CNH Industrial N.V.
CNH Industrial N.V. Fundamental Analysis
CNH Industrial N.V. (CNH) shows weak financial fundamentals with a PE ratio of 33.39, profit margin of 2.13%, and ROE of 4.99%. The company generates $18.1B in annual revenue with weak year-over-year growth of -8.78%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 10.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CNH's fundamental strength across five key dimensions:
Efficiency Score
WeakCNH struggles to generate sufficient returns from assets.
Valuation Score
ModerateCNH shows balanced valuation metrics.
Growth Score
WeakCNH faces weak or negative growth trends.
Financial Health Score
ModerateCNH shows balanced financial health with some risks.
Profitability Score
WeakCNH struggles to sustain strong margins.
Key Financial Metrics
Is CNH Expensive or Cheap?
P/E Ratio
CNH trades at 33.39 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CNH's PEG of -0.53 indicates potential undervaluation.
Price to Book
The market values CNH Industrial N.V. at 1.66 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.55 times EBITDA. This is generally considered low.
How Well Does CNH Make Money?
Net Profit Margin
For every $100 in sales, CNH Industrial N.V. keeps $2.13 as profit after all expenses.
Operating Margin
Core operations generate 14.65 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.99 in profit for every $100 of shareholder equity.
ROA
CNH Industrial N.V. generates $0.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CNH Industrial N.V. produces operating cash flow of $2.41B, showing steady but balanced cash generation.
Free Cash Flow
CNH Industrial N.V. generates strong free cash flow of $1.84B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.48 in free cash annually.
FCF Yield
CNH converts 14.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.53
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How CNH Stacks Against Its Sector Peers
| Metric | CNH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.39 | 26.09 | Worse (Expensive) |
| ROE | 4.99% | 1271.00% | Weak |
| Net Margin | 2.13% | -30278.00% (disorted) | Weak |
| Debt/Equity | 3.37 | 0.73 | Weak (High Leverage) |
| Current Ratio | 6.92 | 8.97 | Strong Liquidity |
| ROA | 0.92% | -1493581.00% (disorted) | Weak |
CNH outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CNH Industrial N.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
34.35%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
213.51%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-49.63%
Industry Style: Cyclical, Value, Infrastructure
Declining