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

Awarener score: 6.2

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 (Average), the business stability (Excellent) and growth (Poor), and the company's inclination to return cash to the stockholders (Good).

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: 6.0

  • Business has been shrinking. It's been substantially worse when measured against peer companies.
  • CNH Industrial N.V. business trend stability is excellent. The higher the stability, the lower the risk. It looks top-notch against rivals.

Margins score: 6.0

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

Growth score: 4.6

  • CNH Industrial N.V. profit -on goods and services sold- has been growing at a very low pace. It's been close to average when compared to competitors.
  • In recent years, earnings -on operations- have been growing at a low step, which has been slightly worse than comparable firms.
  • Profits growth -available to repay debt and purchase properties- have been almost stagnant, which compares weak when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a very good tempo. It turns to be excellent in relation 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: 6.7

  • CNHI had to pay sparse income taxes in relation to profits made in the past years. It's been somewhat better than peers.
  • Research and development expenses consume a very little portion of revenues. It's weak when measured against competitors.
  • The company grows sparsely in relation to research and development efforts. It stands in a weak position compared to rival companies.

Profitability score: 7.0

  • 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 sufficient proceeds -on the resources directly invested in the business-. They remain lacking compared to similar companies.
  • There's usually abundant profitability -in relation to owned resources-. It ranks more than average in relation to 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: 6.5

  • CNHI usually uses a very large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is heavy. It stands almost average when measured against rival firms.
  • The company is usually investing in new property, plant, and equipment, to improve its operating capabilities, which is more than average in relation to industry peers.
  • In the past twelve months it paid somewhat low dividends, considering the current stock price. It came somewhat worse 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 modest portion of genuine funds generation and shouldn't be at risk. Sustainability looks somewhat worse than comparable companies.
  • The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains a slight improvement compared 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: 4.2

  • CNH Industrial N.V. has not disclosed intangibles assets, so we could not reach a meaningful conclusion on this metric. It happens to be a not known variable when measured with peer companies.
  • The company has more than enough short-term resources to face short-term obligations. Liquidity concerns are non-significant. It turns to be a slight improvement compared to similar firms.
  • A substantial part of resources controlled were provided for with financial debt. Creditors have as many claims on the company as shareholders. The situation is somewhat risky. It remains bottom tier against rival firms.
  • Resources controlled can be quickly made into cash, which is very good for liquidity and risk. It looks encouraging in relation to rivals.
  • For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's in good shape compared to peer firms.
  • For every dollar of short-term obligations, the company has roughly half of cash and equivalents, which is slightly worse than similar enterprises.
  • Usually, sales are on many months credit. It still ranks substantially worse when measured against peers.
  • Normally has approximately three months of sales worth in inventory. It comes up as a slight improvement compared to competitors.
  • On average, it takes a lot 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 slightly worse than rival firms.
  • Business earnings have usually been very low when measured against loans taken. Even significantly cutting back reinvesting in the business, it could take more than ten years to repay the obligations with current profitability. It ranks weak when measured against comparable enterprises.
  • Revenues are very good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements allows the company to keep more money to reward stockholders in the long run. It looks in good shape compared to similar firms.
  • Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still somewhat worse than peer companies.

Valuation score: 5.8

  • CNH Industrial N.V. looks somewhat expensive in relation to profits and financial position. It happens to be almost average 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 a disappointment compared to peers.
  • In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could generate, it reinvested in the business, which stands worse than most similar companies.
  • In the past years the company barely generated enough genuine funds to cover up for its business needs. Business prospects should improve to be in a better position to reward investors. It's still below average when measured against industry firms.
  • In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up close to average when compared to peer ventures.
  • The company is largely indebted. It should focus on loan repayment before rewarding stockholders. It looks worse than most similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation might be reasonable. It ranks more than average in relation to peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a low relationship. One common cause includes profitability being poor. It looks close to average when compared to rival firms.
  • We have not enough information on the relation between current stock price and accounting book value. The company remains a mystery against peer firms.
  • In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be similar to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still rather normal in relation to peer companies.

Total score: 5.8


CNHI logos

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

Sector, industry: Industrials, Farm & Heavy Construction Machinery

Market Cap: 16.57 billions

Revenues TTM: 30.60 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.

Awarener score: 6.2

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 (Average), the business stability (Excellent) and growth (Poor), and the company's inclination to return cash to the stockholders (Good).