CNH Industrial N.V. Common Shares (CNH)

FairStock Score: 38/100 — MIXED

Key Financials

Strengths

• Generates $10.0 billion in annual free cash flow (76.8% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Established organization with 34,197 employees providing operational scale

Concerns

• High leverage at 3.46x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 1.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

CNH Industrial N.V. Common Shares is a mid-cap industrials company valued at $13.0 billion. The business generates $18.1 billion in annual revenue with a 0.5% net margin and $10.0 billion in free cash flow. From a quality standpoint, CNH shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 1.2 warrants caution. On valuation, the stock is trading at a premium 25.6x earnings, with trades above its Graham Number with a negative 38% margin. Growth dynamics show revenue growing at 5.8% and profit growth of -50.3%. Our composite FairStock Score of 38/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $10.0 billion in annual free cash flow (76.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Elevated leverage at 3.5x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer