CNH Industrial (CNH) AI Stock Analysis

• Market Cap: $11.98B
• Dividend Yield: 2.6%
• Average Volume (3M): 14.12M
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.89
• Revenue Growth: -18.10%
• EPS Growth: -65.24%
• Country: US
• Employees: 35,850
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.08
• Shares Outstanding: 1,246,404,700
• 10 Day Avg. Volume: 12,678,855
• 30 Day Avg. Volume: 14,122,094
• 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: 3.19
• Enterprise Value/Revenue: 2.14
• Enterprise Value/Gross Profit: 7.47
• Enterprise Value/Ebitda: 13.46
• 1Y Price Target: $12.46
• Price Target Upside: 29.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 0.48
• Revenue Forecast (FY): $17.78B

• Rating: 55 Neutral
• Price Target: $9.50 ▼(-1.14% Downside)

CNH Industrial's overall stock score reflects a challenging financial and operational environment. The most significant factors are the mixed financial performance with high leverage and declining revenues, and bearish technical indicators. While there are positive aspects such as improved cash flow and strategic initiatives, the current market conditions and valuation suggest caution.

Positive Factors

Cash Flow Improvement

Improved cash generation enhances liquidity and operational flexibility, supporting long-term investments and stability.

Innovation Recognition

Recognition for innovation in AI and technology integration strengthens CNH's competitive edge and product appeal.

EMEA Sales Growth

Growth in EMEA sales indicates strong regional demand and strategic positioning, offsetting challenges in other markets.

Negative Factors

Revenue Decline

Declining revenues reflect market challenges and reduced demand, potentially impacting long-term growth prospects.

High Leverage

High leverage poses financial stability risks, limiting flexibility in adverse market conditions and increasing interest burdens.

North America Market Challenges

Weak demand and inventory destocking in North America could hinder recovery and growth in a key market segment.

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 primarily through the sale of its machinery and equipment across its various segments. The Agricultural Equipment and Construction Equipment divisions are significant contributors, offering a range of products tailored to the needs of farmers and construction companies. The company also earns income through its Commercial Vehicles segment, which includes trucks and buses. Additionally, CNH Industrial has a Financial Services division that provides financing solutions to customers, enhancing sales while generating interest income. Key revenue streams include direct sales of equipment, after-sales parts and services, and financial services. Strategic partnerships with suppliers and collaborations in technological advancements further strengthen its market position and contribute to its earnings.

CNH Industrial Financial Statement Overview

Summary

CNH Industrial's financial performance is mixed. While profitability remains stable, revenue growth is declining. The balance sheet shows high leverage and reduced ROE, but cash flow generation has improved, enhancing liquidity.

Income Statement

CNH Industrial's income statement reveals a mixed performance. The TTM data shows a decline in revenue growth rate, indicating a contraction in sales. However, the company maintains a stable gross profit margin and a positive net profit margin, albeit lower than previous years. The EBIT and EBITDA margins have decreased compared to the previous year, suggesting reduced operational efficiency. Overall, while profitability remains positive, the declining revenue trend is a concern.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which poses a risk in terms of financial stability. The return on equity has decreased in the TTM period, reflecting reduced profitability relative to shareholders' equity. Despite these challenges, the equity ratio remains stable, suggesting a balanced asset structure. The high leverage and declining ROE are key areas of concern.

Cash Flow

The cash flow statement indicates a strong free cash flow growth rate in the TTM period, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is not available, but the free cash flow to net income ratio suggests efficient cash conversion. Despite past fluctuations, the recent improvement in free cash flow is a positive sign for liquidity and operational flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.81B	19.84B	24.69B	23.55B	19.49B	14.78B
Gross Profit	5.11B	6.49B	7.85B	6.97B	5.40B	3.63B
EBITDA	2.83B	3.67B	4.61B	3.88B	2.98B	1.02B
Net Income	597.00M	1.25B	2.27B	2.03B	1.72B	-493.00M
Balance Sheet
Total Assets	43.26B	42.93B	46.27B	39.38B	49.42B	48.72B
Cash, Cash Equivalents and Short-Term Investments	2.96B	3.87B	5.04B	5.13B	5.04B	9.63B
Total Debt	27.41B	27.16B	27.63B	23.19B	31.16B	26.51B
Total Liabilities	35.42B	35.16B	38.12B	32.41B	42.56B	43.69B
Stockholders Equity	7.73B	7.65B	8.03B	6.93B	6.78B	4.91B
Cash Flow
Free Cash Flow	2.48B	782.00M	-288.00M	-442.00M	3.16B	4.68B
Operating Cash Flow	3.29B	1.97B	907.00M	557.00M	4.08B	5.53B
Investing Cash Flow	-2.08B	-2.77B	-3.70B	-3.01B	-5.00B	-2.75B
Financing Cash Flow	-705.00M	-67.00M	2.60B	1.96B	-1.45B	659.00M

CNH Industrial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.61
• 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 9.61 is above the 20-day moving average (MA) of 9.54, below the 50-day MA of 9.98, and below the 200-day MA of 11.65, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 48.13 is Neutral, neither overbought nor oversold. The STOCH value of 49.41 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
CAT	76 Outperform	$269.66B	29.57	46.30%	0.98%	-1.51%	-9.69%
PCAR	74 Outperform	$58.60B	21.84	14.15%	3.83%	-15.29%	-42.93%
OSK	71 Outperform	$8.25B	12.71	15.42%	1.56%	-2.28%	-0.53%
DE	66 Neutral	$127.26B	25.43	20.61%	1.34%	-11.66%	-27.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AGCO	59 Neutral	$7.89B	21.07	8.69%	1.10%	-20.09%	121.28%
CNH	55 Neutral	$11.98B	20.15	7.77%	2.60%	-18.10%	-65.24%

CNH Industrial Corporate Events

CNH Industrial Reports Q3 2025 Revenue Decline

On November 7, 2025, CNH Industrial reported its third-quarter results for 2025, showing a decline in consolidated revenues to $4.4 billion, a 5% decrease from the previous year, amid decreased industry demand and channel destocking. The company experienced a significant drop in net income to $67 million, compared to $310 million in Q3 2024, and adjusted EBIT of Industrial Activities fell by 69%. Despite these challenges, CNH Industrial is taking steps to navigate near-term headwinds by maintaining disciplined production levels and investing in technology, with a focus on achieving long-term strategic targets.