CNH Industrial (CNH) AI Stock Analysis

• Market Cap: $13.76B
• Dividend Yield: 2.28%
• Average Volume (3M): 11.85M
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.94
• Revenue Growth: -21.70%
• EPS Growth: -57.68%
• Country: US
• Employees: 35,850
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.17
• Shares Outstanding: 1,250,820,100
• 10 Day Avg. Volume: 13,561,943
• 30 Day Avg. Volume: 11,845,179
• PEG Ratio: -0.27
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 18.17
• Enterprise Value/Market Cap: 2.97
• Enterprise Value/Revenue: 2.26
• Enterprise Value/Gross Profit: 6.99
• Enterprise Value/Ebitda: 12.86
• 1Y Price Target: $14.08
• Price Target Upside: 29.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 56 Neutral
• Price Target: $12.50 ▲(15.00% 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

Cash Flow Generation

CNH Industrial's robust cash flow generation enhances its ability to invest in growth opportunities and manage financial obligations, supporting long-term stability.

Technology Integration

Partnership with Starlink enhances machine connectivity, improving productivity and operational efficiency, which strengthens CNH's competitive edge.

Inventory Management

Effective inventory management aligns production with demand, reducing costs and improving cash flow, which supports sustainable business operations.

Negative Factors

Revenue Decline

Significant revenue decline indicates challenges in market demand and sales execution, potentially impacting future growth and profitability.

High Leverage

High leverage increases financial risk, limiting flexibility in downturns and potentially affecting the company's ability to invest in growth.

Tariffs and Trade Uncertainties

Tariff costs and trade uncertainties can elevate operational expenses and disrupt supply chains, posing risks to cost structure and market strategy.

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 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

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

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

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.

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	14.78B
Gross Profit	5.85B	6.49B	7.85B	6.97B	5.40B	4.56B
EBITDA	3.18B	3.67B	4.58B	3.88B	2.98B	1.37B
Net Income	823.00M	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	3.87B	5.04B	5.13B	5.84B	9.63B
Total Debt	27.69B	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	7.71B	7.65B	8.03B	6.93B	6.78B	4.91B
Cash Flow
Free Cash Flow	2.13B	782.00M	-288.00M	-442.00M	3.16B	4.68B
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: 10.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 10.87 is below the 20-day moving average (MA) of 11.23, below the 50-day MA of 12.05, and below the 200-day MA of 12.19, indicating a bearish trend. The MACD of -0.34 indicates Negative momentum. The RSI at 32.84 is Neutral, neither overbought nor oversold. The STOCH value of 28.04 is Neutral, 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
OSK	78 Outperform	8.26B	13.20	14.60%	1.54%	0.41%	-3.90%
PCAR	74 Outperform	50.88B	16.75	16.22%	4.12%	-11.92%	-38.21%
CAT	66 Neutral	220.09B	23.96	50.57%	1.22%	-4.87%	-10.47%
DE	63 Neutral	126.77B	24.66	20.68%	1.35%	-20.63%	-34.82%
AGCO	62 Neutral	8.00B	82.44	2.39%	1.42%	-24.27%	-76.31%
CNH	56 Neutral	$13.76B	16.74	10.79%	2.28%	-21.70%	-57.68%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.