Manufactures agricultural equipment, including tractors, harvesters, and planting equipment. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
This is an established company with proven profits.
The gap is $24.5B. In times of high interest rates, a gap like that can squeeze a company.
Executives buying with their own money is usually read as confidence in the company’s future.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit indicators sit around the sector average.
Clearly below the class average.
The price isn’t cheap next to earnings — that’s why this grade sits in the middle.
Clearly below the class average.
The stock has been running stronger than the market lately.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
Growth: Sales growth trails the sector average.
The stock trades 31% below its peak. The market has trimmed its expectations for the company.
Over the last 12 months, company executives reported 37 buys and 33 sells. Management buying with its own money is usually read as a good sign.
It pays out $0.10 per share each year — regular cash for whoever holds the stock.
Over the last 4 years, sales fell about 2% a year on average. Profit is holding up, but a shrinking business is a risk worth watching.
The company’s market value is 33 times its annual profit. Even a small disappointment could hit the price hard.
On our five-subject report card, CNH sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: CNH is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s what that quality should cost.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.