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%)
We assign a fundamental rating of 4 out of 10 to CNHI. CNHI was compared to 129 industry peers in the Machinery industry. While CNHI belongs to the best of the industry regarding profitability, there are concerns on its financial health. CNHI has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally CNHI also has an excellent dividend rating.
1. Profitability
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.
In the past 5 years CNHI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.01%, CNHI is in line with its industry, outperforming 59.23% of the companies in the same industry.
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.
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.
Measured over the past 3 years, the Average Return On Invested Capital for CNHI is in line with the industry average of 10.00%.
| 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 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'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
Compared to 5 years ago, CNHI has less shares outstanding
CNHI has a worse debt/assets ratio than last year.
2.2 Solvency
A Debt/Equity ratio of 3.49 is on the high side and indicates that CNHI has dependencies on debt financing.
CNHI has a Debt to Equity ratio of 3.49. This is amonst the worse of the industry: CNHI underperforms 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
A Current Ratio of 0.97 indicates that CNHI may have some problems paying its short term obligations.
The Current ratio of CNHI (0.97) is worse 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.
The Quick ratio of CNHI (0.35) is worse 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.
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 0.10% in the past year.
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.78, which indicates a rather cheap valuation of CNHI.
Based on the Price/Earnings ratio, CNHI is valued cheaply inside the industry as 94.62% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.29. CNHI is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.46 indicates a rather cheap valuation of CNHI.
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 22.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.78 | ||
| Fwd PE | 7.46 |
4.2 Price Multiples
89.23% of the companies in the same industry are more expensive than CNHI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.18 |
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%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.10%, CNHI is a good candidate for dividend investing.
CNHI's Dividend Yield is rather good when compared to the industry average which is at 1.74. CNHI pays more dividend than 97.69% of the companies in the same industry.
CNHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector 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 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
CNHI pays out 23.54% of its income as dividend. This is a 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-3.5%
Ins OwnersN/A
Ins Owner Change0%
Market Cap14.40B
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
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%
ROICexcg growth 3Y80.95%
ROICexcg 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%