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Opinions Jennifer Radman
Whirlpool CorpWHRTOP PICKAug 13, 2015
Jennifer RadmanStock price when the opinion was issued
As of Jun 12, 2026. Market Open.
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Chart shows a downtrend -- both peaks and troughs are going lower. Also, he's assuming it's below its 200-day MA. Going back to June 2024, there's some support around $90. If it bounced off, may be the end of the downtrend. But until that happens, at best it's consolidating with a big question mark.
WHR has largely been on a downtrend since mid-2021, however, since late 2023, its price has been trending up. It pays a nice dividend of 6%, but sales have been largely flat over the past several years, and its debt levels have crept up (3.8X net debt/EBITDA). Its free cash flows are OK, but it is drawing from its cash balance to pay down debt and service dividends. As a result, its equity balance has been declining over the years. It trades at a cheap valuation, but this is likely reflecting its weakening results. As an income name, we think it is OK, but we are not overly excited by the name here.
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Stay-at-home impact wore off. Mismanagement plus bad luck. Inexpensive 7x earnings, speculative buying opportunity if economy does well. Don't bet the farm. It will either be a win or a loss. Great dividend yield of 6.5%. Alluring, but 80% payout ratio, so be careful. If not working out, hit the exit quickly.
Bought this last May. A pandemic play that overcorrected after the pandemic as if the consumer was going to die. It didn't. It's down 20% recently on weak guidance. But she added shares today. Trades at 7x PE, pays a 7% dividend, makes $16 EPS to cover a $7 dividend, and their inventory is returning to normal a lot faster than they expected. Will buy more tranches if this declines more.
A housing play which is the part of the market that has been doing well with renovation and remodelling. They are expecting a lot more growth out of North America. Had some capacity constraint issues. Have new products coming online. What is really exciting is that they did 2 joint ventures in Europe and China. They have the ability to take costs out of the system and really rationalize things. The acquisition of Maytag in 2006 had zero revenue growth and they almost doubled EPS. They are very good at running businesses. Dividend yield of 2.06%.