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. 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
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.
CNH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CNH has a Return On Assets (2.90%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 16.29%, CNH is in the better half of the industry, outperforming 73.44% of the companies in the same industry.
With a Return On Invested Capital value of 8.19%, CNH perfoms like the industry average, outperforming 57.03% 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 10.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 16.29% | ||
| ROIC | 8.19% |
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 6.28% is in line compared to the rest of the industry. CNH outperforms 55.47% of its industry peers.
CNH's Profit Margin has improved in the last couple of years.
The Operating Margin of CNH (19.41%) is better than 86.72% of its industry peers.
In the last couple of years the Operating Margin of CNH has grown nicely.
CNH's Gross Margin of 32.70% is in line compared to the rest of the industry. CNH outperforms 56.25% of its industry peers.
CNH's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CNH is creating some value.
The number of shares outstanding for CNH has been reduced compared to 1 year ago.
Compared to 5 years ago, CNH has less shares outstanding
Compared to 1 year ago, CNH has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.39, we must say that CNH is in the distress zone and has some risk of bankruptcy.
CNH has a Altman-Z score of 1.39. This is in the lower half of the industry: CNH underperforms 74.22% of its industry peers.
CNH has a debt to FCF ratio of 34.38. This is a negative value and a sign of low solvency as CNH would need 34.38 years to pay back of 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 67.97% 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 89.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.51 | ||
| Debt/FCF | 34.38 | ||
| Altman-Z | 1.39 |
ROIC/WACC1.07
WACC7.68%
2.3 Liquidity
A Current Ratio of 1.27 indicates that CNH should not have too much problems paying its short term obligations.
CNH has a Current ratio of 1.27. This is amonst the worse of the industry: CNH underperforms 86.72% of its industry peers.
A Quick Ratio of 0.54 indicates that CNH may have some problems paying its short term obligations.
CNH has a worse Quick ratio (0.54) than 91.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.54 |
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%.
The Earnings Per Share has been growing slightly by 5.29% on average over the past years.
The Revenue for CNH has decreased by -19.65% in the past year. This is quite bad
CNH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.71% yearly.
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
The Earnings Per Share is expected to decrease by -2.49% on average over the next years.
The Revenue is expected to decrease by -0.15% on average over the next years.
EPS Next Y-37.05%
EPS Next 2Y-6.73%
EPS Next 3Y2.44%
EPS Next 5Y-2.49%
Revenue Next Year-14%
Revenue Next 2Y-3.91%
Revenue Next 3Y-1.06%
Revenue Next 5Y-0.15%
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
CNH is valuated reasonably with a Price/Earnings ratio of 10.58.
87.50% of the companies in the same industry are more expensive than CNH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CNH to the average of the S&P500 Index (28.79), we can say CNH is valued rather cheaply.
With a Price/Forward Earnings ratio of 16.81, CNH is valued correctly.
CNH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CNH is cheaper than 64.84% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CNH to the average of the S&P500 Index (21.38), we can say CNH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 16.81 |
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 75.00% 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 somewhat cheap valuation: CNH is cheaper than 64.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.58 | ||
| EV/EBITDA | 8.62 |
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
EPS Next 2Y-6.73%
EPS Next 3Y2.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.12%, 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 2.04. CNH pays more dividend than 83.59% of the companies in the same industry.
CNH's Dividend Yield is comparable with the S&P500 average which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
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-6.73%
EPS Next 3Y2.44%
11.64
-0.16 (-1.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners73.24%
Inst Owner Change0%
Ins Owners0.2%
Ins Owner Change16.38%
Market Cap14.53B
Analysts74.78
Price Target14.46 (24.23%)
Short Float %6.74%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Yearly Dividend0.48
Dividend Growth(5Y)17.96%
DP48.72%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)-0.31%
PT rev (3m)8.23%
EPS NQ rev (1m)-11.11%
EPS NQ rev (3m)-42.31%
EPS NY rev (1m)-6.3%
EPS NY rev (3m)-28.14%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-11.4%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-5.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.58 | ||
| Fwd PE | 16.81 | ||
| P/S | 0.73 | ||
| P/FCF | 18.58 | ||
| P/OCF | 7.38 | ||
| P/B | 1.9 | ||
| P/tB | 5.1 | ||
| EV/EBITDA | 8.62 |
EPS(TTM)1.1
EY9.45%
EPS(NY)0.69
Fwd EY5.95%
FCF(TTM)0.63
FCFY5.38%
OCF(TTM)1.58
OCFY13.55%
SpS15.89
BVpS6.13
TBVpS2.28
PEG (NY)N/A
PEG (5Y)2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 16.29% | ||
| ROCE | 10.57% | ||
| ROIC | 8.19% | ||
| ROICexc | 8.97% | ||
| ROICexgc | 10.88% | ||
| OM | 19.41% | ||
| PM (TTM) | 6.28% | ||
| GM | 32.7% | ||
| FCFM | 3.94% |
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%
ROICexcg growth 3Y0.53%
ROICexcg 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-Score5
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.51 | ||
| Debt/FCF | 34.38 | ||
| Debt/EBITDA | 6.03 | ||
| Cap/Depr | 196.03% | ||
| Cap/Sales | 5.98% | ||
| Interest Coverage | 2.41 | ||
| Cash Conversion | 44.18% | ||
| Profit Quality | 62.76% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 1.39 |
F-Score5
WACC7.68%
ROIC/WACC1.07
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-37.05%
EPS Next 2Y-6.73%
EPS Next 3Y2.44%
EPS Next 5Y-2.49%
Revenue 1Y (TTM)-19.65%
Revenue growth 3Y0.58%
Revenue growth 5Y-6.71%
Sales Q2Q%-28.21%
Revenue Next Year-14%
Revenue Next 2Y-3.91%
Revenue Next 3Y-1.06%
Revenue Next 5Y-0.15%
EBIT growth 1Y-22.14%
EBIT growth 3Y5.37%
EBIT growth 5Y5.11%
EBIT Next Year-8.37%
EBIT Next 3Y11.62%
EBIT Next 5Y20.58%
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%