CNH INDUSTRIAL NV (CNH) Stock Fundamental Analysis
USA - NYSE:CNH - NL0010545661 - Common Stock
9.51 USD
-0.25 (-2.56%)
9.53 USD
+0.02 (+0.21%)
Taking everything into account, CNH scores 4 out of 10 in our fundamental rating. CNH was compared to 130 industry peers in the Machinery industry. While CNH is still in line with the averages on profitability rating, there are concerns on its financial health. CNH has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
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
Looking at the Return On Assets, with a value of 1.88%, CNH is doing worse than 61.54% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.67%, CNH is in the better half of the industry, outperforming 60.77% of the companies in the same industry.
The Return On Invested Capital of CNH (6.87%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for CNH 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(6.87%). The reason for the recent decline needs to be investigated.
| 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.
The Operating Margin of CNH (18.21%) is better than 84.62% of its industry peers.
In the last couple of years the Operating Margin of CNH has grown nicely.
Looking at the Gross Margin, with a value of 32.40%, CNH is in line with its industry, outperforming 53.85% 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 | 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
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.
Compared to 5 years ago, CNH has less shares outstanding
The debt/assets ratio for CNH is higher compared to a year ago.
2.2 Solvency
CNH has an Altman-Z score of 1.24. 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 1.24, CNH is not doing good in the industry: 76.15% of the companies in the same industry are doing better.
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.
The Debt to FCF ratio of CNH (12.84) is worse 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.
CNH has a Debt to Equity ratio of 3.55. This is amonst the worse of the industry: CNH underperforms 90.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.55 | ||
| Debt/FCF | 12.84 | ||
| Altman-Z | 1.24 |
ROIC/WACC0.87
WACC7.86%
2.3 Liquidity
A Current Ratio of 1.24 indicates that CNH should not have too much problems paying its short term obligations.
The Current ratio of CNH (1.24) is worse than 83.85% of its industry peers.
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.
CNH has a Quick ratio of 0.45. This is amonst the worse of the industry: CNH underperforms 90.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The earnings per share for CNH have decreased strongly by -63.50% in the last year.
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)-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
Based on estimates for the next years, CNH will show a decrease in Earnings Per Share. The EPS will decrease by -3.53% on average per year.
The Revenue is expected to grow by 0.43% on average over the next years.
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
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
The Price/Earnings ratio is 19.02, which indicates a rather expensive current valuation of CNH.
CNH's Price/Earnings ratio is a bit cheaper when compared to the industry. CNH is cheaper than 67.69% of the companies in the same industry.
CNH is valuated rather cheaply when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
CNH is valuated correctly with a Price/Forward Earnings ratio of 12.07.
Based on the Price/Forward Earnings ratio, CNH is valued cheaply inside the industry as 83.85% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, CNH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.02 | ||
| Fwd PE | 12.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNH is valued a bit cheaper than 76.92% 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 | 5.57 | ||
| EV/EBITDA | 9.43 |
4.3 Compensation for Growth
The decent profitability rating of CNH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.59
EPS Next 2Y-15.37%
EPS Next 3Y-1.09%
5. Dividend
5.1 Amount
CNH has a Yearly Dividend Yield of 2.48%.
In the last 3 months the price of CNH has falen by -23.12%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
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.
CNH's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| 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
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-15.37%
EPS Next 3Y-1.09%
9.51
-0.25 (-2.56%)
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 Change0.33%
Market Cap11.90B
Revenue(TTM)19.84B
Net Income(TTM)823.00M
Analysts75.83
Price Target14.56 (53.1%)
Short Float %5.95%
Short Ratio4.12
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 | 19.02 | ||
| Fwd PE | 12.07 | ||
| P/S | 0.66 | ||
| P/FCF | 5.57 | ||
| P/OCF | 3.48 | ||
| P/B | 1.54 | ||
| P/tB | 4.17 | ||
| EV/EBITDA | 9.43 |
EPS(TTM)0.5
EY5.26%
EPS(NY)0.79
Fwd EY8.28%
FCF(TTM)1.71
FCFY17.95%
OCF(TTM)2.73
OCFY28.73%
SpS14.45
BVpS6.17
TBVpS2.28
PEG (NY)N/A
PEG (5Y)3.59
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 | 1.24 |
F-Score4
WACC7.86%
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 19.02 and the Price/Book (PB) ratio is 1.54.
Can you provide the financial health for CNH stock?
The financial health rating of CNH INDUSTRIAL NV (CNH) is 2 / 10.