why whirlpool could have more upside - home appliance manufacturer

by:Yovog     2023-03-23
why whirlpool could have more upside  -  home appliance manufacturer
Whirlpool, October (WHR -Get Report)
The stock is stuck at $160 and I think it can get $180.
It's there right now, right now?
Whirlpool has never been a story of revenue growth.
The real story is profit expansion.
Gross margin is expected from 18.
8% from 2016 to 19.
1% per cent in 2017, compared to 17 per cent.
Thanks to productivity gains, richer product portfolios and a rebound in shipments, growth in 2015 was 7% per cent.
Operating profit margin should be 7. 5% between 2015 and 8.
It was 4% per cent in 2016, up to 9 per cent. 2% in 2017. On Oct.
25. Whirlpool reports third.
Revenue for the quarter was $2016.
66, 19 cents worse than consensus estimates. Revenue fell 0. 5% to $5. 25 billion.
Management reduced guidance by 2016.
The company expects revenue to be between $14 and $14 this year. 25, vs.
A consensus estimate of $14. 65.
Whirlpool also reduced unit shipments.
Management had previously expected shipments to grow by 5% to 6%;
Now, the company hopes shipments will grow by 3% to 4% by the end of this year.
Management blamed the election for its weakness.
The company believes demand will pick up after the election, and improved sentiment will help consumers feel confident in the new year.
There may be some truth to this.
Just two weeks ago, the Association of Home Appliance Manufacturers said sales rose by 14 in November. 7% to 3.
9 million units, compared to 7% in October.
Whirlpool's forecast is only 3% to 4%.
The laundry room increased by 21% and the dishwasher increased by 12. 6%.
In 2016, home appliance shipments increased by 4. 8%.
Home appliance sales are still below the industry's record levels in the previous boom in real estate. On Dec. 9, the U. S.
The Ministry of Commerce has announced that Samsung (SSNLF)
LG is also continuing to dump washing machines from China to the United States. S. On Jan. 10, the U. S.
The International Trade Commission is expected to vote on whether dumping is causing harm to the United States. S. clothes-
Washing industry.
Whirlpool has about 40% of the United States. S.
The home appliance market and laundry business account for about 30% of total revenue.
Favourable ruling of January
May focus on the issue of US manufacturing and China dumping goods on our market.
It can also serve as a catalyst for President tweet.
Before he took office, he had already won a huge victory in choosing American companies.
I think the stock can get more than $200 per share as the company starts (finally)grow revenue.
Revenue will grow by about 1% in 2017, possibly as high as 3. 5% in 2018.
Despite weak revenue growth, Whirlpool is still a story of profit expansion.
Operating profit margin is expected from 7.
Fiscal 4% to fiscal 20142% next year.
Margin expansion and share repurchase (
There may be lower tax rates)
Driving revenue growthper-share growth.
Revenue may grow in the medium term
Between teenagers and $16 next year. 60 from $14. 35 this year.
According to the current offer, Whirlpool's share price is only 11 times that of $16. 60.
With the improvement of investor sentiment and the possibility of gaining some market share at the expense of competitors, I don't understand why Whirlpool can't get a higher multiple.
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