CNH INDUSTRIAL NV (CNHI)
NL0010545661 - Common Stock
We assign a fundamental rating of 5 out of 10 to CNHI. CNHI was compared to 132 industry peers in the Machinery industry. CNHI has an excellent profitability rating, but there are concerns on its financial health. CNHI has a valuation in line with the averages, but it does not seem to be growing. CNHI also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CNHI had positive earnings in the past year.
In the past year CNHI had a positive cash flow from operations.
CNHI had positive earnings in 4 of the past 5 years.
CNHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CNHI has a Return On Assets of 5.08%. This is in the better half of the industry: CNHI outperforms 61.24% of its industry peers.
The Return On Equity of CNHI (29.02%) is better than 90.70% of its industry peers.
With a decent Return On Invested Capital value of 8.34%, CNHI is doing good in the industry, outperforming 62.02% 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 10.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 29.02% | ||
| ROIC | 8.34% |
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's Profit Margin of 9.55% is fine compared to the rest of the industry. CNHI outperforms 71.32% of its industry peers.
In the last couple of years the Profit Margin of CNHI has grown nicely.
CNHI's Operating Margin of 18.32% is amongst the best of the industry. CNHI outperforms 86.05% of its industry peers.
CNHI's Operating Margin has improved in the last couple of years.
CNHI has a Gross Margin of 30.10%. This is comparable to the rest of the industry: CNHI outperforms 52.71% of its industry peers.
In the last couple of years the Gross Margin of CNHI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.32% | ||
| PM (TTM) | 9.55% | ||
| GM | 30.1% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CNHI is still creating some value.
Compared to 1 year ago, CNHI has less shares outstanding
The number of shares outstanding for CNHI has been reduced compared to 5 years ago.
The debt/assets ratio for CNHI is higher compared to a year ago.
2.2 Solvency
CNHI has an Altman-Z score of 1.49. This is a bad value and indicates that CNHI is not financially healthy and even has some risk of bankruptcy.
CNHI has a Altman-Z score of 1.49. This is in the lower half of the industry: CNHI underperforms 71.32% of its industry peers.
A Debt/Equity ratio of 3.37 is on the high side and indicates that CNHI has dependencies on debt financing.
CNHI has a worse Debt to Equity ratio (3.37) than 93.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.49 |
ROIC/WACC1.25
WACC6.68%
2.3 Liquidity
A Current Ratio of 1.82 indicates that CNHI should not have too much problems paying its short term obligations.
CNHI's Current ratio of 1.82 is on the low side compared to the rest of the industry. CNHI is outperformed by 62.02% of its industry peers.
A Quick Ratio of 0.85 indicates that CNHI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.85, CNHI is doing worse than 74.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.54% over the past year.
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.
The Revenue has been growing slightly by 5.00% in the past year.
The Revenue has been decreasing by -3.65% on average over the past years.
EPS 1Y (TTM)15.54%
EPS 3Y82.79%
EPS 5Y16.41%
EPS growth Q2Q16.67%
Revenue 1Y (TTM)5%
Revenue growth 3Y18.87%
Revenue growth 5Y-3.65%
Revenue growth Q2Q-1.65%
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.
CNHI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.42% yearly.
EPS Next Y-7.54%
EPS Next 2Y-2.3%
EPS Next 3Y1.47%
EPS Next 5Y-0.2%
Revenue Next Year-9.44%
Revenue Next 2Y-4.51%
Revenue Next 3Y-1.22%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.71 indicates a rather cheap valuation of CNHI.
94.57% of the companies in the same industry are more expensive than CNHI, based on the Price/Earnings ratio.
CNHI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.28.
The Price/Forward Earnings ratio is 7.26, which indicates a rather cheap valuation of CNHI.
Based on the Price/Forward Earnings ratio, CNHI is valued cheaply inside the industry as 95.35% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CNHI to the average of the S&P500 Index (20.88), we can say CNHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.71 | ||
| Fwd PE | 7.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CNHI is valued cheaply inside the industry as 86.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.34 |
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-2.3%
EPS Next 3Y1.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.02%, CNHI is a good candidate for dividend investing.
CNHI's Dividend Yield is rather good when compared to the industry average which is at 1.73. CNHI pays more dividend than 96.90% of the companies in the same industry.
CNHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
5.2 History
The dividend of CNHI is nicely growing with an annual growth rate of 17.96%!
CNHI has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)17.96%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
22.85% of the earnings are spent on dividend by CNHI. This is a low number and sustainable payout ratio.
DP22.85%
EPS Next 2Y-2.3%
EPS Next 3Y1.47%
CNH INDUSTRIAL NV
NYSE:CNHI (5/3/2024, 7:04:00 PM)
After market: 11.52 +0.04 (+0.35%)11.48
-0.2 (-1.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.71 | ||
| Fwd PE | 7.26 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 29.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.32% | ||
| PM (TTM) | 9.55% | ||
| GM | 30.1% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.82 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)15.54%
EPS 3Y82.79%
EPS 5Y
EPS growth Q2Q
EPS Next Y-7.54%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5%
Revenue growth 3Y18.87%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y