CNH INDUSTRIAL NV (CNH) Stock Fundamental Analysis
NYSE:CNH - New York Stock Exchange, Inc. - NL0010545661 - Common Stock - Currency: USD
Taking everything into account, CNH scores 4 out of 10 in our fundamental rating. CNH was compared to 127 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.
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
With a Return On Assets value of 2.32%, CNH perfoms like the industry average, outperforming 40.94% of the companies in the same industry.
With a decent Return On Equity value of 12.45%, CNH is doing good in the industry, outperforming 62.20% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.72%, CNH is in line with its industry, outperforming 53.54% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CNH is in line with the industry average of 10.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.32% | ||
| ROE | 12.45% | ||
| ROIC | 7.72% |
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 5.18% is in line compared to the rest of the industry. CNH outperforms 48.03% of its industry peers.
In the last couple of years the Profit Margin of CNH has grown nicely.
CNH has a better Operating Margin (18.86%) than 86.61% of its industry peers.
In the last couple of years the Operating Margin of CNH has grown nicely.
The Gross Margin of CNH (32.48%) 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 | 18.86% | ||
| PM (TTM) | 5.18% | ||
| GM | 32.48% |
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
CNH has a worse debt/assets ratio than last year.
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.
The Altman-Z score of CNH (1.39) is worse than 77.17% of its industry peers.
CNH has a debt to FCF ratio of 14.65. This is a negative value and a sign of low solvency as CNH would need 14.65 years to pay back of all of its debts.
CNH's Debt to FCF ratio of 14.65 is on the low side compared to the rest of the industry. CNH is outperformed by 66.14% of its industry peers.
A Debt/Equity ratio of 3.32 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 3.32, CNH is doing worse than 90.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 14.65 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.99
WACC7.78%
2.3 Liquidity
A Current Ratio of 1.13 indicates that CNH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.13, CNH is doing worse than 86.61% of the companies in the same industry.
CNH has a Quick Ratio of 1.13. 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 (0.32) is worse than 93.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The earnings per share for CNH have decreased strongly by -48.52% in the last year.
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.
The Revenue for CNH has decreased by -22.00% 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)-48.52%
EPS 3Y-6.6%
EPS 5Y5.29%
EPS Q2Q%-69.7%
Revenue 1Y (TTM)-22%
Revenue growth 3Y0.58%
Revenue growth 5Y-6.71%
Sales Q2Q%-20.55%
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 decrease in Revenue. In the coming years, the Revenue will decrease by -0.29% yearly.
EPS Next Y-43.42%
EPS Next 2Y-10.21%
EPS Next 3Y1.67%
EPS Next 5Y-3.53%
Revenue Next Year-13.18%
Revenue Next 2Y-4.05%
Revenue Next 3Y0.27%
Revenue Next 5Y-0.29%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 15.30 indicates a correct valuation of CNH.
Based on the Price/Earnings ratio, CNH is valued a bit cheaper than the industry average as 78.74% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.41, CNH is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.01, the valuation of CNH can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CNH indicates a somewhat cheap valuation: CNH is cheaper than 73.23% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, CNH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.3 | ||
| Fwd PE | 15.01 |
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 78.74% 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 rather cheap valuation: CNH is cheaper than 95.28% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.37 | ||
| EV/EBITDA | 9.88 |
4.3 Compensation for Growth
The decent profitability rating of CNH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.89
EPS Next 2Y-10.21%
EPS Next 3Y1.67%
5. Dividend
5.1 Amount
CNH has a Yearly Dividend Yield of 1.81%. Purely for dividend investing, there may be better candidates out there.
CNH's Dividend Yield is rather good when compared to the industry average which is at 1.82. CNH pays more dividend than 84.25% of the companies in the same industry.
CNH's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
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
62.19% of the earnings are spent on dividend by CNH. This is not a sustainable payout ratio.
CNH's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP62.19%
EPS Next 2Y-10.21%
EPS Next 3Y1.67%
NYSE:CNH (7/14/2025, 3:34:10 PM)
13.315
-0.15 (-1.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners76.04%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change20.16%
Market Cap16.64B
Analysts75.65
Price Target14.8 (11.15%)
Short Float %5.48%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend0.48
Dividend Growth(5Y)17.96%
DP62.19%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.49%
Min EPS beat(2)-15.2%
Max EPS beat(2)0.22%
EPS beat(4)2
Avg EPS beat(4)-6.47%
Min EPS beat(4)-15.2%
Max EPS beat(4)1.32%
EPS beat(8)4
Avg EPS beat(8)-0.28%
EPS beat(12)7
Avg EPS beat(12)4.14%
EPS beat(16)11
Avg EPS beat(16)11.86%
Revenue beat(2)2
Avg Revenue beat(2)7.5%
Min Revenue beat(2)6.98%
Max Revenue beat(2)8.01%
Revenue beat(4)4
Avg Revenue beat(4)4.44%
Min Revenue beat(4)0.52%
Max Revenue beat(4)8.01%
Revenue beat(8)8
Avg Revenue beat(8)3.72%
Revenue beat(12)12
Avg Revenue beat(12)5.9%
Revenue beat(16)13
Avg Revenue beat(16)0.78%
PT rev (1m)-1.16%
PT rev (3m)-1.9%
EPS NQ rev (1m)-3.51%
EPS NQ rev (3m)-24.1%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)-12.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.09%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.3 | ||
| Fwd PE | 15.01 | ||
| P/S | 0.88 | ||
| P/FCF | 9.37 | ||
| P/OCF | 5.5 | ||
| P/B | 2.12 | ||
| P/tB | 5.51 | ||
| EV/EBITDA | 9.88 |
EPS(TTM)0.87
EY6.53%
EPS(NY)0.89
Fwd EY6.66%
FCF(TTM)1.42
FCFY10.68%
OCF(TTM)2.42
OCFY18.18%
SpS15.08
BVpS6.27
TBVpS2.42
PEG (NY)N/A
PEG (5Y)2.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.32% | ||
| ROE | 12.45% | ||
| ROCE | 9.97% | ||
| ROIC | 7.72% | ||
| ROICexc | 8.11% | ||
| ROICexgc | 9.79% | ||
| OM | 18.86% | ||
| PM (TTM) | 5.18% | ||
| GM | 32.48% | ||
| FCFM | 9.42% |
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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 14.65 | ||
| Debt/EBITDA | 6.25 | ||
| Cap/Depr | 205.6% | ||
| Cap/Sales | 6.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.66% | ||
| Profit Quality | 181.97% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 1.39 |
F-Score4
WACC7.78%
ROIC/WACC0.99
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)-48.52%
EPS 3Y-6.6%
EPS 5Y5.29%
EPS Q2Q%-69.7%
EPS Next Y-43.42%
EPS Next 2Y-10.21%
EPS Next 3Y1.67%
EPS Next 5Y-3.53%
Revenue 1Y (TTM)-22%
Revenue growth 3Y0.58%
Revenue growth 5Y-6.71%
Sales Q2Q%-20.55%
Revenue Next Year-13.18%
Revenue Next 2Y-4.05%
Revenue Next 3Y0.27%
Revenue Next 5Y-0.29%
EBIT growth 1Y-26.96%
EBIT growth 3Y5.37%
EBIT growth 5Y5.11%
EBIT Next Year-18.33%
EBIT Next 3Y9.05%
EBIT Next 5Y20.58%
FCF growth 1Y743.48%
FCF growth 3Y-27.46%
FCF growth 5YN/A
OCF growth 1Y307%
OCF growth 3Y-21.59%
OCF growth 5Y1.51%