CNH INDUSTRIAL NV (CNH) Stock Fundamental Analysis
USA - NYSE:CNH - NL0010545661 - Common Stock
10.83 USD
+0.05 (+0.46%)
10.83 USD
0 (0%)
Taking everything into account, CNH scores 4 out of 10 in our fundamental rating. CNH was compared to 130 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 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 CNH was profitable.
CNH had a positive operating cash flow in the past year.
Of the past 5 years CNH 4 years were profitable.
In the past 5 years CNH always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.88%, CNH is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
CNH has a Return On Equity (10.67%) which is comparable to the rest of the industry.
CNH has a Return On Invested Capital (6.87%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CNH is in line with the industry average of 10.00%.
The last Return On Invested Capital (6.87%) for CNH is well below the 3 year average (11.39%), which needs to be investigated, but indicates that CNH had better years and this may not be a problem.
| 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.
In the last couple of years the Profit Margin of CNH has grown nicely.
CNH has a better Operating Margin (18.21%) than 86.15% of its industry peers.
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.
CNH has less shares outstanding than it did 1 year ago.
CNH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CNH is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.26, we must say that CNH is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.26, CNH is doing worse than 77.69% of the companies in the same industry.
CNH has a debt to FCF ratio of 12.84. This is a negative value and a sign of low solvency as CNH would need 12.84 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.84, CNH is doing worse than 61.54% of the companies in the same industry.
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 90.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.55 | ||
| Debt/FCF | 12.84 | ||
| Altman-Z | 1.26 |
ROIC/WACC0.87
WACC7.89%
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.
With a Current ratio value of 1.24, CNH is not doing good in the industry: 83.85% of the companies in the same industry are doing better.
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 90.77% of its industry peers.
| 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.
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 -3.53% on average per year.
CNH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.43% yearly.
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.
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
With a Price/Earnings ratio of 16.41, CNH is valued correctly.
Based on the Price/Earnings ratio, CNH is valued cheaply inside the industry as 80.77% of the companies are valued more expensively.
CNH is valuated rather cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.73 indicates a correct valuation of CNH.
Based on the Price/Forward Earnings ratio, CNH is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
CNH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.41 | ||
| Fwd PE | 13.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNH is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CNH is valued cheaper than 96.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.34 | ||
| EV/EBITDA | 9.84 |
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-15.31%
EPS Next 3Y-1.03%
5. Dividend
5.1 Amount
CNH has a Yearly Dividend Yield of 2.32%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.78, CNH pays a better dividend. On top of this CNH pays more dividend than 86.92% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, CNH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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%
10.83
+0.05 (+0.46%)
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 Cap13.55B
Revenue(TTM)18.07B
Net Income(TTM)823.00M
Analysts74.78
Price Target14.98 (38.32%)
Short Float %6.1%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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)-1.19%
PT rev (3m)-0.12%
EPS NQ rev (1m)-4.19%
EPS NQ rev (3m)-18.88%
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)-0.02%
Revenue NY rev (3m)2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.41 | ||
| Fwd PE | 13.73 | ||
| P/S | 0.75 | ||
| P/FCF | 6.34 | ||
| P/OCF | 3.96 | ||
| P/B | 1.76 | ||
| P/tB | 4.75 | ||
| EV/EBITDA | 9.84 |
EPS(TTM)0.66
EY6.09%
EPS(NY)0.79
Fwd EY7.29%
FCF(TTM)1.71
FCFY15.76%
OCF(TTM)2.73
OCFY25.22%
SpS14.45
BVpS6.17
TBVpS2.28
PEG (NY)N/A
PEG (5Y)3.1
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 | 1.26 |
F-Score4
WACC7.89%
ROIC/WACC0.87
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 16.41 and the Price/Book (PB) ratio is 1.76.
Can you provide the financial health for CNH stock?
The financial health rating of CNH INDUSTRIAL NV (CNH) is 2 / 10.