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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.