WHIRLPOOL CORP (WHR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WHR - US9633201069 - Common Stock
85.43 USD
-4.23 (-4.72%)
85.12 USD
-0.31 (-0.36%)
Taking everything into account, WHR scores 3 out of 10 in our fundamental rating. WHR was compared to 60 industry peers in the Household Durables industry. WHR may be in some trouble as it scores bad on both profitability and health. WHR has a valuation in line with the averages, but on the other hand it scores bad on growth. WHR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- WHR had positive earnings in the past year.
- In the past year WHR had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: WHR reported negative net income in multiple years.
- Each year in the past 5 years WHR had a positive operating cash flow.
1.2 Ratios
- WHR's Return On Assets of -1.08% is on the low side compared to the rest of the industry. WHR is outperformed by 70.00% of its industry peers.
- With a Return On Equity value of -7.69%, WHR is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
- WHR has a Return On Invested Capital (6.45%) which is comparable to the rest of the industry.
- WHR had an Average Return On Invested Capital over the past 3 years of 9.41%. This is in line with the industry average of 9.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.08% | ||
| ROE | -7.69% | ||
| ROIC | 6.45% |
ROA(3y)-2.69%
ROA(5y)1.2%
ROE(3y)-18.9%
ROE(5y)1.58%
ROIC(3y)9.41%
ROIC(5y)11.76%
1.3 Margins
- Looking at the Operating Margin, with a value of 5.36%, WHR is doing worse than 61.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of WHR has declined.
- WHR has a worse Gross Margin (15.95%) than 85.00% of its industry peers.
- In the last couple of years the Gross Margin of WHR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.36% | ||
| PM (TTM) | N/A | ||
| GM | 15.95% |
OM growth 3Y-19.61%
OM growth 5Y-3.6%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.15%
GM growth 5Y-2.12%
2. Health
2.1 Basic Checks
- WHR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, WHR has about the same amount of shares outstanding.
- The number of shares outstanding for WHR has been reduced compared to 5 years ago.
- Compared to 1 year ago, WHR has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.32, we must say that WHR is in the distress zone and has some risk of bankruptcy.
- WHR has a worse Altman-Z score (1.32) than 80.00% of its industry peers.
- WHR has a debt to FCF ratio of 120.48. This is a negative value and a sign of low solvency as WHR would need 120.48 years to pay back of all of its debts.
- WHR has a worse Debt to FCF ratio (120.48) than 68.33% of its industry peers.
- WHR has a Debt/Equity ratio of 3.06. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 3.06, WHR is doing worse than 95.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.06 | ||
| Debt/FCF | 120.48 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.71
WACC9.09%
2.3 Liquidity
- WHR has a Current Ratio of 0.86. This is a bad value and indicates that WHR is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of WHR (0.86) is worse than 93.33% of its industry peers.
- A Quick Ratio of 0.47 indicates that WHR may have some problems paying its short term obligations.
- WHR's Quick ratio of 0.47 is on the low side compared to the rest of the industry. WHR is outperformed by 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
- The earnings per share for WHR have decreased strongly by -15.28% in the last year.
- The Earnings Per Share has been decreasing by -5.33% on average over the past years.
- The Revenue for WHR has decreased by -11.37% in the past year. This is quite bad
- Measured over the past years, WHR shows a decrease in Revenue. The Revenue has been decreasing by -4.05% on average per year.
EPS 1Y (TTM)-15.28%
EPS 3Y-23%
EPS 5Y-5.33%
EPS Q2Q%-39.07%
Revenue 1Y (TTM)-11.37%
Revenue growth 3Y-8.93%
Revenue growth 5Y-4.05%
Sales Q2Q%1%
3.2 Future
- Based on estimates for the next years, WHR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.35% on average per year.
- Based on estimates for the next years, WHR will show a small growth in Revenue. The Revenue will grow by 1.79% on average per year.
EPS Next Y-44.26%
EPS Next 2Y-22.78%
EPS Next 3Y-8.56%
EPS Next 5Y8.35%
Revenue Next Year-6.19%
Revenue Next 2Y-3.46%
Revenue Next 3Y-0.77%
Revenue Next 5Y1.79%
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 accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 8.81, the valuation of WHR can be described as very reasonable.
- 81.67% of the companies in the same industry are more expensive than WHR, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, WHR is valued rather cheaply.
- With a Price/Forward Earnings ratio of 11.77, the valuation of WHR can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WHR indicates a somewhat cheap valuation: WHR is cheaper than 70.00% of the companies listed in the same industry.
- WHR is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.81 | ||
| Fwd PE | 11.77 |
4.2 Price Multiples
- WHR's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of WHR indicates a slightly more expensive valuation: WHR is more expensive than 65.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 76.14 | ||
| EV/EBITDA | 8.87 |
4.3 Compensation for Growth
- A cheap valuation may be justified as WHR's earnings are expected to decrease with -8.56% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-22.78%
EPS Next 3Y-8.56%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.02%, WHR is a good candidate for dividend investing.
- WHR's Dividend Yield is rather good when compared to the industry average which is at 1.16. WHR pays more dividend than 90.00% of the companies in the same industry.
- WHR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
5.2 History
- On average, the dividend of WHR grows each year by 7.77%, which is quite nice.
- WHR has paid a dividend for at least 10 years, which is a reliable track record.
- WHR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.77%
Div Incr Years0
Div Non Decr Years34
5.3 Sustainability
- WHR has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- The dividend of WHR is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP-188.52%
EPS Next 2Y-22.78%
EPS Next 3Y-8.56%
WHIRLPOOL CORP / WHR FAQ
What is the ChartMill fundamental rating of WHIRLPOOL CORP (WHR) stock?
ChartMill assigns a fundamental rating of 3 / 10 to WHR.
What is the valuation status for WHR stock?
ChartMill assigns a valuation rating of 4 / 10 to WHIRLPOOL CORP (WHR). This can be considered as Fairly Valued.
How profitable is WHIRLPOOL CORP (WHR) stock?
WHIRLPOOL CORP (WHR) has a profitability rating of 2 / 10.
What is the earnings growth outlook for WHIRLPOOL CORP?
The Earnings per Share (EPS) of WHIRLPOOL CORP (WHR) is expected to decline by -44.26% in the next year.
How sustainable is the dividend of WHIRLPOOL CORP (WHR) stock?
The dividend rating of WHIRLPOOL CORP (WHR) is 8 / 10 and the dividend payout ratio is -188.52%.