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CNH Industrial NV CNHI

Morningstar Rating
$11.95 +0.01 (0.08%)
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Company Report

CNH Earnings: Ag Demand Pressured Near-Term, but We See It Recovering Long-Term

Narrow-moat CNH reported fourth-quarter results that showed ag demand continuing to slow. In the ag segment, sales were down 8% year on year, while gross margin was up 20 basis points to 23.3%, largely thanks to cost-reduction initiatives that started to show progress in the quarter. In construction, sales were up 9% year on year, and gross margin expanded 150 basis points to 14.8%.

Price vs Fair Value

CNHI is trading at a 22% discount.
Price
$11.95
Fair Value
$74.20
Uncertainty
High
1-Star Price
$79.97
5-Star Price
$8.73
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Higher crop prices increase farmers’ profitability, allowing them to purchase new agriculture equipment, which substantially boosts CNH's revenue growth.

Bears

China could pull back on agriculture imports, weakening global demand for crops. The fallout would lead to lower crop prices, largely due to higher supplies, pushing farmers to delay equipment purchases.

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News

Trading Information

Previous Close Price
$11.94
Day Range
$11.8412.10
52-Week Range
$9.7717.06
Bid/Ask
$11.99 / $12.00
Market Cap
$15.39 Bil
Volume/Avg
7,196 / 16.7 Mil

Key Statistics

Price/Earnings (Normalized)
7.34
Price/Sales
0.69
Dividend Yield (Trailing)
3.32%
Dividend Yield (Forward)
3.65%
Total Yield
3.32%

Company Profile

CNH Industrial is a global manufacturer of heavy machinery, with a range of products including agricultural and construction equipment. One of its most recognizable brands, Case IH, has served farmers for generations. The company's products are available through a robust dealer network, which includes over 3,600 dealer and distribution locations globally. CNH’s finance arm provides retail financing for equipment to its customers in addition to wholesale financing for dealers, which increases the likelihood of product sales.
Sector
Industrials
Industry
Farm & Heavy Construction Machinery
Stock Style Box
Large Value
Total Number of Employees
40,070

Competitors

Valuation

Metric
CNHI
CAT
DE
Price/Earnings (Normalized)
7.3415.9611.20
Price/Book Value
1.988.274.97
Price/Sales
0.692.431.88
Price/Cash Flow
5.8012.779.47
Price/Earnings
CNHI
CAT
DE

Financial Strength

Metric
CNHI
CAT
DE
Quick Ratio
4.580.741.64
Current Ratio
5.861.351.86
Interest Coverage
3.4125.576.31
Quick Ratio
CNHI
CAT
DE

Profitability

Metric
CNHI
CAT
DE
Return on Assets (Normalized)
5.56%12.80%10.40%
Return on Equity (Normalized)
31.06%59.03%46.57%
Return on Invested Capital (Normalized)
10.11%19.53%15.05%
Return on Assets
CNHI
CAT
DE
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Economic Moat
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CAT
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DE
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VLVLY
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AGCO
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OSK
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TEX
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