Fundamental analysis: CNH Industrial N.V. (CNHI)

Awarener score: 7.9

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Superb), the business stability (Good) and growth (Bottom), and the company's inclination to return cash to the stockholders (Superb).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 4.0

Business has been shrinking at a very fast pace. It's been last-in-rank when measured against peer companies.
CNH Industrial N.V. business trend stability is good. The higher the stability, the lower the risk. It looks better than most rivals.

Margins score: 5.8

CNHI profit margins -on goods and services sold- are usually meagre. They stand well ranked against rival companies.
Business profit on sales tends to be good. It's great when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain a slight improvement compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still somewhat better than similar companies.
Profits -before income taxes- are usually sufficient considering total sales, and remain similar to rivals.
Total net profit tends to be sufficient when confronted to sales. Company stands similar to comparable firms.

Growth score: 5.1

CNH Industrial N.V. profit -on goods and services sold- has been growing at a normal pace. It's been rather normal in relation to competitors.
In recent years, earnings -on operations- have been growing at a very low step, which has been mediocre against comparable firms.
Profits -available to repay debt and purchase properties- have been growing at a low pace, which compares below average when measured against peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at an excellent tempo. It turns to be a slight improvement compared to similar stocks.
In past years, profits -before income taxes- grew at an extremely fast speed. It was top-notch against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 5.7

CNHI had hardly to pay income taxes in relation to profits made in the past years. It's been well ranked against peers.
Research and development expenses consume a very little portion of revenues. It's weak when measured against competitors.
Business has seen substantial shrinking, despite research and development efforts. It stands a disappointment compared to rival companies.

Profitability score: 8.0

CNH Industrial N.V. usually gets good returns on the resources it controls. It proves almost average when measured against peer firms.
The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
There's usually excellent profitability -in relation to owned resources-. It ranks great when measured against competitors.
In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's almost average when measured against comparable enterprises.

Usage of Funds score: 7.8

CNHI usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands almost average when measured against rival firms.
The company is usually largely investing in new property, plant, and equipment, to expand its operating capabilities, which is great when measured against industry peers.
In the past twelve months it paid some dividends, considering the current stock price. It came somewhat better than competitors.
Has greatly increased dividend payments in the past years. Business prospects are most likely good. The company has behaved excellent in relation to similar firms.
Dividend payments usually represent a slight portion of genuine funds generation and are most likely safe. Sustainability looks better than most comparable companies.
The company usually significantly reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains impressive in relation to peer enterprises.
We are not sure on the effectiveness of the company when repurchasing shares, as there were not enough numbers to crunch. It stands unidentified against rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 3.8

CNH Industrial N.V. intangible assets (like brands and goodwill) represent a portion of resources controlled, according to accounting books. There could be difficulties in liquidating them if the company ever gets in financial distress. It happens to be substantially worse when measured against peer companies.
Current ratio remains a mystery, as there was not sufficient Balance Sheet information. It turns to be unidentifiable against similar firms.
All resources are company owned, with virtually no financial debt. Financial position is outstanding. The company could significantly borrow money if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains top-notch against rival firms.
Most controlled resources can be made into cash reasonably quick, which is good for liquidity and risk. It looks similar to rivals.
Quick ratio is unavailable at this moment, due to lacking data. It's a pity we cannot compare it with peer firms.
A conclusion on cash ratio could not be reached, as we lack inputs, which is unfortunate when trying to measure against similar enterprises.
Usually, sales are on many months credit. It still ranks last-in-rank when measured against peers.
Normally has approximately five months of sales worth in inventory. It comes up as in a very weak position compared to competitors.
On average, it takes plenty of months from the purchase to charging customers. It happens to be worse than most peers.
Pays suppliers mostly in cash. It ranks last-in-rank when measured against industry peers.
The company pays its suppliers plenty of months before charging its customers, so there's a lot of money invested in working capital. It's a disappointment compared to similar companies.
Net interest expenses consume a significant portion of usual business earnings, but are mostly bearable. It stands somewhat worse than rival firms.
There is insufficient data to conclude on the relationship of EBITDA and debt for this company. It ranks unknown against comparable enterprises.
Revenues are quite good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks close to average when compared to similar firms.
Resource exploitation is reasonable when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still worse than most peer companies.

Valuation score: 8.4

CNH Industrial N.V. looks very cheap in relation to profits and financial position. It happens to be great when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a weak position compared to peers.
In the past twelve months, the company generated extraordinary free funds in relation to the stock price, which stands top-notch against similar companies.
The company usually generates plenty more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share looks to be very attractive. It's still top tier when measured against industry firms.
In the past twelve months, the company has significantly rewarded investors, considering both dividends and share on the pie of earnings. It came up impressive in relation to peer ventures.
This company is a cash hoarder. It might be well poised to substantially increase stockholder payments, or to fund new business projects. It looks well ranked against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation looks cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be attractive. It ranks great when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks lacking compared to rival firms.
The relation between the stock price and accounting book value is high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains slightly worse than peer firms.
In the past twelve months, the operating business earned huge money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown an extreme earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be significantly undervalued. It's still impressive in relation to peer companies.

Total score: 6.1

Company at a glance: CNH Industrial N.V. (CNHI)

Sector, industry: Industrials, Farm & Heavy Construction Machinery

Market Cap: 17.94 billions

Revenues TTM: 24.25 billions

CNH Industrial N.V. designs, produces, markets, sells, and finances agricultural and construction equipment, trucks, commercial vehicles, buses, and specialty vehicles in North America, Europe, South America, and internationally. It operates through five segments: Agriculture, Construction, Commercial and Specialty Vehicles, Powertrain, and Financial. The Agriculture segment provides farm machinery and implements that include two-and four-wheel drive tractors, crawler tractors, combines, cotton pickers, grape and sugar cane harvesters, hay and forage equipment, planting and seeding equipment, soil preparation and cultivation implements, and material handling equipment under the New Holland Agriculture, Case IH, STEYR, Miller, Kongskilde, Överum, K-Line, and JF brands. The Construction segment offers excavators, crawler dozers, graders, wheel and backhoe loaders, and skid steer and compact track loaders under the CASE Construction and New Holland Construction brands. The Commercial and Specialty Vehicles segment provides light, medium, and heavy vehicles for the transportation and distribution of goods under the IVECO brand; commuter buses and city-buses under the IVECO BUS and Heuliez Bus brands; quarry and mining equipment under the IVECO ASTRA brand; firefighting vehicles under the Magirus brand; and vehicles for civil defense and peace-keeping missions under the Iveco Defence Vehicles brand. The Powertrain segment offers engines, transmission systems, and axles for on- and off-road applications, as well as for marine and power generation under the FPT Industrial brand. The Financial Services segment provides and administers retail financing to customers for the purchase or lease of new and used industrial equipment or vehicles, and other equipment; wholesale financing, which primarily consists of floor plan financing; and trade receivables factoring services. The company was founded in 1842 and is headquartered in London, the United Kingdom.