CNH Industrial (CNH) AI Stock Analysis

• Market Cap: $16.19B
• Dividend Yield: 1.97%
• Average Volume (3M): 21.87M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.97
• Revenue Growth: -21.99%
• EPS Growth: -52.11%
• Country: US
• Employees: 35,850
• Sector: Industrials
• Sector Strength: 90
• Industry: Agricultural - Machinery
• EPS (TTM): 0.10
• Shares Outstanding: 1,249,431,600
• 10 Day Avg. Volume: 24,480,484
• 30 Day Avg. Volume: 21,870,454
• PEG Ratio: -0.74
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.24
• Enterprise Value/Market Cap: 2.53
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 6.68
• Enterprise Value/Ebitda: 2.69
• 1Y Price Target: $14.68
• Price Target Upside: 15.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 66 Neutral
• Price Target: $14.50 ▲(14.53%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

Management Strategy

Meetings bolstered conviction in CNH's ability to improve not only operating performance but the market's perception of the stock.

Product Innovation

Product quality improvements and innovation put the company on track to regain its solid footing as a credible number two player for farmers across geographies.

Strategic Initiatives

CNH's balanced geographic exposure positions it well to benefit from an anticipated Europe and South America agricultural recovery.

Negative Factors

Financial Performance

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

Market Conditions

The agricultural equipment downturn has caused a drop in production hours, impacting CNH's Ag margin forecasts.

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 wide range of agricultural and construction equipment, commercial vehicles, and powertrain solutions. The company's key revenue streams include the sale of new equipment, aftermarket parts and services, financial services related to equipment financing, and leasing solutions. CNH Industrial also benefits from strategic partnerships and joint ventures that enhance its market reach and product offerings. Additionally, the company invests in technological advancements and sustainable practices to maintain competitive advantage and meet evolving customer demands, which further contribute to its profitability.

CNH Industrial Financial Statement Overview

Summary

CNH demonstrates solid profitability with robust margins and effective equity utilization. However, high leverage and fluctuating cash flows pose potential risks. The company needs to focus on stabilizing revenue and cash flow growth while managing leverage more effectively.

Income Statement

CNH's income statement shows robust gross profit and EBIT margins, with the TTM (Trailing-Twelve-Months) gross profit margin at approximately 32.5% and EBIT margin at 18.9%. However, the company experienced a decline in revenue and net income compared to the previous annual report, indicating a need for growth stabilization.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of approximately 3.35, indicating leverage concerns. However, the company's return on equity (ROE) is strong at around 13.3%, suggesting effective use of equity. The equity ratio is low at about 18.6%, highlighting potential risks related to financial structure.

Cash Flow

Cash flow analysis reveals a positive free cash flow of $1.78 billion in the TTM, with a strong operating cash flow to net income ratio of about 2.9. However, free cash flow growth has been inconsistent, with significant swings year-over-year, indicating stability concerns.

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
EBITDA	3.67B	4.58B	3.88B	2.98B	1.37B
Net Income	1.25B	2.27B	2.03B	1.72B	-493.00M
Balance Sheet
Total Assets	42.93B	46.27B	39.38B	49.42B	48.72B
Cash, Cash Equivalents and Short-Term Investments	3.19B	4.32B	5.13B	5.84B	9.63B
Total Debt	27.16B	27.63B	23.19B	21.09B	26.51B
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: Neutral
• Last Price: 12.66
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 12.66 is below the 20-day moving average (MA) of 13.20, below the 50-day MA of 12.98, and above the 200-day MA of 11.99, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 40.87 is Neutral, neither overbought nor oversold. The STOCH value of 9.74 is Positive, 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
PCAR	78 Outperform	$49.18B	14.21	19.90%	4.59%	-8.64%	-31.57%
OSK	77 Outperform	$7.94B	13.18	15.24%	1.57%	5.95%	-10.59%
CAT	70 Outperform	$194.57B	20.16	55.67%	1.73%	-5.58%	-7.37%
DE	70 Outperform	$135.36B	24.18	24.07%	1.28%	-22.26%	-37.83%
CNH	66 Neutral	$16.19B	15.60	13.26%	1.97%	-21.99%	-52.11%
Sector *	59 Neutral	AU$1.67B	10.20	11.24%	3.59%	6.75%	3.18%
AGCO	58 Neutral	$7.98B	46.40	-13.60%	3.44%	-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.