NYSE:NAV

Stock Analysis Report

Executive Summary

Navistar International Corporation, through its subsidiaries, manufactures and sells commercial and military trucks, diesel engines, school and commercial buses, and service parts for trucks and diesel engines worldwide.

Snowflake

Fundamentals

Slightly overvalued with questionable track record.


Similar Companies

Share Price & News

How has Navistar International's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.0%

NAV

3.3%

US Machinery

0.07%

US Market


1 Year Return

-10.3%

NAV

15.1%

US Machinery

8.9%

US Market

Return vs Industry: NAV underperformed the US Machinery industry which returned 15.1% over the past year.

Return vs Market: NAV underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

NAVIndustryMarket
7 Day6.0%3.3%0.07%
30 Day7.7%3.5%-0.3%
90 Day-5.1%-0.5%-1.6%
1 Year-10.3%-10.3%17.5%15.1%11.3%8.9%
3 Year35.2%35.2%55.1%45.1%46.3%36.8%
5 Year-13.9%-13.9%56.6%37.5%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Navistar International undervalued compared to its fair value and its price relative to the market?

9.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NAV ($30.61) is trading above our estimate of fair value ($18.06)

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


Price To Earnings Ratio

PE vs Industry: NAV is good value based on its PE Ratio (9.9x) compared to the Machinery industry average (20.6x).

PE vs Market: NAV is good value based on its PE Ratio (9.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: NAV is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: NAV has negative assets, so we can't compare its PB Ratio to the US Machinery industry average.


Next Steps

Future Growth

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

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NAV's forecast earnings growth (3.2% per year) is above the savings rate (2.7%).

Earnings vs Market: NAV's earnings (3.2% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: NAV's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: NAV's revenue is forecast to decline over the next 3 years (-1.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NAV's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Navistar International performed over the past 5 years?

73.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NAV has become profitable over the past 5 years, growing earnings by 73.1% per year.

Accelerating Growth: NAV's earnings growth over the past year (7%) is below its 5-year average (73.1% per year).

Earnings vs Industry: NAV earnings growth over the past year (7%) underperformed the Machinery industry 16.7%.


Return on Equity

High ROE: NAV's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: NAV's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: NAV has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Navistar International's financial position?


Financial Position Analysis

Short Term Liabilities: NAV has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: NAV has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: NAV has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: NAV's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: NAV's debt is not well covered by operating cash flow (10.6%).

Interest Coverage: NAV's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: NAV has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Navistar International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate NAV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NAV's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if NAV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NAV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NAV's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Navistar International's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Troy Clarke (64yo)

6.5yrs

Tenure

US$6,923,149

Compensation

Mr. Troy A. Clarke serves as the Chief Executive Officer and President of Navistar, Inc. Mr. Clarke has been the President of Navistar International Corporation since August 2012 and has been its Chief Exe ...


CEO Compensation Analysis

Compensation vs. Market: Troy's total compensation ($USD6.92M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Troy's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.5yrs

Average Tenure

54yo

Average Age

Experienced Management: NAV's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

61yo

Average Age

Experienced Board: NAV's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$10,48817 May 19
Associated Capital Group Inc, Asset Management Arm
EntityCompany
Shares310
Max PriceUS$34.40
BuyUS$33,08217 May 19
GAMCO Investors, Inc.
EntityCompany
Shares15,818
Max PriceUS$34.59
SellUS$734,39917 May 19
GAMCO Investors, Inc.
EntityCompany
Shares275,274
Max PriceUS$35.01
BuyUS$93,43020 Dec 18
Stephen D'Arcy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$26.72

Ownership Breakdown


Management Team

  • Troy Clarke (64yo)

    Chairman

    • Tenure: 6.5yrs
    • Compensation: US$6.92m
  • Walter Borst (57yo)

    Executive VP & CFO

    • Tenure: 6.2yrs
    • Compensation: US$2.96m
  • Curt Kramer (51yo)

    Senior VP & General Counsel

    • Tenure: 2.5yrs
    • Compensation: US$1.16m
  • William McMenamin (60yo)

    President of Financial Services & Treasurer

    • Tenure: 4.2yrs
    • Compensation: US$1.54m
  • Friedrich Baumann (52yo)

    President of Aftersales

    • Tenure: 1.5yrs
  • Marty Ketelaar (53yo)

    Vice President of Investor Relations

    • Tenure: 2.7yrs
  • Persio Lisboa (54yo)

    Executive VP & COO

    • Tenure: 2.6yrs
    • Compensation: US$2.88m
  • Joe Kory

    Senior Vice President of Parts

    • Tenure: 1.9yrs
  • Mark Hernandez

    Senior Vice President of Global Manufacturing

    • Tenure: 1.5yrs
  • Julie Ragland

    Senior VP & Chief Information Officer

    • Tenure: 1.1yrs

Board Members

  • Mark Rachesky (60yo)

    Co-Independent Lead Director

    • Tenure: 1yrs
    • Compensation: US$222.69k
  • Jos Alapont (69yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$222.75k
  • Troy Clarke (64yo)

    Chairman

    • Tenure: 6.5yrs
    • Compensation: US$6.92m
  • Dennis Suskind (76yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$222.55k
  • Stephen D'Arcy (64yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$237.15k
  • Vince Intrieri (62yo)

    Co-Independent Lead Director

    • Tenure: 1yrs
    • Compensation: US$222.69k
  • Jeff Dokho (44yo)

    Additional Director

    • Tenure: 2.5yrs
  • Andreas Renschler (60yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$217.15k
  • Ray Miller (34yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$64.83k
  • Christian Schulz (42yo)

    Independent Director

    • Tenure: 1.2yrs

Company Information

Navistar International Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Navistar International Corporation
  • Ticker: NAV
  • Exchange: NYSE
  • Founded: 1902
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: US$3.037b
  • Shares outstanding: 99.21m
  • Website: https://www.navistar.com

Number of Employees


Location

  • Navistar International Corporation
  • 2701 Navistar Drive
  • Lisle
  • Illinois
  • 60532
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NAVNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
IHRDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

Navistar International Corporation, through its subsidiaries, manufactures and sells commercial and military trucks, diesel engines, school and commercial buses, and service parts for trucks and diesel eng ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:39
End of Day Share Price2019/10/22 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


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.