NYSE:CNHI

Stock Analysis Report

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Market Cap

US$22.8b

Last Updated

2021/08/03 23:44 UTC

Data Sources

Company Financials +

Executive Summary

CNH Industrial N.V. designs, produces, markets, sells, and finances agricultural and construction equipment, trucks, commercial vehicles, buses, and specialty vehicles in North America, Europe, South America, and internationally. More Details


Snowflake Analysis

Excellent balance sheet with limited growth.


Similar Companies

Share Price & News

How has CNH Industrial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CNHI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CNHI's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

4.5%

CNHI

1.7%

US Machinery

0.9%

US Market


1 Year Return

130.3%

CNHI

48.8%

US Machinery

34.7%

US Market

Return vs Industry: CNHI exceeded the US Machinery industry which returned 46.5% over the past year.

Return vs Market: CNHI exceeded the US Market which returned 34.4% over the past year.


Shareholder returns

CNHIIndustryMarket
7 Day4.5%1.7%0.9%
30 Day1.4%0.6%0.2%
90 Day7.7%-2.5%4.7%
1 Year132.2%130.3%51.9%48.8%36.8%34.7%
3 Year43.3%39.6%60.2%50.8%62.5%52.4%
5 Year140.5%129.1%137.7%112.9%123.1%98.4%

Long-Term Price Volatility Vs. Market

How volatile is CNH Industrial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CNH Industrial undervalued compared to its fair value and its price relative to the market?

71.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CNHI ($16.86) is trading above our estimate of fair value ($10.17)

Significantly Below Fair Value: CNHI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CNHI is poor value based on its PE Ratio (71.1x) compared to the US Machinery industry average (31x).

PE vs Market: CNHI is poor value based on its PE Ratio (71.1x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: CNHI is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: CNHI is overvalued based on its PB Ratio (3.8x) compared to the US Machinery industry average (2.8x).


Future Growth

How is CNH Industrial forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNHI's forecast earnings growth (14.1% per year) is above the savings rate (2%).

Earnings vs Market: CNHI's earnings (14.1% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: CNHI's earnings are forecast to grow, but not significantly.

Revenue vs Market: CNHI's revenue (2.2% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: CNHI's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CNHI's Return on Equity is forecast to be high in 3 years time (26%)


Past Performance

How has CNH Industrial performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CNHI has a large one-off loss of $1.7B impacting its June 30 2021 financial results.

Growing Profit Margin: CNHI's current net profit margins (1%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: CNHI has become profitable over the past 5 years, growing earnings by 12.5% per year.

Accelerating Growth: CNHI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CNHI had negative earnings growth (-69.1%) over the past year, making it difficult to compare to the Machinery industry average (6.6%).


Return on Equity

High ROE: CNHI's Return on Equity (6.2%) is considered low.


Financial Health

How is CNH Industrial's financial position?


Financial Position Analysis

Short Term Liabilities: CNHI's short term assets ($35.9B) exceed its short term liabilities ($7.3B).

Long Term Liabilities: CNHI's short term assets ($35.9B) exceed its long term liabilities ($35.9B).


Debt to Equity History and Analysis

Debt Level: CNHI's debt to equity ratio (396.5%) is considered high.

Reducing Debt: CNHI's debt to equity ratio has reduced from 591.6% to 396.5% over the past 5 years.

Debt Coverage: CNHI's debt is well covered by operating cash flow (26.4%).

Interest Coverage: CNHI's interest payments on its debt are well covered by EBIT (15.2x coverage).


Balance Sheet


Dividend

What is CNH Industrial current dividend yield, its reliability and sustainability?

0.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CNHI's dividend (0.77%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: CNHI's dividend (0.77%) is low compared to the top 25% of dividend payers in the US market (3.57%).


Stability and Growth of Payments

Stable Dividend: CNHI has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CNHI has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.8%), CNHI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CNHI's dividends in 3 years are forecast to be well covered by earnings (17% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Scott Wine (54 yo)

0.58

Tenure

Mr. Scott Wellington Wine has been Chief Executive Officer of CNH Industrial N.V. since January 4, 2021 and serves as its Director since April 2021. Mr. Wine has been an Independent Director at U.S. Bancor...


Leadership Team

Experienced Management: CNHI's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

Experienced Board: CNHI's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CNH Industrial N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CNH Industrial N.V.
  • Ticker: CNHI
  • Exchange: NYSE
  • Founded: NaN
  • Industry: Agricultural and Farm Machinery
  • Sector: Capital Goods
  • Market Cap: US$22.846b
  • Shares outstanding: 1.35b
  • Website: https://www.cnhindustrial.com

Number of Employees


Location

  • CNH Industrial N.V.
  • 25 St. James's Street
  • London
  • Greater London
  • SW1A 1HA
  • United Kingdom

Listings


Biography

CNH Industrial N.V. designs, produces, markets, sells, and finances agricultural and construction equipment, trucks, commercial vehicles, buses, and specialty vehicles in North America, Europe, South Ameri...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 23:44
End of Day Share Price2021/08/03 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.