NYSE:CNHI

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Adequate balance sheet with proven track record.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.4%

CNHI

-0.3%

US Machinery

-2.0%

US Market


1 Year Return

-47.5%

CNHI

-25.9%

US Machinery

-15.1%

US Market

Return vs Industry: CNHI underperformed the US Machinery industry which returned -22.4% over the past year.

Return vs Market: CNHI underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

CNHIIndustryMarket
7 Day-2.4%-0.3%-2.0%
30 Day-38.2%-22.2%-19.7%
90 Day-48.3%-31.6%-23.2%
1 Year-46.6%-47.5%-23.8%-25.9%-13.4%-15.1%
3 Year-39.6%-42.0%-3.3%-10.4%10.9%3.7%
5 Year-24.1%-30.2%18.2%3.2%28.4%14.4%

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?

5.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CNHI ($5.61) is trading above our estimate of fair value ($4.81)

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


Price To Earnings Ratio

PE vs Industry: CNHI is good value based on its PE Ratio (5.3x) compared to the Machinery industry average (15.5x).

PE vs Market: CNHI is good value based on its PE Ratio (5.3x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: CNHI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CNHI is good value based on its PB Ratio (1.2x) compared to the US Machinery industry average (1.6x).


Next Steps

Future Growth

How is CNH Industrial forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNHI's earnings are forecast to decline over the next 3 years (-8.1% per year).

Earnings vs Market: CNHI's earnings are forecast to decline over the next 3 years (-8.1% per year).

High Growth Earnings: CNHI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CNHI's revenue (0.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CNHI's revenue (0.3% 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 low in 3 years time (14.2%).


Next Steps

Past Performance

How has CNH Industrial performed over the past 5 years?

39.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CNHI has high quality earnings.

Growing Profit Margin: CNHI's current net profit margins (5.1%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: CNHI's earnings have grown significantly by 39.1% per year over the past 5 years.

Accelerating Growth: CNHI's earnings growth over the past year (33.1%) is below its 5-year average (39.1% per year).

Earnings vs Industry: CNHI earnings growth over the past year (33.1%) exceeded the Machinery industry -2%.


Return on Equity

High ROE: Whilst CNHI's Return on Equity (23.62%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is CNH Industrial's financial position?


Financial Position Analysis

Short Term Liabilities: CNHI's short term assets ($32.8B) exceed its short term liabilities ($19.9B).

Long Term Liabilities: CNHI's short term assets ($32.8B) exceed its long term liabilities ($21.3B).


Debt to Equity History and Analysis

Debt Level: CNHI's debt to equity ratio (404.2%) is considered high.

Reducing Debt: CNHI's debt to equity ratio has reduced from 594.4% to 404.2% over the past 5 years.

Debt Coverage: CNHI's debt is not well covered by operating cash flow (7.3%).

Interest Coverage: CNHI's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet

Inventory Level: CNHI has a high level of physical assets or inventory.

Debt Coverage by Assets: CNHI's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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

3.47%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: CNHI's dividend (3.57%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: CNHI's dividend (3.57%) is low compared to the top 25% of dividend payers in the US market (5.37%).


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 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.2%), CNHI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CNHI's dividends in 3 years are forecast to be well covered by earnings (33.7% payout ratio).


Next Steps

Management

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

0.4yrs

Average management tenure


CEO

Suzanne Heywood (50yo)

0.083

Tenure

US$757,174

Compensation

Ms. Suzanne Heywood is Acting Chief Executive Officer at CNH Industrial N.V. since March 23, 2020. She has been Managing Director of Direct Investments at Exor N.V. since September 13, 2016. Prior to that, ...


Leadership Team

NamePositionTenureCompensationOwnership
Suzanne Heywood
Acting CEO & Executive Chairperson0.083yrUS$757.17k0.0085% $662.2k
Oddone Della Rocchetta
CFO & President of Financial Services0.083yrno data0.0031% $238.4k
Jayanthi Iyengar
Chief Technology Officer0.42yrno datano data
Federico Donati
Head of Investor Relationsno datano datano data
Michael Going
Chief Compliance Officer & Corporate Secretaryno datano datano data
Richard Gadeselli
Vice President of Corporate Communicationsno datano datano data
Andreas Weishaar
Chief Strategy1.25yrsno data0.0041% $319.4k
Derek Neilson
President of Agricultureno datano data0.018% $1.4m
Brad Crews
GM of North America and Brand President for Case IH & STEYR Agricultural Brands1.08yrsno datano data
Stefano Pampalone
President of Construction and GM of Asia0.42yrno data0.0033% $259.4k

0.4yrs

Average Tenure

50yo

Average Age

Experienced Management: CNHI's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Suzanne Heywood
Acting CEO & Executive Chairperson0.083yrUS$757.17k0.0085% $662.2k
John Lanaway
Non-Executive Independent Director6.58yrsUS$150.00k0.0028% $215.0k
Jacques Theurillat
Non-Executive Independent Director6.58yrsUS$179.18k0.0014% $105.9k
Léo Houle
Senior Independent Non-Executive Director4yrsUS$171.75k0.0042% $330.3k
Silke Scheiber
Non-Executive Independent Director4yrsUS$181.48kno data
Lorenzo Simonelli
Non Executive Independent Director1yrUS$75.00k0.0011% $82.6k
Jacqueline Tammenoms Bakker
Non-Executive Independent Director6.58yrsUS$187.35kno data
Alessandro Nasi
Non-Executive Director1yrUS$85.00k0.025% $1.9m

4.0yrs

Average Tenure

55yo

Average Age

Experienced Board: CNHI's board of directors are considered experienced (4 years average tenure).


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:
  • Industry: Agricultural and Farm Machinery
  • Sector: Capital Goods
  • Market Cap: US$7.790b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNHIBIT (Borsa Italiana)YesCommon SharesITEURSep 2013
CNHIMBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURSep 2013
0QGULSE (London Stock Exchange)YesCommon SharesGBEURSep 2013
CNHINYSE (New York Stock Exchange)YesCommon SharesUSUSDSep 2013
37CDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 2013
CNHIWBAG (Wiener Boerse AG)YesCommon SharesATEURSep 2013

Biography

CNH Industrial N.V. designs, produces, markets, sells, and finances agricultural and construction equipment, trucks, commercial vehicles, buses, specialty vehicles, and powertrain products in North America, Europe, South America, and internationally. The company’s Agriculture segment offers farm machinery and implements, including two- and four-wheel drive tractors, crawler tractors, combines, cotton pickers, grape and sugar cane harvesters, hay and forage equipment, planting and seeding equipment, soil preparation and cultivation implements, and material handling equipment under the New Holland Agriculture, Case IH, STEYR, Miller, Kongskilde, Överum, and JF brands. Its Construction segment offers excavators, crawler dozers, graders, wheel and backhoe loaders, and skid steer and compact track loaders under the CASE Construction and New Holland Construction brands. The company’s Commercial and Specialty Vehicles segment provides light, medium, and heavy vehicles for the transportation and distribution of goods under the Iveco brand; commuter buses and touring coaches under the IVECO BUS and Heuliez Bus brands; quarry and mining equipment under the IVECO ASTRA brand; firefighting vehicles under the Magirus brand; and vehicles for civil defense and peace-keeping missions under the Iveco Defence Vehicles brand. Its Powertrain segment offers engines, transmission systems, and axles for on- and off-road applications, as well as for marine and power generation under the FPT Industrial brand. The company’s Financial Services segment provides and administers retail financing to customers for the purchase or lease of new and used industrial equipment or vehicles, and other equipment; wholesale financing, which consists primarily of floor plan financing; and trade receivables factoring services. CNH Industrial N.V. is based in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 03:53
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.