One-glance verdict
Overvalued
$-1.38 our estimate vs market $11.27
Wall Street consensus: $14.25 (-1,136.0% lower than our fair-value estimate)
919% below our estimate, beyond the bull case
Fundamentals snapshot
CNH Industrial N.V.
CNH · NYQ · Industrials · Farm & Heavy Construction Machinery
Current price
$11.27
52-week range
$9.00 - $14.46
Market cap
$18.12B
Balance sheet
Distressed
1.89x Concerning
Net debt $24.90B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 0.5% last year.
- Reward Free cash flow was positive in 2/10 years.
- Risk Stock trades 249.1% above its 5-year average P/E.
- Risk Net debt grew 30.0% over 3 years.
What this company does
CNH Industrial N.V.
CNH Industrial makes the heavy equipment you see on farms and construction sites, such as tractors and harvesters from its Case IH and New Holland brands. The company's main income comes from selling this machinery, but it also earns money by providing loans (financial services) to help customers afford these big purchases. Because its sales depend on farmers and builders buying new equipment, CNH's success is closely tied to the overall health of the global agriculture and construction industries.
How the company got here
CNH Industrial has a long history, with roots stretching back to 1842 when Jerome Increase Case founded a threshing machine company in the United States. Another key part of its history began in 1895 when Abe Zimmerman started the New Holland Machine Company. The modern company was formed through a series of mergers, most notably the 1999 combination of Case Corporation and New Holland to create CNH Global. In 2013, CNH Global merged with Fiat Industrial, bringing agricultural and construction equipment together with commercial vehicles and powertrain businesses. A major recent change was the 2022 spin-off of its on-road business, Iveco Group, to focus purely on agricultural and construction machinery.
What it actually does
CNH Industrial makes and sells large machinery for farming and construction. Think of the tractors and combines you see in fields during planting and harvesting seasons, or the excavators and loaders used on construction sites to move earth and materials. The company operates under several brand names, including Case IH and New Holland for its agricultural equipment, and CASE and New Holland for its construction machinery. In addition to selling new equipment, CNH also provides parts, services, and financing (loans and leases to help customers buy their products).
Agriculture
This is CNH's largest and most important business, making up the majority of its revenue. It builds and sells a wide variety of farm equipment, from small tractors for hobby farms to massive combines for large-scale grain harvesting. Farmers and agricultural businesses pay for this machinery to help them plant, manage, and harvest crops more efficiently. This segment also includes a growing focus on 'precision technology' (using GPS and data to farm more accurately), which is becoming a key part of modern farming.
Construction
This part of the company manufactures and sells equipment used in building and infrastructure projects. This includes machines like excavators for digging, wheel loaders for moving materials, and backhoes for a variety of tasks. Customers are typically construction companies, contractors, and government agencies who need this heavy machinery for their projects. While smaller than the agriculture business, it's an important area of focus for the company.
Financial Services
This segment acts like a bank specifically for CNH's customers and dealers. When a farmer or construction company wants to buy a new piece of equipment that can be very expensive, this division offers them financing options like loans or leases to make the purchase possible. It also provides financing to the dealerships that sell CNH's products. This helps the main business sell more machines by making them more affordable for customers.
What management is betting on now
The company's leadership is heavily focused on technology, particularly in the agriculture segment. They are investing in precision agriculture and automation, aiming to create a fully autonomous farming cycle where machines can perform tasks with minimal human intervention. Another key priority is to improve the profitability of the construction business through various efficiencies. Management is also focused on what they call 'organic growth' (growing the business through its own efforts rather than buying other companies) and increasing the amount of cash the company generates from its industrial operations.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$4.80B
Net income
$138.00M
Diluted EPS
0.11
Operating cash flow
$145.00M
Free cash flow
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Revenue
$3.83B
Net income
$7.00M
Diluted EPS
0.01
Operating cash flow
$35.00M
Free cash flow
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Revenue
$5.16B
Net income
$86.00M
Diluted EPS
0.08
Operating cash flow
$945.00M
Free cash flow
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Revenue
$4.40B
Net income
$80.00M
Diluted EPS
0.06
Operating cash flow
$659.00M
Free cash flow
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Revenue
$4.71B
Net income
$213.00M
Diluted EPS
0.17
Operating cash flow
$772.00M
Free cash flow
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Revenue
$3.83B
Net income
$131.00M
Diluted EPS
0.10
Operating cash flow
$162.00M
Free cash flow
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Revenue
$4.88B
Net income
$106.00M
Diluted EPS
0.10
Operating cash flow
$1.69B
Free cash flow
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Revenue
$4.65B
Net income
$306.00M
Diluted EPS
0.24
Operating cash flow
$791.00M
Free cash flow
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Is it cheap or expensive?
Fair value $-1.38 vs current price $11.27
Wall Street consensus is the average analyst price target: $14.25 (-1,136.0% lower than our fair-value estimate).
Our most-likely fair value is $-1.38 a share — about 112.2% below today's price of $11.27, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $24.9B. Interest coverage 1.9x.
Net debt
$24.90B
Interest coverage
1.89x
CNH Industrial N.V.'s profit covers its interest bill about 1.9 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
CNH
BASELINE
CNH Industrial N.V.
Total debt $26.31B Interest coverage 1.89x This is the baseline the peer rows are being compared against.
Total debt $64.58B Interest coverage 2.65x +40% vs CNH Carries about 1.4x more debt cushion than CNH.
Total debt $45.15B Interest coverage 22.21x +1,074% vs CNH Carries about 11.7x more debt cushion than CNH.
Total debt $2.89B Interest coverage 5.68x +200% vs CNH Carries about 3.0x more debt cushion than CNH.
Total debt $14.82B Interest coverage 10.42x +450% vs CNH Carries about 5.5x more debt cushion than CNH.
Total debt $1.10B Interest coverage 8.04x +325% vs CNH Carries about 4.2x more debt cushion than CNH.
What you should know
The case for and against CNH
3 Rewards
3 Risks
Rewards
-
Revenue grew 0.5% last year.
-
Free cash flow was positive in 2/10 years.
-
Dividend yield is 0.9% with 13-year payout history.
Risks
-
Stock trades 249.1% above its 5-year average P/E.
-
Net debt grew 30.0% over 3 years.
-
Operating margin compressed from 17.6% to 5.5% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
45.06x
Forward P/E
16.31x
P/B
1.80x
P/S
1.00x
EV/EBITDA
37.34x
PEG ratio
0.32x
Profitability
How much profit each dollar creates
Gross margin
17.8%
Operating margin
5.5%
Net margin
1.7%
ROE
3.9%
ROA
0.9%
Health
Liquidity and balance-sheet strength
Debt / equity
3.35x
Current ratio
4.88x
Quick ratio
3.95x
Total debt
$26.31B
Total cash
$1.41B
Growth
How the business has been compounding
Revenue TTM
$18.18B
Revenue 5Y CAGR
-1.8%
EPS TTM
0.25
EPS 5Y CAGR
-35.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.78B
Free CF TTM
$1.34B
FCF margin
7.4%
Dividend
Shareholder payout
Yield
0.9%
Payout ratio
40.0%
Last ex-div date
2026-05-21