WHR Investment Analysis Report & Stock Research, Whirlpool Corp.

Whirlpool Corporation (WHR)

WHR Stock Report

2-Year Price History

View Larger WHR Chart
NYSE:WHR
$76.92
(2/9 1:47PM)
+1.7%
Open$76.8 Mkt Cap$5.6 Billion
High$77.06 52Wk High$85.17
Low$75.18 52Wk Low$19.19
Volume889,018 Avg Vol 10D2.0 Million

Ockham's Rating/Recommendation Summary

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WHR Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at WHR through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 0.43x and 0.23x respectively.

Utilizing this range we can see that WHR’s current Price to Sales per share ratio of 0.33x is above its historical average only slightly. So, while not a major concern it is worth noting that from a value perspective WHR does not look undervalued on a Price to Sales basis. However, were the Price to Sales ratio to drop by 0% (the historical average) then we would become more positive on this stock.

WHR Cash Earnings

Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. WHR is significantly above its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from WHR. For example, WHR's Cash Earnings ratio per share has fluctuated between 3.91 and 7.71 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where WHR is with respect to prior business periods.

Therefore, at the current price of $76.12 and a Price to Cash Earnings ratio of 7.00, WHR is significantly overvalued. This diminishes the attractiveness of WHR until we see either a significant increase in cash earnings or a decline in price. A decline of the Price to Cash Earnings ratio of 20% is needed just to return to the historical cash earnings multiple.

WHR Dividends

When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for WHR to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.

The estimated annual dividend for WHR is $1.72 producing a current dividend yield of 2.26%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from WHR against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from WHR over previous years was 8.96% while the lowest dividend yield was 1.46%. While it is quite common for a growth stock to pay no dividend at all, but for a mature company such as WHR that has a history of paying dividends it is disappointing to see their dividend yield drop so significantly. At this time, the current dividend yield is 56.62% below the median yield.

Peer Comparison

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Whirlpool Corp. Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including WHR) 12.91 4.85 » 19.71 0.93 0.46 » 1.82 4.80% 19.46%
*10 year range does not include current year values
Xerox Corp. XRX $7.3 Billion $8.45 7.30 2.63 » 15.80 0.51 0.20 » 1.13 3.67% 12.40%
Mattel, Inc. MAT $7.3 Billion $20.06 13.31 6.86 » 14.69 1.34 0.59 » 2.00 3.59% 22.42%
Fortune Brands, Inc. FO $6.1 Billion $40.66 28.89 6.53 » 33.17 0.91 0.34 » 1.96 5.17% 15.84%
Whirlpool Corp. WHR $5.6 Billion $75.61 7.00 1.76 » 12.32 0.33 0.07 » 0.49 9.20% 18.60%
Hasbro, Inc. HAS $4.8 Billion $34.71 8.95 3.39 » 12.24 1.09 0.61 » 1.44 5.08% 17.08%
Pitney Bowes, Inc. PBI $4.6 Billion $22.09 6.12 4.83 » 22.64 0.82 0.56 » 2.57 6.47% 29.56%
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4:20P, Feb. 02,2010 WHR $82.41 Whirlpool Corp.
Closing Bell

Stocks in the News: Whirlpool Corporation Among the Twenty Most Discussed Stocks

WHR has been one of the most active stocks in the news today, so investors in it will want to pay attention to what is happening.

The latest news on WHR has created quite a stir as the stock is trading $6.35 higher in today's session. We noticed recently that in comparison to all other stocks we analyze in the news; WHR has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. Whirlpool Corporation received our Fairly Valued rating in our latest report because the price at the time of the report of $75.18 did not seem out of line with the fundamentals. The price has risen since then and all other things being equal that makes WHR less attractive.

“… conference call comments, the understand ceo said it looks like the recession is finally over. WHIRLPOOL said 2010 would be a …”

4:00P, Feb. 02,2010 WHR $82.27 Whirlpool Corp.
Countdown to the Closing Bell

Stocks in the News: Whirlpool Corporation Among the Twenty Most Discussed Stocks

WHR has been one of the most active stocks in the news today, so investors in it will want to pay attention to what is happening.

When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Whirlpool Corporation has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on WHR because it trades within the price range that we would expect given current market conditions and fundamentals. But as the price has risen in the last week, we have begun to look slightly less favorably on the valuation. Take notice of the news on this stock because it is up $6.21 since the close of trading yesterday. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Whirlpool Corporation underperforming.

“… Things like WHIRLPOOL and tupperware, waiting for friday for that unemployment report and expectations are straight up. Some are fine with that. …”

2:02P, Feb. 02,2010 WHR $82.68 Whirlpool Corp.
Street Signs

Be Aware There is a Lot of News Today On WHR and This Instance Comes from Street Signs

Something important is going on with WHR today, as it is getting a lot of attention on business television and influential blogs.

Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Whirlpool Corporation underperforming. Take notice of the news on this stock because it is up $6.62 since the close of trading yesterday. The Ockham valuation currently has a Fairly Valued stance on WHR because it trades within the price range that we would expect given current market conditions and fundamentals. But as the price has risen in the last week, we have begun to look slightly less favorably on the valuation. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Whirlpool Corporation has actually sunk a bit in comparison to the others.

“… WHIRLPOOL making positive comments. They're expecting new home sales to rise 27% in 2010. U. P. S. Ceo says it look likes receipt session is finally over. …”

1:08P, Feb. 02,2010 WHR $83.08 Whirlpool Corp.
Power Lunch

WHR Having an Active Day in News, Now on Power Lunch

We are observing a lot of attention being paid to WHR in the news, so if you hold the stock you may want to take a look at what is going on.

The crowd at The Motley Fool does not like WHR and believes that it will Underperform. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on WHR. Check the news on this stock because there is a catalyst that has allowed this stock to advance 6.36% today. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, WHR has been less covered in the news compared to the rest of our universe of stocks.

“… Archer daniel midland, WHIRLPOOL, crown, you see moves on the upside. Not happening in the prior couple weeks. Finally the two stars of the day, d. R. …”

12:02P, Feb. 02,2010 WHR $80.64 Whirlpool Corp.
Power Lunch

A Few Words from Power Lunch on Whirlpool Corporation and Sentiment

Power Lunch talked about the sentiment surrounding WHR and the way they are perceived in the marketplace.

Whirlpool Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. The latest news on WHR has created quite a stir as the stock is trading $4.77 higher in today's session. We noticed recently that in comparison to all other stocks we analyze in the news; WHR has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.

“… WHIRLPOOL, they talked on their conference call and see 2010, a year of full recovery for our company. That was a bullish remark. WHIRLPOOL is on the upside as well. …”

11:59A, Feb. 02,2010 WHR $80.82 Whirlpool Corp.
The Call

The Call Discussed the Latest Development of Whirlpool Corporation

Whirlpool Corporation is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on The Call.

The latest news on WHR has created quite a stir as the stock is trading $4.76 higher in today's session. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; WHR has received less coverage from the financial media in business television and blogs. Whirlpool Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.

“… Horton, kodak and WHIRLPOOL, but not nike which earlier I had reported that some had been speculating might be in the process of chasing underarmour. …”

11:03A, Feb. 02,2010 WHR $81.15 Whirlpool Corp.
The Call

WHR News Mentioned on The Call Recently

Whirlpool Corporation is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on The Call.

Whirlpool Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; WHR has received less coverage from the financial media in business television and blogs. The latest news on WHR has created quite a stir as the stock is trading $4.82 higher in today's session.

“… WHIRLPOOL on its conference call this morning. Talk about what that company had to say and how it relates. > > I think this was a factor here because WHIRLPOOL had positive ... …”

11:00A, Feb. 02,2010 WHR $80.84 Whirlpool Corp.
The Call

WHR's Earnings Were Talked About on The Call

In our methodology at Ockham we weight earnings performance heavily, so we always pay attention to earnings news coming from legitimate sources like The Call.

Whirlpool Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; WHR has received less coverage from the financial media in business television and blogs. The latest news on WHR has created quite a stir as the stock is trading $4.77 higher in today's session. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.

“… stocks getting a boost from positive earnings guidance from dr horton and taylor and WHIRLPOOL. The industrials, materials and financials are leading the way. The s&p is up . …”

9:32A, Feb. 02,2010 WHR $80.02 Whirlpool Corp.
Squawk On The Street

WHR Gets Mentioned in the Financial Media

Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on WHR from Squawk On The Street.

The latest news on WHR has created quite a stir as the stock is trading $3.96 higher in today's session. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; WHR has received less coverage from the financial media in business television and blogs. Whirlpool Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals.

“… Final stock to mention is WHIRLPOOL with sales in north america up 4%. Most of the other international companies had sales down in the u. S. Scott, how are we looking? > > …”

7:54A, Feb. 02,2010 WHR $76.06 Whirlpool Corp.
Squawk Box

News on Earnings Per Share for WHR on Squawk Box

Whenever a reliable source like Squawk Box talks about earnings or news on earnings, we think it warrants bringing attention to it.

While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. Whirlpool Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. We noticed recently that in comparison to all other stocks we analyze in the news; WHR has received less coverage from the financial media in business television and blogs.

“… WHIRLPOOL reporting fourth quarter $1. 64. The. > > there you go, WHIRLPOOL's earnings. A guy was complaining. > > was he complaing they were good or not good? > > …”

View All Whirlpool Corp. Stock News

Key Fundamentals

WHR - Whirlpool Corporation Fundamentals
Price (2/9 1:47PM) $76.92
Volume (2/9 1:47PM) 889,018
Last Close Price $75.61
10 Day Average Volume 2.0 Million
13 Week Price Range $68.90 - $85.17
52 Week Price Range $19.19 - $85.17
LTM Revenue $17.1 Billion
 
Shares Outstanding (12/2009) 74.3 Million
Market Capitalization $5.6 Billion
Shares Held By Institutions 79.1 Million
Institutional Holders 448
% Shares Held By Institutions %
Earnings Per Share (EPS) $4.34
P/E Ratio 17.40
Book Value Per Share $48.33
 
Gross Margin 16.10%
Annual Dividend 1.72
Dividend Yield 2.30%
Beta 2.14
Fiscal Year Ends December

About Whirlpool Corp.

Whirlpool Corporation is considered to operate in the Consumer Goods sector. They specifically operate in the Appliances business segment contained within the Consumer Durables industry.

The Company manufactures and markets a full line of appliances and related products for home use.