WHIRLPOOL CORP (WHR) Stock Fundamental Analysis
NYSE:WHR - New York Stock Exchange, Inc. - US9633201069 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to WHR. 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. Finally 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.
In the past 5 years WHR always reported a positive cash flow from operatings.
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 worse Return On Equity (0.27%) than 62.50% of its industry peers.
WHR's Return On Invested Capital of 8.37% is in line compared to the rest of the industry. WHR outperforms 54.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WHR is below the industry average of 11.96%.
| 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
The Profit Margin of WHR (0.04%) is worse than 62.50% of its industry peers.
WHR has a Operating Margin (5.86%) which is comparable to the rest of the industry.
WHR's Operating Margin has declined in the last couple of years.
WHR's Gross Margin of 16.18% is on the low side compared to the rest of the industry. WHR is outperformed by 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
WHR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
WHR has about the same amout of shares outstanding than it did 1 year ago.
WHR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for WHR has been reduced compared to a year ago.
2.2 Solvency
WHR has an Altman-Z score of 1.29. This is a bad value and indicates that WHR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.29, WHR is doing worse than 75.00% of the companies in the same industry.
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's Debt to FCF ratio of 10.02 is in line compared to the rest of the industry. WHR outperforms 46.88% of its industry peers.
WHR has a Debt/Equity ratio of 2.12. This is a high value indicating a heavy dependency on external financing.
WHR has a Debt to Equity ratio of 2.12. This is amonst the worse of the industry: WHR underperforms 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 10.02 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.95
WACC8.8%
2.3 Liquidity
A Current Ratio of 0.72 indicates that WHR may have some problems paying its short term obligations.
The Current ratio of WHR (0.72) is worse than 93.75% of its industry peers.
A Quick Ratio of 0.40 indicates that WHR may have some problems paying its short term obligations.
The Quick ratio of WHR (0.40) is worse than 85.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
The earnings per share for WHR have decreased strongly by -20.93% in the last year.
The Earnings Per Share has been decreasing by -5.33% on average over the past years.
The Revenue for WHR has decreased by -18.43% in the past year. This is quite bad
WHR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.05% yearly.
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
Based on estimates for the next years, WHR will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.12% on average per year.
Based on estimates for the next years, WHR will show a small growth in Revenue. The Revenue will grow by 1.63% on average per year.
EPS Next Y-15.99%
EPS Next 2Y-3.91%
EPS Next 3Y2.98%
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.
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
A Price/Earnings ratio of 6.95 indicates a rather cheap valuation of WHR.
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 24.95.
WHR is valuated cheaply with a Price/Forward Earnings ratio of 7.48.
Based on the Price/Forward Earnings ratio, WHR is valued a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.99, WHR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.95 | ||
| Fwd PE | 7.48 |
4.2 Price Multiples
WHR's Enterprise Value to EBITDA is on the same level as the industry average.
89.06% of the companies in the same industry are more expensive than WHR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.41 | ||
| EV/EBITDA | 8.27 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.91%
EPS Next 3Y2.98%
5. Dividend
5.1 Amount
WHR has a Yearly Dividend Yield of 8.76%, which is a nice return.
Compared to an average industry Dividend Yield of 3.58, 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 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.76% |
5.2 History
The dividend of WHR is nicely growing with an annual growth rate of 7.77%!
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.
WHR's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP5514.29%
EPS Next 2Y-3.91%
EPS Next 3Y2.98%
84.05
+0.48 (+0.57%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners87.5%
Inst Owner Change-0.37%
Ins Owners0.84%
Ins Owner Change4.64%
Market Cap4.67B
Analysts68
Price Target96.81 (15.18%)
Short Float %16.25%
Short Ratio7.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.76% |
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)1.64%
Min EPS beat(2)-1.49%
Max EPS beat(2)4.77%
EPS beat(4)2
Avg EPS beat(4)2.17%
Min EPS beat(4)-1.49%
Max EPS beat(4)6.55%
EPS beat(8)6
Avg EPS beat(8)7.34%
EPS beat(12)9
Avg EPS beat(12)7.37%
EPS beat(16)12
Avg EPS beat(16)6.82%
Revenue beat(2)0
Avg Revenue beat(2)-2.83%
Min Revenue beat(2)-3.34%
Max Revenue beat(2)-2.32%
Revenue beat(4)0
Avg Revenue beat(4)-2.29%
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)5.07%
EPS NY rev (3m)-12.37%
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 | 6.95 | ||
| Fwd PE | 7.48 | ||
| P/S | 0.3 | ||
| P/FCF | 6.41 | ||
| P/OCF | 4.11 | ||
| P/B | 1.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.27 |
EPS(TTM)12.09
EY14.38%
EPS(NY)11.24
Fwd EY13.37%
FCF(TTM)13.11
FCFY15.6%
OCF(TTM)20.45
OCFY24.33%
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 | 1.29 |
F-Score5
WACC8.8%
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-15.99%
EPS Next 2Y-3.91%
EPS Next 3Y2.98%
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%