CNH Industrial N.V. (CNH) stock analysis

P/E above its 5-year median

CNH Industrial's P/E of 59.5 is above its own 5-year median of 11.5.

P/E above the industry

CNH Industrial's P/E of 59.5 is above the Construction, Mining, and Materials Handling median of 29.1.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/S below the industry

CNH Industrial's price-to-sales of 0.85 is below the Construction, Mining, and Materials Handling median of 0.97 (book value is negative, so we use sales).

Trading above fair value

The share price of $12.49 is above our fair value estimate of $7.29.

Margin of safety under 20%

The price is 71.4% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -8.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -35.0% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 1.8% over the last twelve months; the Construction, Mining, and Materials Handling median is 10.4%.

Guidance lowered

CNH Industrial lowered its 2026 Construction segment adjusted EBIT margin outlook on Aug 3, 2026.

Gross margin slipping

Gross margin was 31.0% over the last twelve months, against 32.2% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 1.4% over the last twelve months, against a 5-year average of 7.2%.

Net margin below the industry

CNH Industrial's net margin of 1.4% is below the Construction, Mining, and Materials Handling median of 2.6%.

No debt

CNH Industrial has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Elevated bankruptcy risk

The Altman Z-score is 1.07; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

CNH Industrial paid dividends worth 0.8% of the share price over the last twelve months.

Yield below Treasuries

The 0.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; CNH Industrial yields 0.8%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 53.6% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.