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

We assign a fundamental rating of 4 out of 10 to CNHI. CNHI was compared to 130 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 it does not seem to be growing. 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.
  • 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.
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 comparable to the rest of the 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's Return On Invested Capital of 10.21% is fine compared to the rest of the industry. CNHI outperforms 70.00% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for CNHI 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

  • Looking at the Profit Margin, with a value of 9.48%, CNHI is in the better half of the industry, outperforming 71.54% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CNHI has grown nicely.
  • With an excellent Operating Margin value of 20.14%, CNHI belongs to the best 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's Gross Margin of 32.04% is fine compared to the rest 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

  • 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
  • The debt/assets ratio for CNHI is higher compared to a year ago.
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.
  • Looking at the Debt to Equity ratio, with a value of 3.49, CNHI is doing worse than 93.85% of the companies in the same industry.
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

  • 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.
  • With a Current ratio value of 0.97, CNHI is not doing good in the industry: 89.23% of the companies in the same industry are doing better.
  • 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.
  • Looking at the Quick ratio, with a value of 0.35, CNHI is doing worse than 93.85% of the companies in the same industry.
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

  • 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.
  • 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

  • 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

  • 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.
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.
  • Based on the Price/Earnings ratio, CNHI is valued cheaply inside the industry as 94.62% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of CNHI to the average of the S&P500 Index (26.74), we can say CNHI is valued rather cheaply.
  • The Price/Forward Earnings ratio is 7.46, which indicates a rather cheap valuation of CNHI.
  • CNHI's Price/Forward Earnings ratio is rather cheap when compared to the industry. CNHI is cheaper than 95.38% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.82, CNHI is valued rather cheaply.
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

  • 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 1.13. CNHI pays more dividend than 97.69% of the companies 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 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

  • 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%
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.