📊 CNH Key Takeaways
Is CNH Industrial N.V. (CNH) a Good Investment?
CNH demonstrates operational strength with 17.9% revenue growth and healthy 34.8% operating margins, but severe deterioration in net profitability ($7M net income on $1.3B operating income) and shareholder returns (ROE 0.1%, EPS down 58.6%) signal major balance sheet or one-time charge headwinds. The 1.1x interest coverage despite claimed zero debt and weak 0.9% free cash flow margin suggest hidden leverage or structural profitability issues that undermine investment conviction.
CNH Industrial shows strong top-line growth and solid operating cash generation, with revenue up 17.9% YoY and free cash flow reaching 14.0% of sales. However, profit conversion remains weak, with net income barely growing, diluted EPS falling sharply, and interest coverage at just 1.1x, which points to pressured earnings quality and limited cushion if conditions weaken. The fundamentals support a neutral view until margin expansion and earnings consistency improve.
Why Buy CNH Industrial N.V. Stock? CNH Key Strengths
- Strong top-line growth of 17.9% YoY indicating market demand for construction machinery
- Excellent operational efficiency with 34.8% operating margin showing strong execution
- Substantial cash position of $1.6B providing liquidity buffer
- Strong revenue growth of 17.9% YoY indicates healthy demand and business momentum
- Operating cash flow of $2.54B and free cash flow margin of 14.0% suggest solid cash generation
- Positive operating income and a 7.4% operating margin show the core business remains profitable
CNH Stock Risks: CNH Industrial N.V. Investment Risks
- Catastrophic profit margin compression: $1.3B operating income collapses to $7M net income suggesting severe non-operating drags (interest, taxes, write-downs, or hidden obligations)
- Shareholder value destruction with EPS declining 58.6% YoY despite revenue growth, indicating value is being consumed rather than created
- Dangerously tight interest coverage of 1.1x contradicts claimed 0.00x debt/equity, suggesting unrecognized leverage or liabilities threatening financial stability
- Minimal free cash generation at 0.9% FCF margin relative to revenue despite operational profitability, constraining capital deployment capacity
- Net margin of 2.8% and ROA of 1.2% indicate weak profitability relative to the asset base
- Diluted EPS declined 58.6% YoY despite higher revenue, signaling poor earnings quality or dilution-related pressure
- Interest coverage of 1.1x leaves little room for operational setbacks or higher financing costs
Key Metrics to Watch
- Operating income to net income bridge: identify source of $1.3B profitability gap (interest expense, one-time charges, foreign exchange impacts)
- Interest coverage ratio trend and actual debt obligations: reconcile claimed zero debt with 1.1x coverage
- Free cash flow conversion: improve FCF margin from 0.9% toward operating margin levels to validate profitability quality
- Operating and net margin improvement
- Interest coverage and overall debt burden
CNH Industrial N.V. (CNH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.9% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CNH Profit Margin, ROE & Profitability Analysis
CNH vs Industrial Sector: How CNH Industrial N.V. Compares
How CNH Industrial N.V. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is CNH Industrial N.V. Stock Overvalued? CNH Valuation Analysis 2026
Based on fundamental analysis, CNH Industrial N.V. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
CNH Industrial N.V. Balance Sheet: CNH Debt, Cash & Liquidity
CNH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: CNH Industrial N.V.'s revenue has shown modest growth of 3% over the 5-year period. The most recent EPS of $1.69 reflects profitable operations.
CNH Revenue Growth, EPS Growth & YoY Performance
CNH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.2B | $7.0M | $0.01 |
| Q3 2025 | $3.7B | $80.0M | $0.06 |
| Q2 2025 | $4.0B | $213.0M | $0.17 |
| Q1 2025 | $3.2B | $131.0M | $0.10 |
| Q3 2024 | $4.0B | $306.0M | $0.24 |
| Q2 2024 | $4.8B | $433.0M | $0.34 |
| Q1 2024 | $4.1B | $401.0M | $0.31 |
| Q3 2023 | $5.3B | $556.0M | $0.41 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CNH Industrial N.V. Dividends, Buybacks & Capital Allocation
CNH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for CNH Industrial N.V. (CIK: 0001567094)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CNH
What is the AI rating for CNH?
CNH Industrial N.V. (CNH) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 58% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CNH's key strengths?
Claude: Strong top-line growth of 17.9% YoY indicating market demand for construction machinery. Excellent operational efficiency with 34.8% operating margin showing strong execution. ChatGPT: Strong revenue growth of 17.9% YoY indicates healthy demand and business momentum. Operating cash flow of $2.54B and free cash flow margin of 14.0% suggest solid cash generation.
What are the risks of investing in CNH?
Claude: Catastrophic profit margin compression: $1.3B operating income collapses to $7M net income suggesting severe non-operating drags (interest, taxes, write-downs, or hidden obligations). Shareholder value destruction with EPS declining 58.6% YoY despite revenue growth, indicating value is being consumed rather than created. ChatGPT: Net margin of 2.8% and ROA of 1.2% indicate weak profitability relative to the asset base. Diluted EPS declined 58.6% YoY despite higher revenue, signaling poor earnings quality or dilution-related pressure.
What is CNH's revenue and growth?
CNH Industrial N.V. reported revenue of $3.8B.
Does CNH pay dividends?
CNH Industrial N.V. pays dividends, with $1.0M distributed to shareholders in the trailing twelve months.
Where can I find CNH SEC filings?
Official SEC filings for CNH Industrial N.V. (CIK: 0001567094) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CNH's EPS?
CNH Industrial N.V. has a diluted EPS of $0.01.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CNH a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, CNH Industrial N.V. has a HOLD rating with 58% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CNH stock overvalued or undervalued?
Valuation metrics for CNH: ROE of 0.1% (sector avg: 15%), net margin of 0.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy CNH stock in 2026?
Our dual AI analysis gives CNH Industrial N.V. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CNH's free cash flow?
CNH Industrial N.V.'s operating cash flow is $35.0M, with capital expenditures of N/A. FCF margin is 0.9%.
How does CNH compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 0.2% (avg: 10%), ROE 0.1% (avg: 15%), current ratio N/A (avg: 1.8).