CNH INDUSTRIAL NV (1CNHI.MI) Stock Fundamental Analysis
BIT:1CNHI - Euronext Milan - NL0010545661 - Common Stock - Currency: EUR
Overall 1CNHI gets a fundamental rating of 3 out of 10. We evaluated 1CNHI against 108 industry peers in the Machinery industry. While 1CNHI is still in line with the averages on profitability rating, there are concerns on its financial health. 1CNHI has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
1CNHI had positive earnings in the past year.
1CNHI had a positive operating cash flow in the past year.
1CNHI had positive earnings in 4 of the past 5 years.
1CNHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.32%, 1CNHI is in line with its industry, outperforming 46.30% of the companies in the same industry.
The Return On Equity of 1CNHI (12.45%) is better than 71.30% of its industry peers.
1CNHI's Return On Invested Capital of 7.72% is fine compared to the rest of the industry. 1CNHI outperforms 63.89% of its industry peers.
1CNHI had an Average Return On Invested Capital over the past 3 years of 11.39%. This is above the industry average of 9.09%.
| 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
1CNHI has a Profit Margin of 5.18%. This is comparable to the rest of the industry: 1CNHI outperforms 59.26% of its industry peers.
In the last couple of years the Profit Margin of 1CNHI has grown nicely.
Looking at the Operating Margin, with a value of 18.86%, 1CNHI belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
1CNHI's Operating Margin has improved in the last couple of years.
1CNHI has a Gross Margin of 32.48%. This is in the lower half of the industry: 1CNHI underperforms 64.81% of its industry peers.
In the last couple of years the Gross Margin of 1CNHI 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), 1CNHI is creating some value.
The number of shares outstanding for 1CNHI has been reduced compared to 1 year ago.
1CNHI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1CNHI has a worse debt to assets ratio.
2.2 Solvency
1CNHI has an Altman-Z score of 1.38. This is a bad value and indicates that 1CNHI is not financially healthy and even has some risk of bankruptcy.
1CNHI has a worse Altman-Z score (1.38) than 64.81% of its industry peers.
1CNHI has a debt to FCF ratio of 14.65. This is a negative value and a sign of low solvency as 1CNHI would need 14.65 years to pay back of all of its debts.
1CNHI's Debt to FCF ratio of 14.65 is on the low side compared to the rest of the industry. 1CNHI is outperformed by 67.59% of its industry peers.
1CNHI has a Debt/Equity ratio of 3.32. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.32, 1CNHI is doing worse than 93.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 14.65 | ||
| Altman-Z | 1.38 |
ROIC/WACC1
WACC7.74%
2.3 Liquidity
1CNHI has a Current Ratio of 1.13. This is a normal value and indicates that 1CNHI is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.13, 1CNHI is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
1CNHI has a Quick Ratio of 1.13. This is a bad value and indicates that 1CNHI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.32, 1CNHI is doing worse than 95.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
1CNHI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.52%.
1CNHI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.29% yearly.
1CNHI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.00%.
Measured over the past years, 1CNHI shows a decrease in Revenue. The Revenue has been decreasing by -6.71% on average per year.
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
1CNHI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.49% yearly.
The Revenue is expected to decrease by -0.15% on average over the next years.
EPS Next Y-43.27%
EPS Next 2Y-10.9%
EPS Next 3Y0.6%
EPS Next 5Y-2.49%
Revenue Next Year-13.02%
Revenue Next 2Y-4.12%
Revenue Next 3Y0.51%
Revenue Next 5Y-0.15%
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
1CNHI is valuated correctly with a Price/Earnings ratio of 14.55.
Based on the Price/Earnings ratio, 1CNHI is valued a bit cheaper than 68.52% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1CNHI to the average of the S&P500 Index (26.34), we can say 1CNHI is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.57, 1CNHI is valued correctly.
1CNHI's Price/Forward Earnings ratio is in line with the industry average.
1CNHI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 14.57 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1CNHI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1CNHI indicates a somewhat cheap valuation: 1CNHI is cheaper than 79.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.95 | ||
| EV/EBITDA | 9.74 |
4.3 Compensation for Growth
The decent profitability rating of 1CNHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.75
EPS Next 2Y-10.9%
EPS Next 3Y0.6%
5. Dividend
5.1 Amount
1CNHI has a Yearly Dividend Yield of 1.96%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.65, 1CNHI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, 1CNHI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
On average, the dividend of 1CNHI grows each year by 17.96%, which is quite nice.
Dividend Growth(5Y)17.96%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
62.19% of the earnings are spent on dividend by 1CNHI. This is not a sustainable payout ratio.
1CNHI'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-10.9%
EPS Next 3Y0.6%
BIT:1CNHI (6/19/2025, 7:00:00 PM)
11.06
-0.22 (-1.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners76.04%
Inst Owner ChangeN/A
Ins Owners0.11%
Ins Owner ChangeN/A
Market Cap13.82B
Analysts75.45
Price Target13.38 (20.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend0.42
Dividend Growth(5Y)17.96%
DP62.19%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)2.6%
PT rev (3m)-7.49%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-22.07%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.56%
Revenue NQ rev (1m)0.71%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 14.57 | ||
| P/S | 0.84 | ||
| P/FCF | 8.95 | ||
| P/OCF | 5.26 | ||
| P/B | 2.03 | ||
| P/tB | 5.27 | ||
| EV/EBITDA | 9.74 |
EPS(TTM)0.76
EY6.87%
EPS(NY)0.76
Fwd EY6.86%
FCF(TTM)1.24
FCFY11.17%
OCF(TTM)2.1
OCFY19.02%
SpS13.11
BVpS5.45
TBVpS2.1
PEG (NY)N/A
PEG (5Y)2.75
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 | 1.38 |
F-Score4
WACC7.74%
ROIC/WACC1
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-43.27%
EPS Next 2Y-10.9%
EPS Next 3Y0.6%
EPS Next 5Y-2.49%
Revenue 1Y (TTM)-22%
Revenue growth 3Y0.58%
Revenue growth 5Y-6.71%
Sales Q2Q%-20.55%
Revenue Next Year-13.02%
Revenue Next 2Y-4.12%
Revenue Next 3Y0.51%
Revenue Next 5Y-0.15%
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%