CNH Industrial CNH
United KingdomIndustrials · Farm & Heavy Construction MachineryUSD
14.04 USD (+12.7%)
19 analysts
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CNH Industrial is a global manufacturer of agricultural and construction machinery, operating brands such as Case IH, New Holland, and Steyr, selling equipment, parts, and financial services to dealers and end customers.
Key points
from its scores- ✕Fragile balance sheet1.8
- ✕Weak growth2.3
- ✕Demanding valuation2.7
AI analysis
bottom line, main risk, context and newsThe expected earnings improvement is not guaranteed, and high leverage amplifies risk in an interest rate environment that is not supportive.
CNH Industrial has a highly leveraged balance sheet (Net Debt/EBITDA of 23.62) and weak profitability (ROE 3.91%), with earnings growth falling sharply (-35.30%). Despite an attractive forward P/E (18.15), the current valuation (P/E 49.84) and the business's sensitivity to interest rates warrant caution.
The main risk is the extremely high financial leverage (Net Debt/EBITDA of 23.62), which makes the company highly vulnerable to a rising interest rate environment and a cyclical downturn in demand for agricultural and construction machinery.
Context and risks
CNH's agricultural and construction machinery business is sensitive to the economic cycle and interest rates, which affect the financing costs of its customers. The recent rise in long-term US rates and the ECB's tightening could pressure demand for equipment, a risk not reflected in its balance sheet metrics.
Is CNH Industrial stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 130% above the Industrials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 49.8 | 25.4 | +96% |
| EV / EBITDA | 38.3 | 14.5 | +165% |
| Price / book | 2.0 | 4.1 | −51% |
| Price / sales | 1.1 | 2.1 | −46% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 2.7 out of 10 (median for Industrials: 5.0).
Average analyst target: 14.04 USD, +12.7% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 3.1 (sector 5.8), Growth 2.3 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 49.8
- Forward P/E
- 18.2
- EV / EBITDA
- 38.3
- Price / book
- 2.0
- Price / sales
- 1.1
- PEG
- 0.36
- Market cap
- 20.0B USD
- Enterprise value
- 40.4B USD
Profitability
- ROE
- 3.9%
- ROA
- 0.9%
- ROIC (approx.)
- 2.8%
- Gross margin
- 17.8%
- Operating margin
- 5.5%
- Net margin
- 1.7%
- Free cash flow
- 563.1M USD
- FCF yield
- 2.8%
- Cash conversion
- 53%
Solvency
- Total debt
- 26.3B USD
- Net debt
- 24.9B USD
- Cash
- 1.4B USD
- EBITDA
- 1.1B USD
- Net debt / EBITDA
- 23.62
- Debt / equity
- 335.04
- Current ratio
- 4.88
- Quick ratio
- 3.95
Growth
- Revenue growth
- +2.0%
- Earnings growth
- −35.3%
- EPS (TTM)
- 0.25 USD
- EPS (forward)
- 0.69 USD
Dividend
- Dividend yield
- 0.8%
- Payout
- 40.0%
Risk and market
- Beta
- 1.26
- Analyst consensus
- Strong buy (19)
- Target price
- 14.04 USD
- 52-week range
- 9.00 – 14.46
Recent news
All CNH news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about CNH Industrial
Is CNH Industrial stock cheap or expensive?
On P/E and EV / EBITDA, it trades 130% above the Industrials median on average. Valuation score: 2.7 out of 10 (median for Industrials: 5.0). Average analyst target: 14.04 USD, +12.7% versus the price. This is not investment advice.
What score does CNH Industrial get on MeridIAn Screener?
It scores 3.5 out of 10, rank 2,029 of 2,130 (better than 4% of the companies analysed). Its strongest category is Momentum (6.9) and its weakest, Financial health (1.8). Analysis of 08/10/2026.
What is CNH Industrial's P/E ratio?
Its P/E is 49.8: the share price equals 49.8 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 18.2.
How much is CNH Industrial worth on the stock market?
Its market capitalisation is 20.0B USD and its enterprise value, debt included, is 40.4B USD.
How much debt does CNH Industrial have?
Its net debt (debt minus cash) is 24.9B USD. That is 23.62 times its EBITDA; the Industrials median is 1.58.
Does CNH Industrial pay a dividend?
Yes: its dividend yield is 0.80% and it pays out 40% of its earnings.
How has CNH Industrial stock performed over the last year?
It has risen 24.6% over the last year, excluding dividends. Over the last 52 weeks it has traded between 9.00 and 14.46 USD. Past performance does not guarantee future results.
What do analysts think of CNH Industrial?
19 analysts cover it; their average recommendation is “Strong buy” and their average target is 14.04 USD (+12.7% versus the price). It is an estimate, not market data.