CNH Industrial N.V. [NYSE:CNHI]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding CNH Industrial N.V. [CNHI], the latest average analyst recommendation we can see is from the quarter closing in December. On average, stock market experts give CNHI an Outperform rating. The average 12-month price forecast for this stock is $12.85, with the high estimate being $18.00, the low estimate being $9.00 and the median estimate amounting to $12.52. This is compared to its latest closing price of $9.49.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for CNH Industrial N.V. [CNHI] is sitting at 2.44. This is compared to 1 month ago, when its average rating was 2.47.
For the quarter ending in Sep-18 CNH Industrial N.V. [CNHI] generated $5.85 billion in sales. That’s 2.65% lower than the average estimate of $6.01 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Tue 29 Jan (In 19 Days).
Fundamental Analysis of CNH Industrial N.V. [CNHI]
Now let’s turn to look at profitability: with a current Operating Margin for CNH Industrial N.V. [CNHI] sitting at +8.00 and its Gross Margin at +20.02, this company’s Net Margin is now 2.60%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 7.29, and its Return on Invested Capital has reached 6.40%. Its Return on Equity is 6.68, and its Return on Assets is 0.63. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates CNHI financial performance.
Turning to investigate this organization’s capital structure, CNH Industrial N.V. [CNHI] has generated a Total Debt to Total Equity ratio of 589.86. Similarly, its Total Debt to Total Capital is 85.50, while its Total Debt to Total Assets stands at 53.64. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 589.86, and its Long-Term Debt to Total Capital is 85.50. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 9.17 and its Total Debt to EBITDA Value is 7.32. The Enterprise Value to Sales for this firm is now 1.10, and its Total Debt to Enterprise Value stands at 0.68. CNH Industrial N.V. [CNHI] has a Price to Book Ratio of 4.16, a Price to Cash Flow Ratio of 9.09 and P/E Ratio of 17.11. These metrics all suggest that CNH Industrial N.V. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, CNH Industrial N.V. [CNHI] earns $431,767 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 48.89 and its Total Asset Turnover is 0.58. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.72 and its Current Ratio is 1.40. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: CNH Industrial N.V. [CNHI] has 1.31B shares outstanding, amounting to a total market cap of $12.64B. Its stock price has been found in the range of 8.41 to 15.65. At its current price, it has moved by -38.38% from its 52-week high, and it has moved 14.63% from its 52-week low.
This stock’s Beta value is currently 1.11, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 54.35. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is CNH Industrial N.V. [CNHI] a Reliable Buy?
Shares of CNH Industrial N.V. [CNHI], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.