NYSE:WHR

Stock Analysis Report

Executive Summary

Whirlpool Corporation manufactures and markets home appliances and related products.

Rewards

Trading at 13.6% below its fair value

Became profitable this year

Pays a high and reliable dividend of 3.23%

Risk Analysis

Earnings are forecast to decline by an average of -0.4% per year for the next 3 years

Has a high level of debt

Large one-off items impacting financial results



Snowflake Analysis

Established dividend payer and fair value.


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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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

WHR

-0.6%

US Consumer Durables

1.3%

US Market


1 Year Return

31.1%

WHR

36.5%

US Consumer Durables

19.4%

US Market

Return vs Industry: WHR underperformed the US Consumer Durables industry which returned 36.5% over the past year.

Return vs Market: WHR exceeded the US Market which returned 19.4% over the past year.


Shareholder returns

WHRIndustryMarket
7 Day0.6%-0.6%1.3%
30 Day-1.2%-0.4%2.6%
90 Day-1.0%7.0%5.0%
1 Year35.7%31.1%38.6%36.5%22.0%19.4%
3 Year-6.5%-14.7%30.8%24.8%46.8%37.3%
5 Year-10.5%-21.8%37.5%28.3%66.3%48.0%

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?

13.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WHR ($148.42) is trading below our estimate of fair value ($171.79)

Significantly Below Fair Value: WHR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WHR is good value based on its PE Ratio (8.9x) compared to the Consumer Durables industry average (14.2x).

PE vs Market: WHR is good value based on its PE Ratio (8.9x) compared to the US market (18.7x).


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 (3.1x) compared to the US Consumer Durables industry average (1.4x).


Next Steps

Future Growth

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

-0.4%

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 (-0.4% per year).

Earnings vs Market: WHR's earnings are forecast to decline over the next 3 years (-0.4% per year).

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

Revenue vs Market: WHR's revenue (0.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: WHR's revenue (0.9% per year) is forecast to grow slower than 20% 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 (33.1%)


Next Steps

Past Performance

How has Whirlpool performed over the past 5 years?

-17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WHR has a large one-off gain of $272.0M impacting its September 30 2019 financial results.

Growing Profit Margin: WHR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WHR's earnings have declined by -17.3% 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 (-1.5%).


Return on Equity

High ROE: Whilst WHR's Return on Equity (27.35%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


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 ($8.5B).

Long Term Liabilities: WHR's short term assets ($7.4B) exceed its long term liabilities ($6.0B).


Debt to Equity History and Analysis

Debt Level: WHR's debt to equity ratio (141.6%) is considered high.

Reducing Debt: WHR's debt to equity ratio has increased from 59.5% to 141.6% over the past 5 years.

Debt Coverage: WHR's debt is well covered by operating cash flow (22.9%).

Interest Coverage: WHR's interest payments on its debt are well covered by EBIT (6x 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 1.3x debt).


Next Steps

Dividend

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

3.23%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: WHR's dividend (3.23%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: WHR's dividend (3.23%) is low compared to the top 25% of dividend payers in the US market (3.68%).


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 (28.2%), 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 (27.3% payout ratio).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Marc Bitzer (54yo)

2.2yrs

Tenure

US$11,836,275

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 ($USD11.84M) is above average for companies of similar size in the US market ($USD6.67M).

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


Management Age and Tenure

5.2yrs

Average Tenure

49yo

Average Age

Experienced Management: WHR's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

9.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: WHR's board of directors are considered experienced (9.5 years average tenure).


Insider Trading

Insider Buying: WHR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$127,79104 Nov 19
Gary DiCamillo
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares833
Max PriceUS$153.41
SellUS$135,15428 Oct 19
Gary DiCamillo
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares833
Max PriceUS$162.25

Ownership Breakdown

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


Management Team

  • Jeff Noel

    Corporate Vice President of Communications & Public Affairs

    • Tenure: 15.1yrs
  • Marc Bitzer (54yo)

    Chairman

    • Tenure: 2.2yrs
    • Compensation: US$11.84m
  • João Costa Brega (55yo)

    Executive VP & President of Latin America

    • Tenure: 11yrs
    • Compensation: US$2.03m
  • Joe Liotine (46yo)

    Executive VP & President of North America

    • Tenure: 5.2yrs
    • Compensation: US$2.77m
  • Kirsten Hewitt

    General Counsel & Senior VP of Corporate Affairs

    • Tenure: 8.5yrs
  • Jim Peters (49yo)

    Executive VP & CFO

    • Tenure: 3.3yrs
    • Compensation: US$2.89m
  • Carey Martin

    Senior VP & Chief Human Resources Officer

    • Tenure: 0.8yrs
  • Tom Arent

    Vice President of Sales & Marketing

    • Tenure: 0yrs
  • Christopher Conley (42yo)

    Corporate Controller & Principal Accounting Officer

    • Tenure: 0yrs
  • Roxanne Warner

    Senior Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Mike White (67yo)

    Independent Director

    • Tenure: 15.5yrs
    • Compensation: US$321.90k
  • Gary DiCamillo (68yo)

    Independent Director

    • Tenure: 22.7yrs
    • Compensation: US$264.66k
  • Bill Perez (71yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: US$286.62k
  • Mike Johnston (71yo)

    Independent Director

    • Tenure: 16.2yrs
    • Compensation: US$291.48k
  • John Liu (51yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$264.59k
  • Sam Allen (65yo)

    Presiding Director

    • Tenure: 0yrs
    • Compensation: US$339.64k
  • Harish Manwani (66yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$261.48k
  • Gerri Elliott (62yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$266.26k
  • Marc Bitzer (54yo)

    Chairman

    • Tenure: 2.2yrs
    • Compensation: US$11.84m
  • Diane Dietz (53yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$276.55k

Company Information

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


Key Information

  • Name: Whirlpool Corporation
  • Ticker: WHR
  • Exchange: NYSE
  • Founded: 1898
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: US$9.380b
  • Shares outstanding: 63.20m
  • Website: https://www.whirlpoolcorp.com

Number of Employees


Location

  • Whirlpool Corporation
  • 2000 North M-63
  • Benton Harbor
  • Michigan
  • 49022
  • 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
WHR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 23:55
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.