CNH Industrial N.V. (CNH) Stock Analysis
CNH Industrial N.V. (CNH) Stock Analysis
Analysis from 10-Q filed 2025-11-07. Data as of Q4 2025.
Overall Grade: F (Concerning)
CNH Industrial N.V. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 22.3% | Above industry average |
| FCF Margin | 14.0% | Healthy cash flow |
Investment Thesis: Strong return on invested capital of 22.3% suggests durable competitive advantages and efficient capital allocation.
Explore CNH Industrial N.V.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: CNH Industrial N.V. earns 22.3% ROIC, Top 10% in Industrials
CNH Industrial N.V.'s trailing-twelve-month ROIC of 22.3% ranks Top 10% in Industrials companies (sector median: 7.4%), driven by NOPAT margin of 8.9% combined with asset turnover of 0.4x. Source: 10-Q filed 2025-11-07. Gross margin of 31.5% with operating margin at 15.5% reflects a competitive pricing environment.
| Metric | CNH | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 22.3% | Excellent | Above sector median of 7.4% |
| Gross Margin | 31.5% | Good | Competitive pricing environment |
| Operating Margin | 15.5% | Good | Efficient operations |
Cash Flow: CNH Industrial N.V. generates $2.5B FCF at 14.0% margin, positive NaN/8 quarters
CNH Industrial N.V. generated $2.5B in free cash flow (TTM), a 14.0% FCF margin, a margin that ranks Top 25% in Industrials. Operating cash flow exceeds net income by 5.0x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-07.
| Metric | CNH | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 14.0% | Good | Healthy cash generation |
| Free Cash Flow (TTM) | $2.5B | Good | Positive cash generation |
| OCF/Net Income | 5.0x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet Analysis for CNH Industrial N.V.
Source: 10-Q filed 2025-11-07.
Valuation: CNH Industrial N.V. trades at 23.1x earnings
CNH Industrial N.V. trades at a P/E of 23.1x. Free cash flow yield of 22.1% offers attractive cash returns relative to price.
| Metric | CNH | Rating | Context |
|---|---|---|---|
| P/E Ratio | 23.1x | Adequate | Premium valuation |
| EV/Sales | 0.5x | Excellent | Attractive revenue multiple |
| FCF Yield | 22.1% | Excellent | Attractive cash return |
| Dividend Yield | 2.7% | Adequate | Growth focus over income |
Capital Allocation: CNH Industrial N.V. returns 2.7% shareholder yield
CNH Industrial N.V.'s total shareholder yield is 2.7% (dividends 2.7% + buybacks). Source: 10-Q filed 2025-11-07.
| Metric | CNH | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 2.7% | Adequate | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $333.0M | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 22.3% | Top 10% | 3.0x above |
| Free Cash Flow Margin | 14.0% | Top 25% | 3.1x above |
| Gross Margin | 31.5% | Bottom 50% | 1.0x below |
| Operating Margin | 15.5% | Top 25% | 2.0x above |
| P/E Ratio | 23.1x | N/A | - |
Financial Scorecard
| Metric | CNH | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 22.3% | Excellent | Top 10% of sector (median: 7.4%) |
| Free Cash Flow Margin | 14.0% | Good | Top 25% of sector (median: 4.6%) |
| Gross Margin | 31.5% | Good | Bottom 50% of sector (median: 33.1%) |
| P/E Ratio (Price-to-Earnings) | 23.1x | Adequate | Fair value |
| Free Cash Flow Yield | 22.1% | Excellent | High cash return |
Frequently Asked Questions
Q: What is CNH Industrial N.V.'s Return on Invested Capital (ROIC)?
CNH Industrial N.V. (CNH) has a trailing twelve-month Return on Invested Capital (ROIC) of 22.3%. This compares above the sector median of 7.4%. An ROIC above 20% indicates exceptional capital efficiency and strong competitive advantages.
Q: What is CNH Industrial N.V.'s Free Cash Flow Margin?
CNH Industrial N.V. (CNH) has a free cash flow margin of 14.0%, generating $2.5 billion in free cash flow over the trailing twelve months. A FCF margin between 10-20% represents healthy cash generation for most industries.
Q: Is CNH Industrial N.V. stock overvalued or undervalued?
CNH Industrial N.V. (CNH) trades at a P/E ratio of 23.1x, which is above the sector median of N/A. The EV/Sales multiple is 0.5x. Free cash flow yield is 22.1%, which represents an attractive cash return to investors.
Q: Does CNH Industrial N.V. pay a dividend?
CNH Industrial N.V. (CNH) currently pays a dividend yield of 2.7%. Including share buybacks, the total shareholder yield is 2.7%. This yield is moderate, suggesting a balance between income and growth reinvestment.
Q: What is CNH Industrial N.V.'s revenue and earnings growth?
CNH Industrial N.V. (CNH) declined revenue by 8.8% year-over-year. Earnings per share decreased by 59.6% compared to the prior year. Revenue decline may indicate market challenges or industry headwinds.
Q: How does CNH Industrial N.V. compare to competitors in Industrials?
Compared to other companies in Industrials, CNH Industrial N.V. (CNH) shows: ROIC of 22.3% is above the sector median of 7.4% (Top 9%). FCF margin of 14.0% exceeds the sector median of 4.6% (Top 17% of sector). Gross margin at 31.5% is 1.5 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.
Q: What warning signs should I watch for with CNH Industrial N.V.?
Investors in CNH Industrial N.V. (CNH) should monitor these potential warning signs: 1) ROIC has been declining, potentially signaling deteriorating competitive position. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-07. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.