NYSE:WHR

Stock Analysis Report

Executive Summary

Whirlpool Corporation manufactures and markets home appliances and related products.

Rewards

Trading at 52% below its fair value

Became profitable this year

Pays a high and reliable dividend of 5.7%

Risk Analysis

Earnings are forecast to decline by an average of -3.4% per year for the next 3 years

Has a high level of debt

Highly volatile share price over past 3 months

Significant insider selling over the past 3 months



Snowflake Analysis

6 star dividend payer and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.4%

WHR

8.2%

US Consumer Durables

7.2%

US Market


1 Year Return

-34.8%

WHR

-20.3%

US Consumer Durables

-10.4%

US Market

Return vs Industry: WHR underperformed the US Consumer Durables industry which returned -19.9% over the past year.

Return vs Market: WHR underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

WHRIndustryMarket
7 Day5.4%8.2%7.2%
30 Day-31.4%-29.9%-12.6%
90 Day-40.5%-33.7%-19.4%
1 Year-32.5%-34.8%-19.2%-20.3%-8.5%-10.4%
3 Year-41.7%-47.0%-20.4%-24.1%15.8%8.3%
5 Year-49.0%-55.6%-15.6%-21.2%35.8%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WHR ($84.26) is trading below our estimate of fair value ($175.52)

Significantly Below Fair Value: WHR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WHR is good value based on its PE Ratio (4.5x) compared to the Consumer Durables industry average (7.7x).

PE vs Market: WHR is good value based on its PE Ratio (4.5x) compared to the US market (13x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WHR is overvalued based on its PB Ratio (1.7x) compared to the US Consumer Durables industry average (0.8x).


Next Steps

Future Growth

How is Whirlpool forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WHR's earnings are forecast to decline over the next 3 years (-3.4% per year).

Earnings vs Market: WHR's earnings are forecast to decline over the next 3 years (-3.4% per year).

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

Revenue vs Market: WHR's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: WHR's revenue is forecast to decline over the next 3 years (-0.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WHR's Return on Equity is forecast to be high in 3 years time (24.8%)


Next Steps

Past Performance

How has Whirlpool performed over the past 5 years?

-10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WHR has high quality earnings.

Growing Profit Margin: WHR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WHR's earnings have declined by -10.4% per year over the past 5 years.

Accelerating Growth: WHR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: WHR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Durables industry (9.8%).


Return on Equity

High ROE: Whilst WHR's Return on Equity (29.09%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Whirlpool's financial position?


Financial Position Analysis

Short Term Liabilities: WHR's short term assets ($7.4B) do not cover its short term liabilities ($8.4B).

Long Term Liabilities: WHR's short term assets ($7.4B) exceed its long term liabilities ($6.4B).


Debt to Equity History and Analysis

Debt Level: WHR's debt to equity ratio (121.2%) is considered high.

Reducing Debt: WHR's debt to equity ratio has increased from 75.1% to 121.2% over the past 5 years.

Debt Coverage: WHR's debt is well covered by operating cash flow (24.6%).

Interest Coverage: WHR's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet

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

Debt Coverage by Assets: WHR's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

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

5.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WHR's dividend (5.7%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: WHR's dividend (5.7%) is in the top 25% of dividend payers in the US market (5.49%)


Stability and Growth of Payments

Stable Dividend: WHR's dividends per share have been stable in the past 10 years.

Growing Dividend: WHR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.6%), WHR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WHR's dividends in 3 years are forecast to be well covered by earnings (28.6% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Marc Bitzer (54yo)

2.42s

Tenure

US$13,999,494

Compensation

Mr. Marc Robert Bitzer has been the Chief Executive Officer of Whirlpool Corporation since October 1, 2017 and has been its Chairman of the Board since January 01, 2019. Mr. Bitzer has been President of Wh ...


CEO Compensation Analysis

Compensation vs Market: Marc's total compensation ($USD14.00M) is above average for companies of similar size in the US market ($USD7.36M).

Compensation vs Earnings: Marc's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Marc Bitzer
Former CEO & Director2.42yrsUS$14.00m0.13% $7.1m
James Peters
Executive VP & CFO3.58yrsUS$4.01m0.034% $1.8m
João Costa Brega
Executive VP & President of Latin America11.25yrsUS$4.85m0.043% $2.4m
Joseph Liotine
Executive VP & President of North America5.42yrsUS$4.80m0.044% $2.4m
Gilles Morel
President of the Europe0.83yrUS$2.71m0.00030% $16.5k
Roxanne Warner
Senior Director of Investor Relationsno datano datano data
Kirsten Hewitt
General Counsel & Senior VP of Corporate Affairs8.67yrsno datano data
D. Noel
Corporate Vice President of Communications & Public Affairs15.25yrsno datano data
Tom Arent
Vice President of Sales & Marketingno datano datano data
Carey Martin
Senior VP & Chief Human Resources Officer1yrno datano data

4.5yrs

Average Tenure

53yo

Average Age

Experienced Management: WHR's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marc Bitzer
Former CEO & Director2.42yrsUS$14.00m0.13% $7.1m
Michael White
Independent Director15.67yrsUS$386.78k0.0043% $236.9k
Gary DiCamillo
Independent Director22.83yrsUS$304.84k0.012% $649.3k
William Perez
Independent Director10.25yrsUS$324.81k0.015% $801.5k
Michael Johnston
Independent Director16.42yrsUS$333.44k0.0059% $324.9k
John Liu
Independent Director9.67yrsUS$310.54k0.0016% $88.0k
Samuel Allen
Presiding Directorno dataUS$336.45k0.023% $1.3m
Harish Manwani
Independent Director8.58yrsUS$291.56k0.010% $568.4k
Geraldine Elliott
Independent Director6yrsUS$291.45k0.0092% $505.8k
Diane Dietz
Independent Director7yrsUS$294.47k0.015% $824.1k

9.7yrs

Average Tenure

65.5yo

Average Age

Experienced Board: WHR's board of directors are considered experienced (9.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WHR insiders have sold more shares than they have bought 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

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


Key Information

  • Name: Whirlpool Corporation
  • Ticker: WHR
  • Exchange: NYSE
  • Founded: 1911
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: US$5.497b
  • Shares outstanding: 62.68m
  • Website: https://www.whirlpoolcorp.com

Number of Employees


Location

  • Whirlpool Corporation
  • 2000 North M-63
  • Benton Harbor
  • Michigan
  • 49022-2692
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WHRNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
0LWHLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
WHRDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
WHRXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
WHR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
WHRBRSE (Berne Stock Exchange)YesCommon StockCHCHFJan 1968
W1HR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

Whirlpool Corporation manufactures and markets home appliances and related products. It operates through four segments: North America; Europe, Middle East and Africa; Latin America; and Asia. The company’s principal products include refrigerators, freezers, ice makers, and refrigerator water filters; laundry appliances and related laundry accessories; cooking and other small domestic appliances; and dishwasher appliances and related accessories, as well as mixers. The company markets and distributes its products primarily under the Whirlpool, Maytag, KitchenAid, JennAir, Amana, Roper, Admiral, Affresh, Gladiator, Speed Queen, Hotpoint, Bauknecht, Indesit, Ignis, Laden, Privileg, KIC, Consul, Brastemp, Acros, Ariston, Diqua, and Royalstar brands. It sells its products to retailers, distributors, dealers, builders, and other manufacturers, as well as directly to consumers. The company was founded in 1911 and is headquartered in Benton Harbor, Michigan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 00:50
End of Day Share Price2020/03/30 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.