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

AGCO Corp.

BWX Technologies, Inc.

The Toro Co.

Cummins, Inc.

BorgWarner, Inc.

SiteOne Landscape Supply, Inc.

Westinghouse Air Brake Technologies Corp.

Caterpillar, Inc.

Deere & Co.

PACCAR, 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

-23.66%

-0.05

36.08%

S&P 500

14.9%

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)

13.74%

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

Pledged Shares

Institutional Holding

76.06%

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

1.84

EV to EBIT

13.36

EV to EBITDA

11.47

EV to Capital Employed

1.21

EV to Sales

2.09

PEG Ratio

Dividend Yield

239.13%

ROCE (Latest)

9.04%

ROE (Latest)

6.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 2,538 MM

NET SALES(Q)

Highest at USD 5,157 MM

-22What is not working for the Company

PRE-TAX PROFIT(Q)

At USD 140 MM has Fallen at -52.38%

NET PROFIT(Q)

At USD 90.36 MM has Fallen at -56.22%

ROCE(HY)

Lowest at 6.61%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 7.12% (YoY

CASH AND EQV(HY)

Lowest at USD 6,185 MM

DIVIDEND PER SHARE(HY)

Lowest at USD 0.78

OPERATING PROFIT(Q)

Lowest at USD 719 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.94 %

Here's what is working for CNH Industrial NV

Operating Cash Flow

Highest at USD 2,538 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 5,157 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Here's what is not working for CNH Industrial NV

Pre-Tax Profit

At USD 140 MM has Fallen at -52.38%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 90.36 MM has Fallen at -56.22%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Profit

Lowest at USD 719 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 13.94 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at USD 6,185 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend per share

Lowest at USD 0.78

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 7.12% (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