CNH INDUSTRIAL NV (CNH) Stock Fundamental Analysis
USA - NYSE:CNH - NL0010545661 - Common Stock
10.44 USD
-0.01 (-0.1%)
10.56 USD
+0.12 (+1.15%)
We assign a fundamental rating of 4 out of 10 to CNH. CNH was compared to 129 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.
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
CNH has a Return On Assets of 1.88%. This is in the lower half of the industry: CNH underperforms 62.02% of its industry peers.
CNH has a Return On Equity (10.67%) which is comparable to the rest of the industry.
CNH has a Return On Invested Capital (6.87%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for CNH is in line with the industry average of 10.01%.
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
CNH has a Profit Margin (4.55%) which is in line with its industry peers.
In the last couple of years the Profit Margin of CNH has grown nicely.
CNH has a Operating Margin of 18.21%. This is amongst the best in the industry. CNH outperforms 86.05% of its industry peers.
In the last couple of years the Operating Margin of CNH has grown nicely.
CNH has a Gross Margin (32.40%) which is in line with its industry peers.
CNH's Gross Margin has improved in the last couple of years.
| 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
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 1.25, we must say that CNH is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CNH (1.25) is worse than 78.29% 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 Debt to FCF ratio of 12.84. This is in the lower half of the industry: CNH underperforms 62.02% of its industry peers.
CNH has a Debt/Equity ratio of 3.55. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.55, CNH is doing worse than 90.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.55 | ||
| Debt/FCF | 12.84 | ||
| Altman-Z | 1.25 |
ROIC/WACC0.86
WACC8%
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 84.50% of the companies in the same industry.
A Quick Ratio of 0.45 indicates that CNH may have some problems paying its short term obligations.
CNH's Quick ratio of 0.45 is on the low side compared to the rest of the industry. CNH is outperformed by 90.70% 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 -57.42%.
The Earnings Per Share has been growing slightly by 5.29% on average over the past years.
The Revenue for CNH has decreased by -21.73% in the past year. This is quite bad
The Revenue has been decreasing by -6.71% on average over the past years.
EPS 1Y (TTM)-57.42%
EPS 3Y-6.6%
EPS 5Y5.29%
EPS Q2Q%-55.26%
Revenue 1Y (TTM)-21.73%
Revenue growth 3Y0.58%
Revenue growth 5Y-6.71%
Sales Q2Q%-14.16%
3.2 Future
CNH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.53% yearly.
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-45.35%
EPS Next 2Y-13.22%
EPS Next 3Y0.06%
EPS Next 5Y-3.53%
Revenue Next Year-11.24%
Revenue Next 2Y-4.22%
Revenue Next 3Y0.18%
Revenue Next 5Y0.43%
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 correctly with a Price/Earnings ratio of 15.82.
Compared to the rest of the industry, the Price/Earnings ratio of CNH indicates a rather cheap valuation: CNH is cheaper than 80.62% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CNH to the average of the S&P500 Index (27.40), we can say CNH is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.60, the valuation of CNH can be described as correct.
Based on the Price/Forward Earnings ratio, CNH is valued cheaply inside the industry as 86.05% of the companies are valued more expensively.
CNH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 12.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNH is valued cheaper than 80.62% 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 97.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.12 | ||
| EV/EBITDA | 9.73 |
4.3 Compensation for Growth
The decent profitability rating of CNH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.99
EPS Next 2Y-13.22%
EPS Next 3Y0.06%
5. Dividend
5.1 Amount
CNH has a Yearly Dividend Yield of 2.39%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.82, CNH pays a better dividend. On top of this CNH pays more dividend than 86.82% of the companies listed in the same industry.
CNH's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
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
40.58% of the earnings are spent on dividend by CNH. This is a bit on the high side, but may be sustainable.
DP40.58%
EPS Next 2Y-13.22%
EPS Next 3Y0.06%
10.44
-0.01 (-0.1%)
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 Change4.5%
Market Cap13.06B
Analysts74.78
Price Target14.98 (43.49%)
Short Float %6.05%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
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)-1.58%
PT rev (3m)1.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.47%
EPS NY rev (1m)-3.42%
EPS NY rev (3m)-3.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 12.6 | ||
| P/S | 0.72 | ||
| P/FCF | 6.12 | ||
| P/OCF | 3.82 | ||
| P/B | 1.69 | ||
| P/tB | 4.58 | ||
| EV/EBITDA | 9.73 |
EPS(TTM)0.66
EY6.32%
EPS(NY)0.83
Fwd EY7.93%
FCF(TTM)1.71
FCFY16.35%
OCF(TTM)2.73
OCFY26.17%
SpS14.45
BVpS6.17
TBVpS2.28
PEG (NY)N/A
PEG (5Y)2.99
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%
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-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
WACC8%
ROIC/WACC0.86
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)-57.42%
EPS 3Y-6.6%
EPS 5Y5.29%
EPS Q2Q%-55.26%
EPS Next Y-45.35%
EPS Next 2Y-13.22%
EPS Next 3Y0.06%
EPS Next 5Y-3.53%
Revenue 1Y (TTM)-21.73%
Revenue growth 3Y0.58%
Revenue growth 5Y-6.71%
Sales Q2Q%-14.16%
Revenue Next Year-11.24%
Revenue Next 2Y-4.22%
Revenue Next 3Y0.18%
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%