CNH INDUSTRIAL NV (CNHI.MI) Stock Fundamental Analysis

Europe • Euronext Milan • BIT:CNHI • NL0010545661

11.08 EUR
+0.14 (+1.28%)
Last: Dec 29, 2023, 07:00 PM
Fundamental Rating

5

CNHI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 112 industry peers in the Machinery industry. CNHI has only an average score on both its financial health and profitability. CNHI scores decently on growth, while it is valued quite cheap. This could make an interesting combination. CNHI also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • CNHI had positive earnings in the past year.
  • CNHI had a positive operating cash flow in the past year.
CNHI.MI Yearly Net Income VS EBIT VS OCF VS FCFCNHI.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 1B 2B 3B

1.2 Ratios

  • CNHI has negative profitability rations, so we won't be analyzing them here.
Industry RankSector Rank
ROA N/A
ROE N/A
ROIC N/A
ROA(3y)2.19%
ROA(5y)2.23%
ROE(3y)11.38%
ROE(5y)12.74%
ROIC(3y)N/A
ROIC(5y)N/A
CNHI.MI Yearly ROA, ROE, ROICCNHI.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 10 -10 20

1.3 Margins

  • The Profit Margin of CNHI (9.07%) is better than 86.27% of its industry peers.
  • CNHI's Profit Margin has improved in the last couple of years.
  • The Operating Margin of CNHI (12.52%) is better than 88.24% of its industry peers.
  • CNHI's Operating Margin has improved in the last couple of years.
  • CNHI's Gross Margin of 23.70% is on the low side compared to the rest of the industry. CNHI is outperformed by 78.43% of its industry peers.
  • CNHI's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 12.52%
PM (TTM) 9.07%
GM 23.7%
OM growth 3Y21.39%
OM growth 5Y18.56%
PM growth 3Y36.63%
PM growth 5Y38%
GM growth 3Y6.79%
GM growth 5Y4.92%
CNHI.MI Yearly Profit, Operating, Gross MarginsCNHI.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 5 -5 10 15 20

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5

2. Health

2.1 Basic Checks

  • CNHI does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • Compared to 1 year ago, CNHI has less shares outstanding
  • The debt/assets ratio for CNHI is higher compared to a year ago.
CNHI.MI Yearly Shares OutstandingCNHI.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M 1B
CNHI.MI Yearly Total Debt VS Total AssetsCNHI.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 10B 20B 30B 40B 50B

2.2 Solvency

  • There is no outstanding debt for CNHI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 0
Altman-Z N/A
ROIC/WACCN/A
WACC7.64%
CNHI.MI Yearly LT Debt VS Equity VS FCFCNHI.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B 20B 25B

2.3 Liquidity

  • A Current Ratio of 1.99 indicates that CNHI should not have too much problems paying its short term obligations.
  • CNHI has a Current ratio of 1.99. This is in the better half of the industry: CNHI outperforms 67.65% of its industry peers.
  • CNHI has a Quick Ratio of 1.68. This is a normal value and indicates that CNHI is financially healthy and should not expect problems in meeting its short term obligations.
  • With a decent Quick ratio value of 1.68, CNHI is doing good in the industry, outperforming 76.47% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.99
Quick Ratio 1.68
CNHI.MI Yearly Current Assets VS Current LiabilitesCNHI.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 10B 20B 30B

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4

3. Growth

3.1 Past

  • CNHI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.24%, which is quite impressive.
  • The Earnings Per Share has been growing by 25.26% on average over the past years. This is a very strong growth
  • Looking at the last year, CNHI shows a very negative growth in Revenue. The Revenue has decreased by -29.55% in the last year.
  • The Revenue has been decreasing by -3.20% on average over the past years.
EPS 1Y (TTM)24.24%
EPS 3Y20.3%
EPS 5Y25.26%
EPS Q2Q%20.93%
Revenue 1Y (TTM)-29.55%
Revenue growth 3Y-5.74%
Revenue growth 5Y-3.2%
Sales Q2Q%7.59%

3.2 Future

  • Based on estimates for the next years, CNHI will show a small growth in Earnings Per Share. The EPS will grow by 7.52% on average per year.
  • The Revenue is expected to grow by 5.32% on average over the next years.
EPS Next Y16.53%
EPS Next 2Y4.87%
EPS Next 3Y5.46%
EPS Next 5Y7.52%
Revenue Next Year10.75%
Revenue Next 2Y3.52%
Revenue Next 3Y3.56%
Revenue Next 5Y5.32%

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.
CNHI.MI Yearly Revenue VS EstimatesCNHI.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 10B 20B 30B
CNHI.MI Yearly EPS VS EstimatesCNHI.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2

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8

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 7.39 indicates a rather cheap valuation of CNHI.
  • Based on the Price/Earnings ratio, CNHI is valued cheaply inside the industry as 89.22% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of CNHI to the average of the S&P500 Index (28.18), we can say CNHI is valued rather cheaply.
  • CNHI is valuated cheaply with a Price/Forward Earnings ratio of 7.43.
  • 87.25% of the companies in the same industry are more expensive than CNHI, based on the Price/Forward Earnings ratio.
  • CNHI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.51.
Industry RankSector Rank
PE 7.39
Fwd PE 7.43
CNHI.MI Price Earnings VS Forward Price EarningsCNHI.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNHI indicates a rather cheap valuation: CNHI is cheaper than 84.31% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, CNHI is valued cheaply inside the industry as 89.22% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 6.72
EV/EBITDA 4.4
CNHI.MI Per share dataCNHI.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.45
PEG (5Y)0.29
EPS Next 2Y4.87%
EPS Next 3Y5.46%

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7

5. Dividend

5.1 Amount

  • CNHI has a Yearly Dividend Yield of 3.24%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 1.53, CNHI pays a better dividend. On top of this CNHI pays more dividend than 88.24% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.83, CNHI pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.24%

5.2 History

  • The dividend of CNHI is nicely growing with an annual growth rate of 19.87%!
Dividend Growth(5Y)19.87%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

  • CNHI pays out 23.61% of its income as dividend. This is a sustainable payout ratio.
  • CNHI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP23.61%
EPS Next 2Y4.87%
EPS Next 3Y5.46%
CNHI.MI Yearly Income VS Free CF VS DividendCNHI.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 1B 2B
CNHI.MI Dividend Payout.CNHI.MI Dividend Payout, showing the Payout Ratio.CNHI.MI Dividend Payout.PayoutRetained Earnings

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CNH INDUSTRIAL NV

BIT:CNHI (12/29/2023, 7:00:00 PM)

11.08

+0.14 (+1.28%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)N/A
Earnings (Next)N/A
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap14.74B
Revenue(TTM)24.60B
Net Income(TTM)2.23B
Analysts74.55
Price Target15.56 (40.43%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.24%
Yearly Dividend0.31
Dividend Growth(5Y)19.87%
DP23.61%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.65%
Min EPS beat(2)5.11%
Max EPS beat(2)10.18%
EPS beat(4)3
Avg EPS beat(4)10%
Min EPS beat(4)-1.57%
Max EPS beat(4)26.27%
EPS beat(8)7
Avg EPS beat(8)16.23%
EPS beat(12)11
Avg EPS beat(12)75.37%
EPS beat(16)12
Avg EPS beat(16)44.9%
Revenue beat(2)0
Avg Revenue beat(2)-2.79%
Min Revenue beat(2)-2.98%
Max Revenue beat(2)-2.6%
Revenue beat(4)2
Avg Revenue beat(4)4.29%
Min Revenue beat(4)-2.98%
Max Revenue beat(4)12%
Revenue beat(8)4
Avg Revenue beat(8)34.69%
Revenue beat(12)6
Avg Revenue beat(12)26.89%
Revenue beat(16)7
Avg Revenue beat(16)21.12%
PT rev (1m)-3.89%
PT rev (3m)-10.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.69%
Valuation
Industry RankSector Rank
PE 7.39
Fwd PE 7.43
P/S 0.65
P/FCF 6.72
P/OCF 5.16
P/B N/A
P/tB N/A
EV/EBITDA 4.4
EPS(TTM)1.5
EY13.54%
EPS(NY)1.49
Fwd EY13.45%
FCF(TTM)1.65
FCFY14.88%
OCF(TTM)2.15
OCFY19.4%
SpS16.93
BVpSN/A
TBVpSN/A
PEG (NY)0.45
PEG (5Y)0.29
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA N/A
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM 12.52%
PM (TTM) 9.07%
GM 23.7%
FCFM 9.74%
ROA(3y)2.19%
ROA(5y)2.23%
ROE(3y)11.38%
ROE(5y)12.74%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)6.41%
ROCE(5y)6.75%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y21.39%
OM growth 5Y18.56%
PM growth 3Y36.63%
PM growth 5Y38%
GM growth 3Y6.79%
GM growth 5Y4.92%
F-ScoreN/A
Asset TurnoverN/A
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 125.13%
Cap/Sales 2.96%
Interest Coverage 250
Cash Conversion 85.28%
Profit Quality 107.35%
Current Ratio 1.99
Quick Ratio 1.68
Altman-Z N/A
F-ScoreN/A
WACC7.64%
ROIC/WACCN/A
Cap/Depr(3y)92.3%
Cap/Depr(5y)89.65%
Cap/Sales(3y)3.72%
Cap/Sales(5y)3.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)24.24%
EPS 3Y20.3%
EPS 5Y25.26%
EPS Q2Q%20.93%
EPS Next Y16.53%
EPS Next 2Y4.87%
EPS Next 3Y5.46%
EPS Next 5Y7.52%
Revenue 1Y (TTM)-29.55%
Revenue growth 3Y-5.74%
Revenue growth 5Y-3.2%
Sales Q2Q%7.59%
Revenue Next Year10.75%
Revenue Next 2Y3.52%
Revenue Next 3Y3.56%
Revenue Next 5Y5.32%
EBIT growth 1Y-17.53%
EBIT growth 3Y14.43%
EBIT growth 5Y14.76%
EBIT Next Year34.65%
EBIT Next 3Y7.67%
EBIT Next 5Y5.38%
FCF growth 1Y-48.47%
FCF growth 3Y63.71%
FCF growth 5Y3.87%
OCF growth 1Y-44.45%
OCF growth 3Y18.92%
OCF growth 5Y0.5%

CNH INDUSTRIAL NV / CNHI.MI FAQ

What is the fundamental rating for CNHI stock?

ChartMill assigns a fundamental rating of 6 / 10 to CNHI.MI.


What is the valuation status of CNH INDUSTRIAL NV (CNHI.MI) stock?

ChartMill assigns a valuation rating of 8 / 10 to CNH INDUSTRIAL NV (CNHI.MI). This can be considered as Undervalued.


How profitable is CNH INDUSTRIAL NV (CNHI.MI) stock?

CNH INDUSTRIAL NV (CNHI.MI) has a profitability rating of 5 / 10.


Can you provide the financial health for CNHI stock?

The financial health rating of CNH INDUSTRIAL NV (CNHI.MI) is 6 / 10.


What is the earnings growth outlook for CNH INDUSTRIAL NV?

The Earnings per Share (EPS) of CNH INDUSTRIAL NV (CNHI.MI) is expected to grow by 16.53% in the next year.