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Whirlpool Corporation (WHR)
:WHR
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Whirlpool
(NYSE:WHR)47Neutral
Positive Factors
Cost Savings
Management expects to deliver $200M+ cost savings in 2025.
Tariff Impact
WHR manufactures roughly 80% of its U.S. product domestically, minimizing potential tariff impacts compared to competitors with larger overseas manufacturing bases.
Negative Factors
Revenue Guidance
2025 consolidated guidance for revenues and adjusted EBIT margin is below expectations.
Whirlpool (WHR) vs. S&P 500 (SPY)
Market Cap
$5.07B
Dividend Yield7.64%
Average Volume (3M)1.26M
Price to Earnings (P/E)13.0
Beta (1Y)1.19
Revenue Growth-14.64%
EPS Growth-167.22%
CountryUS
Employees44,000
SectorConsumer Cyclical
Sector Strength53
IndustryHome and Homeware
Share Statistics
EPS (TTM)-5.86
Shares Outstanding55,383,934
10 Day Avg. Volume1,143,116
30 Day Avg. Volume1,260,555
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.31
Price to Cash Flow (P/CF)1.20
P/FCF Ratio1.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$114.00Price Target Upside21.41% Upside
Rating ConsensusHold
Number of Analyst Covering6
Whirlpool Business Overview & Revenue Model
Company DescriptionWhirlpool Corporation is a leading global manufacturer and marketer of home appliances, headquartered in Benton Harbor, Michigan. The company operates in the household appliances sector, offering a wide range of products including refrigerators, freezers, washing machines, dryers, dishwashers, ovens, and microwaves. Whirlpool's portfolio includes well-known brands such as Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, JennAir, and Indesit, delivering innovative solutions to improve life at home for consumers worldwide.
How the Company Makes MoneyWhirlpool makes money primarily through the design, manufacture, and sale of home appliances. The company's revenue streams are mainly derived from the sale of its diverse product portfolio across various geographies. Whirlpool's products are sold through a network of retailers, distributors, and directly to consumers. The company also earns revenue from after-sales services, including repair and maintenance. Key partnerships with retailers and suppliers contribute to its earnings by ensuring wide distribution and efficient production. Whirlpool's global presence allows it to capitalize on economies of scale, enhancing its profitability across different markets.
Whirlpool Financial Statement Overview
Summary
Whirlpool's financial performance indicates significant challenges, with declining revenues, increased leverage, and operational struggles. The income statement reveals profitability issues, while the balance sheet highlights elevated financial risk due to high debt levels. Cash flow remains under pressure with reduced operating cash flows, reflecting the need for strategic improvements.Income Statement
Whirlpool's income statement shows significant revenue decline from $19.45B in 2023 to $16.61B in 2024, a sharp drop after a period of relatively stable revenues. The gross profit margin decreased, and the net profit margin turned negative in 2024, indicating a challenging year with a net loss. These trends suggest substantial pressure on profitability, impacting overall income statement performance.40
Negative
Balance Sheet
Despite a decline in stockholders' equity from $2.36B in 2023 to $2.68B in 2024, Whirlpool's balance sheet displays a high debt-to-equity ratio due to significant debt levels. The equity ratio has improved slightly with a reduction in total assets. These factors highlight increased leverage and potential financial risk, though equity has shown minor growth.55
Neutral
Cash Flow
Operating cash flow decreased from $915M in 2023 to $835M in 2024, and free cash flow saw minimal growth over the same period. The operating cash flow to net income ratio is positive, reflecting operational challenges but a semblance of cash generation capability despite losses. Nevertheless, cash flow management appears strained, affecting the cash flow statement's stability.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 16.61B | 19.45B | 19.72B | 21.98B | 19.46B | Gross Profit |
| 2.58B | 3.17B | 3.07B | 4.41B | 3.85B | EBIT |
| 143.00M | 1.01B | 1.24B | 2.35B | 1.62B | EBITDA |
| 502.00M | 1.30B | -562.00M | 3.00B | 2.45B | Net Income Common Stockholders |
| -323.00M | 481.00M | -1.49B | 1.78B | 1.07B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.27B | 1.57B | 1.96B | 3.04B | 2.92B | Total Assets |
| 16.30B | 17.31B | 17.12B | 20.29B | 20.35B | Total Debt |
| 7.34B | 7.84B | 8.20B | 6.03B | 6.21B | Net Debt |
| 6.06B | 6.27B | 6.24B | 2.99B | 3.28B | Total Liabilities |
| 13.37B | 14.78B | 14.62B | 15.27B | 15.64B | Stockholders Equity |
| 2.68B | 2.36B | 2.34B | 4.85B | 3.80B |
| Cash Flow | Free Cash Flow | |||
| 384.00M | 366.00M | 820.00M | 1.65B | 1.09B | Operating Cash Flow |
| 835.00M | 915.00M | 1.39B | 2.18B | 1.50B | Investing Cash Flow |
| -602.00M | -553.00M | -3.57B | -660.00M | -237.00M | Financing Cash Flow |
| -476.00M | -792.00M | 1.21B | -1.34B | -253.00M |
Whirlpool Technical Analysis
Negative
93.90
Price Trends
110.08
Negative
108.91
Negative
101.31
Negative
Market Momentum
-4.35
Positive
35.48
Neutral
13.65
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WHR, the sentiment is Negative. The current price of 93.9 is below the 20-day moving average (MA) of 99.65, below the 50-day MA of 110.08, and below the 200-day MA of 101.31, indicating a bearish trend. The MACD of -4.35 indicates Positive momentum. The RSI at 35.48 is Neutral, neither overbought nor oversold. The STOCH value of 13.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WHR.
Whirlpool Risk Analysis
Whirlpool disclosed 25 risk factors in its most recent earnings report. Whirlpool reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Whirlpool Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $54.28B | 31.40 | 9.80% | 1.80% | -4.53% | -14.72% | |
74 Outperform | $217.34B | 33.89 | 27.62% | 0.55% | -32.60% | -28.55% | |
73 Outperform | $20.39B | 25.42 | 142.12% | 0.77% | 7.21% | 36.45% | |
71 Outperform | $38.25B | 6.60 | 13.42% | 7.77% | 5.00% | 35.92% | |
60 Neutral | $1.17B | ― | -50.56% | 7.03% | -7.28% | -272.76% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
47 Neutral | $5.07B | 13.03 | -12.77% | 7.64% | -14.64% | -167.22% |
* Consumer Cyclical Sector Average
Performance Comparison
WHR
Whirlpool
93.90
-8.19
-8.02%
F
Ford Motor
9.61
-1.71
-15.11%
GE
GE Aerospace
196.05
62.97
47.32%
JCI
Johnson Controls
81.07
20.60
34.07%
LEG
Leggett & Platt
8.60
-11.12
-56.39%
LII
Lennox International
583.90
116.99
25.06%
Whirlpool Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -26.39% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
Whirlpool reported significant achievements in cost reduction and margin expansion along with strong prospects from new product launches. However, these were offset by challenges in North America, a difficult macro environment, and currency headwinds, leading to a balanced sentiment.Highlights
Completion of Europe Transaction
The completion of the Europe transaction was a key milestone in Whirlpool's ongoing portfolio transformation, unlocking significant value-creation opportunities.
Cost Reduction Initiatives
Whirlpool delivered substantial cost reduction initiatives of approximately $300 million and achieved structural cost savings of more than $100 million.
Sequential EBIT Margin Increase
Since the first quarter, Whirlpool has sequentially increased ongoing EBIT margin by 170 basis points, achieving three consecutive quarters of margin expansion.
Debt Reduction and Shareholder Returns
Whirlpool returned approximately $400 million of cash to shareholders in dividends and paid down $500 million of debt.
Free Cash Flow Achievement
Significant working capital efficiency resulted in $385 million in free cash flow.
Strong Product Launch Pipeline for 2025
Whirlpool expects growth driven by a strong product launch pipeline, expected to deliver share growth in MDA North America and continued strength in SDA Global and international businesses.
MDA Latin America Growth
MDA Latin America segment had strong net sales growth of 7% year-over-year excluding currency, with EBIT margin expanding by 240 basis points year-over-year.
Lowlights
Underperformance in North America
MDA North America net sales declined 1% in the fourth quarter, driven by negative price/mix and a retailer destocking.
Challenging Macro Environment
Whirlpool does not anticipate a sudden improvement in the challenging macro environment, particularly in the US.
Impact of Retailer Destocking
Retailer destocking in MDA North America negatively impacted price/mix by 100 basis points, slightly falling short of initial expectations.
Currency Headwinds
Currency reduced margin by 25 basis points year-over-year as the Brazilian real weakened relative to the US dollar.
Increased Marketing Investments
Marketing and technology investments had an unfavorable 50 basis point impact on margins.
Company Guidance
During Whirlpool Corporation's Fourth Quarter 2024 earnings call, CEO Marc Bitzer and CFO Jim Peters provided guidance for 2025, highlighting several key financial metrics. The company anticipates a 3% growth in net sales to $15.8 billion, driven by a robust pipeline of new product launches. They project a 100 basis point expansion in ongoing EBIT margin to approximately 6.8%, supported by $200 million in cost takeout actions and pricing strategies. Free cash flow is expected to range between $500 million and $600 million, with an ongoing earnings per share forecast of around $10. The guidance assumes a stable demand environment, with no major improvements factored in from discretionary demand recovery or raw material cost savings. Additionally, Whirlpool plans to reduce debt by $700 million, aiming for a net debt leverage of approximately 3.4 times.Whirlpool Corporate Events
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Whirlpool Appoints John G. Morikis to Board of Directors
Positive
Feb 18, 2025
On January 17, 2025, Whirlpool Corporation appointed John G. Morikis, the former chairman and CEO of The Sherwin-Williams Company, to its Board of Directors. Morikis, who brings extensive experience in global enterprise leadership and supply chain management, will serve on the corporate governance and nominating committee and the human resources committee. His appointment is expected to bolster Whirlpool’s strategic positioning in the global marketplace. Additionally, Larry O. Spencer announced he will not stand for reelection at the 2025 Annual Meeting of Stockholders, with his decision unrelated to any disagreements with the company.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.