CNH Industrial (CNH) AI Stock Analysis

• Market Cap: $15.48B
• Dividend Yield: 3.79%
• Average Volume (3M): 18.58M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.98
• Revenue Growth: -21.99%
• EPS Growth: -52.11%
• Country: US
• Employees: 35,850
• Sector: Industrials
• Sector Strength: 78
• Industry: Agricultural - Machinery
• EPS (TTM): 0.83
• Shares Outstanding: 1,248,043,800
• 10 Day Avg. Volume: 16,513,957
• 30 Day Avg. Volume: 18,580,786
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.52
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.02
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $14.46
• Price Target Upside: 16.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

CNH Industrial's overall score reflects a cautiously optimistic outlook amidst ongoing challenges. The company's strong operational efficiency and reasonable valuation are key strengths. However, declining revenues, high leverage, and negative earnings call sentiment pose significant risks. The stock's technical indicators are neutral, underscoring stability but also uncertainty moving forward.

Positive Factors

Leadership

The new CFO, Mr. Nickolas, has previous experience in cyclical equipment markets, which could be beneficial for navigating CNH's current challenges.

Market Strategy

There is increased confidence in CNH’s precision agriculture strategy, with notable progress in equipment product lines and integration.

Strategic Initiatives

CNH's proactive initiatives to manage costs and reduce channel inventory are seen as helping to offset ongoing challenging market conditions.

Negative Factors

Financial Outlook

Earnings estimates for CNH Industrial have been revised downward, reflecting ongoing agricultural market risks.

Inventory Management

The company plans to underproduce retail in the fourth quarter by approximately 30-40%, which is expected to lower agricultural equipment revenue and margin.

Market Challenges

CNH is facing a challenging environment due to tariffs and agricultural downturns, impacting its performance.

CNH Industrial Business Overview & Revenue Model

Company Description

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 worldwide. 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.

How the Company Makes Money

CNH Industrial generates revenue through the sale of its machinery, vehicles, and powertrains across its main business segments: Agriculture, Construction, Commercial and Specialty Vehicles, and Powertrain. The Agriculture segment, which includes products like tractors and combines, is a significant contributor to its revenue. The Construction segment offers a range of construction equipment, while the Commercial and Specialty Vehicles segment provides buses, trucks, and firefighting vehicles. The Powertrain segment produces engines and transmissions for a variety of applications. Besides direct sales, CNH Industrial also earns through financing solutions provided to customers for purchasing equipment through its financial services arm. Additionally, the company benefits from strategic partnerships and joint ventures that enhance its market reach and technological advancement, further boosting its revenue streams.

CNH Industrial Financial Statement Overview

Summary

Overall, CNH Industrial exhibits solid operational performance with strong EBIT and EBITDA margins and effective equity utilization. However, there are concerns with a declining revenue trend and high leverage, which may pose financial risks. The improvement in free cash flow is a positive sign, but maintaining sustainable cash generation remains critical.

Income Statement

CNH Industrial shows a strong recovery in key income metrics. The gross profit margin for the latest year is approximately 32.7%, reflecting efficient cost management. However, net profit margin decreased to 6.3% from 9.2% in the previous year, indicating potential challenges in converting revenue to profit. Revenue growth decreased by 19.7% compared to the previous year, highlighting a decline in sales. Despite this, EBIT and EBITDA margins remain robust at 19.4% and 18.5% respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet indicates a stable capital structure with a debt-to-equity ratio of 3.55, which is high and suggests potential leverage risk. However, return on equity is strong at 16.3%, showing effective use of equity to generate profits. The equity ratio is relatively low at 17.8%, indicating lower asset funding from shareholders.

Cash Flow

CNH Industrial's cash flow demonstrates a challenging position. The free cash flow has improved to $782 million from a negative position in the prior year, showing better cash management. However, the operating cash flow to net income ratio is 1.58, indicating good conversion of income into cash, while the free cash flow to net income ratio is 0.63, reflecting modest free cash generation relative to net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
19.84B	24.69B	23.55B	19.49B	26.04B
	Gross Profit
6.49B	7.85B	6.97B	5.40B	4.56B
	EBIT
3.85B	4.95B	4.36B	3.30B	1.74B
	EBITDA
3.67B	4.58B	3.88B	2.98B	1.37B
	Net Income Common Stockholders
1.25B	2.27B	2.03B	1.72B	-493.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.19B	4.32B	5.13B	5.84B	9.63B
	Total Assets
42.93B	46.27B	39.38B	49.42B	48.72B
	Total Debt
27.16B	27.63B	23.19B	21.09B	26.51B
	Net Debt
23.97B	23.30B	18.06B	15.25B	16.88B
	Total Liabilities
35.16B	38.12B	32.41B	42.56B	43.69B
	Stockholders Equity
7.65B	8.03B	6.93B	6.78B	4.91B
Cash Flow		Free Cash Flow
782.00M	-288.00M	-442.00M	3.16B	3.68B
	Operating Cash Flow
1.97B	907.00M	557.00M	4.08B	5.53B
	Investing Cash Flow
-2.77B	-3.70B	-3.01B	-5.00B	-2.75B
	Financing Cash Flow
-67.00M	2.60B	1.96B	-1.45B	659.00M

CNH Industrial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNH, the sentiment is Positive. The current price of 12.4 is above the 20-day moving average (MA) of 11.41, above the 50-day MA of 12.16, and above the 200-day MA of 11.44, indicating a bullish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 58.38 is Neutral, neither overbought nor oversold. The STOCH value of 84.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNH.

CNH Industrial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSK	73 Outperform	$5.56B	8.31	15.24%	―	5.95%	-10.59%
CAT	72 Outperform	$152.23B	15.77	55.67%	―	-5.58%	-7.37%
CNH	70 Outperform	$15.48B	15.01	13.21%	3.79%	-21.99%	-52.11%
DE	70 Outperform	$130.73B	21.35	27.91%	1.28%	-20.93%	-34.33%
PCAR	67 Neutral	$47.49B	11.45	19.90%	1.37%	-8.64%	-31.57%
Sector *	64 Neutral	$4.28B	11.82	5.35%	250.19%	4.11%	-8.85%
AGCO	55 Neutral	$7.10B	46.40	-13.60%	1.22%	-23.02%	-152.78%

CNH Industrial Corporate Events

CNH Industrial Reports Q1 2025 Financial Decline

CNH Industrial N.V. reported its first quarter 2025 results, showing a significant decline in financial performance compared to the same period in 2024. The company faced a 21% drop in consolidated revenues to $3.8 billion and a 64% decrease in net income to $132 million. This downturn was attributed to lower industry demand and dealer destocking, particularly affecting the Agriculture and Construction segments. Despite these challenges, CNH Industrial emphasized its commitment to operational excellence and cost management to navigate macroeconomic uncertainties.

Spark’s Take on CNH Stock

According to Spark, TipRanks’ AI Analyst, CNH is a Neutral.

CNH Industrial faces significant challenges with declining revenues and high leverage, impacting its financial stability. The company’s strong operational efficiency and cost-saving measures are positives, but sustainability is crucial. Valuation remains reasonable, providing some support. Overall, the stock score reflects cautious optimism amidst ongoing market challenges.

To see Spark’s full report on CNH stock, click here.

CNH Industrial Announces CFO Transition to James Nickolas

On April 10, 2025, CNH Industrial announced the transition of its Chief Financial Officer, with Oddone Incisa stepping down and James Nickolas assuming the role on May 6, 2025. Nickolas brings over 30 years of experience in corporate finance and will be based in Oak Brook, Illinois. This transition marks a strategic move for CNH, as Nickolas’s expertise in finance and mergers and acquisitions is expected to support the company’s growth ambitions. Incisa, who has been with CNH for 28 years, will continue to assist in the transition until the end of May 2025.

Spark’s Take on CNH Stock

According to Spark, TipRanks’ AI Analyst, CNH is a Neutral.

CNH Industrial faces a challenging market environment with declining revenues and high leverage. Strong operational efficiencies and effective cost management help mitigate some risks, but the cautious outlook and technical weakness weigh on the overall score. Fair valuation and attractive dividend yield provide some support for the stock.

To see Spark’s full report on CNH stock, click here.