tiprankstipranks
Trending News
More News >
CNH Industrial (CNH)
NYSE:CNH
Advertisement

CNH Industrial (CNH) AI Stock Analysis

Compare
654 Followers

Top Page

CNH

CNH Industrial

(NYSE:CNH)

Rating:56Neutral
Price Target:
$12.50
â–²(9.17% Upside)
CNH Industrial's overall score reflects a challenging financial and operational environment. The company's strong cash flow generation and strategic initiatives are offset by declining revenues, high leverage, and bearish technical indicators. Valuation metrics suggest moderate potential, but ongoing trade uncertainties and market conditions pose risks.
Positive Factors
Financial Performance
2Q25 EPS beat with Industrial Activities top line and margins ahead of expectations.
Operational Strategy
The focus on self-help action items addresses a clear area where CNH was falling short, boosting confidence in earnings stability.
Technology Investments
Precision Ag revenues as a percentage of the Agriculture segment are expected to grow significantly, indicating potential growth in technology investments.
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.
Market Conditions
It is hard to fully compensate for tariffs in the near term.

CNH Industrial (CNH) vs. SPDR S&P 500 ETF (SPY)

CNH Industrial Business Overview & Revenue Model

Company DescriptionCNH 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 MoneyCNH 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 Earnings Call Summary

Earnings Call Date:Aug 01, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging quarter with significant revenue declines and geographic mix effects, particularly in North America. Despite these challenges, CNH is making strategic moves to improve inventory management and enhance technological offerings. The positive feedback on the strategic business plan and improvements in free cash flow are encouraging, but the impact of tariffs and uncertain trade dynamics present ongoing risks.
Q2-2025 Updates
Positive Updates
Successful Inventory Reduction
Ag dealers reduced their inventory by another $200 million in the quarter, aligning with the company's targets for newly built machine inventory by year-end.
Advancements in Connectivity and Technology
CNH announced a collaboration with Starlink to provide satellite-based connectivity for Case IH and New Holland machines, enhancing productivity and connectivity in remote areas.
Positive Feedback on Strategic Business Plan
The new strategic business plan presented at Investor Day received positive feedback, focusing on expanding product leadership and operational excellence.
Improvement in Free Cash Flow
Q2 free cash flow from Industrial Activities was $451 million, significantly better than Q2 2024 due to improvements in working capital.
Negative Updates
Decline in Consolidated Revenues and EBIT
Consolidated revenues for the quarter were down 14% at $4.7 billion. Industrial adjusted EBIT was $224 million, down 55% compared to last year.
Significant North American Sales Decline
Ag segment sales were down 17%, with Ag North America down 36%, significantly impacting geographic mix and decremental margins.
Challenges from Tariffs and Trade Uncertainties
Increased tariff costs, particularly on steel and aluminum, are expected to impact costs in the second half of 2025, with uncertainty about potential retaliations affecting the outlook.
Decrease in Adjusted Net Income
Adjusted net income decreased by about half with adjusted diluted earnings per share down from $0.35 to $0.17.
Company Guidance
In the second quarter of 2025, CNH reported a 14% decline in consolidated revenues, amounting to $4.7 billion, driven by a 17% drop in the Agriculture segment and a 36% decrease in North American Ag sales. Industrial production hours were down 12% year-over-year, with a 12% decline in agriculture and a 15% decline in construction. The company's adjusted EBIT for industrial activities fell by 55% to $224 million, and EPS for the quarter was reported at $0.17. Despite the challenging market conditions, CNH managed to achieve a $200 million reduction in Ag dealer inventory. The company maintained positive pricing in the agriculture and construction segments, although there remains uncertainty regarding the impact of U.S. tariffs. CNH's Q2 free cash flow from industrial activities was $451 million, aided by improvements in working capital. The company's strategic focus remains on operational excellence, quality improvements, and advancing technology integration, with a commitment to long-term growth and shareholder value.

CNH Industrial Financial Statement Overview

Summary
CNH Industrial shows resilience in cash flow generation and operational efficiency, with a strong free cash flow growth of 38.23% in the TTM. However, challenges such as declining revenue growth, high leverage with a debt-to-equity ratio of 3.59, and fluctuating profitability metrics present potential risks.
Income Statement
65
Positive
CNH Industrial's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 4.13%, reflecting challenges in maintaining sales momentum. However, the company maintains a decent EBIT margin of 10.65% and a net profit margin of 5.84%, indicating operational efficiency. Historical data reveals fluctuating revenue growth, with a notable decline in 2021 but recovery in subsequent years. The gross profit margin has decreased in the TTM period compared to previous years, suggesting pressure on cost management.
Balance Sheet
55
Neutral
The balance sheet highlights a high debt-to-equity ratio of 3.59 in the TTM period, indicating significant leverage which could pose financial risk. The return on equity has decreased to 13.68% in the TTM, down from higher levels in previous years, reflecting reduced profitability for shareholders. The equity ratio remains stable, but the high leverage suggests potential vulnerability to interest rate changes or economic downturns.
Cash Flow
70
Positive
Cash flow analysis shows a strong free cash flow growth of 38.23% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 0.83 suggests efficient conversion of earnings into cash. However, historical data shows volatility in free cash flow, with negative figures in some years, highlighting potential cash flow management challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue18.07B19.84B24.69B23.55B19.49B14.78B
Gross Profit5.85B6.49B7.85B6.97B5.40B4.56B
EBITDA3.18B3.67B4.58B3.88B2.98B1.37B
Net Income823.00M1.25B2.27B2.03B1.72B-493.00M
Balance Sheet
Total Assets43.69B42.93B46.27B39.38B49.42B48.72B
Cash, Cash Equivalents and Short-Term Investments2.51B3.87B5.04B5.13B5.84B9.63B
Total Debt27.69B27.16B27.63B23.19B21.09B26.51B
Total Liabilities35.85B35.16B38.12B32.41B42.56B43.69B
Stockholders Equity7.71B7.65B8.03B6.93B6.78B4.91B
Cash Flow
Free Cash Flow2.46B782.00M-288.00M-442.00M3.16B3.68B
Operating Cash Flow3.42B1.97B907.00M557.00M4.08B5.53B
Investing Cash Flow-2.46B-2.77B-3.70B-3.01B-5.00B-2.75B
Financing Cash Flow-508.00M-67.00M2.60B1.96B-1.45B659.00M

CNH Industrial Technical Analysis

Technical Analysis Sentiment
Negative
Last Price11.45
Price Trends
50DMA
12.78
Negative
100DMA
12.50
Negative
200DMA
12.21
Negative
Market Momentum
MACD
-0.26
Positive
RSI
31.30
Neutral
STOCH
15.24
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 11.45 is below the 20-day moving average (MA) of 12.27, below the 50-day MA of 12.78, and below the 200-day MA of 12.21, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 31.30 is Neutral, neither overbought nor oversold. The STOCH value of 15.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNH.

CNH Industrial Risk Analysis

CNH Industrial disclosed 39 risk factors in its most recent earnings report. CNH Industrial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

CNH Industrial Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$52.50B17.1416.77%3.99%-11.92%-38.21%
78
Outperform
$8.92B13.9915.52%1.43%0.41%-3.90%
70
Outperform
$196.31B22.1252.73%1.37%-4.87%-10.47%
68
Neutral
$129.39B25.6921.59%1.32%-20.63%-34.82%
66
Neutral
$8.07B81.332.42%1.40%-24.27%-76.31%
65
Neutral
$2.64B13.9615.18%3.63%2.94%43.39%
56
Neutral
$14.32B18.1510.79%2.18%-21.70%-57.68%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CNH
CNH Industrial
11.45
1.55
15.66%
AGCO
Agco
108.19
21.13
24.27%
CAT
Caterpillar
419.04
84.10
25.11%
DE
Deere
478.64
98.31
25.85%
OSK
Oshkosh
139.37
38.14
37.68%
PCAR
Paccar
99.98
8.23
8.97%

CNH Industrial Corporate Events

DividendsBusiness Operations and StrategyFinancial Disclosures
CNH Industrial Reports Q2 2025 Revenue Decline
Negative
Aug 1, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025