CNH INDUSTRIAL NV (CNH) Stock Fundamental Analysis
USA - NYSE:CNH - NL0010545661 - Common Stock
10.05 USD
-0.05 (-0.5%)
10.05 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to CNH. 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
In the past year CNH was profitable.
CNH had a positive operating cash flow in the past year.
Of the past 5 years CNH 4 years were profitable.
In the past 5 years CNH always reported a positive cash flow from operatings.
1.2 Ratios
CNH has a worse Return On Assets (1.88%) than 61.54% of its industry peers.
CNH has a better Return On Equity (10.67%) than 60.77% of its industry peers.
With a Return On Invested Capital value of 6.87%, CNH perfoms like the industry average, outperforming 52.31% of the companies in the same industry.
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 10.28%.
The last Return On Invested Capital (6.87%) for CNH is well below the 3 year average (11.39%), which needs to be investigated, but indicates that CNH had better years and this may not be a problem.
| 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
Looking at the Profit Margin, with a value of 4.55%, CNH is in line with its industry, outperforming 51.54% of the companies in the same industry.
CNH's Profit Margin has improved in the last couple of years.
CNH's Operating Margin of 18.21% is amongst the best of the industry. CNH outperforms 84.62% of its industry peers.
CNH's Operating Margin has improved in the last couple of years.
CNH has a Gross Margin (32.40%) which 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 | 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.
Compared to 1 year ago, CNH has less shares outstanding
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
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.
The Altman-Z score of CNH (1.25) is worse than 76.15% of its industry peers.
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 has a worse Debt to FCF ratio (12.84) than 60.77% of its industry peers.
A Debt/Equity ratio of 3.55 is on the high side and indicates that CNH has dependencies on debt financing.
The Debt to Equity ratio of CNH (3.55) is worse than 90.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.55 | ||
| Debt/FCF | 12.84 | ||
| Altman-Z | 1.25 |
ROIC/WACC0.87
WACC7.9%
2.3 Liquidity
A Current Ratio of 1.24 indicates that CNH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.24, CNH is doing worse than 83.85% of the companies in the same industry.
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.
The Quick ratio of CNH (0.45) is worse than 90.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
CNH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -63.50%.
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.
Looking at the last year, CNH shows a very negative growth in Revenue. The Revenue has decreased by -19.65% in the last year.
CNH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.71% yearly.
EPS 1Y (TTM)-63.5%
EPS 3Y-6.6%
EPS 5Y5.29%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)-19.65%
Revenue growth 3Y0.58%
Revenue growth 5Y-6.71%
Sales Q2Q%-5.48%
3.2 Future
The Earnings Per Share is expected to decrease by -3.53% on average over the next years.
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
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
Based on the Price/Earnings ratio of 20.10, the valuation of CNH can be described as rather expensive.
Based on the Price/Earnings ratio, CNH is valued a bit cheaper than the industry average as 66.15% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.89, CNH is valued a bit cheaper.
CNH is valuated correctly with a Price/Forward Earnings ratio of 12.76.
83.08% 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 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.1 | ||
| Fwd PE | 12.76 |
4.2 Price Multiples
CNH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CNH is cheaper than 79.23% of the companies in the same industry.
CNH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CNH is cheaper than 96.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.89 | ||
| EV/EBITDA | 9.6 |
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)3.8
EPS Next 2Y-15.37%
EPS Next 3Y-1.09%
5. Dividend
5.1 Amount
CNH has a Yearly Dividend Yield of 2.48%.
CNH's Dividend Yield is rather good when compared to the industry average which is at 1.87. CNH pays more dividend than 87.69% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, CNH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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-15.37%
EPS Next 3Y-1.09%
10.05
-0.05 (-0.5%)
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 Change1.13%
Market Cap12.57B
Revenue(TTM)19.84B
Net Income(TTM)823.00M
Analysts75.83
Price Target14.56 (44.88%)
Short Float %6.1%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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)-2.75%
PT rev (3m)-4.85%
EPS NQ rev (1m)-4.73%
EPS NQ rev (3m)-11.69%
EPS NY rev (1m)-1.62%
EPS NY rev (3m)-4.98%
Revenue NQ rev (1m)-1.62%
Revenue NQ rev (3m)-2.76%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)2.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.1 | ||
| Fwd PE | 12.76 | ||
| P/S | 0.7 | ||
| P/FCF | 5.89 | ||
| P/OCF | 3.68 | ||
| P/B | 1.63 | ||
| P/tB | 4.41 | ||
| EV/EBITDA | 9.6 |
EPS(TTM)0.5
EY4.98%
EPS(NY)0.79
Fwd EY7.84%
FCF(TTM)1.71
FCFY16.98%
OCF(TTM)2.73
OCFY27.18%
SpS14.45
BVpS6.17
TBVpS2.28
PEG (NY)N/A
PEG (5Y)3.8
Graham Number8.33
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
WACC7.9%
ROIC/WACC0.87
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)-19.65%
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-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 20.1 and the Price/Book (PB) ratio is 1.63.
Can you provide the financial health for CNH stock?
The financial health rating of CNH INDUSTRIAL NV (CNH) is 2 / 10.