CNH INDUSTRIAL NV (CNH) Stock Fundamental Analysis
NYSE:CNH - NL0010545661 - Common Stock
11.475 USD
+0.01 (+0.13%)
We assign a fundamental rating of 4 out of 10 to CNH. 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 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.
CNH had a positive operating cash flow in the past year.
CNH had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CNH had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.88%, CNH is doing worse than 62.50% of the companies in the same industry.
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 50.78% of 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
Looking at the Profit Margin, with a value of 4.55%, CNH is in line with its industry, outperforming 46.88% of the companies in the same industry.
CNH's Profit Margin has improved in the last couple of years.
CNH's Operating Margin of 18.21% is amongst the best of the industry. CNH outperforms 85.94% of its industry peers.
In the last couple of years the Operating Margin of CNH has grown nicely.
The Gross Margin of CNH (32.40%) is comparable to the rest of the industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CNH is still creating some value.
Compared to 1 year ago, CNH has less shares outstanding
Compared to 5 years ago, CNH has less shares outstanding
The debt/assets ratio for CNH is higher compared to a year ago.
2.2 Solvency
CNH has an Altman-Z score of 1.28. 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 1.28, CNH is not doing good in the industry: 78.13% of the companies in the same industry are doing better.
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 64.06% 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.
The Debt to Equity ratio of CNH (3.55) is worse than 89.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.55 | ||
| Debt/FCF | 12.84 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.88
WACC7.83%
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.
CNH has a worse Current ratio (1.24) than 83.59% 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.
CNH has a Quick ratio of 0.45. This is amonst the worse of the industry: CNH underperforms 90.63% 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%.
The Earnings Per Share has been growing slightly by 5.29% on average over the past years.
The Revenue for CNH has decreased by -21.73% in the past year. This is quite bad
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)-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
The Earnings Per Share is expected to decrease by -3.32% on average over the next years.
The Revenue is expected to grow by 0.43% on average over the next years.
EPS Next Y-43.42%
EPS Next 2Y-10.73%
EPS Next 3Y0.41%
EPS Next 5Y-3.32%
Revenue Next Year-12.2%
Revenue Next 2Y-4.31%
Revenue Next 3Y-0.03%
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
A Price/Earnings ratio of 17.39 indicates a rather expensive valuation of CNH.
CNH's Price/Earnings ratio is a bit cheaper when compared to the industry. CNH is cheaper than 77.34% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.02, CNH is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.09, the valuation of CNH can be described as correct.
CNH's Price/Forward Earnings ratio is rather cheap when compared to the industry. CNH is cheaper than 85.94% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CNH to the average of the S&P500 Index (22.66), we can say CNH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 13.09 |
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 79.69% of the companies listed in the same industry.
CNH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CNH is cheaper than 97.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.72 | ||
| EV/EBITDA | 10.06 |
4.3 Compensation for Growth
The decent profitability rating of CNH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.29
EPS Next 2Y-10.73%
EPS Next 3Y0.41%
5. Dividend
5.1 Amount
CNH has a Yearly Dividend Yield of 2.20%.
CNH's Dividend Yield is rather good when compared to the industry average which is at 1.78. CNH pays more dividend than 86.72% of the companies in the same industry.
CNH's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
5.2 History
On average, the dividend of CNH grows each year by 17.96%, which is quite nice.
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 40.58% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP40.58%
EPS Next 2Y-10.73%
EPS Next 3Y0.41%
NYSE:CNH (9/8/2025, 12:21:11 PM)
11.475
+0.01 (+0.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners75.64%
Inst Owner Change0%
Ins Owners0.11%
Ins Owner Change4.52%
Market Cap14.35B
Analysts74.78
Price Target15.22 (32.64%)
Short Float %5.69%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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)-0.59%
PT rev (3m)1.6%
EPS NQ rev (1m)-9.85%
EPS NQ rev (3m)-24.23%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.26%
Revenue NQ rev (1m)0.7%
Revenue NQ rev (3m)-1.81%
Revenue NY rev (1m)1.33%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 13.09 | ||
| P/S | 0.79 | ||
| P/FCF | 6.72 | ||
| P/OCF | 4.2 | ||
| P/B | 1.86 | ||
| P/tB | 5.03 | ||
| EV/EBITDA | 10.06 |
EPS(TTM)0.66
EY5.75%
EPS(NY)0.88
Fwd EY7.64%
FCF(TTM)1.71
FCFY14.87%
OCF(TTM)2.73
OCFY23.81%
SpS14.45
BVpS6.17
TBVpS2.28
PEG (NY)N/A
PEG (5Y)3.29
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 | 1.28 |
F-Score4
WACC7.83%
ROIC/WACC0.88
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-43.42%
EPS Next 2Y-10.73%
EPS Next 3Y0.41%
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-12.2%
Revenue Next 2Y-4.31%
Revenue Next 3Y-0.03%
Revenue Next 5Y0.43%
EBIT growth 1Y-28.56%
EBIT growth 3Y5.37%
EBIT growth 5Y5.11%
EBIT Next Year-16.49%
EBIT Next 3Y10.31%
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%