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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Whirlpool Corporation (XNYS:WHR) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
WHR
Name:
WHIRLPOOL CORPORATION (XNYS:WHR)
Sector:
- 415000.00K
Industry:
Furnishings, Fixtures & Appliances
CEO:
Mr. Marc Bitzer
Total Employees:
69,000
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -80.26% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF WHIRLPOOL CORPORATION(WHR) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND FURNISHINGS, FIXTURES & APPLIANCES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
153.69
One Month Price Target:
$155.03
Six Month Price Target :
$161.74
Likely Price in One Year's Time:
Ticker:
$169.8
Likely Trading Range Today Under (Normal Volatility)
$153.01
Price Upper limit ($) :
$154.52
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$144.66
This week:
$133.5
This month :
$113.31
Other Primary facts
Market Cap:
8.23B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
54.51M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
29.57%
-19.61%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$195.59
$176.38
$111.79
$131.00
Medium risk (<10%) entry points
Buy Call
Sell Call
$170.12
Buy Put:
Sell Put:
$166.02
$137.21
$141.36
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
WHR
Sharpe Ratio:
1.37%
Comparison:
WHR, is amongst the top 60% stocks with highest risk-adjusted returns
Sharpe ratio is 23.45% higher than the industry
& is -39.78% lower than the market/S&P 500 average
Average Returns/Yield of
WHR
Daily returns:
0.05%
Weekly returns:
0.24%
Monthly returns:
0.97%
Yearly returns:
14.35%
Comparison of returns:
Average annual returns/yield (last 3 years) is -19.00% below industry average
Classification:
WHR, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.56
Statistical test of Returns:
WHR has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.88%
Weekly Volatility:
6.45%
Monthly Volatility:
12.90%
Yearly Volatility:
44.68%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.50%
Volatility in last five trading days has been -82.70% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-5.87%
Weekly VaR:
-13.14%
Monthly VaR:
-26.27%
How Much Can the price of
WHR
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-23%
Worst case (decline):
-91.01%
This translates to price declining to:
$118.83
This translates to price declining to:
$13.81
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
WHR is a 85.43% riskier investment compared to the market/S&P 500 & is 58.86% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -26.97% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
WHR
Beta in relation to market/S&P 500--1.56
Expected beta in 1 year's time:
0.87
Expected beta in 3 year's time:
1.23
Unlevered (debt free) Beta:
0.808
Beta in relation to Nasdaq (XNAS):
0.928
Beta in relation to all global stocks::
0.993
Beta Comparison & Analysis
Beta of competitors/peers::
1.368
Beta is 14.02% higher than peers
Average Industry Beta:
1.707
Beta is -8.64% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
30.81%
Sustainable growth rate is -7.91% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.022
Alpha is 348.17% above industry average alpha yield
Alpha is -141% below the market average
Analysis of Cost of Capital of
WHR
Equity cost of capital:
0.138
Equity cost of capital is -6.81% below industry mean WACC
Unlevered (without debt) cost of capital:
7.16%
Before-tax cost of debt:
2.86%
After-tax cost of debt:
2.26%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.26%
WACC is 14.57% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$395.30
Revenue growth rate per share of (3Y):
1.77
Annual revenue growth rate is -75.52% below industry average
EPS:
$26.80
Expected Annual growth rate of EPS (3Y):
14.77%
Expected future EPS growth rate is 21.50% higher than the Furnishings, Fixtures & Appliances industry
Free cash flow (FCF) per share:
$19.00
Balance sheet equity growth per share: 18.77%
Equity growth rate per share is -1179.02% lower than the industry
Debt per share
$99.60
EBITDA per share
$50.71
Valuation Analysis Today of
WHR
P/E Ratio:
14.23
P/E Ratio of Competitors/Peers:
15.42
P/E ratio is -7.72% lower than main peers & is -12.01% lower than the industry
Stock price/value with industry average P/E ratio: $433.42
WHR is -64.54% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $87.24
Present value of the expected future dividends only: $67.53
P/S (Price to Sales ratio):
0.39
Price to sales ratio is -57.58% below the industry mean
P/B (Price to book value ratio):
1.77
Price to free cash flow: 8.09
-
Net income growth rate (3Y):
-1144.24%
Net income growth rate is 1414.60% higher than the average industry net income growth rate
Dividend Analysis
Dividend payout rate: 6.19%
Dividend yeild: 4.10%
Previous Dividend: $1.75
Previous adjusted dividend: $1.75
Previous Dividend: $6.30
Expected next dividend best case: $1.92
Expected next dividend worst case: $1.58
Average dividend payment (long-term): $1.36
Average dividend increase/decrease (growth rate) % per period: 4.12%
Expected next dividend payment date: 13/09/2022
Expected next dividend record date: 18/08/2022
Expected next dividend declaration date: 18/07/2022
Previous dividend payment date: 15/06/2022
Previous dividend record date: 20/05/2022
Previous dividend declaration date: 18/04/2022
Dividend History:
2022-05-19--$1.75
2021-11-18--$1.40
2021-05-20--$1.40
2022-02-24--$1.75
2021-08-26--$1.40
2021-02-25--$1.25
Dividend growth rate is -130.96% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
118.67%
Net debt to equity ratio:
84.66%
Debt to assets ratio:
27.86%
Net debt to assets ratio:
19.87%
Debt-to-asset ratio is -62.50% below industry average
Ability to repay debt:
Interest coverage ratio:
16.16
Interest coverage ratio is -82.18% less than industry average
Looking forward:
Debt growth rate:
15.16%
Annual debt growth is -93% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.677
Statistical significance of correlation:
WHR has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.556
Stock price is 21.73% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.556
Correlation of price movement with Nasdaq (^IXIC):
-0.008
Covariance of price movement with the market:
-0.014
Kurtosis
20.495
Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns
Skewness of returns:
0.879
Returns are right (positive) skewed; mean returns are greater than median and mode returns
Fundamental Analysis & Dupont Analysis of
WHR
Gross Profit Margin Ratio:
76%
Operating Profit Margin Ratio:
10.16%
Operating profit margin is 37.41% higher than the industry
Net Profit Margin Ratio:
76%
Effective Tax Rate:
21.53%
Effective tax rate is 16.61% higher than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
36.35%
Return on equity (ROE) is 23.94% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
8.53%
Return on assets (ROA) is -4.75% lower than the industry
Financial Leverage:
1.4x
Current Ratio:
1.08
Current ratio is -30.38% below industry average
Cash Conversion Cycle (days):
-47
Cash conversion cycle is -183.84% below industry average
The remaining useful life of property plant & equipment is: 10.6 years
Stock based compensation to net income ratio:
-
In-depth Efficiency Analysis
Revenue generated per employee:
312.3K
Each employee generates -29% less revenue than industry average revenue per employee
EBITDA generated per employee:
40.1K
Each employee generates 6% more EBITDA than industry average revenue per employee
Profit generated per employee:
24.1K
Each employee generates 15% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 6.0K
Each employee generates -54% less free cash flow than industry average revenue per employee
Assets/Capital per employee
152.4K
Each employee generates -54% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
WHR
FORTUNE BRANDS HOME & SECURITY, INC. (XNYS:FBHS)
CROWN HOLDINGS, INC. (XNYS:CCK)
PULTEGROUP, INC. (XNYS:PHM)
ADVANCE AUTO PARTS, INC. (XNYS:AAP)
INTERCONTINENTAL HOTELS GROUP PLC (XNYS:IHG)
VAIL RESORTS, INC. (XNYS:MTN)
WESTROCK COMPANY (XNYS:WRK)
BATH & BODY WORKS, INC. (XNYS:BBWI)
FLOOR & DECOR HOLDINGS, INC. (XNYS:FND)
Current Analyst Ratings
Strong buy�0%
Buy�17%
Hold�33%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
21.55B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
17.44B
4.11B
-
-
1.96B
-
39.00M
2.00B
141.00M
171.00M
465.00M
2.76B
2.19B
1.66B
2.16B
465.00M
1.66B
Statement of Cash Flow
Date:
Period:
112.00M
Differed Income Tax :
-
Stock Based Compensation :
-
Change in Working Capital :
- 756000.00K
Accounts Receivables:
248.00M
Other Working Capital:
- 317000.00K
Other Non-Cash Items:
-
Net Cash Provided by Operating Activities:
- 328000.00K
Investments in PP&E:
-
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
2.11B
-
2.11B
2.86B
3.14B
858.00M
8.97B
3.71B
2.48B
1.96B
-
1.90B
473.00M
10.52B
-
19.49B
5.26B
558.00M
-
-
2.47B
8.29B
5.43B
1.03B
6.46B
-
14.74B
114.00M
10.38B
- 2299000.0K
-
March 31, 2022 at 6:00:00 AM
19.44B
4.58B
19.32B
-
5.99B
3.9B
-
- 12000.00K
- 12000.00K
-
2.00M
- 533000.00K
- 103000.00K
3.00M
- 631000.00K
41.00M
- 930000.00K
2.11B
3.04B
- 328000.00K
- 87000.00K
- 415000.00K
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
WHR
2023
2024
2025
2026
2027
$170.65
$369.16
$407.85
$450.60
$497.82