Whirlpool Corp.
WHR
$40.35
-0.30%
Whirlpool Corp. is a global manufacturer and marketer of kitchen and laundry appliances, offering products such as refrigerators, washing machines, cooktops, and ovens under brands like KitchenAid, Maytag, and Whirlpool. As a leading player in the home appliance industry, it competes with other major manufacturers and has a strong presence in North America, Europe, Latin America, and Asia. The company is currently under pressure from weak consumer demand, tariff-related cost increases, and a slowing housing cycle, which have led to a dividend cut and a sharp reduction in guidance. Investors are debating whether the company can navigate these headwinds and stabilize its financial performance, with recent news highlighting operational stress and a high-risk investment profile.…
WHR
Whirlpool Corp.
$40.35
Related headlines
Investment Opinion: Should I buy WHR Today?
Based on the analysis, WHR is rated a 'Hold'. The consensus recommendation is 'Hold' with a mean rating of 3.17, and the average target price of $52.09 implies 29.1% upside. However, the company's fundamental challenges, including declining revenue and negative cash flow, warrant caution. The thesis is that WHR is a deep-value play with potential for recovery if the housing cycle turns, but the risks are substantial.
Supporting evidence includes a price-to-sales ratio of 0.26x versus the industry average of 0.8x, indicating a significant discount. Revenue is declining at 9.6% YoY, but the company remains profitable on a trailing basis with a PE of 12.7x. The forward PE of 10.8x suggests the market expects earnings to improve. However, the negative free cash flow and high debt are concerning. The dividend cut eliminates income support, and the stock's beta of 1.13 adds volatility.
The biggest risks are continued revenue decline, margin compression, and liquidity issues. If revenue growth does not stabilize, the stock could fall to the 52-week low of $35.45. Conversely, if the company successfully navigates the downturn and housing recovers, the stock could re-rate toward the analyst target. This 'Hold' would upgrade to 'Buy' if the stock drops below $35 or if revenue growth turns positive, and downgrade to 'Sell' if the company announces further cost cuts or debt restructuring. Overall, WHR appears undervalued relative to its historical valuation, but the risks justify a cautious stance.
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WHR 12-Month Price Forecast
The AI assessment is bearish due to the deteriorating financials and negative momentum. The company is facing significant headwinds from the housing cycle and tariffs, and the balance sheet is stretched. While the stock is cheap on a price-to-sales basis, the risk of further downside is high. The stance would upgrade to neutral if revenue decline slows to below 5% and free cash flow turns positive, and to bullish if the company shows clear signs of a turnaround, such as revenue growth and margin expansion.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Whirlpool Corp.'s 12-month outlook, with a consensus price target around $52.09 and implied upside of +29.1% versus the current price.
Average Target
$52.09
0 analysts
Implied Upside
+29.1%
vs. current price
Analyst Count
—
covering this stock
Price Range
$32 - $137
Analyst target range
Whirlpool is covered by 11 analysts, with a consensus recommendation of 'Hold' and a mean rating of 3.17 (where 1 is Strong Buy and 5 is Sell). The average target price is $52.09, implying an upside of approximately 29.1% from the current price of $40.35. The distribution of ratings includes 3 Buy, 5 Hold, and 3 Sell, indicating a cautious sentiment. Recent actions show a downgrade from Goldman Sachs (Buy to Neutral) and persistent Underperform ratings from B of A Securities and RBC Capital, reflecting concerns about the company's near-term outlook.
Bulls vs Bears: WHR Investment Factors
Whirlpool is facing a severe cyclical downturn, with revenue declining, a dividend cut, and high leverage. The stock has fallen 54% over the past year, and the bear case is currently stronger due to the negative earnings and cash flow. However, the valuation is deeply discounted, and analyst targets imply upside. The key tension is whether the company can stabilize its revenue and restore profitability, or if the housing slump and tariff pressures persist, leading to further deterioration. The outcome of this debate will determine if WHR is a value trap or a turnaround opportunity.
Bullish
- Deep Valuation Discount to Industry: WHR trades at a price-to-sales ratio of 0.26x versus the industry average of approximately 0.8x, a 67% discount. This implies the market is pricing in severe deterioration, but if the company stabilizes, the stock could re-rate significantly.
- Analyst Target Implies 29% Upside: The average analyst target price is $52.09, representing a 29.1% upside from the current price of $40.35. Even with a 'Hold' consensus, the target suggests the stock is undervalued relative to analyst expectations.
- Positive EPS Despite Revenue Decline: In Q4 2025, WHR reported EPS of $1.93 on revenue of $4.098 billion, showing profitability even as sales declined. This indicates cost management is partially offsetting demand weakness.
- Strong Brand Portfolio and Global Presence: WHR owns iconic brands like KitchenAid, Maytag, and Whirlpool, with operations across North America, Europe, Latin America, and Asia. This diversification provides some resilience against regional downturns.
Bearish
- Revenue Declining at 9.6% YoY: Q1 2026 revenue fell 9.61% year-over-year to $3.273 billion, with sequential declines from Q4 2025 ($4.098B) and Q3 2025 ($4.033B). This indicates accelerating demand weakness, likely due to a slowing housing market and soft consumer spending.
- Dividend Cut Signals Financial Stress: Whirlpool eliminated its dividend in May 2026, reflecting deep operational stress from tariffs and weak demand. The payout ratio was 94.3% before the cut, and the dividend yield was 7.4%, making the cut a major negative signal.
- High Debt and Low Liquidity: Debt-to-equity is 2.88, and the current ratio is 0.76, indicating potential liquidity concerns. Interest expense of $77 million in Q1 2026 consumes a significant portion of operating income.
- Negative Free Cash Flow: Trailing twelve-month free cash flow is -$10 million, meaning the company is not generating enough cash to cover its obligations. This limits financial flexibility and increases refinancing risk.
WHR Technical Analysis
Whirlpool's stock is in a pronounced downtrend, with a 1-year price change of -54.26% and a 6-month change of -52.24%. The current price of $40.35 sits near the lower end of its 52-week range, at approximately 8.5% above the 52-week low of $35.45 and 58.2% below the 52-week high of $96.57. This positioning near the lows suggests bearish sentiment and potential value opportunity, but also reflects ongoing selling pressure and a lack of buyer conviction.
Beta
1.13
1.13x market volatility
Max Drawdown
-64.2%
Largest decline past year
52-Week Range
$35-$97
Price range past year
Annual Return
-54.3%
Cumulative gain past year
| Period | WHR Return | S&P 500 |
|---|---|---|
| 1m | +8.6% | +3.6% |
| 3m | -5.4% | +2.7% |
| 6m | -52.2% | +11.4% |
| 1y | -54.3% | +18.7% |
| ytd | -45.8% | +12.3% |
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WHR Fundamental Analysis
Whirlpool's revenue has been declining, with the most recent quarter (Q1 2026) reporting revenue of $3.273 billion, a 9.61% decrease year-over-year. This follows a trend of sequential declines, with Q4 2025 revenue at $4.098 billion and Q3 2025 at $4.033 billion, indicating a decelerating top line. The company's revenue segments show that Laundry ($980 million), Refrigeration ($916 million), and Cooking ($797 million) are the largest contributors, but all are facing demand softness. The negative revenue growth suggests a challenging demand environment, likely due to weak housing markets and consumer spending.
Quarterly Revenue
$3.3B
2026-03
Revenue YoY Growth
-9.6%
YoY Comparison
Gross Margin
12.5%
Latest Quarter
Free Cash Flow
$-10000000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is WHR Overvalued?
Given that Whirlpool's trailing twelve-month net income is negative (Q1 2026 net income of -$82 million), the price-to-sales (PS) ratio is the most appropriate valuation metric, as earnings-based metrics are not meaningful. The current PS ratio is 0.26x, which is significantly lower than the industry average of approximately 0.8x, indicating a substantial discount. This discount reflects the market's pessimism about the company's growth prospects and profitability, but it may also present a value opportunity if the company can execute a turnaround.
PE
12.7x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 3x~24x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
9.7x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are elevated for Whirlpool. The company's debt-to-equity ratio of 2.88 indicates high leverage, and the current ratio of 0.76 suggests potential liquidity issues. Interest expense of $77 million in Q1 2026 eats into operating income, which was only $50 million. The dividend cut and negative free cash flow of -$10 million TTM further strain the balance sheet. If revenue continues to decline, the company may face difficulty servicing its debt, potentially leading to credit downgrades or equity dilution.
Market and competitive risks are also significant. WHR trades at a price-to-sales ratio of 0.26x, a 67% discount to the industry average of 0.8x, reflecting extreme pessimism. The stock's beta of 1.13 indicates higher volatility than the market, and its relative strength is -74.7% over the past year, meaning it has massively underperformed the S&P 500. Tariff-related cost increases and a slowing housing cycle are pressuring demand, while competitors may be better positioned to absorb costs. Regulatory risks include potential trade policy changes that could further impact margins.
In a worst-case scenario, if the housing market continues to weaken and tariffs persist, WHR could see further revenue declines and margin compression. The stock could fall to its 52-week low of $35.45, representing a 12.1% downside from the current price of $40.35. However, given the high debt and negative cash flow, a more severe scenario could see the stock drop to the analyst low target of $32, a 20.7% loss. Historical max drawdown of -64.2% suggests that in a prolonged downturn, the stock could lose another 60% from current levels, though this is unlikely in the near term.
FAQ
The key risks are: 1) Financial risk: high debt-to-equity of 2.88 and negative free cash flow, which could lead to liquidity issues. 2) Market risk: the stock is highly volatile with a beta of 1.13, and it has underperformed the market by 74.7% over the past year. 3) Competitive risk: tariff pressures and weak demand are hurting margins, and competitors may be better positioned. 4) Company-specific risk: the dividend cut signals financial stress, and further cuts or restructuring could occur. The most severe risk is a continued decline in revenue leading to a debt crisis.
The 12-month forecast for WHR is mixed. The base case (50% probability) sees the stock trading between $40 and $52, with the average analyst target of $52.09 as the upper bound. The bull case (25% probability) could see the stock rise to $52-$60 if the housing market recovers. The bear case (25% probability) could see the stock fall to $32-$36 if the downturn worsens. The most likely scenario is the base case, assuming revenue decline moderates and the company maintains profitability.
WHR appears undervalued based on traditional metrics. The price-to-sales ratio of 0.26x is significantly below the industry average of 0.8x, and the forward PE of 10.8x is low. However, the low valuation reflects the market's pessimism about the company's future. The stock is trading near its 52-week low, and the negative earnings in Q1 2026 make earnings-based valuation unreliable. The market is pricing in a prolonged downturn, so the stock is undervalued only if the company can stabilize its business.
WHR is a high-risk, high-reward opportunity. The stock trades at a 67% discount to the industry on a price-to-sales basis, and the average analyst target implies 29% upside. However, the company is facing declining revenue, negative free cash flow, and high debt. It could be a good buy for investors who believe the housing market will recover and the company can execute a turnaround. For conservative investors, the risks are too high, and a 'Hold' is more appropriate. The stock is not a good buy for income investors due to the dividend cut.
WHR is more suitable for long-term investors with a high risk tolerance, as the stock is in a cyclical downturn and may take time to recover. The beta of 1.13 indicates high volatility, making it risky for short-term trading. The dividend cut removes income support, so investors should focus on capital appreciation. A minimum holding period of 3-5 years is recommended to allow for a housing cycle recovery. Short-term traders might find opportunities in the volatility, but the risk of further downside is significant.