CNH INDUSTRIAL NV (CNH) Stock Fundamental Analysis
USA - NYSE:CNH - NL0010545661 - Common Stock
10.47 USD
+0.17 (+1.65%)
10.5 USD
+0.03 (+0.29%)
We assign a fundamental rating of 4 out of 10 to CNH. CNH was compared to 130 industry peers in the Machinery industry. There are concerns on the financial health of CNH while its profitability can be described as average. CNH has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CNH was profitable.
In the past year CNH had a positive cash flow from operations.
CNH had positive earnings in 4 of the past 5 years.
In the past 5 years CNH always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CNH (1.88%) is worse than 62.31% of its industry peers.
CNH has a Return On Equity (10.67%) which is in line with its industry peers.
CNH has a Return On Invested Capital of 6.87%. This is comparable to the rest of the industry: CNH outperforms 51.54% of its industry peers.
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 10.24%.
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 of 4.55%. This is comparable to the rest of the industry: CNH outperforms 48.46% of its industry peers.
CNH's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 18.21%, CNH belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
CNH's Operating Margin has improved in the last couple of years.
CNH's Gross Margin of 32.40% is in line compared to the rest of the industry. CNH outperforms 53.08% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CNH is creating some value.
Compared to 1 year ago, CNH has less shares outstanding
Compared to 5 years ago, CNH has less shares outstanding
Compared to 1 year ago, CNH has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.25, we must say that CNH is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.25, CNH is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
The Debt to FCF ratio of CNH is 12.84, which is on the high side as it means it would take CNH, 12.84 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.84, CNH is doing worse than 62.31% of the companies in the same industry.
CNH has a Debt/Equity ratio of 3.55. This is a high value indicating a heavy dependency on external financing.
CNH's Debt to Equity ratio of 3.55 is on the low side compared to the rest of the industry. CNH is outperformed by 90.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.55 | ||
| Debt/FCF | 12.84 | ||
| Altman-Z | 1.25 |
ROIC/WACC0.86
WACC7.96%
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.
The Current ratio of CNH (1.24) is worse than 83.85% 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.
Looking at the Quick ratio, with a value of 0.45, CNH is doing worse than 90.77% of the companies in the same industry.
| 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.
The Revenue for CNH has decreased by -21.73% 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)-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
Based on estimates for the next years, CNH will show a decrease in Earnings Per Share. The EPS will decrease by -3.53% on average per year.
Based on estimates for the next years, CNH will show a small growth in Revenue. The Revenue will grow by 0.43% on average per year.
EPS Next Y-46.23%
EPS Next 2Y-15.31%
EPS Next 3Y-1.03%
EPS Next 5Y-3.53%
Revenue Next Year-11.24%
Revenue Next 2Y-4.76%
Revenue Next 3Y-0.35%
Revenue Next 5Y0.43%
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 decreasing.
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
A Price/Earnings ratio of 15.86 indicates a correct valuation of CNH.
Compared to the rest of the industry, the Price/Earnings ratio of CNH indicates a somewhat cheap valuation: CNH is cheaper than 80.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CNH to the average of the S&P500 Index (26.13), we can say CNH is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.27, which indicates a correct valuation of CNH.
84.62% of the companies in the same industry are more expensive than CNH, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, CNH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.86 | ||
| Fwd PE | 13.27 |
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 76.15% 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 96.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.13 | ||
| EV/EBITDA | 9.68 |
4.3 Compensation for Growth
CNH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3
EPS Next 2Y-15.31%
EPS Next 3Y-1.03%
5. Dividend
5.1 Amount
CNH has a Yearly Dividend Yield of 2.41%. 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 1.83. CNH pays more dividend than 86.92% of the companies in the same industry.
CNH's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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-15.31%
EPS Next 3Y-1.03%
10.47
+0.17 (+1.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners72.99%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change-0.76%
Market Cap13.10B
Revenue(TTM)18.07B
Net Income(TTM)823.00M
Analysts74.78
Price Target14.56 (39.06%)
Short Float %6.1%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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)-3.91%
PT rev (3m)-2.87%
EPS NQ rev (1m)-5.14%
EPS NQ rev (3m)-19.68%
EPS NY rev (1m)-1.62%
EPS NY rev (3m)-4.98%
Revenue NQ rev (1m)-1.65%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)2.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.86 | ||
| Fwd PE | 13.27 | ||
| P/S | 0.72 | ||
| P/FCF | 6.13 | ||
| P/OCF | 3.83 | ||
| P/B | 1.7 | ||
| P/tB | 4.59 | ||
| EV/EBITDA | 9.68 |
EPS(TTM)0.66
EY6.3%
EPS(NY)0.79
Fwd EY7.54%
FCF(TTM)1.71
FCFY16.3%
OCF(TTM)2.73
OCFY26.09%
SpS14.45
BVpS6.17
TBVpS2.28
PEG (NY)N/A
PEG (5Y)3
Graham Number9.57
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%
ROICexgc growth 3Y0.53%
ROICexgc 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 | 1.25 |
F-Score4
WACC7.96%
ROIC/WACC0.86
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-46.23%
EPS Next 2Y-15.31%
EPS Next 3Y-1.03%
EPS Next 5Y-3.53%
Revenue 1Y (TTM)-21.73%
Revenue growth 3Y0.58%
Revenue growth 5Y-6.71%
Sales Q2Q%-14.16%
Revenue Next Year-11.24%
Revenue Next 2Y-4.76%
Revenue Next 3Y-0.35%
Revenue Next 5Y0.43%
EBIT growth 1Y-28.56%
EBIT growth 3Y5.37%
EBIT growth 5Y5.11%
EBIT Next Year-16.87%
EBIT Next 3Y10.04%
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%
CNH INDUSTRIAL NV / CNH FAQ
Can you provide the ChartMill fundamental rating for CNH INDUSTRIAL NV?
ChartMill assigns a fundamental rating of 4 / 10 to CNH.
Can you provide the valuation status for CNH INDUSTRIAL NV?
ChartMill assigns a valuation rating of 6 / 10 to CNH INDUSTRIAL NV (CNH). This can be considered as Fairly Valued.
Can you provide the profitability details for CNH INDUSTRIAL NV?
CNH INDUSTRIAL NV (CNH) has a profitability rating of 6 / 10.
What is the valuation of CNH INDUSTRIAL NV based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CNH INDUSTRIAL NV (CNH) is 15.86 and the Price/Book (PB) ratio is 1.7.
Can you provide the financial health for CNH stock?
The financial health rating of CNH INDUSTRIAL NV (CNH) is 2 / 10.