WHIRLPOOL CORP (WHR) Stock Fundamental Analysis
NYSE:WHR - New York Stock Exchange, Inc. - US9633201069 - Common Stock - Currency: USD
Taking everything into account, WHR scores 3 out of 10 in our fundamental rating. WHR was compared to 64 industry peers in the Household Durables industry. Both the profitability and financial health of WHR have multiple concerns. WHR has a valuation in line with the averages, but on the other hand it scores bad on growth. WHR also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
WHR had positive earnings in the past year.
WHR had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: WHR reported negative net income in multiple years.
WHR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.04%, WHR is doing worse than 62.50% of the companies in the same industry.
WHR has a Return On Equity of 0.27%. This is in the lower half of the industry: WHR underperforms 62.50% of its industry peers.
WHR has a Return On Invested Capital (8.37%) which is in line with its industry peers.
WHR had an Average Return On Invested Capital over the past 3 years of 9.41%. This is below the industry average of 11.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.04% | ||
| ROE | 0.27% | ||
| ROIC | 8.37% |
ROA(3y)-2.69%
ROA(5y)1.2%
ROE(3y)-18.9%
ROE(5y)1.58%
ROIC(3y)9.41%
ROIC(5y)11.76%
1.3 Margins
WHR has a Profit Margin of 0.04%. This is in the lower half of the industry: WHR underperforms 62.50% of its industry peers.
The Operating Margin of WHR (5.86%) is comparable to the rest of the industry.
WHR's Operating Margin has declined in the last couple of years.
WHR has a worse Gross Margin (16.18%) than 89.06% of its industry peers.
In the last couple of years the Gross Margin of WHR has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.86% | ||
| PM (TTM) | 0.04% | ||
| GM | 16.18% |
OM growth 3Y-19.61%
OM growth 5Y-3.6%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.15%
GM growth 5Y-2.12%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WHR is still creating some value.
WHR has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, WHR has less shares outstanding
Compared to 1 year ago, WHR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that WHR is in the distress zone and has some risk of bankruptcy.
WHR has a Altman-Z score of 1.28. This is in the lower half of the industry: WHR underperforms 75.00% of its industry peers.
WHR has a debt to FCF ratio of 10.02. This is a negative value and a sign of low solvency as WHR would need 10.02 years to pay back of all of its debts.
WHR has a Debt to FCF ratio (10.02) which is in line with its industry peers.
WHR has a Debt/Equity ratio of 2.12. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.12, WHR is not doing good in the industry: 90.63% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 10.02 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.95
WACC8.81%
2.3 Liquidity
WHR has a Current Ratio of 0.72. This is a bad value and indicates that WHR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.72, WHR is not doing good in the industry: 93.75% of the companies in the same industry are doing better.
A Quick Ratio of 0.40 indicates that WHR may have some problems paying its short term obligations.
WHR has a Quick ratio of 0.40. This is amonst the worse of the industry: WHR underperforms 85.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
WHR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.93%.
Measured over the past years, WHR shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.33% on average per year.
The Revenue for WHR has decreased by -18.43% in the past year. This is quite bad
The Revenue has been decreasing by -4.05% on average over the past years.
EPS 1Y (TTM)-20.93%
EPS 3Y-23%
EPS 5Y-5.33%
EPS Q2Q%-4.49%
Revenue 1Y (TTM)-18.43%
Revenue growth 3Y-8.93%
Revenue growth 5Y-4.05%
Sales Q2Q%-19.35%
3.2 Future
The Earnings Per Share is expected to grow by 8.12% on average over the next years. This is quite good.
WHR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.63% yearly.
EPS Next Y-25.12%
EPS Next 2Y-5.87%
EPS Next 3Y2.19%
EPS Next 5Y8.12%
Revenue Next Year-6.8%
Revenue Next 2Y-2.86%
Revenue Next 3Y-0.45%
Revenue Next 5Y1.63%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 6.39, the valuation of WHR can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of WHR indicates a rather cheap valuation: WHR is cheaper than 81.25% of the companies listed in the same industry.
WHR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.82.
Based on the Price/Forward Earnings ratio of 7.17, the valuation of WHR can be described as very cheap.
WHR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. WHR is cheaper than 73.44% of the companies in the same industry.
WHR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.39 | ||
| Fwd PE | 7.17 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WHR.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WHR indicates a rather cheap valuation: WHR is cheaper than 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.9 | ||
| EV/EBITDA | 7.99 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.87%
EPS Next 3Y2.19%
5. Dividend
5.1 Amount
WHR has a Yearly Dividend Yield of 9.07%, which is a nice return.
The stock price of WHR dropped by -26.26% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.61, WHR pays a better dividend. On top of this WHR pays more dividend than 95.31% of the companies listed in the same industry.
WHR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.07% |
5.2 History
On average, the dividend of WHR grows each year by 7.77%, which is quite nice.
WHR has paid a dividend for at least 10 years, which is a reliable track record.
WHR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.77%
Div Incr Years0
Div Non Decr Years34
5.3 Sustainability
5514.29% of the earnings are spent on dividend by WHR. This is not a sustainable payout ratio.
The dividend of WHR is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP5514.29%
EPS Next 2Y-5.87%
EPS Next 3Y2.19%
77.28
-0.45 (-0.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners87.5%
Inst Owner Change5.75%
Ins Owners0.84%
Ins Owner Change4.64%
Market Cap4.30B
Analysts68
Price Target96.81 (25.27%)
Short Float %16.25%
Short Ratio7.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.07% |
Yearly Dividend6.98
Dividend Growth(5Y)7.77%
DP5514.29%
Div Incr Years0
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.48%
Min EPS beat(2)-1.82%
Max EPS beat(2)4.77%
EPS beat(4)2
Avg EPS beat(4)2.09%
Min EPS beat(4)-1.82%
Max EPS beat(4)6.55%
EPS beat(8)6
Avg EPS beat(8)7.3%
EPS beat(12)9
Avg EPS beat(12)7.34%
EPS beat(16)12
Avg EPS beat(16)6.8%
Revenue beat(2)0
Avg Revenue beat(2)-2.8%
Min Revenue beat(2)-3.34%
Max Revenue beat(2)-2.27%
Revenue beat(4)0
Avg Revenue beat(4)-2.28%
Min Revenue beat(4)-3.34%
Max Revenue beat(4)-0.18%
Revenue beat(8)3
Avg Revenue beat(8)-0.97%
Revenue beat(12)4
Avg Revenue beat(12)-1.78%
Revenue beat(16)5
Avg Revenue beat(16)-2.02%
PT rev (1m)-13.75%
PT rev (3m)-13.18%
EPS NQ rev (1m)-20.4%
EPS NQ rev (3m)-20.4%
EPS NY rev (1m)-10.87%
EPS NY rev (3m)-6.82%
Revenue NQ rev (1m)-2.82%
Revenue NQ rev (3m)-2.82%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.39 | ||
| Fwd PE | 7.17 | ||
| P/S | 0.27 | ||
| P/FCF | 5.9 | ||
| P/OCF | 3.78 | ||
| P/B | 1.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.99 |
EPS(TTM)12.09
EY15.64%
EPS(NY)10.78
Fwd EY13.95%
FCF(TTM)13.11
FCFY16.96%
OCF(TTM)20.45
OCFY26.46%
SpS283.02
BVpS46.25
TBVpS-62.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.04% | ||
| ROE | 0.27% | ||
| ROCE | 10.28% | ||
| ROIC | 8.37% | ||
| ROICexc | 9.37% | ||
| ROICexgc | 31.61% | ||
| OM | 5.86% | ||
| PM (TTM) | 0.04% | ||
| GM | 16.18% | ||
| FCFM | 4.63% |
ROA(3y)-2.69%
ROA(5y)1.2%
ROE(3y)-18.9%
ROE(5y)1.58%
ROIC(3y)9.41%
ROIC(5y)11.76%
ROICexc(3y)11.16%
ROICexc(5y)14.85%
ROICexgc(3y)43.05%
ROICexgc(5y)42.5%
ROCE(3y)10.83%
ROCE(5y)13.53%
ROICexcg growth 3Y-0.09%
ROICexcg growth 5Y11.01%
ROICexc growth 3Y-23.7%
ROICexc growth 5Y-4.94%
OM growth 3Y-19.61%
OM growth 5Y-3.6%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.15%
GM growth 5Y-2.12%
F-Score5
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 10.02 | ||
| Debt/EBITDA | 4.36 | ||
| Cap/Depr | 124.77% | ||
| Cap/Sales | 2.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.96% | ||
| Profit Quality | 10414.3% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 1.28 |
F-Score5
WACC8.81%
ROIC/WACC0.95
Cap/Depr(3y)135.84%
Cap/Depr(5y)117.19%
Cap/Sales(3y)2.81%
Cap/Sales(5y)2.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-20.93%
EPS 3Y-23%
EPS 5Y-5.33%
EPS Q2Q%-4.49%
EPS Next Y-25.12%
EPS Next 2Y-5.87%
EPS Next 3Y2.19%
EPS Next 5Y8.12%
Revenue 1Y (TTM)-18.43%
Revenue growth 3Y-8.93%
Revenue growth 5Y-4.05%
Sales Q2Q%-19.35%
Revenue Next Year-6.8%
Revenue Next 2Y-2.86%
Revenue Next 3Y-0.45%
Revenue Next 5Y1.63%
EBIT growth 1Y-15.01%
EBIT growth 3Y-26.79%
EBIT growth 5Y-7.5%
EBIT Next Year48.68%
EBIT Next 3Y19.69%
EBIT Next 5Y16.14%
FCF growth 1Y28.57%
FCF growth 3Y-38.45%
FCF growth 5Y-11.22%
OCF growth 1Y-0.79%
OCF growth 3Y-27.3%
OCF growth 5Y-7.43%