Ag Business Drives Moat Upgrade for CNH Industrial
The narrow-moat company is well-positioned to maintain its competitive advantages in the agricultural sector over the foreseeable future.
Nick Mokha: We recently upgraded CNH's moat to narrow from none after careful consideration of CNH's brand name and historical profitability in its agricultural equipment division, which comprises 70% of the company's profits.
Strong brand names and reputations have resulted in an agricultural equipment market that is highly concentrated and dominated by three companies: Deere, CNH, and Agco.
Nick Mokha does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.