NYSE:CNHI

Stock Analysis Report

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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

Reasonable growth potential with adequate balance sheet.


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

1.6%

CNHI

2.2%

US Machinery

-0.4%

US Market


1 Year Return

68.9%

CNHI

57.1%

US Machinery

36.2%

US Market

Return vs Industry: CNHI exceeded the US Machinery industry which returned 57.1% over the past year.

Return vs Market: CNHI exceeded the US Market which returned 36.2% over the past year.


Shareholder returns

CNHIIndustryMarket
7 Day1.6%2.2%-0.4%
30 Day6.4%6.1%-2.9%
90 Day36.5%15.1%5.0%
1 Year74.5%68.9%60.9%57.1%39.1%36.2%
3 Year16.8%9.9%45.5%35.1%48.4%39.0%
5 Year137.3%116.2%157.7%131.3%116.5%92.4%

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?

4.16x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CNHI ($15.07) is trading above our estimate of fair value ($5.35)

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


Price To Earnings Ratio

PE vs Industry: CNHI is unprofitable, so we can't compare its PE Ratio to the US Machinery industry average.

PE vs Market: CNHI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CNHI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CNHI is overvalued based on its PB Ratio (4.2x) compared to the US Machinery industry average (3.2x).


Next Steps

Future Growth

How is CNH Industrial forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

67.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNHI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: CNHI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CNHI's is expected to become profitable in the next 3 years.

Revenue vs Market: CNHI's revenue (6.3% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: CNHI's revenue (6.3% 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 high in 3 years time (21.9%)


Next Steps

Past Performance

How has CNH Industrial performed over the past 5 years?

25.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CNHI is currently unprofitable.

Growing Profit Margin: CNHI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CNHI is unprofitable, but has reduced losses over the past 5 years at a rate of 25.6% per year.

Accelerating Growth: Unable to compare CNHI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CNHI is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-12.2%).


Return on Equity

High ROE: CNHI has a negative Return on Equity (-8.71%), as it is currently unprofitable.


Next Steps

Financial Health

How is CNH Industrial's financial position?


Financial Position Analysis

Short Term Liabilities: CNHI's short term assets ($35.2B) exceed its short term liabilities ($21.8B).

Long Term Liabilities: CNHI's short term assets ($35.2B) exceed its long term liabilities ($21.9B).


Debt to Equity History and Analysis

Debt Level: CNHI's debt to equity ratio (519%) is considered high.

Reducing Debt: CNHI's debt to equity ratio has reduced from 542% to 519% over the past 5 years.

Debt Coverage: CNHI's debt is well covered by operating cash flow (21.2%).

Interest Coverage: CNHI is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

0.87%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: CNHI's dividend (0.87%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: CNHI's dividend (0.87%) is low compared to the top 25% of dividend payers in the US market (3.64%).


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: CNHI is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: CNHI's dividends in 3 years are forecast to be well covered by earnings (19.6% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Suzanne Heywood (51 yo)

1

Tenure

US$4,202,398

Compensation

Ms. Suzanne Heywood has been Managing Director at Exor N.V. She served as an Acting Chief Executive Officer at CNH Industrial N.V. since March 23, 2020 until January 4, 2021. Prior to that, Ms. Heywood wor...


CEO Compensation Analysis

Compensation vs Market: Suzanne's total compensation ($USD4.20M) is below average for companies of similar size in the US market ($USD10.58M).

Compensation vs Earnings: Suzanne's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Suzanne Heywood
Executive Chairperson1yrUS$4.20m0.0096%
$ 2.0m
Scott Wine
Chief Executive Officer0.17yrno datano data
Oddone Della Rocchetta
CFO & President of Financial Services1yrno data0.0031%
$ 622.3k
Jayanthi Iyengar
Chief Technology Officer1.33yrsno 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 Strategy2.17yrsno data0.0041%
$ 834.5k
Derek Neilson
President of Agricultureno datano data0.018%
$ 3.7m
Brad Crews
GM of North America and Brand President for Case IH & STEYR Agricultural Brands2yrsno datano data
Stefano Pampalone
President of Construction and GM of Asia1.33yrsno data0.0033%
$ 677.4k
Annalisa Stupenengo
President of Powertrain7.5yrsno data0.0037%
$ 761.0k

1.3yrs

Average Tenure

52yo

Average Age

Experienced Management: CNHI's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Suzanne Heywood
Executive Chairperson1yrUS$4.20m0.0096%
$ 2.0m
John Lanaway
Non-Executive Independent Director7.5yrsUS$75.00k0.0027%
$ 561.1k
Jacques Theurillat
Non-Executive Independent Director7.5yrsUS$81.71k0.0014%
$ 277.5k
Léo Houle
Senior Independent Non-Executive Director4.92yrsUS$85.00k0.0042%
$ 863.1k
Vagn Sorensen
Independent Director0.92yrno data0.0020%
$ 406.0k
Lorenzo Simonelli
Non Executive Independent Director1.92yrsUS$75.00k0.0011%
$ 216.3k
Jacqueline Tammenoms Bakker
Non-Executive Independent Director7.5yrsUS$92.38kno data
Alessandro Nasi
Non-Executive Director1.92yrsUS$85.00k0.026%
$ 5.3m
Tufan Erginbilgic
Independent Director0.92yrno datano data
Howard Buffett
Independent Director0.92yrno data0.0013%
$ 269.3k

2.3yrs

Average Tenure

60.5yo

Average Age

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: CNHI insiders have only sold shares 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$20.403b
  • 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, 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 Analysis2021/03/07 23:30
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
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.