Whirlpool Corporation (WHR) | Investment Case

1. Company Snapshot

1.a. Company Description

Whirlpool Corporation manufactures and markets home appliances and related products.It operates through four segments: North America; Europe, Middle East and Africa; Latin America; and Asia.The company's principal products include refrigerators, freezers, ice makers, and refrigerator water filters; laundry appliances and related laundry accessories; cooking and other small domestic appliances; and dishwasher appliances and related accessories, as well as mixers.

It markets and distributes its products primarily under the Whirlpool, Maytag, KitchenAid, JennAir, Amana, Roper, Affresh, Gladiator, Swash, everydrop, Speed Queen, Hotpoint, Bauknecht, Indesit, Ignis, Privileg, Consul, Eslabon de Lujo, Brastemp, Acros, Ariston, Diqua, and Royalstar brands.The company sells its products to retailers, distributors, dealers, builders, and other manufacturers, as well as directly to consumers.Whirlpool Corporation was founded in 1911 and is headquartered in Benton Harbor, Michigan.

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1.b. Last Insights on WHR

Whirlpool Corporation faces margin pressure due to weak global demand, higher costs, and intense competition. Despite cost-cutting efforts and new product launches, the company's Q3 earnings revealed deeper strain, with margin compression and rising capital expenditures. A "hold" rating from an analyst cites a mixed outlook, with US manufacturing advantages offset by significant debt and execution risks. Additionally, high short interest and potential for a short squeeze may impact the stock. (Source: Bloomberg)

1.c. Company Highlights

Last Price	76.06
Change Percentage	-4.81%
Open	78.6
Previous Close	79.9
Market Cap ( Millions)	4242
Volume	1453316
Year High	135.49
Year Low	65.35
M A 50	73.83
M A 200	85.3

FCF Yield	1.46%
Dividend Yield	6.97%
ROE	-7.27%
Debt / Equity	347.73%
Net Debt / EBIDTA	896.46%
Price To Book	1.79
Price Earnings Ratio	-23.49
Price To FCF	68.42
Price To sales	0.27
EV / EBITDA	14.14

2. Whirlpool's Q3 Earnings: A Mixed Bag

Whirlpool Corporation reported a revenue growth of 100 basis points year-over-year, driven by new product launches in its North American major appliance business and a strong double-digit growth in its Small Domestic Appliance (SDA) global business. The company's global ongoing EBIT margins were 4.5%, unfavorably impacted by the ramp-up effects of tariffs and foreign competitors' preloading of Asian-produced inventory. Earnings per share (EPS) came in at $2.09, beating analyst estimates of $1.41. The company's SDA Global business continued to deliver a very strong EBIT margin of 16.5% as favorable price/mix and a strong direct-to-consumer business drove margin expansion.

Publication Date: Oct -31

                                    📋 Highlights
                                    SDA Global Revenue Growth::
                                                Double-digit net sales growth of 10% year-over-year driven by new product launches, with a strong EBIT margin of 16.5%.
EPS Guidance Narrowed::
                                                Full year EPS guidance updated to approximately $7, supported by an improved adjusted effective tax rate of 8%.
Debt Paydown Plan::
                                                $700 million debt repayment targeted in FY2025, progressing toward a 2x net debt-to-EBITDA leverage target.
Product Launch Momentum::
                                                30% increase in flooring costs due to new product introductions, with inventory absorption expected by Q4 2025.
Tariff Impact Mitigation::
                                                Unmitigated tariff impact of 150 basis points, but margins expected to normalize as preloaded inventory overhang reduces by 2026.

                                

Segment Performance

The North American major appliance business saw market share gains driven by new product launches, while the SDA Global business delivered double-digit net sales growth of 10% year-over-year. The company's KitchenAid small domestic appliance business also saw double-digit revenue growth. However, North American operating margins were a point below expectations, largely due to tariff preloading.

Tariff Impact and Guidance

The company expects the promotional environment to normalize once the inventory overhang is reduced, and industry behavior to be more reflective of normal shipment patterns and underlying cost bases in 2026. Whirlpool narrowed its full-year EPS guidance to approximately $7 and updated its free cash flow guidance to approximately $200 million. The company also expects to pay down $700 million of debt, taking a significant step toward its long-term target of 2x net debt leverage.

Valuation Metrics

With a P/E Ratio of -21.68, P/B Ratio of 1.68, and EV/EBITDA of 10.05, the market seems to be pricing in a challenging environment for Whirlpool. However, the company's ROE is -7.39%, and ROIC is 23.03%, indicating a potential for recovery. The Dividend Yield is 8.58%, which is attractive for income investors. Analysts estimate next year's revenue growth at -0.7%, but Whirlpool's focus on organic growth, new products, and cost reductions could potentially lead to a better-than-expected performance.

Outlook

Whirlpool's management is optimistic about the company's prospects, citing a strengthening product portfolio and a likely multiyear recovery in the U.S. housing market. The company's investments in its U.S. footprint, including a $300 million investment in its laundry factories, are expected to drive growth and improve profitability. As Marc Bitzer noted, "We are strengthening our product portfolio with over 30% of our North American products transitioning to new products in 2025, positioning us as the net winner of new tariff and trade policies."

3. NewsRoom

17 dividend-stock bargains from a value manager with a stellar track record

Dec -02

Source: marketwatch.com

Brokerages Set Whirlpool Corporation (NYSE:WHR) Price Target at $86.43

Nov -30

Source: defenseworld.net

Why Billionaire David Tepper Just Sold 92% of UnitedHealth Group and Is Buying These 3 Stocks Instead

Nov -27

Source: fool.com

Advisors Asset Management Inc. Has $9.84 Million Stock Holdings in Whirlpool Corporation $WHR

Nov -26

Source: defenseworld.net

These 3 Housing Stocks Are Laying the Foundation for a Comeback

Nov -25

Source: marketbeat.com

Whirlpool Stock Sinks 37% in a Year — and This Fund Just Trimmed Its Holdings

Nov -19

Source: fool.com

Whirlpool sues to block Samsung, LG microwave imports in patent dispute

Nov -18

Source: reuters.com

Whirlpool's Worst May Be Over—Upside Opportunity Ahead

Nov -17

Source: marketbeat.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.95%)

6. Segments

Refrigeration

Expected Growth: 4.78%

Whirlpool's refrigeration segment growth of 4.78% is driven by increasing demand for energy-efficient and smart appliances, particularly in emerging markets. Additionally, the company's focus on innovation, such as its 6th Sense Live technology, and strategic partnerships have contributed to the growth. Furthermore, the rising trend of home renovation and remodeling has also boosted sales.

Laundry

Expected Growth: 5.15%

Whirlpool's Laundry segment growth of 5.15% is driven by increasing demand for energy-efficient and smart appliances, particularly in emerging markets. Additionally, the company's focus on product innovation, such as its 6th Sense technology, and strategic pricing strategies have contributed to the growth. Furthermore, the rising trend of urbanization and increasing disposable incomes have led to higher demand for laundry appliances.

Cooking

Expected Growth: 5.1%

Whirlpool's 5.1% growth in cooking segment is driven by increasing demand for smart and connected appliances, rising middle-class consumers in emerging markets, and a shift towards premium products with advanced features. Additionally, the company's focus on innovation, brand revitalization, and strategic acquisitions have contributed to its growth momentum.

Dishwashing

Expected Growth: 4.78%

Whirlpool's dishwashing segment growth of 4.78% is driven by increasing consumer preference for convenient and hygienic kitchen solutions, rising demand for energy-efficient appliances, and strategic product innovations such as quiet operation and advanced cleaning technologies.

Spare Parts and Warranties

Expected Growth: 4.65%

Whirlpool's Spare Parts and Warranties segment growth of 4.65% is driven by increasing demand for replacement parts, extended warranty sales, and a growing installed base of appliances. Additionally, the company's focus on digital transformation, e-commerce expansion, and strategic partnerships contribute to the segment's growth.

Other

Expected Growth: 4.65%

Whirlpool's 4.65% growth in 'Other' segment is driven by increasing demand for its premium and innovative products, expansion in emerging markets, and strategic partnerships. Additionally, the company's focus on cost savings initiatives, operational efficiencies, and investments in digital capabilities have contributed to this growth.

7. Detailed Products

Refrigerators

Whirlpool Corporation offers a wide range of refrigerators, including French door, side-by-side, top-freezer, and bottom-freezer models, designed to provide ample storage and advanced features for optimal food preservation.

Washing Machines

Whirlpool Corporation's washing machines are designed to provide efficient and effective cleaning, with features such as high-efficiency wash systems, steam cleaning, and advanced sensors to detect fabric type and soil level.

Dryers

Whirlpool Corporation's dryers are designed to provide fast and efficient drying, with features such as moisture-sensing technology, steam refresh, and advanced fabric care.

Dishwashers

Whirlpool Corporation's dishwashers are designed to provide efficient and effective cleaning, with features such as sensor-activated wash cycles, steam cleaning, and quiet operation.

Ovens and Ranges

Whirlpool Corporation's ovens and ranges are designed to provide precise temperature control, even heating, and advanced cooking features such as convection cooking and slow cooking.

Microwaves

Whirlpool Corporation's microwaves are designed to provide fast and efficient reheating, with features such as sensor cooking, defrosting, and cooking presets.

Air Conditioners and Heaters

Whirlpool Corporation's air conditioners and heaters are designed to provide efficient and effective temperature control, with features such as energy-saving modes and advanced air filtration.

8. Whirlpool Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Whirlpool Corporation faces moderate threat from substitutes, as consumers have limited alternatives to its home appliances. However, the rise of smart home devices and energy-efficient solutions may pose a threat to Whirlpool's traditional product offerings.

Bargaining Power Of Customers

Whirlpool Corporation has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand presence and wide distribution network limit customers' ability to negotiate prices.

Bargaining Power Of Suppliers

Whirlpool Corporation relies on a few large suppliers for components and raw materials. While the company has some bargaining power due to its scale, suppliers may still exert pressure on prices and delivery terms.

Threat Of New Entrants

The home appliance industry has high barriers to entry, including significant capital investments and regulatory hurdles. New entrants would need to invest heavily in manufacturing, marketing, and distribution to compete with Whirlpool Corporation.

Intensity Of Rivalry

The home appliance industry is highly competitive, with several established players vying for market share. Whirlpool Corporation faces intense competition from companies like LG, Samsung, and Bosch, which may lead to pricing pressures and advertising wars.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	76.85%
Debt Cost	5.14%
Equity Weight	23.15%
Equity Cost	11.47%
WACC	6.61%
Leverage	332.05%

11. Quality Control: Whirlpool Corporation passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Crown Crafts

A-Score: 5.7/10

Value: 9.1

Growth: 2.8

Quality: 3.6

Yield: 10.0

Momentum: 1.0

Volatility: 8.0

1-Year Total Return ->

Patrick Industries

A-Score: 5.3/10

Value: 4.6

Growth: 4.8

Quality: 5.5

Yield: 4.0

Momentum: 6.0

Volatility: 7.0

1-Year Total Return ->

KB Home

A-Score: 4.9/10

Value: 6.2

Growth: 7.1

Quality: 5.0

Yield: 3.0

Momentum: 2.5

Volatility: 5.7

1-Year Total Return ->

Whirlpool

A-Score: 4.3/10

Value: 6.2

Growth: 1.7

Quality: 1.8

Yield: 9.0

Momentum: 2.0

Volatility: 5.0

1-Year Total Return ->

Tempur Sealy

A-Score: 4.2/10

Value: 1.8

Growth: 4.8

Quality: 4.5

Yield: 2.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

Mohawk

A-Score: 4.2/10

Value: 7.6

Growth: 3.7

Quality: 5.5

Yield: 0.0

Momentum: 2.5

Volatility: 5.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

8.15%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.61%

Whirlpool Corporation - US9633201069

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on WHR

1.c. Company Highlights

Higher Yield

Stable Momentum

Average Growth

Earnings Beats

Revenues Beats

Revenues Miss

Weak Momentum

Average Quality

Fairly Valued

Lower Quality

Earnings Miss

Lower Growth

2. Whirlpool's Q3 Earnings: A Mixed Bag

Segment Performance

Tariff Impact and Guidance

Valuation Metrics

Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.95%)

6. Segments

Refrigeration

Expected Growth: 4.78%

Laundry

Expected Growth: 5.15%

Cooking

Expected Growth: 5.1%

Dishwashing

Expected Growth: 4.78%

Spare Parts and Warranties

Expected Growth: 4.65%

Other

Expected Growth: 4.65%

7. Detailed Products

Refrigerators

Washing Machines

Dryers

Dishwashers

Ovens and Ranges

Microwaves

Air Conditioners and Heaters

8. Whirlpool Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Whirlpool Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

76.06$

Current Price

12.e Scoring ^Insights

12.f DCF ^BETA