Whirlpool Corporation Intrinsic Stock Value – WHIRLPOOL CORPORATION Reports Strong Fourth Quarter Earnings for FY2022
April 1, 2023
Earnings Overview
On January 30 2023, WHIRLPOOL CORPORATION ($NYSE:WHR) reported financial results for its fourth quarter of FY2022, which concluded on December 31 2022. Revenue for the quarter was USD -1605.0 million, a decrease of 638.6% year-over-year. Net income for the quarter was USD 4923.0 million, down 15.3% from the same period in the preceding year.
Transcripts Simplified
For 2023, we expect revenue to decline by 1-2%, with EBIT margins expanding to 7.5%. We expect free cash flow of approximately $800 million. Our ongoing tax rate is expected to be 14-16%, and our interest cost is expected to be approximately $325 million. We are targeting a full year ongoing EPS range of $16 to $18. We expect most of our regions to experience a subdued demand environment, particularly during the first half of the year.
In North America and EMEA, we expect a contraction of 4-6%, and in Latin America, we expect a contraction of 1-3%. In Asia, we expect industry to accelerate by 2-4%. Across all regions, we expect EBIT margin expansion driven by cost takeout actions and raw material inflation tailwinds. We expect North America to deliver 12% margins, EMEA to deliver 2.5%, Latin America to deliver 7%, and Asia to deliver 5.5%.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Whirlpool Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 19.72k | -1.52k | -0.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Whirlpool Corporation. More…
| Operations | Investing | Financing |
| 1.39k | -3.57k | 1.21k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Whirlpool Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 17.12k | 14.62k | 43.26 |
Key Ratios Snapshot
Some of the financial key ratios for Whirlpool Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.1% | -2.7% | -5.3% |
| FCF Margin | ROE | ROA |
| 4.2% | -19.9% | -3.8% |
Price History
On Monday, WHIRLPOOL CORPORATION (NYSE: WHR) reported strong fourth quarter earnings for its financial year 2022 (FY2022). The company’s share price opened at $152.1, up by 0.4% from the previous closing price of $154.1.
However, the stock closed at $153.5, down by 0.4%. Yummly will become a part of WHIRLPOOL CORPORATION’s Connected Home Solutions business. The company’s strong results and strategic acquisition of Yummly are likely to drive future growth and profitability for the company. Live Quote…
Analysis – Whirlpool Corporation Intrinsic Stock Value
At GoodWhale, we recently conducted an analysis of WHIRLPOOL CORPORATION‘s wellbeing. Our proprietary Valuation Line calculated that the fair value of WHIRLPOOL CORPORATION shares is around $210.0. This means that right now the stock is being traded at $153.5, which is undervalued by 26.9%. This presents a great opportunity to invest in the company at a discounted price. We believe that WHIRLPOOL CORPORATION will be able to generate sufficient value to reward its shareholders over the long term. More…
Peers
The competition in the home appliance industry is fierce. Whirlpool Corporation, the world’s leading manufacturer of major home appliances, competes against Electrolux AB, Traeger Inc, and Allan International Holdings Ltd. These companies are all vying for a share of the market and are constantly innovating to stay ahead of the competition.
– Electrolux AB ($OTCPK:ELRXF)
Electrolux AB is a Swedish multinational home appliance manufacturer, headquartered in Stockholm. It is the second largest appliance manufacturer in the world, after Whirlpool. The company also makes appliances for professional use. The company has a market cap of 3.07B as of 2022 and a Return on Equity of 14.67%. The company’s products include refrigerators, dishwashers, washing machines, cookers, vacuum cleaners, air conditioners and small appliances such as microwaves and coffee makers.
– Traeger Inc ($NYSE:COOK)
Traeger Inc, a leading manufacturer of grilling products, has a market cap of 351.16M as of 2022. The company’s Return on Equity is -26.37%. Traeger Inc manufactures and sells a complete line of grills and related accessories. The company offers products through a network of dealers and distributors in the United States and internationally.
– Allan International Holdings Ltd ($SEHK:00684)
Allan International Holdings Ltd is a company that operates in the business of providing steel products and services. The company has a market capitalization of 379.68 million as of 2022 and a return on equity of -1.13%. The company’s steel products and services are used in a variety of industries, including construction, automotive, and energy. Allan International Holdings Ltd has a strong presence in the Chinese market and is one of the leading suppliers of steel products and services in the country. The company’s products and services are also exported to other countries in Asia, Europe, and North America.
Summary
Investors analyzing WHIRLPOOL CORPORATION should take into account the company’s recent fourth quarter FY2022 results. Revenue for the quarter was USD -1605.0 million, a decrease of 638.6% year over year, while net income declined 15.3% to USD 4923.0 million. These results do not bode well for investors and should be taken into account when considering an investment in WHIRLPOOL CORPORATION. Long-term investors might be cautious about investing in the company given the current financial performance.
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