NYSE:NAV

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Fair value with moderate growth potential.


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

Stable Share Price: NAV's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.5%

NAV

1.6%

US Machinery

1.1%

US Market


1 Year Return

-20.8%

NAV

-6.6%

US Machinery

4.6%

US Market

Return vs Industry: NAV underperformed the US Machinery industry which returned -8.2% over the past year.

Return vs Market: NAV underperformed the US Market which returned 3.7% over the past year.


Shareholder returns

NAVIndustryMarket
7 Day3.5%1.6%1.1%
30 Day13.9%5.2%5.5%
90 Day-30.3%-13.3%-4.9%
1 Year-20.8%-20.8%-4.8%-6.6%7.0%4.6%
3 Year-3.0%-3.0%5.0%-1.8%28.6%20.1%
5 Year-4.9%-4.9%32.1%16.4%52.5%35.3%

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?

14.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NAV ($25.47) is trading above our estimate of fair value ($12.96)

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 (14.6x) compared to the Machinery industry average (18.7x).

PE vs Market: NAV is good value based on its PE Ratio (14.6x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: NAV is good value based on its PEG Ratio (0.2x)


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 9 analysts?

60.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NAV's forecast earnings growth (60.7% per year) is above the savings rate (2.2%).

Earnings vs Market: NAV's earnings (60.7% per year) are forecast to grow faster than the US market (21.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NAV's revenue (5.8% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: NAV's revenue (5.8% per year) is forecast to grow slower than 20% 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?

66.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NAV has a large one-off loss of $159.0M impacting its January 31 2020 financial results.

Growing Profit Margin: NAV's current net profit margins (1.6%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: NAV has become profitable over the past 5 years, growing earnings by 66.7% per year.

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

Earnings vs Industry: NAV had negative earnings growth (-59%) over the past year, making it difficult to compare to the Machinery industry average (-5.7%).


Return on Equity

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


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 (16.9%).

Interest Coverage: NAV's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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

3.1yrs

Average management tenure


CEO

Troy Clarke (64yo)

7.08yrs

Tenure

US$9,964,021

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 ($USD9.96M) is above average for companies of similar size in the US market ($USD6.00M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Troy Clarke
Chairman7.08yrsUS$9.96m0.16% $4.2m
Walter Borst
Executive VP & CFO6.75yrsUS$4.96m0.091% $2.3m
Persio Lisboa
Executive VP & COO3.17yrsUS$4.74m0.058% $1.5m
Curt Kramer
Senior VP & General Counsel3.08yrsUS$1.86m0.0028% $71.5k
William McMenamin
President of Financial Services & Treasurer4.75yrsUS$2.25m0.031% $785.0k
Julie Ragland
Senior VP & Chief Information Officer1.67yrsno datano data
Martin Ketelaar
Vice President of Investor Relations3.25yrsno datano data
Josef Kory
Senior Vice President of Parts2.5yrsno datano data
Mark Hernandez
Senior Vice President of Global Manufacturing2.08yrsno datano data
Friedrich Baumann
President of Aftersales2.08yrsno datano data

3.1yrs

Average Tenure

54yo

Average Age

Experienced Management: NAV's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Troy Clarke
Chairman7.08yrsUS$9.96m0.16% $4.2m
Mark Rachesky
Co-Independent Lead Director1.58yrsUS$210.93k0.041% $1.0m
José Alapont
Independent Director3.58yrsUS$205.51k0.0057% $143.4k
Dennis Suskind
Independent Director3.58yrsUS$205.51k0.013% $341.1k
Stephen D'Arcy
Independent Director3.58yrsUS$215.51k0.0098% $249.1k
Vincent Intrieri
Co-Independent Lead Director1.58yrsUS$210.93k0.0071% $180.9k
Andreas Hermann Renschler
Independent Director3.25yrsUS$191.34k0.0054% $136.8k
Jeffrey Dokho
Independent Director3.08yrsno datano data
Raymond Miller
Independent Director2.08yrsUS$191.34k0.013% $321.8k
Christian Schulz
Independent Director1.75yrsno datano data

3.2yrs

Average Tenure

61.5yo

Average Age

Experienced Board: NAV's board of directors are considered experienced (3.2 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.


Ownership Breakdown

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


Top Shareholders

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$2.534b
  • Shares outstanding: 99.49m
  • 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 trucks, diesel engines, school and commercial buses, and service parts for trucks and diesel engines worldwide. The company operates through four segments: Truck, Parts, Global Operations, and Financial Services. It manufactures and distributes Class 4 through 8 trucks and buses in the common carrier, private carrier, government, leasing, construction, energy/petroleum, and student and commercial transportation markets under the International and IC brands; and designs, engineers, and produces sheet metal components, including truck cabs and engines. The company also provides customers with proprietary products needed to support the International commercial truck, IC bus, and engine lines, as well as other product lines; and a selection of other standard truck, trailer, and engine aftermarket parts. In addition, it manufactures and distributes mid-range diesel engines, as well as provides customers with additional engine offerings in the agriculture, marine, genset, and light truck markets; sells engines to original equipment manufacturers (OEM) for various on-and-off-road applications; and offers contract manufacturing services under the MWM brand to OEMs for the assembly of their engines. Further, the company provides retail, wholesale, and lease financing of products of its trucks and parts, as well as financing for wholesale and retail accounts receivable. Additionally, it offers military parts and chasis. The company markets its commercial products through an independent dealer network, as well as through retail outlets; and its reconditioned used trucks to owner-operators and fleet buyers through its network of used truck dealers. It operates approximately 1,052 outlets in the United States and Canada, and 89 outlets in Mexico. Navistar International Corporation was founded in 1902 and is headquartered in Lisle, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 01:52
End of Day Share Price2020/05/22 00:00
Earnings2020/01/31
Annual Earnings2019/10/31


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.