CNH INDUSTRIAL NV (CNH) Stock Fundamental Analysis
USA - NYSE:CNH - NL0010545661 - Common Stock
10.84 USD
+0.28 (+2.65%)
10.9627 USD
+0.12 (+1.13%)
CNH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 129 industry peers in the Machinery industry. CNH has a medium profitability rating, but doesn't score so well on its financial health evaluation. CNH has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
CNH had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 1.88%, CNH is doing worse than 62.02% of the companies in the same industry.
CNH has a Return On Equity of 10.67%. This is comparable to the rest of the industry: CNH outperforms 58.91% of its industry peers.
CNH has a Return On Invested Capital (6.87%) which 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 10.00%.
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 in line with its industry peers.
CNH's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 18.21%, CNH belongs to the best of the industry, outperforming 86.05% 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 53.49% of its industry peers.
CNH's Gross Margin has improved in the last couple of years.
| 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
CNH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CNH has been reduced compared to 1 year ago.
The number of shares outstanding for CNH has been reduced compared to 5 years ago.
CNH has a worse debt/assets ratio than last year.
2.2 Solvency
CNH has an Altman-Z score of 1.26. This is a bad value and indicates that CNH is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.26, CNH is doing worse than 74.42% of the companies in the same industry.
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.
CNH has a Debt to FCF ratio of 12.84. This is in the lower half of the industry: CNH underperforms 63.57% of its industry peers.
A Debt/Equity ratio of 3.55 is on the high side and indicates that CNH has dependencies on debt 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 89.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.55 | ||
| Debt/FCF | 12.84 | ||
| Altman-Z | 1.26 |
ROIC/WACC0.89
WACC7.73%
2.3 Liquidity
A Current Ratio of 1.24 indicates that CNH should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.24, CNH is doing worse than 83.72% of the companies in the same industry.
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 90.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
The earnings per share for CNH have decreased strongly by -57.42% in the last year.
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.
CNH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.71% yearly.
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 -3.32% 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-45.35%
EPS Next 2Y-13.22%
EPS Next 3Y0.06%
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
CNH is valuated correctly with a Price/Earnings ratio of 16.42.
CNH's Price/Earnings ratio is rather cheap when compared to the industry. CNH is cheaper than 81.40% of the companies in the same industry.
CNH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.79.
A Price/Forward Earnings ratio of 13.09 indicates a correct valuation of CNH.
CNH's Price/Forward Earnings ratio is rather cheap when compared to the industry. CNH is cheaper than 85.27% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.21, CNH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.42 | ||
| Fwd PE | 13.09 |
4.2 Price Multiples
CNH's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CNH is cheaper than 80.62% of the companies in the same industry.
96.90% of the companies in the same industry are more expensive than CNH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.35 | ||
| EV/EBITDA | 9.77 |
4.3 Compensation for Growth
The decent profitability rating of CNH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.1
EPS Next 2Y-13.22%
EPS Next 3Y0.06%
5. Dividend
5.1 Amount
CNH has a Yearly Dividend Yield of 2.30%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of CNH has falen by -20.82%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CNH's Dividend Yield is rather good when compared to the industry average which is at 1.79. CNH pays more dividend than 87.60% of the companies in the same industry.
CNH's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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-13.22%
EPS Next 3Y0.06%
10.84
+0.28 (+2.65%)
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 Change4.5%
Market Cap13.56B
Analysts74.78
Price Target15.16 (39.85%)
Short Float %6.05%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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)2.39%
EPS NQ rev (1m)-4.85%
EPS NQ rev (3m)-14.47%
EPS NY rev (1m)-3.42%
EPS NY rev (3m)-3.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)1.11%
Revenue NY rev (3m)1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.42 | ||
| Fwd PE | 13.09 | ||
| P/S | 0.75 | ||
| P/FCF | 6.35 | ||
| P/OCF | 3.97 | ||
| P/B | 1.76 | ||
| P/tB | 4.75 | ||
| EV/EBITDA | 9.77 |
EPS(TTM)0.66
EY6.09%
EPS(NY)0.83
Fwd EY7.64%
FCF(TTM)1.71
FCFY15.75%
OCF(TTM)2.73
OCFY25.2%
SpS14.45
BVpS6.17
TBVpS2.28
PEG (NY)N/A
PEG (5Y)3.1
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 | 1.26 |
F-Score4
WACC7.73%
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-45.35%
EPS Next 2Y-13.22%
EPS Next 3Y0.06%
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-16.87%
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%