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Opinions Andy Nasr
Whirlpool CorpWHRTOP PICKSep 08, 2015
Andy NasrStock 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.
US is about 55% of their business. Thinks that most people have written off growth in other parts of the world because of currency headwinds and the challenges in emerging markets. This is why this is such a great buying opportunity at $165. It is very cheap. The strength in the North American market should more than compensate for some weakness that you are going to see in other parts of the world. Emerging market is going to represent a tremendous amount of long-term potential, because appliance penetration in those markets is very low. Dividend yield of 2.17%.