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CNH INDUSTRIAL

Analysis before buying or selling CNH Industrial shares

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Elements to consider before selling or buying CNH Industrial shares

Analysis N°1

The demand from the European and US automotive market is of course a factor to consider if you want to analyse the CNH Industrial share price effectively. To do this, you need to pay attention to various indicators such as household purchasing power.

Analysis N°2

We will of course also be following the foreign exchange market and in particular the evolution of the EUR/USD exchange rate, which may make the group more or less competitive with its competitors.

Analysis N°3

In general, all announcements and data from CNH Industrial's competitors will be prime indicators as they most often directly influence the price of this stock.

Analysis N°4

The American agricultural sector and its development must also be monitored more closely. The better this sector does, the more likely it is that professionals in this field will buy equipment and therefore the more sales the group could make.

Analysis N°5

All the innovations of the group in the two main segments can also make a difference on the charts and enable a rise in the CNH Industrial share price. This applies in particular to more efficient and environmentally friendly machines and equipment.

Analysis N°6

Finally, account will also be taken of the evolution of fuel prices which, as we have seen above, also has a major influence on the group's sales.

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General presentation of CNH Industrial

The CNH Industrial group of companies is of Italian-American origin, but has its headquarters in Amsterdam and its legal seat in London. The majority shareholder is the Dutch financial holding company Exor, which is mainly controlled by the Italian Agnelli family.

Its business extends to the global market where it operates with different brands in the design, production and sale of agricultural and construction machinery, commercial and industrial vehicles and public transport vehicles, as well as propulsion systems for marine vehicles.

Analysis before buying or selling CNH Industrial shares
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The major competitors of CNH Industrial

Knowing the economic and sectoral environment of CNH Industrial is essential if you want to be able to understand how this company can evolve in the more or less long term and therefore how its share can behave on the markets. We therefore suggest that you find out here who the main competitors of this group are on the market:

AGCO

First of all, the American company AGCO is specialized in the manufacture and sale of agricultural equipment. It has been in existence since 1990 and is based in Georgia, USA. It is currently one of the largest companies in this sector in the world.

Jungheinrich

This other company is German and is based in Hamburg. It is also one of the international leaders in the field of materials handling, storage and flow management equipment. It is number three in the world and number two in Europe in this sector.

John Deere

 This brand of the American company Deere & Company is located in Illinois and specializes in the manufacture of agricultural equipment and in particular in the manufacture of tractors, combine harvesters, balers or even lawn mowers and various forestry equipment. The group's machines are recognisable by their green colour with a touch of yellow. It is also one of the oldest industrial companies in the USA. The company is also listed on the stock exchange.

Caterpillar

The last major competitor of CNH Industrial is the American group Caterpillar, which is a manufacturer of machinery for the construction, mining and forestry sectors. It designs and manufactures bulldozers, wheel loaders, hydraulic excavators, dumpers, scrapers, diesel engines, generators and other such products.


The major partners of CNH Industrial

Of course, the CNH Industrial Group has long pursued a strategy based in part on the implementation of strategic partnerships. These alliances enable the group to win new markets and contracts or to gain notoriety and are therefore events to follow. Here are two recent examples of this type of partnership:

Nikola

In 2019, for example, CNH Industrial Group has established a strategic partnership with the company Nikola, with the aim of industrializing battery-powered Class 8 heavy-duty electric trucks in North America and Europe. Nikola's trucks are equipped with a fuel cell (hydrogen) based on battery technology. Its business model is an all-inclusive offer including delivery, service and maintenance. Through this partnership, CNH Industrial has invested $250 million in Nikola to participate in the development of these vehicles and to improve engineering, technical support and the supply of components to boost production of the Nikola Two and Nikola Tre.

Microsoft

In 2018, CNH Industrial entered into a strategic partnership with the Microsoft Group. This aims to offer advanced technological services on industrial vehicles. Specifically, this cooperation concerns the CNH Industrial, Case IH and New Holland Agriculture brands and aims to create a new generation of agricultural machinery. It also concerns Iveco commercial vehicles. Customers of these commercial vehicles can now monitor a range of parameters, from internal mechanics to driving style and fuel consumption. The digital services are based on Microsoft Azure technologies.

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Positive factors for CNH Industrial shares
The factors in favour of a rise in the CNH Industrial share price:

To understand how CNH Industrial's share price is likely to perform in the medium to long term, it is necessary to look at the company's strengths and weaknesses. This is what we are proposing now with a summary of the advantages it has.

First of all, let's remember that the CNH Industrial Group is positioned among the leaders in its sector of activity both from a sectoral point of view in machinery and electrical equipment and also in terms of sustainability in the global and European indices. It should also be noted here that the group was named leader of the capital goods industrial group in the ranking of the world's most sustainable companies in 2015.

Always looking for new sources of revenue, CNH Industrial is constantly engaged in new projects, taking into account the major market trends. This enables it to respond effectively to new market needs and to anticipate them efficiently.

Innovation is of course another important strength of the CNH Industrial Group and one of the company's strategic levers. Thanks to strong investments in research and development and its 50 research centres, the group files numerous patents, of which several thousand are active. In particular, it collaborates with scientists and works on several collaborative research projects. In total, more than 6,000 people are employed in the group's innovation department.

The CNH Industrial Group is also a recognized environmentally conscious company, which significantly enhances its brand image with the public and its key customers. In particular, it has implemented manufacturing sites with the Worl Class Manufacturing program, which aims for continuous improvement in methodology and the elimination of all plant waste and spoilage.

Finally, the last asset we can mention here about CNH Industrial concerns the efficient management of its group supply chain. CNH has been able to establish sustainable partnerships with its direct material suppliers and has favoured the use of local suppliers who are evaluated by the group according to sustainability criteria.

Negative factors for CNH Industrial shares
The factors in favour of a drop in the CNH Industrial share price:

Of course, the CNH Industrial Group does not only have advantages, and the same applies to its share price, which may also be subject to a downward trend due to these weaknesses. So let's take a closer look at some of these weaknesses:

First of all, we note that because of its activities in Europe and the United States, the CNH Industrial Group is highly exposed to the exchange rate of the euro against the dollar. With the rise of the euro against the US dollar, CNH Industria is losing competitiveness and this makes it more vulnerable to competition and leads to a decrease in its overall profitability.

This brings us to another major weakness of this company, which is the very strong competition in this sector. Fiat, the major company of CNH Industrial, is in direct competition with other major car manufacturers in Europe and is not well positioned in the sector. The groups that face it thus benefit from stronger brand recognition throughout the world and are therefore more likely to sell their vehicles.

There is also a strong downward trend in CNH Industrial's business due to the gradual increase in fuel prices in Europe. This additional cost, as well as the aftermath of the recent financial and economic crisis, has a direct impact on sales and therefore on the attractiveness of this stock to investors.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

How was CNH Industrial founded?

CNH Industrial was born in 1999 with the merger of the Fiat New Holland subsidiary with Case IH, which gave birth to this new entity of the Fiat group and to the number one in agricultural equipment and number three in public works machinery in the world. Fiat only owned 88% of this company at the time, but later bought back all the shares. Fiat Industrial and CNH Global were then merged to form the Fiat holding company, CNH Industrial.

How is the capital of CNH Industrial distributed?

In 2020, the capital of CNH Industrial is composed of 27.2% of Exor NV, 13.7% of Harris Associates, 3.02% of Hotchkis & Wiley Capital Management, 2.40% of The Vanguard Group, 0.86% of Baillie Gifford & Co, 0.83% of GAMCO Asset Management, 0.83% of Barrow, Hanley, Mewhinney & Strauss, 0.82% of Pzena Investment Management and 0.77% of Arrowstreet Capital. The rest of the group's capital is free-floating and therefore freely traded on the market.

Can I invest in CNH Industrial shares online?

Yes, there are currently trading platforms that offer CFDs on shares that allow you to speculate on the rise or fall of the CNH Industrial share price. All you need to do is register with such a broker and you will be able to bet on the rise or fall of this stock.

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