Whirlpool Corporation
WHR
$36.57
-5.89%
Whirlpool Corporation is a global manufacturer and marketer of major home appliances, including refrigerators, washing machines, ovens, and dishwashers, operating in the consumer cyclical sector under well-known brands such as Whirlpool, KitchenAid, Maytag, and Amana. The company is a long-established market leader in the North American appliance industry, leveraging its scale, brand portfolio, and extensive distribution network. The current investor narrative is dominated by severe operational stress, highlighted by a recent dividend elimination and sharp guidance cut, driven by weak consumer demand, significant tariff-related cost pressures, and a slowing housing cycle, which collectively signal deep challenges to its traditional business model.…
WHR
Whirlpool Corporation
$36.57
Related headlines
Investment Opinion: Should I buy WHR Today?
Rating: Hold. The core thesis is that Whirlpool is a deeply distressed cyclical with a valuation that prices in catastrophe, but the near-term operational and financial risks are too severe to justify a Buy rating, despite the potential for a speculative rebound.
Supporting evidence includes a forward P/E of 7.74x based on analyst EPS estimates of $6.15, which is a deep discount to historical norms and suggests massive skepticism. The price-to-sales ratio of 0.26x is punitive and indicates the market sees no growth. However, Q4 2025 showed a return to positive net income ($108M) and generated $1.0B in quarterly FCF, offering a glimmer of fundamental stability. Analyst sentiment is neutral-to-bearish (Hold, Neutral, Underperform), reflecting the high uncertainty.
The thesis would upgrade to a speculative Buy if the forward P/E compressed further below 6x (implying a stock price in the low $30s) concurrent with evidence of gross margin stabilization above 15% and a sustained quarterly FCF trend. It would downgrade to a Sell if revenue decline accelerates beyond -5% YoY, the company reports another net loss, or the stock breaks below $35. On balance, the stock is fairly valued to slightly undervalued relative to its dire near-term prospects but remains overvalued if the operational deterioration continues.
Sign up to view all
WHR 12-Month Price Forecast
The AI assessment is neutral with medium confidence. Whirlpool is priced for failure, but the fundamental deterioration is real and recent. The low valuation provides a margin of safety, but it is offset by high leverage, margin pressure, and weak growth. The stance would upgrade to bullish on conclusive evidence of margin stabilization (gross margin >15.5% for two consecutive quarters) and debt reduction. It would downgrade to bearish on a breakdown below the $38.20 support level on high volume, confirming the downtrend's continuation. The most likely path is the base case of sideways consolidation as the company works through its challenges.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Whirlpool Corporation's 12-month outlook, with a consensus price target around $47.54 and implied upside of +30.0% versus the current price.
Average Target
$47.54
3 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
3
covering this stock
Price Range
$29 - $48
Analyst target range
Analyst coverage is very limited, with only 3 analysts providing estimates, indicating this large-cap stock suffers from low institutional interest, which can lead to higher volatility and less efficient price discovery. The consensus sentiment, inferred from recent institutional ratings, is neutral to bearish, with actions including 'Hold' from Stifel, 'Neutral' from JP Morgan, and 'Underperform' from RBC Capital. The average estimated EPS for the next period is $6.15, with a range from $6.03 to $6.29, but a specific consensus price target is not available in the provided data to calculate implied upside or downside. The recent pattern of analyst actions shows stability in ratings but against a backdrop of severe stock price decline, suggesting analysts have been slow to downgrade further, and the wide gap between the high and low EPS estimates signals ongoing uncertainty about the company's earnings power in the face of demand weakness and cost inflation.
Bulls vs Bears: WHR Investment Factors
The evidence currently tilts decisively towards the bear case, with severe operational stress, financial leverage, and technical breakdown outweighing the deep valuation discount. The bull thesis hinges entirely on a successful operational turnaround that the recent dividend cut and guidance reduction directly contradict. The single most important tension in the investment debate is whether Whirlpool's extreme valuation discount (P/S of 0.26x, forward P/E of 7.74x) represents a compelling value opportunity or a rational pricing of a deteriorating business model facing secular headwinds from weak demand, tariffs, and a slowing housing cycle. The resolution of this tension depends on the company's ability to stabilize margins and demonstrate sustainable free cash flow generation in the coming quarters.
Bullish
- Extreme Valuation Discount: Whirlpool trades at a deep discount to historical and sector valuations, with a trailing P/E of 12.74x and a forward P/E of just 7.74x. Its price-to-sales ratio of 0.26x is exceptionally low, suggesting the market has priced in severe pessimism, leaving room for a re-rating if operations stabilize.
- Fragile Profitability Recovery: After a significant net loss of -$391M in Q4 2024, the company returned to positive net income of $108M in Q4 2025. This fragile recovery, evidenced by a net margin of 2.64%, indicates management is navigating cost pressures, though margins remain thin.
- Strong Recent Free Cash Flow: In Q4 2025, Whirlpool generated $1.0 billion in free cash flow. While TTM FCF is a more modest $92 million, the recent quarterly surge demonstrates the underlying cash-generative potential of the business when not burdened by one-time charges.
- Analyst EPS Expectations for Recovery: Analysts project a significant earnings recovery, with an average forward EPS estimate of $6.15. This implies a forward P/E of 7.74x based on the current price, indicating the market is skeptical but analysts see a path to substantially higher profitability.
Bearish
- Severe Operational & Demand Stress: Recent news confirms a dividend elimination and sharp guidance cut driven by weak consumer demand and tariff-related cost pressures. Q4 2025 revenue contracted 0.94% YoY, highlighting stagnant growth in a challenging macro and competitive environment.
- Precarious Financial Leverage: The company's balance sheet shows significant strain with a debt-to-equity ratio of 2.88 and a weak current ratio of 0.76. This high leverage limits financial flexibility and amplifies risk during a downturn, especially with thin net margins of 2.64%.
- Catastrophic Technical Breakdown: The stock is in a severe downtrend, down 57.67% over the past year and trading at just 35% of its 52-week range. With a beta of 1.127, it has shown 13% more volatility than the market during its precipitous decline, indicating persistent selling pressure and low investor confidence.
- Gross Margin Compression & Cost Pressures: Gross margin contracted to 14.03% in Q4 2025, down from 15.84% in the year-ago period. This compression, driven by tariffs and inflation, directly pressures the already thin profitability, making a sustained earnings recovery difficult.
WHR Technical Analysis
The prevailing price trend is a severe and sustained downtrend, with the stock down 57.67% over the past year. The current price of $38.86 sits near the very bottom of its 52-week range, trading at just 35% of the range between its 52-week high of $111.96 and low of $38.20, positioning it as a potential value trap or deep-value opportunity amid extreme pessimism. Recent short-term momentum shows continued weakness, with the stock down 4.66% over the past month and 25.64% over the past three months, confirming the persistence of the longer-term downtrend without meaningful divergence. The stock's beta of 1.127 indicates it is approximately 13% more volatile than the broader market, which is significant given its precipitous decline. Key technical levels are clear, with immediate support at the 52-week low of $38.20; a decisive breakdown below this level could signal a new leg down, while resistance is far above at the 52-week high of $111.96, with any sustained recovery needing to overcome significant overhead supply.
Beta
1.13
1.13x market volatility
Max Drawdown
-66.9%
Largest decline past year
52-Week Range
$36-$112
Price range past year
Annual Return
-60.7%
Cumulative gain past year
| Period | WHR Return | S&P 500 |
|---|---|---|
| 1m | -14.3% | -0.2% |
| 3m | -32.1% | +14.0% |
| 6m | -49.3% | +7.8% |
| 1y | -60.7% | +25.3% |
| ytd | -50.9% | +9.2% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
WHR Fundamental Analysis
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 in a challenging demand environment. The company is marginally profitable but under significant pressure, with Q4 2025 net income of $108 million and a net margin of just 2.64%, while the gross margin of 14.03% reflects severe cost pressures. Profitability has been volatile, with a net loss of $391 million in Q4 2024, but the return to positive net income in the most recent quarter suggests a fragile recovery, albeit at very thin margins. Balance sheet and cash flow health are concerning, with a high debt-to-equity ratio of 2.88 and a weak current ratio of 0.76, indicating potential liquidity strain. While the company generated strong free cash flow of $1.0 billion in Q4 2025, the trailing twelve-month free cash flow is a much lower $92 million, and the return on equity of 11.63% is modest, suggesting the highly leveraged capital structure is not generating superior returns for shareholders.
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 the positive net income, the primary valuation metric is the P/E ratio. The trailing P/E is 12.74x, while the forward P/E is significantly lower at 7.74x, indicating the market expects a substantial earnings recovery, though this optimism is tempered by recent operational setbacks. Compared to sector averages, Whirlpool trades at a deep discount; its trailing P/E of 12.74x is below the typical consumer discretionary average, and its price-to-sales ratio of 0.26x is exceptionally low, reflecting the market's punitive assessment of its growth prospects and margin profile. Historically, the stock's current trailing P/E of 12.74x is near the lower end of its own range over the past several years, which has seen ratios as high as 24x and as low as negative during loss-making periods. Trading near historical lows suggests the market is pricing in significant fundamental deterioration, presenting a potential value opportunity if the company can stabilize, but also a high risk of value trap if challenges persist.
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 acute. Whirlpool operates with precarious leverage, evidenced by a debt-to-equity ratio of 2.88, which strains the balance sheet amid thin profitability (net margin of 2.64%). The recent dividend elimination signals a cash preservation crisis, and the weak current ratio of 0.76 indicates potential liquidity strain. Revenue is stagnant, with Q4 2025 showing a 0.94% YoY decline, and the company is highly exposed to consumer cyclicality and input cost inflation, as seen in the compressed gross margin of 14.03%. The valuation relies on a significant earnings rebound to a forward EPS of $6.15; any shortfall would severely damage the investment thesis.
Market & Competitive Risks are significant. The stock trades at a deep discount (P/S 0.26x) because the market anticipates further deterioration, creating a high risk of a 'value trap.' Competitive pressures are intense in the low-growth appliance market, and the company faces specific headwinds from tariff-related cost pressures, as highlighted in recent news. With a beta of 1.127, the stock is more volatile than the market, and its severe underperformance (relative strength of -82.66% over 1 year) indicates it is being shunned by investors during a broad market rally, suggesting sector rotation away from challenged cyclicals.
The Worst-Case Scenario involves a continuation of weak demand and rising costs leading to another quarterly net loss, triggering a credit rating downgrade that exacerbates the debt burden. This could force asset sales or equity dilution at distressed prices. The stock could break decisively below its 52-week low of $38.20, revisiting the lows seen during the March 2026 sell-off near $50. A realistic downside from the current price of ~$38.86 could be a further 20-30% decline, targeting a range of $27-$31, which would represent a total peak-to-trough drawdown exceeding the current -65.06%.
FAQ
The key risks are, in order of severity: 1) Financial Risk: High leverage with a debt-to-equity ratio of 2.88 and weak liquidity (current ratio 0.76) could lead to a crisis if earnings decline. 2) Operational Risk: Persistent gross margin compression (14.03% in Q4 2025) from tariffs and weak consumer demand threatens already thin profitability. 3) Market Risk: The stock is in a severe technical downtrend (down 57.67% over 1 year) and acts as a 'value trap,' with low investor interest increasing volatility (beta 1.127). 4) Macro Risk: High sensitivity to the housing cycle and consumer discretionary spending, which are currently weak.
The 12-month forecast is bifurcated with a base case target of $55-$65 (50% probability), a bull case of $85-$95 (25% probability), and a bear case of $30-$38 (25% probability). The base case, which is most likely, assumes the company muddles through with flat revenues and meets lowered earnings expectations, leading to sideways trading. The bull case requires a successful turnaround and valuation re-rating, while the bear case involves further operational deterioration. The key assumption behind the base forecast is that Whirlpool can avoid another net loss and stabilize its cash flow, preventing a full-blown financial crisis.
WHR appears statistically undervalued based on traditional multiples. Its trailing P/E of 12.74x and forward P/E of 7.74x are below sector averages, and its price-to-sales ratio of 0.26x is exceptionally low. However, this 'undervaluation' is a function of the market pricing in a high probability of further fundamental deterioration. The valuation implies the market expects minimal growth and continued margin pressure. Therefore, it is fairly valued relative to its near-term challenged prospects but would be deeply undervalued if the company can stabilize and grow earnings towards the analyst estimate of $6.15 EPS.
WHR is not a good buy for most investors at this time. It is a highly speculative, distressed turnaround situation. While the valuation is deeply discounted with a forward P/E of 7.74x and P/S of 0.26x, these metrics reflect severe operational stress, including a recent dividend cut, high debt (D/E of 2.88), and stagnant revenue growth. It could be a good buy only for deep-value, contrarian investors with a multi-year horizon who can tolerate high volatility and the risk of further capital loss. The average analyst rating is Hold/Neutral, underscoring the lack of conviction.
WHR is unsuitable for short-term trading due to its high volatility (beta 1.127), lack of positive catalysts, and severe downtrend. It is also a poor fit for traditional long-term 'buy-and-hold' income investors following its dividend elimination. It is only suitable for a very specific, long-term (3-5 year) speculative value investment, where an investor is betting on a multi-year operational turnaround and cyclical recovery. The minimum suggested holding period to see any potential thesis play out would be 18-24 months, as the company needs multiple quarters to demonstrate sustained improvement.