CNH Industrial (CNH) Launches Revised Engine Software, Is The Stock Still Undervalued?

CNH Industrial (NYSE:CNH) has put fresh attention on its stock after announcing revised engine software that aligns with updated U.S. Environmental Protection Agency rules on emissions fault timing, with rollout starting in late 2026.

Recent trading tells a mixed story. CNH Industrial’s share price has eased over the past week, with a 1-day move down 1.43% and a 7-day decline of 2.68%. The stock is still up 12.07% over 30 days and 40% year to date, while total shareholder return sits at 21.47% over one year and 15.88% across three years. This shows momentum that has cooled in the very short term but remains constructive over a longer window as investors weigh product updates like the new emissions software against broader expectations for the business.

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For CNH Industrial, a 40% year to date climb and a recent pause set up a simple fork in the road. Does it make more sense to commit at today’s price or wait for a cheaper opening as the valuation picture comes into focus?

Most Popular Narrative: 5% Undervalued

CNH Industrial last closed at $13.09, while the most followed narrative pegs fair value at about $13.82, leaving a small valuation gap that hinges on how its tech and services push plays out over the next few years.

The integration of advanced connectivity and precision technologies (e.g., the Starlink partnership, FieldOps platform, in-house tech stack) positions CNH to capture greater recurring, higher-margin revenue streams from software, data, and tech-enabled services, supporting net margin and long-term earnings growth.

Persistent operational focus on manufacturing quality, process improvements, and cost discipline, complemented by strategic sourcing initiatives (with particular progress in Europe), will underpin higher operating leverage, net margins, and earnings as production levels normalize and the company enters the next upcycle.

See why 21 investors see CNH Industrial as 5% undervalued.

Result: Fair Value of $13.82 (UNDERVALUED)

Still, CNH Industrial faces pressure from tariff uncertainty and higher input costs, as well as elevated North American inventories that could force discounting if demand stays soft.

Find out about the key risks to this CNH Industrial narrative.

Another View: CNH Industrial Through The P/E Lens

There is a different read on CNH Industrial when you look at the P/E. The stock trades on about 52.1x earnings, while the US Machinery industry averages 24.5x and the fair ratio points closer to 43.1x. That gap points to valuation risk rather than a clear bargain. Which signal do you trust more: the narrative fair value or the richer earnings multiple?

For a closer breakdown of how this earnings based view stacks up against price, see See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Mixed signals around CNH Industrial’s value and risk profile will not sort themselves out. Act while sentiment is still forming by weighing the 1 key reward and 2 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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