CNH INDUSTRIAL NV (CNHI) Fundamental Analysis & Valuation

NYSE:CNHI • NL0010545661

Current stock price

11.45 USD
-0.07 (-0.61%)
At close:
11.4013 USD
-0.05 (-0.43%)
After Hours:

This CNHI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. CNHI Profitability Analysis

1.1 Basic Checks

  • In the past year CNHI was profitable.
  • In the past year CNHI had a positive cash flow from operations.
  • Of the past 5 years CNHI 4 years were profitable.
  • In the past 5 years CNHI always reported a positive cash flow from operatings.
CNHI Yearly Net Income VS EBIT VS OCF VS FCFCNHI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B 4B

1.2 Ratios

  • CNHI has a Return On Assets of 5.01%. This is comparable to the rest of the industry: CNHI outperforms 59.23% of its industry peers.
  • CNHI's Return On Equity of 28.79% is amongst the best of the industry. CNHI outperforms 90.77% of its industry peers.
  • CNHI has a Return On Invested Capital of 10.21%. This is in the better half of the industry: CNHI outperforms 70.00% of its industry peers.
  • CNHI had an Average Return On Invested Capital over the past 3 years of 10.87%. This is in line with the industry average of 10.00%.
Industry RankSector Rank
ROA 5.01%
ROE 28.79%
ROIC 10.21%
ROA(3y)4.58%
ROA(5y)2.81%
ROE(3y)27.98%
ROE(5y)16.77%
ROIC(3y)10.87%
ROIC(5y)7.89%
CNHI Yearly ROA, ROE, ROICCNHI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20

1.3 Margins

  • CNHI has a Profit Margin of 9.48%. This is in the better half of the industry: CNHI outperforms 71.54% of its industry peers.
  • CNHI's Profit Margin has improved in the last couple of years.
  • CNHI has a Operating Margin of 20.14%. This is amongst the best in the industry. CNHI outperforms 90.00% of its industry peers.
  • CNHI's Operating Margin has improved in the last couple of years.
  • CNHI has a better Gross Margin (32.04%) than 61.54% of its industry peers.
  • CNHI's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 20.14%
PM (TTM) 9.48%
GM 32.04%
OM growth 3Y70.97%
OM growth 5Y23.85%
PM growth 3YN/A
PM growth 5Y15.86%
GM growth 3Y24.71%
GM growth 5Y11%
CNHI Yearly Profit, Operating, Gross MarginsCNHI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

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1

2. CNHI Health Analysis

2.1 Basic Checks

  • CNHI 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 CNHI has been reduced compared to 1 year ago.
  • Compared to 1 year ago, CNHI has a worse debt to assets ratio.
CNHI Yearly Shares OutstandingCNHI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B
CNHI Yearly Total Debt VS Total AssetsCNHI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B 50B

2.2 Solvency

  • CNHI has a Debt/Equity ratio of 3.49. This is a high value indicating a heavy dependency on external financing.
  • CNHI has a worse Debt to Equity ratio (3.49) than 93.85% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.49
Debt/FCF N/A
Altman-Z N/A
ROIC/WACC1.54
WACC6.65%
CNHI Yearly LT Debt VS Equity VS FCFCNHI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B 15B 20B 25B

2.3 Liquidity

  • A Current Ratio of 0.97 indicates that CNHI may have some problems paying its short term obligations.
  • CNHI's Current ratio of 0.97 is on the low side compared to the rest of the industry. CNHI is outperformed by 89.23% of its industry peers.
  • CNHI has a Quick Ratio of 0.97. This is a bad value and indicates that CNHI is not financially healthy enough and could expect problems in meeting its short term obligations.
  • CNHI has a worse Quick ratio (0.35) than 93.85% of its industry peers.
Industry RankSector Rank
Current Ratio 0.97
Quick Ratio 0.35
CNHI Yearly Current Assets VS Current LiabilitesCNHI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. CNHI Growth Analysis

3.1 Past

  • CNHI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.03%, which is quite good.
  • Measured over the past years, CNHI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.41% on average per year.
  • CNHI shows a small growth in Revenue. In the last year, the Revenue has grown by 0.10%.
  • Measured over the past years, CNHI shows a decrease in Revenue. The Revenue has been decreasing by -3.65% on average per year.
EPS 1Y (TTM)9.03%
EPS 3Y82.79%
EPS 5Y16.41%
EPS Q2Q%-5.71%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y18.87%
Revenue growth 5Y-3.65%
Sales Q2Q%-9.81%

3.2 Future

  • Based on estimates for the next years, CNHI will show a decrease in Earnings Per Share. The EPS will decrease by -0.20% on average per year.
  • Based on estimates for the next years, CNHI will show a small growth in Revenue. The Revenue will grow by 4.42% on average per year.
EPS Next Y-12.33%
EPS Next 2Y-5.28%
EPS Next 3Y-1.79%
EPS Next 5Y-0.2%
Revenue Next Year-11.03%
Revenue Next 2Y-5.94%
Revenue Next 3Y-1.35%
Revenue Next 5Y4.42%

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.
CNHI Yearly Revenue VS EstimatesCNHI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 10B 20B 30B
CNHI Yearly EPS VS EstimatesCNHI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5

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6

4. CNHI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 6.78, the valuation of CNHI can be described as very cheap.
  • Compared to the rest of the industry, the Price/Earnings ratio of CNHI indicates a rather cheap valuation: CNHI is cheaper than 94.62% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.95, CNHI is valued rather cheaply.
  • CNHI is valuated cheaply with a Price/Forward Earnings ratio of 7.46.
  • 95.38% of the companies in the same industry are more expensive than CNHI, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 38.68. CNHI is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 6.78
Fwd PE 7.46
CNHI Price Earnings VS Forward Price EarningsCNHI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • CNHI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CNHI is cheaper than 89.23% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.18
CNHI Per share dataCNHI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

  • CNHI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.41
EPS Next 2Y-5.28%
EPS Next 3Y-1.79%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. CNHI Dividend Analysis

5.1 Amount

  • CNHI has a Yearly Dividend Yield of 4.10%, which is a nice return.
  • CNHI's Dividend Yield is rather good when compared to the industry average which is at 1.08. CNHI pays more dividend than 97.69% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, CNHI pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.1%

5.2 History

  • The dividend of CNHI is nicely growing with an annual growth rate of 17.96%!
  • CNHI has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)17.96%
Div Incr Years0
Div Non Decr Years0
CNHI Yearly Dividends per shareCNHI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2021 2022 2023 2024 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

  • 23.54% of the earnings are spent on dividend by CNHI. This is a low number and sustainable payout ratio.
DP23.54%
EPS Next 2Y-5.28%
EPS Next 3Y-1.79%
CNHI Yearly Income VS Free CF VS DividendCNHI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B
CNHI Dividend Payout.CNHI Dividend Payout, showing the Payout Ratio.CNHI Dividend Payout.PayoutRetained Earnings

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CNHI Fundamentals: All Metrics, Ratios and Statistics

CNH INDUSTRIAL NV

NYSE:CNHI (5/17/2024, 8:04:00 PM)

After market: 11.4013 -0.05 (-0.43%)

11.45

-0.07 (-0.61%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)05-02
Earnings (Next)07-26
Inst Owners66.17%
Inst Owner Change0.33%
Ins OwnersN/A
Ins Owner Change0%
Market Cap14.40B
Revenue(TTM)24.16B
Net Income(TTM)2.29B
Analysts74.17
Price Target15.26 (33.28%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.1%
Yearly Dividend0.41
Dividend Growth(5Y)17.96%
DP23.54%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.64%
Min EPS beat(2)-2.64%
Max EPS beat(2)23.92%
EPS beat(4)2
Avg EPS beat(4)5.58%
Min EPS beat(4)-4.26%
Max EPS beat(4)23.92%
EPS beat(8)5
Avg EPS beat(8)8.73%
EPS beat(12)9
Avg EPS beat(12)17.04%
EPS beat(16)13
Avg EPS beat(16)59.04%
Revenue beat(2)1
Avg Revenue beat(2)4.68%
Min Revenue beat(2)-0.04%
Max Revenue beat(2)9.4%
Revenue beat(4)1
Avg Revenue beat(4)1.99%
Min Revenue beat(4)-0.73%
Max Revenue beat(4)9.4%
Revenue beat(8)5
Avg Revenue beat(8)5.44%
Revenue beat(12)6
Avg Revenue beat(12)21.87%
Revenue beat(16)9
Avg Revenue beat(16)22.73%
PT rev (1m)-4.23%
PT rev (3m)-2.27%
EPS NQ rev (1m)-10.1%
EPS NQ rev (3m)-11.92%
EPS NY rev (1m)-5.19%
EPS NY rev (3m)-3.03%
Revenue NQ rev (1m)-3.76%
Revenue NQ rev (3m)-5.45%
Revenue NY rev (1m)-1.75%
Revenue NY rev (3m)-3.14%
Valuation
Industry RankSector Rank
PE 6.78
Fwd PE 7.46
P/S 0.6
P/FCF N/A
P/OCF 34.45
P/B 1.81
P/tB 4.66
EV/EBITDA 7.18
EPS(TTM)1.69
EY14.76%
EPS(NY)1.53
Fwd EY13.4%
FCF(TTM)-0.67
FCFYN/A
OCF(TTM)0.33
OCFY2.9%
SpS19.22
BVpS6.33
TBVpS2.45
PEG (NY)N/A
PEG (5Y)0.41
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA 5.01%
ROE 28.79%
ROCE 13.6%
ROIC 10.21%
ROICexc 11.23%
ROICexgc 14.85%
OM 20.14%
PM (TTM) 9.48%
GM 32.04%
FCFM N/A
ROA(3y)4.58%
ROA(5y)2.81%
ROE(3y)27.98%
ROE(5y)16.77%
ROIC(3y)10.87%
ROIC(5y)7.89%
ROICexc(3y)13.08%
ROICexc(5y)9.6%
ROICexgc(3y)21.77%
ROICexgc(5y)15.39%
ROCE(3y)14.48%
ROCE(5y)10.51%
ROICexgc growth 3Y80.95%
ROICexgc growth 5Y15.73%
ROICexc growth 3Y83.39%
ROICexc growth 5Y16.26%
OM growth 3Y70.97%
OM growth 5Y23.85%
PM growth 3YN/A
PM growth 5Y15.86%
GM growth 3Y24.71%
GM growth 5Y11%
F-ScoreN/A
Asset Turnover0.53
Health
Industry RankSector Rank
Debt/Equity 3.49
Debt/FCF N/A
Debt/EBITDA 5.12
Cap/Depr 224.82%
Cap/Sales 5.21%
Interest Coverage 250
Cash Conversion 7.7%
Profit Quality N/A
Current Ratio 0.97
Quick Ratio 0.35
Altman-Z N/A
F-ScoreN/A
WACC6.65%
ROIC/WACC1.54
Cap/Depr(3y)191.9%
Cap/Depr(5y)146.15%
Cap/Sales(3y)6.5%
Cap/Sales(5y)5.81%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.03%
EPS 3Y82.79%
EPS 5Y16.41%
EPS Q2Q%-5.71%
EPS Next Y-12.33%
EPS Next 2Y-5.28%
EPS Next 3Y-1.79%
EPS Next 5Y-0.2%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y18.87%
Revenue growth 5Y-3.65%
Sales Q2Q%-9.81%
Revenue Next Year-11.03%
Revenue Next 2Y-5.94%
Revenue Next 3Y-1.35%
Revenue Next 5Y4.42%
EBIT growth 1Y64.87%
EBIT growth 3Y103.24%
EBIT growth 5Y19.33%
EBIT Next Year-0.4%
EBIT Next 3Y1.17%
EBIT Next 5Y-0.44%
FCF growth 1Y-143.37%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-82.54%
OCF growth 3Y-36.11%
OCF growth 5Y-14%

CNH INDUSTRIAL NV / CNHI Fundamental Analysis FAQ

What is the fundamental rating for CNHI stock?

ChartMill assigns a fundamental rating of 4 / 10 to CNHI.


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

ChartMill assigns a valuation rating of 6 / 10 to CNH INDUSTRIAL NV (CNHI). This can be considered as Fairly Valued.


Can you provide the profitability details for CNH INDUSTRIAL NV?

CNH INDUSTRIAL NV (CNHI) has a profitability rating of 7 / 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 (CNHI) is 6.78 and the Price/Book (PB) ratio is 1.81.


What is the earnings growth outlook for CNH INDUSTRIAL NV?

The Earnings per Share (EPS) of CNH INDUSTRIAL NV (CNHI) is expected to decline by -12.33% in the next year.