CNH Industrial (CNH) AI Stock Analysis

• Market Cap: $15.55B
• Dividend Yield: 2.01%
• Average Volume (3M): 20.01M
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.99
• Revenue Growth: -21.70%
• EPS Growth: -57.68%
• Country: US
• Employees: 35,850
• Sector: Industrials
• Sector Strength: 84
• Industry: Agricultural - Machinery
• EPS (TTM): 0.17
• Shares Outstanding: 1,250,820,100
• 10 Day Avg. Volume: 14,574,797
• 30 Day Avg. Volume: 20,007,296
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.63
• Enterprise Value/Revenue: 2.26
• Enterprise Value/Gross Profit: 13.31
• Enterprise Value/Ebitda: 14.23
• 1Y Price Target: $14.43
• Price Target Upside: 16.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 66 Neutral
• Price Target: $13.50 ▲(8.61% Upside)

The overall stock score reflects mixed financial performance with strong profitability but high leverage risks. Technical analysis indicates bearish momentum, while valuation is moderate. The earnings call highlighted strategic improvements but also significant market challenges.

Positive Factors

Financial Performance

2Q25 EPS beat with Industrial Activities top line and margins ahead of expectations.

Innovation and Product Quality

Product quality improvements and innovation put the company on track to support not only improved earnings performance but to regain its solid footing as a credible number two player for farmers across geographies.

Strategic Initiatives

Meetings bolstered conviction in CNH's ability to improve not only operating performance but the market's perception of the stock.

Negative Factors

Agricultural Equipment Downturn

The agricultural equipment downturn has caused a drop in production hours, which impacts CNH's Ag margin forecasts, indicating the cycle matters most leading into 2026.

Earnings Outlook

Estimates for industrial EBIT have been lowered due to a slightly longer destocking period and more muted price increases.

Operational Challenges

CNH has a lot on its plate – delivering another $550mn cost out program while re-investing in an uncertain backdrop such as tariffs and agricultural downturn.

CNH Industrial Business Overview & Revenue Model

Company Description

CNH Industrial is a global leader in the capital goods sector, specializing in the manufacture of agricultural and construction equipment, commercial vehicles, and powertrain solutions. The company operates through various segments, including Agriculture, Construction, Commercial Vehicles, and Financial Services, offering a diverse portfolio of products such as tractors, combines, excavators, and trucks. With a presence in over 180 countries, CNH Industrial focuses on innovation and sustainability, providing advanced technologies and services to enhance productivity for its customers in the farming, construction, and transportation industries.

How the Company Makes Money

CNH Industrial generates revenue through multiple channels, primarily from the sale of its equipment and vehicles across its various segments. The Agriculture segment contributes significantly by offering a range of tractors, harvesters, and other farming machinery. The Construction segment generates income through the sale of excavators, loaders, and other heavy machinery. The Commercial Vehicles segment earns revenue from the production and sale of trucks and vans, catering to the logistics and transportation industries. Additionally, CNH Industrial has a Financial Services segment that provides financing solutions to customers, enabling them to purchase equipment and vehicles, which also contributes to the company's revenue. Key partnerships with dealers and distributors enhance its market reach, while ongoing investments in research and development drive innovation, helping to secure a competitive advantage and boost sales.

CNH Industrial Financial Statement Overview

Summary

CNH demonstrates solid profitability with strong margins and effective equity utilization. However, high leverage and fluctuating cash flows pose potential risks. The company needs to focus on stabilizing revenue and cash flow growth while managing leverage more effectively.

Income Statement

CNH's income statement shows robust gross profit and EBIT margins, with the TTM (Trailing-Twelve-Months) gross profit margin at approximately 32.5% and EBIT margin at 18.9%. However, the company experienced a decline in revenue and net income compared to the previous annual report, indicating a need for growth stabilization.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of approximately 3.35, indicating leverage concerns. However, the company's return on equity (ROE) is strong at around 13.3%, suggesting effective use of equity. The equity ratio is low at about 18.6%, highlighting potential risks related to financial structure.

Cash Flow

Cash flow analysis reveals a positive free cash flow of $1.78 billion in the TTM, with a strong operating cash flow to net income ratio of about 2.9. However, free cash flow growth has been inconsistent, with significant swings year-over-year, indicating stability concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.07B	19.84B	24.69B	23.55B	19.49B	26.04B
Gross Profit	3.07B	6.49B	7.85B	6.97B	5.40B	4.56B
EBITDA	2.87B	3.67B	4.58B	3.88B	2.98B	1.37B
Net Income	1.05B	1.25B	2.27B	2.03B	1.72B	-493.00M
Balance Sheet
Total Assets	43.69B	42.93B	46.27B	39.38B	49.42B	48.72B
Cash, Cash Equivalents and Short-Term Investments	2.51B	3.19B	4.32B	5.13B	5.84B	9.63B
Total Debt	0.00	27.16B	27.63B	23.19B	21.09B	26.51B
Total Liabilities	35.85B	35.16B	38.12B	32.41B	42.56B	43.69B
Stockholders Equity	7.83B	7.65B	8.03B	6.93B	6.78B	4.91B
Cash Flow
Free Cash Flow	2.46B	782.00M	-288.00M	-442.00M	3.16B	3.68B
Operating Cash Flow	3.42B	1.97B	907.00M	557.00M	4.08B	5.53B
Investing Cash Flow	-2.46B	-2.77B	-3.70B	-3.01B	-5.00B	-2.75B
Financing Cash Flow	-508.00M	-67.00M	2.60B	1.96B	-1.45B	659.00M

CNH Industrial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNH, the sentiment is Negative. The current price of 12.43 is below the 20-day moving average (MA) of 12.86, below the 50-day MA of 12.93, and above the 200-day MA of 12.12, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 41.11 is Neutral, neither overbought nor oversold. The STOCH value of 15.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNH.

CNH Industrial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PCAR	81 Outperform	$51.11B	16.68	16.77%	4.07%	-11.92%	-38.21%
OSK	80 Outperform	$8.60B	13.48	15.52%	1.44%	0.41%	-3.90%
CAT	77 Outperform	$195.13B	21.18	52.73%	1.38%	-4.87%	-10.47%
DE	70 Outperform	$138.22B	24.69	24.07%	1.24%	-22.26%	-37.83%
AGCO	69 Neutral	$8.18B	82.39	2.42%	1.06%	-24.27%	-76.31%
CNH	66 Neutral	$15.55B	18.91	10.79%	2.01%	-21.70%	-57.68%
Sector *	66 Neutral	£2.68B	12.78	3.50%	3.22%	2.47%	-24.22%

CNH Industrial Corporate Events

CNH Industrial Reports Q2 2025 Revenue Decline

On August 1, 2025, CNH Industrial reported its second quarter results for 2025, revealing a decline in consolidated revenues to $4.7 billion, a 14% drop compared to the same period in 2024, due to lower industry demand and dealer destocking. Despite these challenges, the company managed to execute cost-saving initiatives, returning $0.3 billion to shareholders through dividends, and reaffirmed its full-year guidance, highlighting its strategic focus on operational improvements and investments in product and technology development.

The most recent analyst rating on (CNH) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on CNH Industrial stock, see the CNH Stock Forecast page.

CNH Industrial Holds Annual General Meeting

On May 12, 2025, CNH Industrial held its annual general meeting where shareholders approved key resolutions, including the appointment of executive and non-executive directors, the 2024 financial statements, a $0.25 dividend per share, and amendments to the Equity Incentive Plan. Additionally, the company published its 2024 Sustainability Report, highlighting strategic priorities and achievements, further solidifying its commitment to sustainability and stakeholder value.

The most recent analyst rating on (CNH) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on CNH Industrial stock, see the CNH Stock Forecast page.