CNH INDUSTRIAL NV (CNHI) Fundamental Analysis & Valuation

NYSE:CNHI • NL0010545661

11.45 USD
-0.07 (-0.61%)
At close: May 17, 2024
11.4013 USD
-0.05 (-0.43%)
After Hours: 5/17/2024, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

4

CNHI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. CNHI has an excellent profitability rating, but there are concerns on its financial health. CNHI is valued correctly, but it does not seem to be growing. Finally CNHI also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

7

1. CNHI Profitability Analysis

1.1 Basic Checks

  • In the past year CNHI was profitable.
  • CNHI had a positive operating cash flow in the past year.
  • CNHI had positive earnings in 4 of the past 5 years.
  • Each year in the past 5 years CNHI had a positive operating cash flow.
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 (5.01%) which is in line with its industry peers.
  • Looking at the Return On Equity, with a value of 28.79%, CNHI belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
  • The Return On Invested Capital of CNHI (10.21%) is better than 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 10.22%.
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.
  • In the last couple of years the Profit Margin of CNHI has grown nicely.
  • Looking at the Operating Margin, with a value of 20.14%, CNHI belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
  • CNHI's Operating Margin has improved in the last couple of years.
  • CNHI has a Gross Margin of 32.04%. This is in the better half of the industry: CNHI outperforms 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

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CNHI is creating some value.
  • The number of shares outstanding for CNHI has been reduced compared to 1 year ago.
  • CNHI has a worse debt/assets ratio than last year.
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

  • A Debt/Equity ratio of 3.49 is on the high side and indicates that CNHI has dependencies on debt financing.
  • The Debt to Equity ratio of CNHI (3.49) is worse 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 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 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%.
  • CNHI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.65% yearly.
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

  • The Earnings Per Share is expected to decrease by -0.20% on average over the next years.
  • The Revenue is expected to grow by 4.42% on average over the next years.
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.
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

  • A Price/Earnings ratio of 6.78 indicates a rather cheap valuation of CNHI.
  • 94.62% 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 26.69.
  • Based on the Price/Forward Earnings ratio of 7.46, the valuation of CNHI can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, CNHI is valued cheaply inside the industry as 95.38% of the companies are valued more expensively.
  • CNHI is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.79, which is the current average of the S&P500 Index.
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 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CNHI is valued cheaply inside the industry as 89.23% of the companies are valued more expensively.
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

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

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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.
  • Compared to an average industry Dividend Yield of 1.13, CNHI pays a better dividend. On top of this CNHI pays more dividend than 97.69% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, CNHI pays a better dividend.
Industry RankSector 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 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
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 NumberN/A
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 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.


How profitable is CNH INDUSTRIAL NV (CNHI) stock?

CNH INDUSTRIAL NV (CNHI) has a profitability rating of 7 / 10.


Can you provide the financial health for CNHI stock?

The financial health rating of CNH INDUSTRIAL NV (CNHI) is 1 / 10.


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.