CNHI Intrinsic Value – CNH INDUSTRIAL N.V Reports 96% Increase in Revenues for Q4 FY2022

March 18, 2023

Earnings Overview

On February 2 2023, CNH INDUSTRIAL N.V ($NYSE:CNHI) released their financial results for the fourth quarter of FY2022, showing a 96.0% year-on-year increase in revenues to USD 592.0 million. Unfortunately, net income for the same period shrank by 23.5%, registering at USD 6943.0 million.

Transcripts Simplified

Net sales for Industrial Activities in Q4 of 2022 were nearly $6.4 billion, up 27% net of FX impacts. For the full year, Industrial Activities had net sales of $21.5 billion, up 21% or 24% at constant currency. Gross margin for the quarter was 21.7% and 22.2% for the full-year, with an adjusted EBIT of $680 million and a margin of 10.7%. Free cash flow from Industrial Activities in 2022 was $1.6 billion.

Adjusted net income for the quarter was $486 million, with adjusted earnings per share of $0.36 and $1.46 for the full-year. Available liquidity as of December 31 was $10.6 billion. A cash dividend of $0.36 per share is planned to be recommended at the Annual General Meeting, totaling $500 million in distribution.

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for CNHI. More…

    Total Revenues Net Income Net Margin
    23.55k 2.03k 8.7%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for CNHI. More…

    Operations Investing Financing
    557 -3.01k 1.96k
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for CNHI. More…

    Total Assets Total Liabilities Book Value Per Share
    39.38k 32.41k 4.72
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for CNHI are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    -5.7% 11.3% 14.5%
    FCF Margin ROE ROA
    -1.9% 32.2% 5.4%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Price History

    This was largely driven by strong sales of agricultural equipment, construction equipment and power systems, as well as a greater focus on digitalization and operational excellence initiatives. The company’s stock opened at $17.7 and closed at $16.3, a drop of 8.8% from its last closing price of $17.9. This was an increase of 9% over the previous year’s quarter. The company is focused on delivering innovative solutions for their customers through digitalization, operational excellence initiatives, and the development of advanced technologies. Despite the strong performance in the fourth quarter of FY2022, the stock of CNH INDUSTRIAL N.V fell 8.8% on Thursday due to other market factors and investor sentiment.

    However, the overall performance of the company has been better than expectations, and investors are expected to remain optimistic about the company’s prospects going forward. Live Quote…

    Analysis – CNHI Intrinsic Value

    We recently conducted an analysis of CNH INDUSTRIAL N.V’s wellbeing. Our proprietary Valuation Line has calculated the intrinsic value of CNH INDUSTRIAL N.V share to be around $20.5. However, currently CNH INDUSTRIAL N.V stock is being traded at $16.3, which is undervalued by 20.3%. This presents a great opportunity for those looking to invest in this company, as long-term investors can benefit from the current undervalued price of the stock. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis
  • Peers

    Its main competitors are Deere & Co, Caterpillar Inc, AGCO Corp. These companies compete fiercely in the market to gain market share and customers.

    – Deere & Co ($NYSE:DE)

    Deere & Co is an American industrial company that specializes in the manufacture of agricultural, construction, and forestry machinery, diesel engines, and drivetrains for use in a variety of industries. The company has a market capitalization of 117.32 billion as of 2022 and a return on equity of 25.53%. The company was founded in 1837 and is headquartered in Moline, Illinois. Deere & Co operates through three segments: Agriculture and Turf, Construction and Forestry, and Financial Services. The Agriculture and Turf segment provides equipment and services for the production of food, fuel, and fiber. The Construction and Forestry segment provides equipment and services for the construction, maintenance, and logging of forests. The Financial Services segment provides financing, insurance, and other services to customers and dealers.

    – Caterpillar Inc ($NYSE:CAT)

    Caterpillar Inc is a construction and mining equipment company with a market cap of 115.35B as of 2022. It has a Return on Equity of 38.53%. The company manufactures and sells construction and mining equipment, engines, and financial products. It operates through three segments: Construction Industries, Resource Industries, and Energy & Transportation. The Construction Industries segment offers excavators, loader/backhoes, motor graders, wheel loaders, track-type tractors, and asphalt pavers. The Resource Industries segment provides mining trucks, bulldozers, shovels, loaders, and excavators. The Energy & Transportation segment offers engines, turbines, and locomotives.

    – AGCO Corp ($NYSE:AGCO)

    AGCO Corporation is a global manufacturer and distributor of agricultural equipment and related products. The company has a market cap of $8.72 billion and a return on equity of 16.62%. AGCO Corporation operates in three segments: Agricultural Equipment, Construction Equipment, and Corporate and Other. The Agricultural Equipment segment provides a full line of tractors, combines, hay tools, sprayers, forage equipment, and implements. The Construction Equipment segment offers a full line of compact and utility tractors, backhoe loaders, wheel loaders, and excavators. The Corporate and Other segment includes the company’s financial services business and other miscellaneous operations.


    CNH Industrial NV recently reported their fourth quarter FY2022 earnings, with revenues of USD 592.0 million, representing a 96.0% increase from the previous year. Despite this impressive revenue boost, net income for the period decreased by 23.5%, amounting to USD 6943.0 million. The market reacted negatively to these results, and the stock price fell the same day. Investors should analyze CNH Industrial NV’s financial performance to determine if its stock is still a worthy investment. Factors to consider include its operating margins, cash flow, debt levels, and other metrics.

    Additionally, analysts should also assess the company’s competitive position, growth potential, and management’s ability to drive value in the long-term.

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