Latest news with #construction equipment
Yahoo
3 days ago
- Business
- Yahoo
CNH Industrial N.V. (CNH): A Bull Case Theory
We came across a bullish thesis on CNH Industrial N.V. on Monopolistic Investor's Substack by Antoni Nabzdyk. In this article, we will summarize the bulls' thesis on CNH. CNH Industrial N.V.'s share was trading at $13.21 as of July 24th. CNH's trailing and forward P/E were 16.51 and 22.03, respectively according to Yahoo Finance. CNH Industrial N.V. (CNH) designs, produces, and sells agricultural and construction equipment globally, supported by a financial services arm that offers retail and wholesale financing to customers and dealers. Its portfolio includes recognized brands like Case IH, New Holland, and CASE Construction Equipment, with a capital-intensive model that provides barriers to entry and a sticky dealer network of over 2,500 dealers in 6,000+ locations. Despite these structural advantages, CNH is struggling with severe top-line pressure; Q1 2025 revenue fell 21% year-over-year to $3.8 billion, with industrial net sales down 23%. Adjusted net income declined 86% to $132 million, and adjusted EPS fell 80%. Profit margins remain positive, with gross margins at 20.34% and net margins at 5.35%, but the company faces a heavy debt burden—$26.4 billion of total debt against just $1.4 billion of cash, resulting in a negative net cash position of nearly $25 billion—leaving it vulnerable to higher interest rates and limiting strategic flexibility. Market share is also under pressure; CNH holds just 10.2% versus Caterpillar's 33.3% and Deere's 26.5%. Investments remain focused on future growth, with $103 million in CapEx and $184 million in R&D during Q1, largely for new product and digital initiatives. However, persistent negative revenue growth undermines valuation: DCF scenarios suggest that shares are potentially overvalued by up to 73% if declines continue, though under moderate assumptions, they may be marginally undervalued. Capital allocation priorities emphasize organic growth, balance sheet repair, and shareholder returns, but near-term prospects appear challenged. Overall, CNH represents a structurally entrenched yet financially pressured player, with turnaround potential overshadowed by declining fundamentals and leverage concerns. Previously, we covered a on Oshkosh Corporation (NYSE:OSK) by wirsteve in December 2024, which highlighted the secured USPS contract and upcoming CES 2025 product innovations as key catalysts. The company's stock price has appreciated by approximately 36.22% since our coverage. This is because the USPS contract strengthened revenue visibility and investor confidence. The thesis still stands as growth drivers remain intact. Antoni Nabzdyk shares a similar view but emphasizes CNH's entrenched position facing margin pressure and leverage challenges. CNH Industrial N.V. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held CNH at the end of the first quarter which was 42 in the previous quarter. While we acknowledge the potential of CNH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
CNH Industrial N.V. (CNH): A Bull Case Theory
We came across a bullish thesis on CNH Industrial N.V. on Monopolistic Investor's Substack by Antoni Nabzdyk. In this article, we will summarize the bulls' thesis on CNH. CNH Industrial N.V.'s share was trading at $13.21 as of July 24th. CNH's trailing and forward P/E were 16.51 and 22.03, respectively according to Yahoo Finance. CNH Industrial N.V. (CNH) designs, produces, and sells agricultural and construction equipment globally, supported by a financial services arm that offers retail and wholesale financing to customers and dealers. Its portfolio includes recognized brands like Case IH, New Holland, and CASE Construction Equipment, with a capital-intensive model that provides barriers to entry and a sticky dealer network of over 2,500 dealers in 6,000+ locations. Despite these structural advantages, CNH is struggling with severe top-line pressure; Q1 2025 revenue fell 21% year-over-year to $3.8 billion, with industrial net sales down 23%. Adjusted net income declined 86% to $132 million, and adjusted EPS fell 80%. Profit margins remain positive, with gross margins at 20.34% and net margins at 5.35%, but the company faces a heavy debt burden—$26.4 billion of total debt against just $1.4 billion of cash, resulting in a negative net cash position of nearly $25 billion—leaving it vulnerable to higher interest rates and limiting strategic flexibility. Market share is also under pressure; CNH holds just 10.2% versus Caterpillar's 33.3% and Deere's 26.5%. Investments remain focused on future growth, with $103 million in CapEx and $184 million in R&D during Q1, largely for new product and digital initiatives. However, persistent negative revenue growth undermines valuation: DCF scenarios suggest that shares are potentially overvalued by up to 73% if declines continue, though under moderate assumptions, they may be marginally undervalued. Capital allocation priorities emphasize organic growth, balance sheet repair, and shareholder returns, but near-term prospects appear challenged. Overall, CNH represents a structurally entrenched yet financially pressured player, with turnaround potential overshadowed by declining fundamentals and leverage concerns. Previously, we covered a on Oshkosh Corporation (NYSE:OSK) by wirsteve in December 2024, which highlighted the secured USPS contract and upcoming CES 2025 product innovations as key catalysts. The company's stock price has appreciated by approximately 36.22% since our coverage. This is because the USPS contract strengthened revenue visibility and investor confidence. The thesis still stands as growth drivers remain intact. Antoni Nabzdyk shares a similar view but emphasizes CNH's entrenched position facing margin pressure and leverage challenges. CNH Industrial N.V. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held CNH at the end of the first quarter which was 42 in the previous quarter. While we acknowledge the potential of CNH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None.
Yahoo
17-07-2025
- Entertainment
- Yahoo
Kids drive real construction equipment at this theme park coming to North Texas
A new theme park where kids can operate real-life construction equipment is coming to a North Texas mall. Dig World, a larger-than-life construction-themed adventure park, is set to open outside the Grapevine Mills mall in early 2026, according to a news release from the theme park. An opening date hasn't been set yet. The theme park was featured on the hit series 'Shark Tank' in March 2025, where co-founder Jacob Robinson, a Houston resident, pitched his vision to the sharks. Robinson's son Pierce, who lives with significant special needs after suffering from bacterial meningitis, is mesmerized by construction equipment, according to a news release from the theme park. His love for bulldozers and excavators gave Robinson the idea to create a family-friendly theme park where adults and kids of all ages could operate full-size construction equipment. ⚡ More trending stories from our newsroom: →Missed breakfast? Here's when Whataburger, others stop serving →What TX law says about taking breaks at work →Can you get fired for being late to work? This heart-felt story led 'Shark Tank' investor Robert Herjavec to invest in the company. Following its debut on 'Shark Tank,' Dig World opened it first park in Katy, Texas, about 30 miles outside Houston. About Dig World Dig World offers families and children a unique, hands-on experience operating real, full-size construction equipment. This construction-themed adventure park is professionally engineered with modifications for safe use by kids. Designed for both fun and education, Dig World aims to 'inspire the builders of tomorrow.' In partnership with Dude Perfect the park will feature construction-inspired trick-shot attractions complementing its signature construction-themed experiences. Visit Dig World Nation to sign up for updates on the construction. Solve the daily Crossword
