Whirlpool (WHR) AI Stock Analysis

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Whirlpool

(NYSE:WHR)

Rating:51Neutral

Price Target:―

Whirlpool's overall stock score reflects challenges in financial performance, particularly declining sales and high leverage. The technical analysis indicates a bearish trend, while the valuation suggests overvaluation despite an attractive dividend yield. The recent earnings call provided some positive outlooks with improvements in EBIT margins and strategic initiatives, but ongoing competitive and economic challenges temper the overall score.

Positive Factors

Debt Management

WHR plans to pay down $700M of debt and refinance $1.1B-$1.2B, expecting to reduce net debt leverage.

Market Share and Product Launch

WHR expects to gain market share in North America in 2025, led by a strong set of new products, turning over approximately 30% of its product portfolio.

Tariffs and Manufacturing

WHR manufactures roughly 80% of its U.S. product domestically, minimizing potential tariff impacts compared to competitors with larger overseas manufacturing bases.

Negative Factors

Financial Performance

4Q adjusted EBIT miss driven by weaker sales/margin.

Guidance and Expectations

2025 consolidated guidance for revenues and adjusted EBIT margin is below expectations.

North America EBIT Margin

1Q25 North America EBIT margin was well below forecast at 6.2%, attributed to weaker consumer confidence and competitive headwinds.

Whirlpool (WHR) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$4.32B

Dividend Yield9.01%

Average Volume (3M)1.25M

Price to Earnings (P/E)575.8

Beta (1Y)0.87

Revenue Growth-18.43%

EPS Growth-97.97%

CountryUS

Employees44,000

SectorConsumer Cyclical

Sector Strength76

IndustryFurnishings, Fixtures & Appliances

Share Statistics

EPS (TTM)1.70

Shares Outstanding55,610,092

10 Day Avg. Volume1,169,169

30 Day Avg. Volume1,251,774

Financial Highlights & Ratios

PEG Ratio7.02

Price to Book (P/B)1.68

Price to Sales (P/S)0.00

P/FCF Ratio7.48

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$83.00

Price Target Upside7.40% Upside

Rating ConsensusHold

Number of Analyst Covering6

Whirlpool Business Overview & Revenue Model

Company DescriptionWhirlpool Corporation manufactures and markets home appliances and related products. It operates through four segments: North America; Europe, Middle East and Africa; Latin America; and Asia. The company's principal products include refrigerators, freezers, ice makers, and refrigerator water filters; laundry appliances and related laundry accessories; cooking and other small domestic appliances; and dishwasher appliances and related accessories, as well as mixers. It markets and distributes its products primarily under the Whirlpool, Maytag, KitchenAid, JennAir, Amana, Roper, Affresh, Gladiator, Swash, everydrop, Speed Queen, Hotpoint, Bauknecht, Indesit, Ignis, Privileg, Consul, Eslabon de Lujo, Brastemp, Acros, Ariston, Diqua, and Royalstar brands. The company sells its products to retailers, distributors, dealers, builders, and other manufacturers, as well as directly to consumers. Whirlpool Corporation was founded in 1911 and is headquartered in Benton Harbor, Michigan.

How the Company Makes MoneyWhirlpool makes money primarily through the design, manufacture, and sale of home appliances. The company's revenue streams are mainly derived from the sale of its diverse product portfolio across various geographies. Whirlpool's products are sold through a network of retailers, distributors, and directly to consumers. The company also earns revenue from after-sales services, including repair and maintenance. Key partnerships with retailers and suppliers contribute to its earnings by ensuring wide distribution and efficient production. Whirlpool's global presence allows it to capitalize on economies of scale, enhancing its profitability across different markets.

Whirlpool Financial Statement Overview

Summary

Whirlpool's financial performance is challenged by declining sales and negative net income, reflected in a low income statement score. The balance sheet shows high leverage, posing potential risks with a high debt-to-equity ratio. However, cash flow improvements are a positive sign, indicating efficient cash management despite operational challenges.

Income Statement

Neutral

Whirlpool's TTM revenue of $15.7 billion shows a decline from the previous year's $16.6 billion, indicating a negative growth trend. The gross profit margin is approximately 16.14%, and the net profit margin is -0.41%, highlighting profitability challenges. EBIT margin stands at 3.53%, while the EBITDA margin is healthier at 7.55%. The negative net income in TTM suggests ongoing operational challenges.

Balance Sheet

Neutral

The debt-to-equity ratio is significantly high at 3.12, pointing to substantial leverage risk. ROE is negative due to the negative net income, indicating poor returns on shareholder equity. The equity ratio is 15.57%, suggesting lower financial stability and a higher reliance on debt financing.

Cash Flow

Positive

The free cash flow shows a substantial increase from $384 million to $1.37 billion, reflecting a positive trend. The operating cash flow to net income ratio is strong at -26.26, indicating good cash-generating capability despite negative net income. The free cash flow to net income ratio is also robust at -21.11, suggesting efficient cash management.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
15.74B	16.61B	19.45B	19.72B	21.98B	19.46B
	Gross Profit
2.54B	2.58B	3.17B	3.07B	4.41B	3.85B
	EBIT
556.00M	143.00M	1.01B	1.24B	2.35B	1.62B
	EBITDA
1.29B	503.00M	1.30B	-562.00M	3.00B	2.45B
	Net Income Common Stockholders
6.00M	-323.00M	481.00M	-1.49B	1.78B	1.07B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.02B	1.27B	1.57B	1.96B	3.04B	2.92B
	Total Assets
16.52B	16.30B	17.31B	17.12B	20.29B	20.35B
	Total Debt
8.02B	7.34B	7.84B	8.20B	6.03B	6.21B
	Net Debt
7.00B	6.06B	6.27B	6.24B	2.99B	3.28B
	Total Liabilities
13.69B	13.37B	14.78B	14.62B	15.27B	15.64B
	Stockholders Equity
2.57B	2.68B	2.36B	2.34B	4.85B	3.80B
Cash Flow		Free Cash Flow
579.00M	384.00M	366.00M	820.00M	1.65B	1.09B
	Operating Cash Flow
987.00M	835.00M	915.00M	1.39B	2.18B	1.50B
	Investing Cash Flow
-559.00M	-602.00M	-553.00M	-3.57B	-660.00M	-237.00M
	Financing Cash Flow
-791.00M	-476.00M	-792.00M	1.21B	-1.34B	-253.00M

Whirlpool Technical Analysis

Technical Analysis Sentiment

Negative

Last Price77.28

Price Trends

50DMA

81.86

Negative

100DMA

93.77

Negative

200DMA

97.22

Negative

Market Momentum

MACD

-0.40

Negative

RSI

42.40

Neutral

STOCH

9.53

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WHR, the sentiment is Negative. The current price of 77.28 is below the 20-day moving average (MA) of 78.22, below the 50-day MA of 81.86, and below the 200-day MA of 97.22, indicating a bearish trend. The MACD of -0.40 indicates Negative momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 9.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WHR.

Whirlpool Risk Analysis

Whirlpool disclosed 25 risk factors in its most recent earnings report. Whirlpool reported the most risks in the “Legal & Regulatory” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 2 New Risks

Failure to maintain our credit ratings could increase our cost of borrowing and could adversely affect our cost of funds, liquidity, competitive position and access to capital markets. Q4, 2024

Changes in foreign trade policies and other factors beyond our control may adversely impact our business and financial performance. Q4, 2024

Whirlpool Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBB	74 Outperform	$245.40M	7.32	21.86%	2.57%	5.46%	18.70%
LZB	72 Outperform	$1.74B	14.45	12.40%	1.99%	1.81%	8.09%
AMWD	70 Outperform	$841.72M	8.78	11.09%	―	-6.02%	-10.65%
MHK	66 Neutral	$6.32B	13.22	6.26%	―	-2.95%	―
Sector *	62 Neutral	$6.84B	11.22	2.83%	3.93%	2.65%	-21.93%
MBC	58 Neutral	$1.24B	12.60	8.02%	―	1.30%	-44.70%
WHR	51 Neutral	$4.32B	575.78	0.37%	9.01%	-18.43%	-97.97%

* Consumer Cyclical Sector Average

Performance Comparison

WHR

Whirlpool

77.28

-3.31

-4.11%

AMWD

American Woodmark

56.74

-32.30

-36.28%

LZB

La-Z-Boy Incorporated

41.98

6.84

19.46%

MHK

Mohawk

101.10

-15.33

-13.17%

HBB

Hamilton Beach Brands Holding Company

17.78

-0.46

-2.52%

MBC

MasterBrand Inc

9.80

-6.45

-39.69%

Whirlpool Earnings Call Summary

Earnings Call Date:Apr 23, 2025

(Q1-2025)

% Change Since: 1.54%|

Next Earnings Date:Jul 28, 2025

Earnings Call Sentiment Neutral

Whirlpool's first quarter performance was solid with growth in key segments and strong cash flow improvement. However, challenges from increased Asian imports and economic uncertainty in North America present significant headwinds. The company expects to leverage tariff policy changes and new product innovations for future growth.

Q1-2025 Updates

Positive Updates

Solid First Quarter Performance

Whirlpool achieved 2% organic net sales growth and expanded global EBIT margins by 160 basis points year over year. Free cash flow improved by approximately $200 million versus the prior year.

Strong Performance in MDA Asia

MDA Asia realized net sales growth of 16% year over year, excluding currency, with a 7% EBIT margin in the quarter and 240 basis points of margin expansion.

SDA Global Business Momentum

The SDA global segment achieved significant net sales growth of 10% year over year, with a strong EBIT margin of 18.5% in the quarter.

New Product Launches

Whirlpool introduced several innovative products, including the KitchenAid induction cooktop and JennAir built-in wall oven, contributing to positive market responses and potential future margin expansion.

Tariff Policy Advantages

Whirlpool stands to benefit as a net winner from new tariffs due to its strong US production base, producing 80% of domestic sales in the US.

Negative Updates

Challenges from Asian Competitor Imports

Asian appliance producers significantly increased imports into the US ahead of tariffs, affecting Whirlpool's market dynamics and presenting ongoing challenges.

Consumer Confidence Decline in North America

Consumer confidence declined sharply throughout the first quarter due to economic uncertainty and anticipated tariffs, impacting discretionary demand.

Brazilian Real Depreciation Impact

The depreciation of the Brazilian real resulted in an unfavorable margin impact of 50 basis points.

Tariff Cost Headwinds

Whirlpool faces a 250 basis point impact from incremental tariff changes, requiring mitigation through pricing actions and supply chain adjustments.

Company Guidance

During the first quarter of 2025, Whirlpool Corporation reported a 2% organic net sales growth and achieved nearly 6% EBIT margins, despite challenging macroeconomic conditions. The company reiterated its annual guidance and confirmed its dividend payout, maintaining it at $1.75 for both Q1 and Q2. Whirlpool's global EBIT margins expanded by 160 basis points year over year, influenced by pricing actions and cost efficiencies, with a notable $17 million negative impact from its minority stake in Becker Europe BV offset by a $30 million interest rate swap benefit. Free cash flow improved by approximately $200 million compared to the previous year, largely due to the Europe transaction. Whirlpool forecasts a more stable competitive landscape in the second half of the year, leveraging its strong domestic production amid newly announced tariffs, and anticipates accomplishing full-year ongoing margin guidance. The company expects organic growth of approximately 3% to $15.8 billion in net sales for 2025, with ongoing EBIT margins projected to expand by 100 basis points to 6.8%.

Whirlpool Corporate Events

Executive/Board ChangesShareholder Meetings

Whirlpool Approves Key Decisions at Annual Meeting

Neutral

Apr 16, 2025

On April 15, 2025, Whirlpool Corporation held its annual stockholders meeting where several key decisions were made. The stockholders approved an amendment to the 2023 Omnibus Stock and Incentive Plan, increasing the shares available by 3,277,000. Additionally, the election of board members for terms expiring in 2026 was confirmed, executive compensation was approved on an advisory basis, and Ernst & Young LLP was ratified as the independent accounting firm for 2025. These decisions reflect the company’s strategic focus on incentivizing growth and ensuring robust governance.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.