Introduction:
Welcome back to my weekly stock analysis.
Whirlpool Corporation (NYSE: WHR)
Sector: Furnishings, Fixtures & Appliances (Consumer Cyclical)
Company Strengths & Risks:
Whirlpool Corporation is a multinational home appliance manufacturer out of Michigan. They are a S&P 500 component. Some other recognizable brands under WHR include Maytag, KitchenAid, JennAir, Indesit and Yummly. See More.
Strengths:
- low PE ratio
- Low payout ratio
- 11 years of growth
- Household staple
Risks:
- Cyclical consumer stock
- Low dividend growth rates
Financial History and numbers
WHR: Numbers from Seeking Alpha as of Aug 16, 2021
Numbers from Macro Trends as of Aug 16, 2021
| Stock | WHR |
|---|---|
| P/E Ratio | 8.84 |
| Stock price | $232.5 |
| Current Annual Payout/Share | $5.6 |
| Yield | 2.41% |
| 5 Yr Div Growth Rate | 6.63% |
| 3 Yr Div Growth Rate | 4.65% |
| 1 Yr Div Growth Rate | 6.25% |
| Years Of Growth | 11 years |
| Current Payout Ratio | 21.29% |
| Free Cash Flow / Share | -9.3169 |
| Revenue (ttm) | 21.771B |
| Debt / Equity Ratio | 0.9823 |
| Debt / EBITDA | 1.5843 |
| EPS | 26.31 |
| ROI | 13.40% |
| ROA | 9.40% |
These numbers look alright. Low PE ratio, 11 years of dividend growth, nice revenue, decent returns. EPS estimates seem to be dropping even though historically stable. Considering that this is a cyclical stock and the free cash flow per share in 2019 was 17.269, on top of the pandemic, I'm not surprised about the negative free cash flow. The dividend growth rates leave much to be desired but I would be looking for price appreciation anyway.
I will now use the 3 year dividend growth rate to project further
| Year | WHR |
|---|---|
| 2022 | 5.86 |
| 2023 | 6.13 |
| 2024 | 6.42 |
| 2025 | 6.72 |
For another way, let's use historical payout ratio to project out.
| YEAR | WHR |
|---|---|
| EPS estimate 2021 | 26.31 |
| EPS estimate 2022 | 24.54 |
| 2021 dividend | 5.60 |
2022 dividen
... keep reading on reddit ➡Whirlpool Corporation is looking for a Web & E-Commerce Data Analyst in 20016 Pero with the following skills: Data Analysis, Tableau
The Opportunity Whirlpool Corporation is consistently recognized by Fortune Magazine as one of the World’s Most Admired Companies. Our values are the driving force behind everything we do. Respect, integrity, diversity... apply or read more here: https://www.datayoshi.com/offer/465674/web---e-commerce-data-analyst-whirlpool-corporation
Whirlpool Corporation is searching for a Machine Learning & Artificial Vision Senior Engineer in 21024 Biandronno with the following main skill: Machine Learning
The Opportunity Whirlpool Corporation is consistently recognized by Fortune Magazine as one of the World’s Most Admired Companies. Our values are the driving force behind everything we do. Respect, integrity, diversity... apply or read more here: https://www.datayoshi.com/offer/783937/machine-learning---artificial-vision-senior-engineer-whirlpool-corporation
Whirlpool Corporation is searching for a Junior Data Scientist in 20016 Pero with the following main skill: Modeling
The Opportunity Whirlpool Corporation is consistently recognized by Fortune Magazine as one of the World’s Most Admired Companies. Our values are the driving force behind everything we do. Respect, integrity, diversity... apply or read more here: https://www.datayoshi.com/offer/553037/junior-data-scientist-whirlpool-corporation
