CNH INDUSTRIAL NV (CNH) Stock Fundamental Analysis
USA - NYSE:CNH - NL0010545661 - Common Stock
10.97 USD
-0.25 (-2.23%)
11.03 USD
+0.06 (+0.55%)
Taking everything into account, CNH scores 4 out of 10 in our fundamental rating. CNH was compared to 128 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
CNH had positive earnings in the past year.
CNH had a positive operating cash flow in the past year.
Of the past 5 years CNH 4 years were profitable.
Each year in the past 5 years CNH had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.88%, CNH is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
CNH has a Return On Equity (10.67%) which is comparable to the rest of the industry.
The Return On Invested Capital of CNH (6.87%) is comparable to the rest of the industry.
CNH had an Average Return On Invested Capital over the past 3 years of 11.39%. This is in line with the industry average of 10.02%.
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
CNH has a Profit Margin (4.55%) which is comparable to the rest of the industry.
CNH's Profit Margin has improved in the last couple of years.
CNH's Operating Margin of 18.21% is amongst the best of the industry. CNH outperforms 85.94% of its industry peers.
In the last couple of years the Operating Margin of CNH has grown nicely.
CNH has a Gross Margin of 32.40%. This is comparable to the rest of the industry: CNH outperforms 53.13% of its industry peers.
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.
Compared to 1 year ago, CNH has less shares outstanding
The number of shares outstanding for CNH has been reduced compared to 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 1.27. This is a bad value and indicates that CNH is not financially healthy and even has some risk of bankruptcy.
CNH has a worse Altman-Z score (1.27) than 78.13% of its industry peers.
CNH has a debt to FCF ratio of 12.84. This is a negative value and a sign of low solvency as CNH would need 12.84 years to pay back of all of its debts.
CNH's Debt to FCF ratio of 12.84 is on the low side compared to the rest of the industry. CNH is outperformed by 64.06% 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.
CNH has a Debt to Equity ratio of 3.55. This is amonst the worse of the industry: CNH underperforms 89.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.55 | ||
| Debt/FCF | 12.84 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.89
WACC7.69%
2.3 Liquidity
CNH has a Current Ratio of 1.24. This is a normal value and indicates that CNH is financially healthy and should not expect problems in meeting its short term obligations.
CNH has a Current ratio of 1.24. This is amonst the worse of the industry: CNH underperforms 83.59% 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 90.63% 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%.
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.
Looking at the last year, CNH shows a very negative growth in Revenue. The Revenue has decreased by -21.73% in the last year.
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 -3.32% 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-43.42%
EPS Next 2Y-10.73%
EPS Next 3Y0.41%
EPS Next 5Y-3.32%
Revenue Next Year-11.23%
Revenue Next 2Y-4.22%
Revenue Next 3Y0.18%
Revenue Next 5Y0.43%
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
With a Price/Earnings ratio of 16.62, CNH is valued correctly.
Based on the Price/Earnings ratio, CNH is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
CNH is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.51, which indicates a correct valuation of CNH.
87.50% of the companies in the same industry are more expensive than CNH, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.73. CNH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.62 | ||
| Fwd PE | 12.51 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNH indicates a rather cheap valuation: CNH is cheaper than 80.47% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CNH is valued cheaply inside the industry as 97.66% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.43 | ||
| EV/EBITDA | 9.9 |
4.3 Compensation for Growth
The decent profitability rating of CNH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.14
EPS Next 2Y-10.73%
EPS Next 3Y0.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.23%, 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 1.74. CNH pays more dividend than 86.72% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, CNH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
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
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-10.73%
EPS Next 3Y0.41%
10.97
-0.25 (-2.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners75.64%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change4.52%
Market Cap13.72B
Analysts74.78
Price Target15.16 (38.2%)
Short Float %5.69%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
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)-0.98%
PT rev (3m)1.2%
EPS NQ rev (1m)-6.91%
EPS NQ rev (3m)-14.47%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)2.46%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.62 | ||
| Fwd PE | 12.51 | ||
| P/S | 0.76 | ||
| P/FCF | 6.43 | ||
| P/OCF | 4.02 | ||
| P/B | 1.78 | ||
| P/tB | 4.81 | ||
| EV/EBITDA | 9.9 |
EPS(TTM)0.66
EY6.02%
EPS(NY)0.88
Fwd EY7.99%
FCF(TTM)1.71
FCFY15.56%
OCF(TTM)2.73
OCFY24.9%
SpS14.45
BVpS6.17
TBVpS2.28
PEG (NY)N/A
PEG (5Y)3.14
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 | 1.27 |
F-Score4
WACC7.69%
ROIC/WACC0.89
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-43.42%
EPS Next 2Y-10.73%
EPS Next 3Y0.41%
EPS Next 5Y-3.32%
Revenue 1Y (TTM)-21.73%
Revenue growth 3Y0.58%
Revenue growth 5Y-6.71%
Sales Q2Q%-14.16%
Revenue Next Year-11.23%
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-16.49%
EBIT Next 3Y10.31%
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%