Added to YB: 2024-07-30
Pitch date: 2024-07-30
CNH [bullish]
CNH Industrial N.V.
+6.25%
current return
Author Info
@ArmsGarrett is a a research analyst and portfolio manager whoe stock pitches on Twitter. Follow on Twitter
Company Info
CNH Industrial N.V., an equipment company, engages in the develops, manufacture, and sale agricultural and construction equipment in North America, Europe, the Middle East, Africa, South America, and the Asia Pacific.
Market Cap
$12.4B
Pitch Price
$10.31
Price Target
24.00 (+133%)
Dividend
1.00%
EV/EBITDA
30.81
P/E
40.10
EV/Sales
2.06
Sector
Machinery
Category
value
CNH Industrial: Undervalued Stock with Significant Upside Potential
CNH: 6.5x P/E on below mid-cycle earnings, 14x PE discount to S&P. 30% ROE in 2022. Ag downturn concerns, but improved margins (14% op margin in 2024 despite 13% rev drop). $310-365M COGS savings, $140-180M SG&A cuts. Expect 2026 EPS >$2. 10-12x P/E target = 100-140% upside in <2yrs. $1B buyback, $600M dividend. Underlevered balance sheet.
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