CNH Industrial NV (CNHI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Cummins, Inc.

The Toro Co.

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BWX Technologies, Inc.

Westinghouse Air Brake Technologies Corp.

AGCO Corp.

BorgWarner, Inc.

PACCAR, Inc.

Deere & Co.

Caterpillar, Inc.

CNH Industrial NV

Why is CNH Industrial NV ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -6.35% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -6.35% over the last 5 years

With a fall in Net Sales of -14.15%, the company declared Very Negative results in Jun 25

The company has declared negative results for the last 5 consecutive quarters
PRE-TAX PROFIT(Q) At USD 260 MM has Fallen at -51.67%
NET PROFIT(Q) At USD 202.15 MM has Fallen at -59.52%
ROCE(HY) Lowest at 10.79%

With ROCE of 11.30%, it has a expensive valuation with a 1.30 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -17.47%, its profits have fallen by -55.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -17.47% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is CNH Industrial NV for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

CNH Industrial NV

-18.41%

-0.05

36.08%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.01%

EBIT Growth (5y)

13.70%

EBIT to Interest (avg)

4.29

Debt to EBITDA (avg)

4.49

Net Debt to Equity (avg)

3.05

Sales to Capital Employed (avg)

0.61

Tax Ratio

25.14%

Dividend Payout Ratio

24.53%

Pledged Shares

Institutional Holding

76.86%

ROCE (avg)

13.94%

ROE (avg)

24.98%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.88

EV to EBIT

13.51

EV to EBITDA

11.05

EV to Capital Employed

1.22

EV to Sales

2.11

PEG Ratio

Dividend Yield

234.67%

ROCE (Latest)

9.01%

ROE (Latest)

7.84%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-20What is not working for the Company

ROCE(HY)

Lowest at 4.95%

INTEREST COVERAGE RATIO(Q)

Lowest at 172.12

PRE-TAX PROFIT(Q)

At USD 73 MM has Fallen at -44.27%

RAW MATERIAL COST(Y)

Grown by 7.69% (YoY

CASH AND EQV(HY)

Lowest at USD 5,568 MM

NET SALES(Q)

Lowest at USD 3,826 MM

OPERATING PROFIT(Q)

Lowest at USD 642 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 16.78 %

NET PROFIT(Q)

Lowest at USD 48.54 MM

EPS(Q)

Lowest at USD 0.01

Here's what is working for CNH Industrial NV

Depreciation

Highest at USD 166 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for CNH Industrial NV

Net Profit

At USD 48.54 MM has Fallen at -55.47%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest Coverage Ratio

Lowest at 172.12

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At USD 73 MM has Fallen at -44.27%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Sales

Lowest at USD 3,826 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 642 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 16.78 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at USD 48.54 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 5,568 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 7.69% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales