Whirlpool (NYSE:WHR) is a Michigan-based multinational manufacturer and marketer of home appliances. The stock has climbed 14% year-over-year as of close on February 14.
Though it has struggled over the past five years, Whirlpool offers nice value after crossing the midway point in February.
The company released its fourth quarter and full-year results for 2019 on January 27. It achieved a Q4 GAAP net earnings margin of 5.4%, which was up 240 basis points from the prior year.
Whirlpool reported record full-year GAAP and ongoing earnings per diluted share of $18.45 and $16.00, respectively. The company posted strong cash generation of $1.2 billion and free cash flow of $912 million.
Investors also got a glimpse at its 2020 guidance. Chairman and CEO Marc Bitzer said that underlying drivers of its global business were “favourable”. It is projecting cash provided by operating activities between $1.3 billion and $1.4 billion.
Whirlpool is also forecasting free cash flow in the range of $800 million to $900 million.
There are good reasons to have faith in Whirlpool stock right now. It is carrying forward a high level of debt, but it also recently became profitable which should eat into this issue in the 2020s.
Shares possessed a favourable price-to-earnings ratio of 7.8 as of close on February 14. Whirlpool boasts an annual dividend of $4.80 per share, which represents a 3.1% yield.
