CNH INDUSTRIAL NV (CNH) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:CNH • NL0010545661
10.75 USD
-0.1 (-0.92%)
Last: Jan 30, 2026, 10:16 AM
Taking everything into account, CNH scores 4 out of 10 in our fundamental rating. CNH was compared to 132 industry peers in the Machinery industry. CNH has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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 (1.38%) is worse than 62.88% 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.
- CNH has a Return On Invested Capital of 6.11%. This is comparable to the rest of the industry: CNH outperforms 48.48% of its industry peers.
- 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 10.24%.
- 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's Profit Margin of 3.35% is in line compared to the rest of the industry. CNH outperforms 44.70% of its industry peers.
- In the last couple of years the Profit Margin of CNH has grown nicely.
- CNH's Operating Margin of 17.04% is fine compared to the rest of the industry. CNH outperforms 79.55% of its industry peers.
- In the last couple of years the Operating Margin of CNH has grown nicely.
- The Gross Margin of CNH (32.19%) is comparable to the rest of the 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
- 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.
- CNH has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for CNH is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.30, we must say that CNH is in the distress zone and has some risk of bankruptcy.
- CNH has a worse Altman-Z score (1.30) than 76.52% 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 61.36% 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's Debt to Equity ratio of 3.51 is on the low side compared to the rest of the industry. CNH is outperformed by 87.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.51 | ||
| Debt/FCF | 13.4 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.74
WACC8.27%
2.3 Liquidity
- A Current Ratio of 1.69 indicates that CNH should not have too much problems paying its short term obligations.
- The Current ratio of CNH (1.69) is worse than 65.15% of its industry peers.
- A Quick Ratio of 0.58 indicates that CNH may have some problems paying 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.
- Measured over the past 5 years, CNH shows a small growth in Earnings Per Share. The EPS has been growing by 5.29% on average per year.
- The Revenue for CNH has decreased by -18.10% in the past year. This is quite bad
- 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
- 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-58.19%
EPS Next 2Y-28.85%
EPS Next 3Y-6.68%
EPS Next 5Y5.74%
Revenue Next Year-8.11%
Revenue Next 2Y-4.45%
Revenue Next 3Y0.04%
Revenue Next 5Y0.38%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same 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 21.50 indicates a rather expensive valuation of CNH.
- CNH's Price/Earnings ratio is a bit cheaper when compared to the industry. CNH is cheaper than 69.70% 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 28.39.
- Based on the Price/Forward Earnings ratio of 19.30, the valuation of CNH can be described as rather expensive.
- 63.64% 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 25.72, CNH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.5 | ||
| Fwd PE | 19.3 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CNH is valued cheaper than 81.82% of the companies 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 97.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.62 | ||
| EV/EBITDA | 10.5 |
4.3 Compensation for Growth
- CNH has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as CNH's earnings are expected to decrease with -6.68% in the coming years.
PEG (NY)N/A
PEG (5Y)4.06
EPS Next 2Y-28.85%
EPS Next 3Y-6.68%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.26%, CNH has a reasonable but not impressive dividend return.
- CNH's Dividend Yield is rather good when compared to the industry average which is at 1.01. CNH pays more dividend than 88.64% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, CNH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
- On average, the dividend of CNH grows each year by 17.97%, 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)17.97%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- CNH pays out 55.11% of its income as dividend. 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-28.85%
EPS Next 3Y-6.68%
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.
What is the valuation status of CNH INDUSTRIAL NV (CNH) stock?
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.
Can you provide the financial health for CNH stock?
The financial health rating of CNH INDUSTRIAL NV (CNH) is 2 / 10.
What is the expected EPS growth for CNH INDUSTRIAL NV (CNH) stock?
The Earnings per Share (EPS) of CNH INDUSTRIAL NV (CNH) is expected to decline by -58.19% in the next year.