CNH INDUSTRIAL NV (CNH) Stock Fundamental Analysis
NYSE:CNH - New York Stock Exchange, Inc. - NL0010545661 - Common Stock - Currency: USD
Taking everything into account, CNH scores 4 out of 10 in our fundamental rating. CNH was compared to 128 industry peers in the Machinery industry. While CNH is still in line with the averages on profitability rating, there are concerns on its financial health. CNH is valued correctly, but it does not seem to be growing.
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.
CNH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.32%, CNH perfoms like the industry average, outperforming 41.41% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.45%, CNH is in the better half of the industry, outperforming 61.72% of the companies in the same industry.
CNH has a Return On Invested Capital (7.72%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for CNH is in line with the industry average of 10.72%.
| 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
Looking at the Profit Margin, with a value of 5.18%, CNH is in line with its industry, outperforming 48.44% of the companies in the same industry.
CNH's Profit Margin has improved in the last couple of years.
CNH has a better Operating Margin (18.86%) than 86.72% of its industry peers.
CNH's Operating Margin has improved in the last couple of years.
CNH has a Gross Margin of 32.48%. This is comparable to the rest of the industry: CNH outperforms 53.91% of its industry peers.
CNH's Gross Margin has improved in the last couple of years.
| 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), CNH is creating some value.
Compared to 1 year ago, CNH has less shares outstanding
CNH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CNH has a worse debt to assets ratio.
2.2 Solvency
CNH has an Altman-Z score of 1.38. This is a bad value and indicates that CNH is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.38, CNH is not doing good in the industry: 78.91% of the companies in the same industry are doing better.
The Debt to FCF ratio of CNH is 14.65, which is on the high side as it means it would take CNH, 14.65 years of fcf income to pay off all of its debts.
CNH has a Debt to FCF ratio of 14.65. This is in the lower half of the industry: CNH underperforms 66.41% of its industry peers.
CNH has a Debt/Equity ratio of 3.32. This is a high value indicating a heavy dependency on external financing.
CNH's Debt to Equity ratio of 3.32 is on the low side compared to the rest of the industry. CNH is outperformed by 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.32 | ||
| Debt/FCF | 14.65 | ||
| Altman-Z | 1.38 |
ROIC/WACC0.99
WACC7.77%
2.3 Liquidity
CNH has a Current Ratio of 1.13. This is a normal value and indicates that CNH is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.13, CNH is not doing good in the industry: 85.16% of the companies in the same industry are doing better.
CNH has a Quick Ratio of 1.13. This is a bad value and indicates that CNH is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.32, CNH is not doing good in the industry: 93.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The earnings per share for CNH have decreased strongly by -48.52% 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 -22.00% in the last year.
Measured over the past years, CNH 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
Based on estimates for the next years, CNH will show a decrease in Earnings Per Share. The EPS will decrease by -2.49% on average per year.
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.
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
The Price/Earnings ratio is 14.66, which indicates a correct valuation of CNH.
Based on the Price/Earnings ratio, CNH is valued a bit cheaper than 77.34% of the companies in the same industry.
CNH is valuated rather cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
CNH is valuated correctly with a Price/Forward Earnings ratio of 14.60.
Based on the Price/Forward Earnings ratio, CNH is valued a bit cheaper than 71.09% of the companies in the same industry.
CNH 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 | 14.66 | ||
| Fwd PE | 14.6 |
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 74.22% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CNH is valued cheaper than 95.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.97 | ||
| EV/EBITDA | 9.74 |
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)2.77
EPS Next 2Y-10.9%
EPS Next 3Y0.6%
5. Dividend
5.1 Amount
CNH has a Yearly Dividend Yield of 1.96%. 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 1.90. CNH pays more dividend than 83.59% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, CNH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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
CNH pays out 62.19% of its income as dividend. This is not a sustainable payout ratio.
CNH'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%
12.75
-0.23 (-1.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners76.04%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change20.16%
Market Cap15.93B
Analysts75.45
Price Target14.98 (17.49%)
Short Float %4.59%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Yearly Dividend0.48
Dividend Growth(5Y)17.96%
DP62.19%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)2.04%
PT rev (3m)-1.06%
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)-0.42%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.66 | ||
| Fwd PE | 14.6 | ||
| P/S | 0.85 | ||
| P/FCF | 8.97 | ||
| P/OCF | 5.27 | ||
| P/B | 2.03 | ||
| P/tB | 5.27 | ||
| EV/EBITDA | 9.74 |
EPS(TTM)0.87
EY6.82%
EPS(NY)0.87
Fwd EY6.85%
FCF(TTM)1.42
FCFY11.15%
OCF(TTM)2.42
OCFY18.98%
SpS15.08
BVpS6.27
TBVpS2.42
PEG (NY)N/A
PEG (5Y)2.77
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
WACC7.77%
ROIC/WACC0.99
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%