CNH INDUSTRIAL NV (37C.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:37C - NL0010545661 - Common Stock
9.46 EUR
+0.28 (+3.05%)
37C gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 115 industry peers in the Machinery industry. 37C has a medium profitability rating, but doesn't score so well on its financial health evaluation. 37C 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 37C was profitable.
- In the past year 37C had a positive cash flow from operations.
- Of the past 5 years 37C 4 years were profitable.
- 37C had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 1.38%, 37C is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
- With a Return On Equity value of 7.72%, 37C perfoms like the industry average, outperforming 50.43% of the companies in the same industry.
- 37C's Return On Invested Capital of 6.11% is in line compared to the rest of the industry. 37C outperforms 55.65% of its industry peers.
- 37C had an Average Return On Invested Capital over the past 3 years of 11.39%. This is above the industry average of 8.97%.
- The last Return On Invested Capital (6.11%) for 37C is well below the 3 year average (11.39%), which needs to be investigated, but indicates that 37C had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 7.72% | ||
| ROIC | 6.11% |
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
- 37C has a Profit Margin of 3.35%. This is comparable to the rest of the industry: 37C outperforms 46.09% of its industry peers.
- 37C's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 17.04%, 37C belongs to the best of the industry, outperforming 84.35% of the companies in the same industry.
- In the last couple of years the Operating Margin of 37C has grown nicely.
- 37C's Gross Margin of 32.19% is on the low side compared to the rest of the industry. 37C is outperformed by 67.83% of its industry peers.
- In the last couple of years the Gross Margin of 37C has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.04% | ||
| PM (TTM) | 3.35% | ||
| GM | 32.19% |
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 37C is still creating some value.
- The number of shares outstanding for 37C has been reduced compared to 1 year ago.
- Compared to 5 years ago, 37C has less shares outstanding
- The debt/assets ratio for 37C is higher compared to a year ago.
2.2 Solvency
- 37C has an Altman-Z score of 1.31. This is a bad value and indicates that 37C is not financially healthy and even has some risk of bankruptcy.
- 37C's Altman-Z score of 1.31 is on the low side compared to the rest of the industry. 37C is outperformed by 69.57% of its industry peers.
- The Debt to FCF ratio of 37C is 13.40, which is on the high side as it means it would take 37C, 13.40 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 13.40, 37C is doing worse than 65.22% of the companies in the same industry.
- A Debt/Equity ratio of 3.51 is on the high side and indicates that 37C has dependencies on debt financing.
- With a Debt to Equity ratio value of 3.51, 37C is not doing good in the industry: 93.04% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.51 | ||
| Debt/FCF | 13.4 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.75
WACC8.12%
2.3 Liquidity
- A Current Ratio of 1.69 indicates that 37C should not have too much problems paying its short term obligations.
- 37C has a Current ratio of 1.69. This is comparable to the rest of the industry: 37C outperforms 59.13% of its industry peers.
- A Quick Ratio of 0.58 indicates that 37C may have some problems paying its short term obligations.
- 37C has a worse Quick ratio (0.58) than 86.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- 37C shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -63.50%.
- 37C shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.29% yearly.
- Looking at the last year, 37C shows a very negative growth in Revenue. The Revenue has decreased by -18.10% in the last year.
- The Revenue has been decreasing by -6.71% on average over the past years.
EPS 1Y (TTM)-63.5%
EPS 3Y-6.6%
EPS 5Y5.29%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)-18.1%
Revenue growth 3Y0.58%
Revenue growth 5Y-6.71%
Sales Q2Q%-5.48%
3.2 Future
- 37C is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.74% yearly.
- Based on estimates for the next years, 37C will show a small growth in Revenue. The Revenue will grow by 0.38% on average per year.
EPS Next Y-58.19%
EPS Next 2Y-27.74%
EPS Next 3Y-6%
EPS Next 5Y5.74%
Revenue Next Year-8.42%
Revenue Next 2Y-4.47%
Revenue Next 3Y0.01%
Revenue Next 5Y0.38%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same 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
- Based on the Price/Earnings ratio of 22.00, the valuation of 37C can be described as rather expensive.
- 37C's Price/Earnings ratio is a bit cheaper when compared to the industry. 37C is cheaper than 62.61% of the companies in the same industry.
- 37C is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 19.28, 37C is valued on the expensive side.
- 37C's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of 37C to the average of the S&P500 Index (24.32), we can say 37C is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22 | ||
| Fwd PE | 19.28 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 37C is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, 37C is valued cheaply inside the industry as 86.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.82 | ||
| EV/EBITDA | 10.58 |
4.3 Compensation for Growth
- The decent profitability rating of 37C may justify a higher PE ratio.
- 37C's earnings are expected to decrease with -6.00% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)4.16
EPS Next 2Y-27.74%
EPS Next 3Y-6%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.31%, 37C has a reasonable but not impressive dividend return.
- 37C's Dividend Yield is a higher than the industry average which is at 1.50.
- 37C's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
5.2 History
- The dividend of 37C is nicely growing with an annual growth rate of 17.97%!
Dividend Growth(5Y)17.97%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 55.11% of the earnings are spent on dividend by 37C. This is a bit on the high side, but may be sustainable.
- 37C's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP55.11%
EPS Next 2Y-27.74%
EPS Next 3Y-6%
CNH INDUSTRIAL NV / 37C.DE FAQ
Can you provide the ChartMill fundamental rating for CNH INDUSTRIAL NV?
ChartMill assigns a fundamental rating of 4 / 10 to 37C.DE.
What is the valuation status of CNH INDUSTRIAL NV (37C.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to CNH INDUSTRIAL NV (37C.DE). This can be considered as Fairly Valued.
How profitable is CNH INDUSTRIAL NV (37C.DE) stock?
CNH INDUSTRIAL NV (37C.DE) has a profitability rating of 6 / 10.
Can you provide the financial health for 37C stock?
The financial health rating of CNH INDUSTRIAL NV (37C.DE) is 2 / 10.
What is the earnings growth outlook for CNH INDUSTRIAL NV?
The Earnings per Share (EPS) of CNH INDUSTRIAL NV (37C.DE) is expected to decline by -58.19% in the next year.