CNH Industrial (NYSE:CNH) Valuation Check After New Autonomy and Precision Tech Partnerships
CNH Industrial (NYSE:CNH) is back in focus after two fresh partnership moves, pairing with CHC Navigation on high precision guidance kits and deepening its Cyient alliance around autonomous construction systems.
See our latest analysis for CNH Industrial.
Those autonomy and precision upgrades come against a tougher market backdrop, with a 90 day share price return of minus 16.7 percent and a one year total shareholder return of minus 20.9 percent, suggesting sentiment has weakened even as CNH leans harder into higher margin tech.
If this kind of tech enabled shift interests you, it might be worth scanning other opportunities among aerospace and defense stocks that are also leaning on advanced systems to reshape their growth profiles.
Yet despite years of weak share performance, CNH still trades at a steep discount to analyst targets and many intrinsic value estimates. This raises a key question: is this a genuine mispricing, or has the market already captured its next leg of growth?
Most Popular Narrative: 28.5% Undervalued
With CNH Industrial last closing at $9.36 against a narrative fair value of $13.10, the valuation case leans heavily on future earnings and margin expansion.
The integration of advanced connectivity and precision technologies (e.g., the Starlink partnership, FieldOps platform, in-house tech stack) positions CNH to capture greater recurring, higher-margin revenue streams from software, data, and tech-enabled services, supporting net margin and long-term earnings growth.
Curious how modest top line growth can still support a markedly higher valuation? The narrative leans on a sharp profitability reset and a richer future earnings multiple. Want to see which specific margin and earnings milestones have to click into place to justify that gap? Read on to uncover the full playbook behind this fair value.
Result: Fair Value of $13.10 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this upside case is fragile, as prolonged tariff pressure and slower than expected agricultural recovery are both capable of capping margins and delaying growth.
Find out about the key risks to this CNH Industrial narrative.
Build Your Own CNH Industrial Narrative
If you see the story differently or want to dig into the numbers yourself, you can build a customized view in just minutes, Do it your way.
A great starting point for your CNH Industrial research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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