%
Revenue 1Y (TTM)-19.65%
Revenue growth 3Y0.58%
Revenue growth 5Y-6.71%
Sales Q2Q%-28.21%
Revenue Next Year-11.12%
Revenue Next 2Y-4.32%
Revenue Next 3Y-0.89%
Revenue Next 5Y-0.99%
EBIT growth 1Y-22.14%
EBIT growth 3Y5.37%
EBIT growth 5Y5.11%
EBIT Next Year1.27%
EBIT Next 3Y10.35%
EBIT Next 5Y9.81%
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%