Whirlpool Corporation (WHR, Financial) experienced stock price movement recently, with shares trading at $93.90, reflecting a 2.53% change. The company's stock is under pressure primarily due to concerns over the impact of tariffs, which have raised input costs, particularly for steel—a major component in Whirlpool's manufacturing process. Additionally, tariffs on imported parts and goods contribute to rising expenses, further decreasing investor confidence.
Whirlpool's current market capitalization stands at $5.2 billion, with a GF Value estimate indicating that the stock is modestly undervalued. According to the GF Value, which can be reviewed in detail here, the estimated GF Value is $111.84, suggesting potential upside if market conditions stabilize.
Despite a strong domestic production presence, with approximately 80% of its U.S. sales sourced from within the country, the impact of tariffs on the remaining production in China and Mexico poses challenges. The stock's valuation metrics further highlight concerns, with a price-to-book ratio of 1.93 and an enterprise value of $11.38 billion.
Whirlpool's warning signs include a particularly distressing Altman Z-Score of 1.24, indicating potential financial distress, and a declining revenue per share over the past three years. On a positive note, the company's dividend yield is close to a 10-year high, offering some relief to investors amid market volatility.
For a deeper understanding of Whirlpool's strategic positioning and financial metrics, it is essential to monitor external economic factors affecting the housing market and global trade dynamics, which could influence the company's future performance.
