CNH Industrial (CNH) AI Stock Analysis

• Market Cap: $15.30B
• Dividend Yield: 2.67%
• Average Volume (3M): 13.27M
• Price to Earnings (P/E): 30.2
• 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): 0.19
• Shares Outstanding: 1,240,946,500
• 10 Day Avg. Volume: 14,913,147
• 30 Day Avg. Volume: 13,273,816
• PEG Ratio: -0.39
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 5.77
• Enterprise Value/Market Cap: 2.55
• Enterprise Value/Revenue: 2.15
• Enterprise Value/Gross Profit: 6.83
• Enterprise Value/Ebitda: 14.09
• 1Y Price Target: $13.36
• Price Target Upside: 8.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 0.43
• Revenue Forecast (FY): $17.94B

• Rating: 59 Neutral
• Price Target: $13.50 ▲(9.49% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by weakening profitability and cautious 2026 guidance (flat-to-down sales and lower margin outlook), partially offset by supportive operating/free cash flow and currently strong price momentum. Valuation also limits upside given the relatively high P/E versus the recent earnings compression.

Positive Factors

Supportive cash generation

CNH generated meaningful operating and free cash flow in 2025, giving management flexibility in a cyclical trough. Durable positive cash generation supports targeted capex, cost-savings programs, selective innovation and working-capital management through industry downcycles, reducing reliance on external funding.

Large financial services platform

A sizable Financial Services business supplies recurring interest income and financing that supports equipment sales and customer retention. Its managed portfolio and originations smooth revenue cyclicality, strengthen dealer relationships and enhance total lifetime value of equipment customers over multi-year cycles.

Product, tech pipeline and sustainability progress

CNH’s sustained product and precision-technology roadmap plus top sustainability rankings build structural competitive advantage. New launches and digital precision offerings increase aftermarket and recurring revenue potential while ESG recognition can widen OEM access to customers and capital over the medium term.

Negative Factors

Rising tariff headwinds

Escalating tariffs materially erode gross margins and pricing flexibility across key product lines. These structural policy-driven cost increases are outside company control, compress segment profitability and complicate sourcing and market positioning, making margin recovery harder even as volumes recover.

Compressed profitability and weak margin guidance

Profitability has declined sharply from earlier years and management’s guidance points to persistently low industrial margins. Sustained low margins constrain reinvestment, limit ability to accelerate R&D or dealer initiatives and reduce buffer to absorb cyclical downturns or unexpected cost shocks.

Balance-sheet reporting uncertainty and past high leverage

Historical high leverage increases refinancing and covenant risk in a cyclical capital-goods business. The 2025 reporting discontinuity on debt creates uncertainty about true liquidity and leverage, complicating credit assessment and long-term planning for capex, M&A or sustained shareholder returns.

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

Cash generation is supportive (2025 operating cash flow $2.54B and free cash flow $2.00B), but profitability has weakened materially with net margin falling to ~2.8% in 2025 and net income dropping to $0.51B. Balance-sheet risk/uncertainty also weighs on confidence given historically high leverage (2020–2024) and a major 2025 debt discontinuity in the provided data.

Income Statement

Revenue has been volatile, with a sharp decline in 2024 (-19.7%) and a further drop in 2025 (to $18.1B), despite still showing positive year-over-year growth in 2025 based on the provided growth field. Profitability also weakened materially: net margin fell from ~9.2% (2023) and ~6.3% (2024) to ~2.8% (2025), and net income declined to $0.51B from $1.25B in 2024 and $2.28B in 2023. A key limitation is that several 2025 operating profit fields (gross profit/EBIT/EBITDA) are recorded as zero, which reduces visibility into operating performance and keeps the score from being higher.

Balance Sheet

Leverage has historically been high, with debt-to-equity around ~3.3–5.4x from 2020–2024, which increases risk in a cyclical machinery business. Returns on equity were strong in 2021–2023 and still solid in 2024 (~16%), but moderated in 2025 (~6.5%) alongside the profit decline. 2025 shows total debt as zero (with debt-to-equity also 0.0x), which is a major discontinuity versus prior years and may reflect missing/changed reporting rather than a true deleveraging—this uncertainty weighs on the balance sheet score despite stable equity (~$7.8B) and assets (~$42.7B).

Cash Flow

Cash generation is generally supportive: operating cash flow improved to $2.54B in 2025 (from $1.97B in 2024), and free cash flow was positive at $2.00B in 2025. However, free cash flow has been choppy—negative in 2022 and 2023, modest in 2024 ($0.78B), and then stronger in 2025, with 2025 free cash flow down ~19.6% versus the prior period per the provided growth figure. Cash conversion versus earnings is mixed (free cash flow to net income ~0.79x in 2025, ~0.40x in 2024, negative in 2022–2023), indicating working-capital/capex swings can materially impact cash results.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.09B	19.84B	24.69B	23.55B	19.49B
Gross Profit	5.71B	6.49B	7.85B	6.97B	5.40B
EBITDA	2.80B	3.67B	4.61B	3.88B	2.98B
Net Income	510.00M	1.25B	2.27B	2.03B	1.72B
Balance Sheet
Total Assets	42.75B	42.93B	46.27B	39.38B	49.42B
Cash, Cash Equivalents and Short-Term Investments	3.23B	3.19B	4.32B	4.38B	5.04B
Total Debt	27.03B	27.16B	27.63B	23.19B	31.16B
Total Liabilities	34.92B	35.16B	38.12B	32.41B	42.56B
Stockholders Equity	7.73B	7.65B	8.03B	6.93B	6.78B
Cash Flow
Free Cash Flow	2.00B	782.00M	-288.00M	-442.00M	3.16B
Operating Cash Flow	2.54B	1.97B	907.00M	557.00M	4.08B
Investing Cash Flow	-1.38B	-2.77B	-3.70B	-3.01B	-5.00B
Financing Cash Flow	-2.02B	-67.00M	2.60B	1.96B	-1.45B

CNH Industrial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNH, the sentiment is Neutral. The current price of 12.33 is above the 20-day moving average (MA) of 12.31, above the 50-day MA of 11.00, and above the 200-day MA of 11.45, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 55.82 is Neutral, neither overbought nor oversold. The STOCH value of 24.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CNH.

CNH Industrial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAT	75 Outperform	$350.04B	39.49	43.54%	0.98%	-1.51%	-9.69%
DE	73 Outperform	$170.41B	35.50	19.74%	1.34%	-11.66%	-27.80%
OSK	73 Outperform	$10.77B	16.96	14.90%	1.56%	-2.28%	-0.53%
PCAR	72 Outperform	$65.44B	27.96	12.92%	3.83%	-15.29%	-42.93%
AGCO	64 Neutral	$9.92B	13.98	18.13%	1.10%	-20.09%	121.28%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CNH	59 Neutral	$15.30B	30.17	6.63%	2.67%	-18.10%	-65.24%

CNH Industrial Corporate Events

CNH Industrial Reports Mixed Q4 2025 Results Amid Downturn

On February 17, 2026, CNH Industrial reported fourth-quarter 2025 net income of $89 million, down from $176 million a year earlier, on consolidated revenues of $5.16 billion, up 6% year-on-year, with Industrial Activities net sales rising 8% to $4.45 billion. Adjusted EBIT of Industrial Activities increased 21% to $234 million and adjusted net income rose to $246 million, reflecting margin improvement despite non-cash impairment charges linked to past acquisitions and minority investments.

For full year 2025, consolidated revenues declined 9% to $18.10 billion and net income fell to $505 million from $1.26 billion in 2024, while adjusted net income dropped to $703 million and adjusted diluted EPS to $0.55. Management highlighted persistent weakness in global agricultural equipment demand and an “industry trough” environment, noting that CNH is cutting dealer inventories, tightening production planning, and investing selectively in innovation as it prepares for lower demand in 2026 and an anticipated market recovery from 2027, moves that are critical for dealers, suppliers, and shareholders navigating a cyclical downturn.

Within agriculture, quarterly net sales rose 5% to $3.6 billion, supported by price realization and favorable foreign exchange, even as tractor and combine volumes declined in key markets such as North and South America. Segment adjusted EBIT slipped 5% to $233 million and margins contracted to 6.5% amid tariffs, weaker joint venture contributions, and an unfavorable geographic mix, underscoring pressure on profitability in CNH’s core farm equipment business despite cost and R&D discipline.

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.