CNH INDUSTRIAL NV (CNHI) Stock Fundamental Analysis
USA - NYSE:CNHI - NL0010545661 - Common Stock
11.45 USD
-0.07 (-0.61%)
11.4013 USD
-0.05 (-0.43%)
CNHI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. While CNHI has a great profitability rating, there are quite some concerns on its financial health. CNHI has a valuation in line with the averages, but it does not seem to be growing. Finally CNHI also has an excellent dividend rating.
1. Profitability
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.
Each year in the past 5 years CNHI had a positive operating cash flow.
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.
With an excellent Return On Equity value of 28.79%, CNHI belongs to the best of the industry, outperforming 90.77% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.21%, CNHI is doing good in the industry, outperforming 70.00% of the companies in the same industry.
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 10.28%.
| Industry Rank | Sector 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%
1.3 Margins
CNHI has a better Profit Margin (9.48%) than 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's Gross Margin of 32.04% is fine compared to the rest of the industry. CNHI outperforms 61.54% of its industry peers.
In the last couple of years the Gross Margin of CNHI has grown nicely.
| Industry Rank | Sector 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%
2. Health
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.
Compared to 1 year ago, CNHI has less shares outstanding
CNHI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CNHI is higher compared to a year ago.
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's Debt to Equity ratio of 3.49 is on the low side compared to the rest of the industry. CNHI is outperformed by 93.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.49 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC1.54
WACC6.65%
2.3 Liquidity
CNHI has a Current 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 Current ratio (0.97) than 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.03% over the past year.
CNHI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.41% yearly.
The Revenue has been growing slightly by 0.10% in the past year.
The Revenue has been decreasing by -3.65% on average over the past years.
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
CNHI is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.20% yearly.
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
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
CNHI is valuated cheaply with a Price/Earnings ratio of 6.78.
Based on the Price/Earnings ratio, CNHI is valued cheaper than 94.62% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, CNHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.78 | ||
| Fwd PE | 7.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNHI is valued cheaper than 89.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.18 |
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%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.10%, CNHI is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.86, CNHI pays a better dividend. On top of this CNHI pays more dividend than 97.69% of the companies listed in the same industry.
CNHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
5.2 History
On average, the dividend of CNHI grows each year by 17.96%, which is quite nice.
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
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%
11.45
-0.07 (-0.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners66.17%
Inst Owner Change-1.64%
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 Rank | Sector 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 Rank | Sector 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 NumberN/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 FAQ
What is the fundamental rating for CNHI stock?
ChartMill assigns a fundamental rating of 4 / 10 to CNHI.
Can you provide the valuation status for CNH INDUSTRIAL NV?
ChartMill assigns a valuation rating of 6 / 10 to CNH INDUSTRIAL NV (CNHI). This can be considered as Fairly Valued.
How profitable is CNH INDUSTRIAL NV (CNHI) stock?
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.
Can you provide the dividend sustainability for CNHI stock?
The dividend rating of CNH INDUSTRIAL NV (CNHI) is 7 / 10 and the dividend payout ratio is 23.54%.