$112.46
arrow_drop_down4.72%Is WHR a Buy or Sell based on AI Analysis?
Fundamental Analysis
Whirlpool Corp (WHR) shows strong financial health with a low debt-to-equity ratio of 3.15, indicating that the company has a conservative approach to financing its operations. Additionally, Whirlpool's return on equity (ROE) of 19.35% suggests that the company is efficient in generating profits from shareholders' equity. With a dividend yield of 6.55% and a payout ratio of 43.29%, Whirlpool provides an attractive return to investors while maintaining a sustainable dividend payout ratio. Furthermore, the company's solid gross margin of 16.09% and net margin of 2.47% showcase its ability to effectively manage costs and generate profits from its operations. Overall, Whirlpool's fundamental analysis points to a financially stable and profitable company in the consumer cyclical sector. In terms of valuation, Whirlpool Corp is trading at a price-to-earnings ratio (P/E) of 12.22, indicating that the stock may be undervalued compared to its earnings potential. The company's price-to-book ratio of 2.47 suggests that the stock is attractively priced relative to its book value. Additionally, Whirlpool's price-to-sales ratio of 0.3 highlights the company's ability to generate revenue efficiently. The enterprise value-to-EBIT and EBITDA ratios of 10.81 and 8.8, respectively, indicate that the company is valued reasonably relative to its earnings before interest and taxes. Overall, Whirlpool Corp's fundamental analysis reveals a financially sound company with attractive valuation metrics, making it a compelling investment opportunity for value investors.
Positive Development
Whirlpool Corp. has been recognized as one of the World's Most Admired Companies by Fortune for the 14th consecutive year, indicating a strong reputation and consistent performance. The company is diversifying its product portfolio by focusing on high-margin small appliances, which could potentially increase its profitability and market share. Whirlpool Corp. has been successful in selling a significant stake in its Indian unit for a substantial amount, which could potentially boost its financial performance.
Negative Development
Whirlpool Corp. has been facing increasing competition in the Consumer Products sector, which could impact its market share and profitability. The company's high debt-to-equity ratio and high long-term debt could pose a financial risk, especially if the company is not able to generate enough cash to cover its interest payments. The recent stock market volatility, with high inflation and a potential global economic slowdown, could negatively impact the company's stock price.
Technical Analysis
Whirlpool Corp (WHR) currently has a neutral technical rating, with three buy indicators (CCI, ATR, and WILLR) and five hold indicators (RSI, MACD, ADX, ROC, and STOCHRSI) for the month of March. The stock has a beta of 1.46 and a SMA of -1.37, indicating some volatility in the market. The stock sector is Consumer Cyclical, with a 28.55% change in the sector over the past year. Whirlpool Corp's technical analysis indicates a cautious approach for investors, with a focus on both buying and holding positions. In terms of technical indicators, Whirlpool Corp's stock has a market score of 63 and a market value score of 62. The stock's market quality score is 57, while the market ownership score is 40. The company also has a market growth score of 42 and a market dividends score of 53. Overall, Whirlpool Corp scores indicate a mixed market sentiment, with a neutral recommendation from analysts. Investors may want to pay close attention to the technical indicators and market benchmarks to make informed decisions about the stock.
Conclusion and recommendation
Based on the data provided, Whirlpool Corp (WHR) appears to be a solid investment option in the Consumer Cyclical sector. The company has a market cap of $5.82B and a strong dividend yield of 6.55%, indicating stability and potential for long-term growth. With a price-to-sales ratio of 0.3 and a price-to-earnings ratio of 12.22, WHR is positioned well in terms of valuation metrics. Furthermore, Whirlpool Corp has a healthy return on equity of 19.35% and a solid operating margin of 4.64%, suggesting efficient management and profitability. The company's historical dividend yield average of 4.36% and consistent payout ratio of 43.29% demonstrate a commitment to returning value to shareholders. In conclusion, based on the financial metrics and performance indicators, Whirlpool Corp appears to be a promising investment opportunity. The company's strong position in the market, stable financials, and attractive dividend yield make it an appealing option for investors seeking a reliable and potentially lucrative investment in the Consumer Cyclical sector. With a neutral analyst recommendation and a forecasted price change of 15.57%, Whirlpool Corp presents itself as a solid choice for those looking for a stable and profitable addition to their investment portfolio.