The Whirlpool Corporation is the largest home appliance maker in the world today. It got that way by swallowing up many of the other home appliance manufacturers over the years. Today the company markets appliances under the brands Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Gladiator GarageWorks, Inglis, Estate, Brastemp, Bauknecht and Consul.
Whirlpool also manufactures certain appliances under the Kenmore label for Sears Holdings Corporation, Inglis appliances for Best Buy stores, IKEA brand appliances for IKEA, Top Load laundry appliances for Crosley and Admiral appliances for Home Depot.
Whirlpool also manufactures certain appliances under the Kenmore label for Sears Holdings Corporation, Inglis appliances for Best Buy stores, IKEA brand appliances for IKEA, Top Load laundry appliances for Crosley and Admiral appliances for Home Depot.
- Whirlpool is the world wide leader in the manufacture of home appliances and the company manufactures those appliances under all the leading brand names.
- Poducts are intertwined with the new housing industry and the home improvement industry, both of which are steadily improving.
- Estimates for revenues, earnings and dividends are all dramatically improving in the next two years.
- Freeze-dried ice cream was developed by the Whirlpool Corporation under contract to NASA for the Apollo missions.
Whirlpool Corporation manufactures and markets home appliances and related products worldwide. The company’s principal products include laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers, and other portable household appliances. It also produces hermetic compressors for refrigeration systems. The company markets and distributes its products under various brand names, including Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Roper, Estate, Admiral, Gladiator, Inglis, Acros, Supermatic, Consul, Brastemp, Eslabón de Lujo, Bauknecht, Ignis, Laden, Polar, and Privileg in North America, Latin America, Europe, the Middle East, Africa, and Asia. It sells its products to retailers, dealers, distributors, builders, and other manufacturers. Whirlpool Corporation was founded in 1898 and is headquartered in Benton Harbor, Michigan.
(Summary) (Company) (Daily Chart)
Once simply just and American appliance company, Whirlpool today is truly an international company with nearly fifty percent of its revenues originating outside of North America. Going forward there are significant opportunities for continued international growth where populations are high but appliance penetration rates are low. And as economies improve, Whirlpool is well positioned to take advantage of both the ongoing upswing in housing sales as well as the trend to update older homes with new appliances.
This demand in housing and home improvement is global but it's being led by strong demand in the United States. In Europe, Whirlpool sales have recently stabilized and have now begun to increase as the ongoing economic turnaround begins all across the continent. In the emerging markets, and particularly in India, Whirlpool is continuing to manage with some success the rampant inflation and currency fluctuations that are impacting consumer sentiment in those countries. Brazil, as well as thirty-five other Latin American countries, continue to experience a strengthening domestic market combined with a rising middle class. This middle class now has an increasing level of discretionary income that most likely will be spent on homes and home improvement projects. Finally, in China Whirlpool will continue to experience continued excellent growth as their economy continues to grow.
The Fundamentals
| 22 June 2014 Price $138.87 1yr Target $172.38 Analysts 8 1yr Cap Gain 24.13% Dividend $3.00 Yield 2.16% 1yr Tot Return 26.29% Market Cap $10.80 Bil 1yr EarnGR 102.37% 3yr EarnGR 8.62% 5yr EarnGR 13.23% 1yr DivGR 25.00% 3yr DivGR 13.13% 5yr DivGR 7.76% Payout Ratio 32.85% Beta 1.67 EPS (ttm) $9.13 EPS next yr $14.11 P/E 15.21 PEG .73 Debt/Equity 0.64 ROA 4.70% ROE 15.30% | July 2015 Price $178.36 1yr Target $216.63 Analysts 8 1yr Cap Gain 21.45% Dividend $3.60 Yield 2.01% 1yr Tot Return 23.46% Market Cap $14.03 Bil 1yr EarnGR -20.22% 3yr EarnGR 17.66% 5yr EarnGR 13.48% 1yr DivGR 20.00% 3yr DivGR 14.31% 5yr DivGR 11.76% Payout Ratio 42.15% Beta 1.67 EPS (ttm) $8.54 EPS next yr $15.25 P/E 20.89 PEG 1.09 Debt/Equity 0.96 ROA 3.90% ROE 13.50% |
Click to Enlarge A Look at the Chart
When I looked at the price chart of WHR in June 2014 the stock was stuck in a range near $140 per share and, based on forward looking estimates, it looked like it was about to take off. And it did. All the way up to $215 per share, way beyond the estimated one year estimate. Once it shot through this estimate an investor should have realized that it was time to stop buying and possibly sell those shares because all the gains had already been made. Basically the share price got ahead of itself.
It's now backed down off its high to a level near last years estimated capital gain. Looking at todays forward estimate $216 per share, this looks to be a good share to buy again. In addition, the RSI, MACD and Stochastic indicators are showing a stock that's moving higher. With past support levels around $155 per share it can be seen that as the stock pulled back to the $159 level support came in and pushed the stock higher.
I don't think the stock will fall back into support below $160 again but I could easily see the stock rising to its previous high before any serious resistance arises. That confirms the estimates above and would result in a one year cap gain of 21% and that's a nice gain by any standard.
When I looked at the price chart of WHR in June 2014 the stock was stuck in a range near $140 per share and, based on forward looking estimates, it looked like it was about to take off. And it did. All the way up to $215 per share, way beyond the estimated one year estimate. Once it shot through this estimate an investor should have realized that it was time to stop buying and possibly sell those shares because all the gains had already been made. Basically the share price got ahead of itself.
It's now backed down off its high to a level near last years estimated capital gain. Looking at todays forward estimate $216 per share, this looks to be a good share to buy again. In addition, the RSI, MACD and Stochastic indicators are showing a stock that's moving higher. With past support levels around $155 per share it can be seen that as the stock pulled back to the $159 level support came in and pushed the stock higher.
I don't think the stock will fall back into support below $160 again but I could easily see the stock rising to its previous high before any serious resistance arises. That confirms the estimates above and would result in a one year cap gain of 21% and that's a nice gain by any standard.
The Competition
Whirlpool Corporation is part of the Appliances Industry which is part of the Consumer Goods Sector of the economy. Below are a few of the major corporations included in this industry. They are listed in the order of their market capitalization.
Whirlpool Corporation is part of the Appliances Industry which is part of the Consumer Goods Sector of the economy. Below are a few of the major corporations included in this industry. They are listed in the order of their market capitalization.
Conclusion
I was actually looking at the shares of this company a couple of days ago, before today's $12 rise in the price of the stock. That $12 increase was a nice 7% rise in the shares and it buying the stock in this company now falls into the category of "things I should have done before I regretted not doing them." However, I still think this is a good company to own despite its recent share price increase and hovering around $180 per share.
The company continues to increase its dividend year after year despite the volatility of the share price, and the projections for earnings increases in 2015 and 2016 are estimated at 8% and 24%, respectfully. I like this stock in an improving economy and the world is now seeing an improving economy. Today more and more people are moving into the middle class everywhere in the world. And with that comes the demand for a higher standard of living. Whirlpool is just the company that makes many of the first items middle class people want to buy.
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