CNH INDUSTRIAL NV (CNH) Stock Fundamental Analysis
NYSE:CNH - New York Stock Exchange, Inc. - NL0010545661 - Common Stock
We assign a fundamental rating of 4 out of 10 to CNH. CNH was compared to 131 industry peers in the Machinery industry. CNH has a medium profitability rating, but doesn't score so well on its financial health evaluation. CNH has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CNH was profitable.
In the past year CNH had a positive cash flow from operations.
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
With a Return On Assets value of 3.84%, CNH perfoms like the industry average, outperforming 51.18% of the companies in the same industry.
CNH's Return On Equity of 22.10% is amongst the best of the industry. CNH outperforms 84.25% of its industry peers.
With a Return On Invested Capital value of 8.03%, CNH perfoms like the industry average, outperforming 58.27% of the companies in the same industry.
CNH had an Average Return On Invested Capital over the past 3 years of 9.15%. This is below the industry average of 11.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 22.1% | ||
| ROIC | 8.03% |
ROA(3y)4.59%
ROA(5y)3.15%
ROE(3y)28.08%
ROE(5y)19.52%
ROIC(3y)9.15%
ROIC(5y)7.97%
1.3 Margins
CNH's Profit Margin of 7.76% is fine compared to the rest of the industry. CNH outperforms 60.63% of its industry peers.
In the last couple of years the Profit Margin of CNH has grown nicely.
Looking at the Operating Margin, with a value of 19.69%, CNH belongs to the top of the industry, outperforming 86.61% of the companies in the same industry.
In the last couple of years the Operating Margin of CNH has grown nicely.
Looking at the Gross Margin, with a value of 32.27%, CNH is in line with its industry, outperforming 53.54% of the companies in the same industry.
In the last couple of years the Gross Margin of CNH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.69% | ||
| PM (TTM) | 7.76% | ||
| GM | 32.27% |
OM growth 3Y17.22%
OM growth 5Y12.27%
PM growth 3YN/A
PM growth 5Y21.72%
GM growth 3Y9.01%
GM growth 5Y6.96%
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.
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
CNH has an Altman-Z score of 1.51. This is a bad value and indicates that CNH is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.51, CNH is not doing good in the industry: 77.95% of the companies in the same industry are doing better.
The Debt to FCF ratio of CNH is 40.75, which is on the high side as it means it would take CNH, 40.75 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 40.75, CNH is not doing good in the industry: 66.14% of the companies in the same industry are doing better.
CNH has a Debt/Equity ratio of 3.57. This is a high value indicating a heavy dependency on external financing.
CNH's Debt to Equity ratio of 3.57 is on the low side compared to the rest of the industry. CNH is outperformed by 95.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.57 | ||
| Debt/FCF | 40.75 | ||
| Altman-Z | 1.51 |
ROIC/WACC1.27
WACC6.3%
2.3 Liquidity
CNH has a Current Ratio of 2.07. This indicates that CNH is financially healthy and has no problem in meeting its short term obligations.
CNH's Current ratio of 2.07 is in line compared to the rest of the industry. CNH outperforms 46.46% of its industry peers.
A Quick Ratio of 0.58 indicates that CNH may have some problems paying its short term obligations.
CNH has a worse Quick ratio (0.58) than 91.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for CNH have decreased strongly by -16.97% in the last year.
Measured over the past years, CNH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.41% on average per year.
The Revenue for CNH has decreased by -12.42% 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 -3.63% on average per year.
EPS 1Y (TTM)-16.97%
EPS 3Y82.79%
EPS 5Y16.41%
EPS Q2Q%-42.86%
Revenue 1Y (TTM)-12.42%
Revenue growth 3Y18.65%
Revenue growth 5Y-3.63%
Sales Q2Q%-22.25%
3.2 Future
The Earnings Per Share is expected to decrease by -9.20% on average over the next years.
CNH is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.39% yearly.
EPS Next Y-32.41%
EPS Next 2Y-24.93%
EPS Next 3Y-12.78%
EPS Next 5Y-9.2%
Revenue Next Year-20.96%
Revenue Next 2Y-15.27%
Revenue Next 3Y-9.16%
Revenue Next 5Y-5.39%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.28 indicates a reasonable valuation of CNH.
Based on the Price/Earnings ratio, CNH is valued cheaply inside the industry as 92.91% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.29. CNH is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 13.19 indicates a correct valuation of CNH.
CNH's Price/Forward Earnings ratio is rather cheap when compared to the industry. CNH is cheaper than 85.83% of the companies in the same industry.
CNH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 13.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNH is valued cheaper than 84.25% of the companies 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 66.93% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.69 | ||
| EV/EBITDA | 8.36 |
4.3 Compensation for Growth
CNH has a very decent profitability rating, which may justify a higher PE ratio.
CNH's earnings are expected to decrease with -12.78% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.57
EPS Next 2Y-24.93%
EPS Next 3Y-12.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.90%, 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 1.65. CNH pays more dividend than 96.85% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, CNH pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
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 35.94% of its income as dividend. This is a sustainable payout ratio.
DP35.94%
EPS Next 2Y-24.93%
EPS Next 3Y-12.78%
CNH INDUSTRIAL NV
NYSE:CNH (1/21/2025, 8:04:00 PM)
After market: 12.71 0 (0%)12.71
+0.44 (+3.59%)
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 Cap15.87B
Analysts73.33
Price Target13.94 (9.68%)
Short Float %4.71%
Short Ratio3.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
Yearly Dividend0.41
Dividend Growth(5Y)17.96%
DP35.94%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.44%
Min EPS beat(2)-12.21%
Max EPS beat(2)1.32%
EPS beat(4)2
Avg EPS beat(4)2.44%
Min EPS beat(4)-12.21%
Max EPS beat(4)22.3%
EPS beat(8)4
Avg EPS beat(8)2.69%
EPS beat(12)8
Avg EPS beat(12)7.33%
EPS beat(16)12
Avg EPS beat(16)27.72%
Revenue beat(2)2
Avg Revenue beat(2)1.38%
Min Revenue beat(2)0.52%
Max Revenue beat(2)2.24%
Revenue beat(4)4
Avg Revenue beat(4)3.55%
Min Revenue beat(4)0.52%
Max Revenue beat(4)10.48%
Revenue beat(8)8
Avg Revenue beat(8)3.95%
Revenue beat(12)11
Avg Revenue beat(12)5.21%
Revenue beat(16)11
Avg Revenue beat(16)-11.17%
PT rev (1m)3.8%
PT rev (3m)-1.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-55.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-21.32%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-5.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 13.19 | ||
| P/S | 0.73 | ||
| P/FCF | 23.69 | ||
| P/OCF | 8.86 | ||
| P/B | 2.08 | ||
| P/tB | 5.72 | ||
| EV/EBITDA | 8.36 |
EPS(TTM)1.37
EY10.78%
EPS(NY)0.96
Fwd EY7.58%
FCF(TTM)0.54
FCFY4.22%
OCF(TTM)1.43
OCFY11.28%
SpS17.42
BVpS6.12
TBVpS2.22
PEG (NY)N/A
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 22.1% | ||
| ROCE | 10.69% | ||
| ROIC | 8.03% | ||
| ROICexc | 8.4% | ||
| ROICexgc | 9.95% | ||
| OM | 19.69% | ||
| PM (TTM) | 7.76% | ||
| GM | 32.27% | ||
| FCFM | 3.08% |
ROA(3y)4.59%
ROA(5y)3.15%
ROE(3y)28.08%
ROE(5y)19.52%
ROIC(3y)9.15%
ROIC(5y)7.97%
ROICexc(3y)12.17%
ROICexc(5y)11.7%
ROICexgc(3y)19.53%
ROICexgc(5y)18.06%
ROCE(3y)12.19%
ROCE(5y)10.61%
ROICexcg growth 3Y-9.68%
ROICexcg growth 5Y3.69%
ROICexc growth 3Y-2.14%
ROICexc growth 5Y3.88%
OM growth 3Y17.22%
OM growth 5Y12.27%
PM growth 3YN/A
PM growth 5Y21.72%
GM growth 3Y9.01%
GM growth 5Y6.96%
F-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.57 | ||
| Debt/FCF | 40.75 | ||
| Debt/EBITDA | 5.59 | ||
| Cap/Depr | 186.21% | ||
| Cap/Sales | 5.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 36.66% | ||
| Profit Quality | 39.67% | ||
| Current Ratio | 2.07 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.51 |
F-Score5
WACC6.3%
ROIC/WACC1.27
Cap/Depr(3y)191.9%
Cap/Depr(5y)179.01%
Cap/Sales(3y)6.5%
Cap/Sales(5y)7.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-16.97%
EPS 3Y82.79%
EPS 5Y16.41%
EPS Q2Q%-42.86%
EPS Next Y-32.41%
EPS Next 2Y-24.93%
EPS Next 3Y-12.78%
EPS Next 5Y-9.2%
Revenue 1Y (TTM)-12.42%
Revenue growth 3Y18.65%
Revenue growth 5Y-3.63%
Sales Q2Q%-22.25%
Revenue Next Year-20.96%
Revenue Next 2Y-15.27%
Revenue Next 3Y-9.16%
Revenue Next 5Y-5.39%
EBIT growth 1Y-10.6%
EBIT growth 3Y39.08%
EBIT growth 5Y8.19%
EBIT Next Year-29.63%
EBIT Next 3Y-11.11%
EBIT Next 5Y-3.1%
FCF growth 1Y844.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y37.35%
OCF growth 3Y-45.26%
OCF growth 5Y-18.7%