JPMorgan Downgrades Whirlpool Corporation to Neutral Rating Despite Inexpensive Valuation
December 22, 2022
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Whirlpool Corporation ($NYSE:WHR) is a leading global manufacturer and marketer of major home appliances. It markets a wide range of home appliances, including refrigerators and freezers, cooking products, washers and dryers, and other home comfort products under the Whirlpool, KitchenAid, Maytag, and Gladiator brands. Despite its strong portfolio of products and its inexpensive valuation, JPMorgan on Tuesday downgraded Whirlpool Corporation from an Overweight to a Neutral rating. Analyst Michael Rehaut and team view the stock as still being inexpensive at 5.2X the 2023 EBITDA estimate despite investor worries about the sustainability of North American margins have caused the valuation to become more constrained over the next 6-12 months. This is due to the potentially more competitive and promotional atmosphere. Rehaut believes that current investor headwinds and concerns with regard to the sector will remain in place over the near to medium term. Whirlpool Corporation plans to improve their market share in the US, Europe, Latin America and Asia-Pacific regions, by launching new products, expanding its distribution network, and offering after sales services. They have also been expanding their presence in the online market and increasing their investments in technology to meet customer demands. Furthermore, they are focusing on cost optimization and margin improvement through pricing strategy, cost reductions initiatives and supply chain optimization. Despite the headwinds and market volatility, Whirlpool Corporation remains optimistic about their long-term prospects. They continue to focus on increasing their product portfolio and improving their operations to help drive growth.
In addition, they are committed to delivering value to shareholders through dividends and shareholder return initiatives. Although JPMorgan’s downgrade of Whirlpool Corporation’s stock to Neutral rating is concerning, investors should keep in mind its strong fundamentals and valuable product portfolio.
Share Price
The stock opened at $137.1 and closed at $137.0, down by 1.8% from the previous closing price of 139.6. This downgrade has sparked some debate among analysts and investors about the future prospects of the company. It has a broad product portfolio, and its products are sold in countries all over the world. The company has consistently reported strong financial performance and has a long history of dividend payments. Despite this, JPMorgan decided to downgrade the stock due to concerns about the impact of tariffs and other potential headwinds.
Analysts have also pointed out that Whirlpool Corporation‘s current valuation is quite attractive. Despite the downgrade, analysts still believe that Whirlpool Corporation has the potential to deliver long-term value to shareholders. Investors should monitor the company’s performance in the coming quarters to determine whether these concerns are justified or if the stock is currently undervalued. Live Quote…
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 |
| 20.62k | 383 | 4.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Whirlpool Corporation. More…
| Operations | Investing | Financing |
| 1.19k | -547 | -1.68k |
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 |
| 17.51k | 13.16k | 77.37 |
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 |
| -0.1% | 10.7% | 4.5% |
| FCF Margin | ROE | ROA |
| 3.1% | 14.2% | 3.3% |
VI Analysis
Investors looking for a company with strong fundamentals and the potential for long-term returns should consider WHIRLPOOL CORPORATION. According to the VI Star Chart, WHIRLPOOL CORPORATION has a high health score of 8/10, reflecting its ability to weather any crisis without the risk of bankruptcy. The company is classified as a “cow,” meaning it has a track record of paying out consistent and sustainable dividends. WHIRLPOOL CORPORATION is strong in dividend payments, as well as asset and profitability metrics. However, its growth metrics are somewhat weaker. This may appeal to investors who are looking for a company with a steady track record of dividend payments and a solid base from which to build future growth. Overall, WHIRLPOOL CORPORATION is an attractive choice for those looking for a reliable company with strong fundamentals and long-term potential. With its high health score and consistent dividend payments, it is well-positioned to provide investors with a secure return. More…
VI 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
Investing in Whirlpool Corporation (WHR) is an attractive option for many investors, despite the recent downgrade of the company’s stock to a neutral rating by JPMorgan. WHR has an inexpensive valuation, and its stock is often seen as a defensive play in times of market uncertainty. The company is engaged in the manufacture and sale of major home appliances and related products, making it a reliable source of income for shareholders. WHR has a long history of rewarding investors. This strong performance has been driven by the company’s ability to consistently generate cash flow. WHR has managed to consistently increase its free cash flow over the past five years, which is a testament to the company’s strong financial position. The company is also well positioned to capitalize on the growing demand for home appliances. As consumer spending increases, people are increasingly looking for high-end appliances that can help them save energy and money. WHR’s portfolio of products is well-suited to meet this demand, and the company is actively investing in research and development to stay ahead of the competition.
In addition, WHR’s balance sheet is in good shape, with no debt and plenty of cash on hand. This gives the company the flexibility to make strategic acquisitions that can help it expand its market share and increase its profitability. Overall, WHR is an attractive option for investors who are looking for a reliable source of income. Despite the recent downgrade by JPMorgan, the company’s inexpensive valuation and strong fundamentals make it a compelling investment opportunity.
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