CNH Industrial (CNH) AI Stock Analysis

• Market Cap: $15.94B
• Dividend Yield: 3.68%
• Average Volume (3M): 15.13M
• Price to Earnings (P/E): 15.4
• Beta (1Y): 1.02
• Revenue Growth: -21.99%
• EPS Growth: -52.11%
• Country: US
• Employees: 35,850
• Sector: Industrials
• Sector Strength: 93
• Industry: Agricultural - Machinery
• EPS (TTM): 0.10
• Shares Outstanding: 1,249,431,600
• 10 Day Avg. Volume: 16,769,680
• 30 Day Avg. Volume: 15,125,246
• PEG Ratio: -0.48
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.45
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $14.47
• Price Target Upside: 13.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 66 Neutral
• Price Target: $14.50 ▲( 13.64% Upside)

CNH faces significant challenges with declining revenues and high leverage impacting financial stability. Strong operational efficiency and reasonable valuation offer some support, but the negative earnings call sentiment highlights key risks. Technical indicators suggest some positive momentum, yet overbought conditions warrant caution. Overall, the stock score reflects a cautiously optimistic outlook amidst ongoing market challenges.

Positive Factors

Internal Initiatives

The plan is not driven by big share gains or optimistic cyclical thesis but focuses on internal initiatives, indicating clear upside.

Leadership and Market Strategy

The new CEO is expected to emphasize focus on quality, optimization of the dealer network, and exploring partnerships with the construction business, which is anticipated to be well received by investors.

Precision Agriculture

Precision Ag revenues as a percentage of the Agriculture segment are expected to grow significantly, indicating potential growth in technology investments.

Negative Factors

Farm Equipment Industry Challenges

The farm equipment industry is experiencing a prolonged downturn, with high inventory levels posing challenges for CNH.

Tariff-Related Headwinds

Tariff-related headwinds are expected to show up in the second half of 2025, impacting CNH's financial performance.

Tariffs and Agriculture Downturn

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: 12.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 12.76 is above the 20-day moving average (MA) of 12.55, above the 50-day MA of 12.04, and above the 200-day MA of 11.44, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 55.22 is Neutral, neither overbought nor oversold. The STOCH value of 15.40 is Positive, 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
PCAR	77 Outperform	$48.95B	14.14	19.90%	1.32%	-8.64%	-31.57%
OSK	76 Outperform	$6.29B	10.44	15.24%	1.93%	5.95%	-10.59%
DE	75 Outperform	$138.44B	24.67	24.07%	1.21%	-22.25%	-37.83%
CAT	73 Outperform	$161.50B	16.73	55.67%	1.64%	-5.58%	-7.37%
CNH	66 Neutral	$15.94B	15.36	13.26%	3.68%	-21.99%	-52.11%
Sector *	65 Neutral	$4.41B	12.06	5.22%	249.80%	4.09%	-12.16%
AGCO	55 Neutral	$7.49B	46.40	-13.60%	1.15%	-23.02%	-152.78%

CNH Industrial Corporate Events

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.

CNH Industrial Unveils New Strategic Business Plan

On May 8, 2025, CNH Industrial hosted its 2025 Investor Day from the New York Stock Exchange, led by Chairperson Suzanne Heywood and CEO Gerrit Marx. The event, which was also webcast, aimed to update investors on the company’s business strategy, operations, and major projects, highlighting a new strategic business plan designed to enhance product leadership and expand margins.

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.

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.