Whirlpool
WHR
$53.07
-6.19%
Whirlpool Corp. is a global manufacturer and marketer of major kitchen and laundry appliances, operating within the Consumer Cyclical sector's Furnishings, Fixtures & Appliances industry. The company is a market leader with a portfolio of well-known brands like Whirlpool, KitchenAid, Maytag, and Amana, serving diverse geographic segments including North America, Europe, and Latin America. The current investor narrative centers on the company navigating a challenging macroeconomic environment, particularly a slowing housing cycle that dampens demand for its core products, while simultaneously managing its significant scale and stable dividend commitments amidst volatile market conditions and potential tariff threats.…
WHR
Whirlpool
$53.07
Related headlines
Investment Opinion: Should I buy WHR Today?
Rating: Hold. The core thesis is that Whirlpool is a deeply undervalued but fundamentally challenged company caught in a cyclical downturn, where the risks of further deterioration currently outweigh the potential for a near-term rebound.
Supporting this view, the stock trades at a compelling forward P/E of 9.19x and a Price-to-Sales ratio of just 0.26x, suggesting extreme pessimism is priced in. However, revenue growth is stagnant (-0.94% YoY), margins are compressing, and free cash flow, while positive at $92M TTM, is modest relative to the company's size and debt obligations. Analyst sentiment is mixed but leans neutral-to-bearish (Hold, Neutral, Underperform ratings), reflecting high uncertainty.
The thesis would upgrade to a Buy if gross margins stabilize above 15% and the company demonstrates sequential revenue growth, signaling the cyclical trough is in sight. It would downgrade to a Sell if the stock breaks below the $50.41 support level on worsening fundamentals, or if the dividend sustainability comes into serious question. Relative to its own troubled history and the challenging macro environment, the stock is fairly valued—the low price accurately reflects the elevated risks.
Sign up to view all
WHR 12-Month Price Forecast
The outlook for WHR is one of high uncertainty with a neutral bias. The stock is not a compelling growth story, nor is it a clear value play until fundamentals stop deteriorating. The base case of sideways action is most likely, as the deeply discounted valuation offsets the poor operational trends. The stance would upgrade to bullish on concrete evidence of margin stabilization and debt reduction, likely after a few quarters of flat-to-positive comparable earnings. It would turn bearish on a breakdown below $50, which would signal the value trap narrative is prevailing.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Whirlpool's 12-month outlook, with a consensus price target around $68.99 and implied upside of +30.0% versus the current price.
Average Target
$68.99
5 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
5
covering this stock
Price Range
$42 - $69
Analyst target range
Analyst coverage for Whirlpool is limited, with only 5 analysts providing estimates, which suggests limited institutional interest and can lead to higher volatility. The consensus sentiment appears neutral to bearish, as evidenced by recent institutional ratings from firms like JP Morgan (Neutral), Stifel (Hold), and RBC Capital (Underperform). The average revenue estimate for the coming period is $16.96 billion, with a low estimate of $16.66 billion and a high of $17.38 billion, indicating a relatively tight range of expectations. The full target price range is not provided in the data, but the pattern of recent analyst actions shows stability with few changes, suggesting a wait-and-see approach; the wide dispersion in ratings from Buy (Goldman Sachs) to Underperform (RBC Capital) signals high uncertainty regarding the company's near-term catalysts and ability to navigate industry headwinds.
Bulls vs Bears: WHR Investment Factors
The evidence currently favors the bear case, given the severe price deterioration, margin compression, and lack of fundamental growth catalysts. The bull case rests almost entirely on a deep-value valuation argument that has yet to find a floor. The single most important tension in the investment debate is whether Whirlpool's current valuation (0.26x P/S, 9.19x forward P/E) represents an unsustainable discount signaling a value trap, or a compelling margin of safety ahead of a cyclical recovery in earnings. The resolution hinges on the company's ability to halt margin erosion and demonstrate sustainable free cash flow generation to support its balance sheet and dividend.
Bullish
- Deep Value Valuation: The stock trades at a forward P/E of 9.19x and a Price-to-Sales ratio of 0.26x, representing a significant discount to its own historical valuations and likely to the broader market. This extreme compression suggests the market has priced in severe pessimism, leaving room for a valuation rebound if fundamentals stabilize.
- Return to Profitability: After a net loss of -$391M in Q4 2024, the company has returned to profitability with net income of $108M in Q4 2025. This recovery, alongside a positive free cash flow of $92M TTM, indicates operational improvement and the capacity to maintain its 7.4% dividend yield.
- Analyst Revenue Stability: Analyst revenue estimates for the coming period average $16.96B, with a tight range between $16.66B and $17.38B. This suggests expectations for revenue stabilization, not further collapse, providing a base for earnings recovery.
- Price Near 52-Week Low: The current price of $56.57 is just 12% above the 52-week low of $50.41, indicating most negative news is likely priced in. This proximity to a key technical support level limits near-term downside and offers a high margin of safety for value investors.
Bearish
- Severe Revenue & Margin Pressure: Q4 2025 revenue declined -0.94% YoY, and gross margin compressed to 14.03% from 16.40% in Q1 2025. This stagnation and margin erosion directly challenge the company's ability to grow earnings and justify any multiple expansion.
- High Financial Leverage & Liquidity Risk: A debt-to-equity ratio of 2.88 and a current ratio of 0.76 indicate a highly leveraged balance sheet with potential liquidity constraints. This elevates financial risk, especially in a high-interest rate environment, and could pressure the dividend.
- Catastrophic Technical & Relative Weakness: The stock is down 25.28% over the past year and shows a relative strength of -54.32% versus the S&P 500. The 3-month decline of -29.28% signals accelerating selling pressure and a complete lack of positive momentum.
- Cyclical & Macro Headwinds: As a consumer cyclical tied to housing, Whirlpool faces a slowing housing cycle and potential tariff threats, as noted in recent news. Its beta of 1.264 makes it more volatile than the market, amplifying downside during economic uncertainty.
WHR Technical Analysis
The prevailing price trend for Whirlpool is a pronounced and sustained downtrend, with the stock down 25.28% over the past year. The current price of $56.57 sits near the bottom of its 52-week range, trading at approximately 50.5% of the range between the 52-week low of $50.41 and high of $111.96, positioning it as a potential value opportunity but also signaling significant fundamental and technical weakness. Recent momentum has been severely negative, with the stock down 29.28% over the last three months, which is a stark acceleration of the longer-term downtrend, indicating a capitulation phase; this is further evidenced by a 1-month decline of 4.22% that continues the bearish trajectory. The stock's beta of 1.264 indicates it is approximately 26% more volatile than the broader market, which has contributed to its severe underperformance, as shown by a relative strength of -54.32% over the past year. Key technical levels are clearly defined, with the 52-week low of $50.41 acting as critical support and the 52-week high of $111.96 representing formidable resistance; a breakdown below $50.41 would signal a new leg down, while any recovery would need to overcome significant overhead supply, with the stock's high volatility necessitating careful risk management for any potential position.
Beta
1.20
1.20x market volatility
Max Drawdown
-54.0%
Largest decline past year
52-Week Range
$50-$112
Price range past year
Annual Return
-31.8%
Cumulative gain past year
| Period | WHR Return | S&P 500 |
|---|---|---|
| 1m | -4.3% | +9.5% |
| 3m | -37.9% | +4.1% |
| 6m | -25.4% | +6.0% |
| 1y | -31.8% | +26.7% |
| ytd | -28.8% | +5.3% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
WHR Fundamental Analysis
Whirlpool's revenue trajectory is stagnant to slightly declining, with Q4 2025 revenue of $4.098 billion representing a year-over-year contraction of -0.94%. The multi-quarter trend shows revenue has hovered between $3.6 billion and $4.1 billion over the past year, indicating a lack of growth momentum, which is a significant headwind for the investment case. Profitability is present but under pressure, with Q4 2025 net income of $108 million and a gross margin of 14.03%, which is down from 16.40% in Q1 2025, indicating margin compression. The company's net margin of 2.64% in the latest quarter, while positive, is thin, and the trend from a net loss of -$391 million in Q4 2024 shows a recovery to profitability, but margins remain well below historical levels typical for the industry. The balance sheet shows significant financial leverage with a debt-to-equity ratio of 2.88, which elevates financial risk, while free cash flow over the trailing twelve months is a positive $92 million. However, the current ratio of 0.76 indicates potential liquidity constraints, and the return on equity of 11.63% suggests the company is generating a moderate return on shareholder capital despite its high debt load.
Quarterly Revenue
$4.1B
2025-12
Revenue YoY Growth
+0.00%
YoY Comparison
Gross Margin
+0.14%
Latest Quarter
Free Cash Flow
$92000000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
Open an Account, get $2 TSLA now!
Valuation Analysis: Is WHR Overvalued?
Given that Whirlpool's net income is positive ($108 million in Q4 2025), the primary valuation metric selected is the Price-to-Earnings (PE) ratio. The stock trades at a trailing PE of 12.74x and a forward PE of 9.19x, with the lower forward multiple implying the market expects earnings growth or a stabilization of profits. Compared to industry averages, Whirlpool's valuation appears mixed; its trailing PE of 12.74x is likely at a discount to the sector average (data not available for precise comparison), while its Price-to-Sales ratio of 0.26x is exceptionally low, suggesting the market is assigning minimal value to its revenue base due to profitability concerns. Historically, the stock's own valuation has compressed dramatically; its current trailing PE of 12.74x is near the lower end of its historical range seen in the provided data (e.g., as high as 24.07x in mid-2023), indicating the market is pricing in pessimistic expectations, potentially viewing the stock as a deep value or value trap given the fundamental challenges.
PE
12.7x
Latest Quarter
vs. Historical
High-End
5-Year PE Range -10x~24x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
9.7x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks are elevated. Whirlpool operates with thin and deteriorating profitability, as evidenced by a Q4 2025 net margin of 2.64% and gross margin that fell 237 basis points over the year. The high debt-to-equity ratio of 2.88 and a current ratio below 1 (0.76) create a precarious financial position, where any further earnings decline could strain liquidity and jeopardize the high dividend payout ratio of 94.3%. Revenue concentration in the cyclical Major Domestic Appliances segment, coupled with stagnant top-line growth, means the company is highly dependent on cost controls to maintain profitability.
Market & Competitive Risks are significant. The stock's valuation has compressed dramatically, but its forward P/E of 9.19x may still not be cheap if earnings decline further. The company is exposed to a slowing housing cycle, which directly dampens demand for its core products. Recent news highlights ongoing tariff threats, which could disrupt global supply chains and increase costs. Furthermore, with a beta of 1.264, the stock is 26% more volatile than the market, making it susceptible to broad sector rotations away from cyclicals.
Worst-Case Scenario involves a continuation of the current downtrend, where margin compression accelerates due to inflationary costs and weak demand, leading to an earnings miss and a dividend cut. This could trigger a loss of income-focused investors and a re-rating to an even deeper discount. The realistic downside would be a test and break of the 52-week low of $50.41, representing a potential loss of approximately -11% from the current price. In a severe recessionary scenario mirroring the stock's max drawdown of -54%, the price could fall towards the mid-$30s, though this is a less probable tail risk given the current depressed valuation.
FAQ
The key risks are, in order of severity: 1) Financial Risk: High leverage (Debt/Equity of 2.88) and weak liquidity (Current Ratio of 0.76) could force a dividend cut or limit strategic options. 2) Operational Risk: Persistent gross margin compression (down to 14.03%) threatens already thin profitability. 3) Cyclical/Macro Risk: The company's fortunes are tied to the housing cycle, which is currently slowing, and it faces potential tariff disruptions. 4) Sentiment/Momentum Risk: The stock has severe negative momentum (-25% over 1 year) and relative strength (-54% vs. SPY), which can become a self-fulfilling prophecy.
Our 12-month forecast outlines three scenarios. The Base Case (55% probability) sees the stock trading between $60 and $75, as stagnant fundamentals keep it range-bound. The Bull Case (25% probability) projects a move to $85-$95 on a cyclical rebound and margin recovery. The Bear Case (20% probability) warns of a drop to $45-$52 if the downturn worsens. The base case is most likely, implying limited upside from the current ~$56.57 but also limited immediate downside, as the severe valuation discount provides a cushion.
WHR appears statistically undervalued based on traditional metrics. Its Price-to-Sales ratio of 0.26x is exceptionally low, and its forward P/E of 9.19x is a deep discount to both its historical averages and the broader market. However, this 'undervaluation' is justified by the company's fundamental challenges: no revenue growth, declining profitability, and a leveraged balance sheet. The market is effectively pricing WHR as a value trap—a company that is cheap for a reason. Therefore, while the stock is not overvalued, it may not be truly undervalued unless operational trends reverse.
WHR is a high-risk, potentially high-reward stock that is only a good buy for a specific type of investor. For deep-value, contrarian investors willing to accept significant volatility and wait for a multi-year cyclical recovery, the current valuation (0.26x P/S, 9.19x forward P/E) offers a compelling margin of safety. However, given the severe fundamental headwinds—stagnant revenue, compressing margins, and high debt—it is not a good buy for most investors seeking growth, stability, or reliable income. The 7.4% dividend yield is attractive but carries sustainability risk due to the high payout ratio of 94%.
WHR is strictly a long-term investment for patient capital. The company is in the midst of a cyclical downturn, and a turnaround will likely take multiple quarters, if not years, to materialize. Its high beta (1.264) and lack of near-term catalysts make it a poor candidate for short-term trading. The investment thesis is based on eventual mean reversion in both the business cycle and the valuation multiple. Therefore, a minimum holding period of 3-5 years is suggested to ride out the volatility and allow the cyclical recovery thesis to play out.
