CNH Industrial Downgraded as Near-Term Performance Appears Weak

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CNH ($NYSE:CNHI) Industrial N.V is a global leader in the capital goods sector operating in the agricultural and construction equipment, powertrain, and commercial vehicle markets. The company has experienced a recent downgrade in their rating due to weak near-term performance. This is likely to be attributed to the slowdown in global trade and political uncertainty, which have weighed on the industry as a whole. The decline in the company’s stock price has been primarily driven by weak sales and profitability. The company’s cost of sales has also increased significantly due to higher material and labor costs as well as currency headwinds.

Furthermore, the company is also facing challenges in terms of customer preference, which has shifted from large to midsize tractors leading to lower sales volumes. This is likely to impact the company’s performance in the near future, particularly as they are heavily reliant on agricultural equipment for revenue. Despite these difficulties, the company is taking decisive steps to enhance its cost structure and product portfolio, which could help it to improve its near-term performance.

Price History

CNH Industrial N.V experienced a significant stock downturn on Wednesday, opening at $11.9 and closing at a lower rate of $11.7. This represented a 2.0% decrease from the prior closing price of $11.9, resulting in the company being downgraded. It appears that the near-term performance of CNH Industrial N.V is weak and the market responded accordingly.

Investors appear to be bearish on the stock at present, as the company’s share has declined significantly over the last three months. These near-term headwinds suggest that CNH Industrial N.V may continue to experience volatility in the near-term, and investors should keep an eye on the stock as the situation evolves. Live Quote…

About the Company

Income Snapshot

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

Cash Flow Snapshot

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

Balance Sheet Snapshot

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

Key Ratios Snapshot

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

Analysis

At GoodWhale, we recently conducted an analysis of CNH INDUSTRIAL N.V’s wellbeing. Given its position on our Star Chart, we believe that CNH INDUSTRIAL N.V may be of interest to investors who are looking for steady returns. Its rating on our chart suggests that it is strong in medium-term asset growth, dividend yield, and profitability, but weak in long-term growth potential. We also performed an analysis of its financial health, and found that CNH INDUSTRIAL N.V has an intermediate health score of 6/10. This suggests that the company is likely to be able to pay off its debt and fund future operations. More…

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.

Summary

CNH Industrial N.V. (NYSE: CNHI) has recently faced a downgrade in its rating from Moody’s Investors Service, who cited the company’s weakened near-term performance as the reason behind the decision. Despite the downgrade, the company has remained committed to increasing its dividend payout and has managed to maintain a solid balance sheet. Going forward, investors should proceed with caution when considering investing in CNH Industrial and monitor the situation closely for any signs of improvement.