Whirlpool Corp.
WHR
$28.83
-1.13%
Whirlpool Corp. is a global manufacturer and marketer of major home appliances, producing refrigerators, washing machines, cooktops, ovens, and freezers under a portfolio of brands including Whirlpool, KitchenAid, Maytag, Amana, Brastemp, Consul, and JennAir, organized across MDA North America, MDA Europe, MDA Latin America, and SDA Global segments. As one of the largest appliance makers in the world with roughly 41,000 employees and a history dating to 1955 on the NYSE, Whirlpool is a scaled incumbent in the mature, cyclical Consumer Cyclical / Furnishings, Fixtures & Appliances industry, where it competes on brand breadth, distribution, and manufacturing scale rather than on rapid innovation. The current investor narrative is dominated by severe distress: recent headlines flag an earnings miss, lowered guidance, a dividend cut driven by tariffs and weak demand, and expectations that earnings will plummet over 50% this year, all set against a slowing housing cycle. Debate now centers on whether Whirlpool can stabilize margins and cash generation before its leveraged balance sheet forces more drastic action, or whether it is a value trap in structural decline.…
WHR
Whirlpool Corp.
$28.83
Related headlines
Investment Opinion: Should I buy WHR Today?
The synthesized recommendation is Hold, with a bearish tilt. The core thesis is that while the stock appears deeply undervalued on sales and book value, the company's severe operational and financial challenges, including negative free cash flow and high leverage, create substantial risk of further downside. The analyst consensus is 'hold' with an average target of $49.83, but this target is likely stale and does not reflect the recent deterioration. The stock is not a buy at current levels due to the high risk of a value trap.
Supporting evidence includes the deep value metrics: PS ratio of 0.26x and PB ratio of 1.48x, both well below sector averages. However, these are justified by the company's 2.88x debt-to-equity, negative free cash flow, and 12.57% gross margin. Revenue is declining at 6.81% YoY, and profitability is thin with a net margin of 2.50%. The forward PE of 8.01x implies an earnings recovery that is far from certain. The dividend yield of 7.40% is unsustainable, as evidenced by the recent cut. The implied upside to the average analyst target is 72.9%, but this is not a reliable signal given the wide target range and recent downgrades.
Key risks that could invalidate a bullish thesis include continued margin compression, a breach of debt covenants, and a further slowdown in housing. The rating would upgrade to Buy if the company demonstrates stabilizing gross margins above 15% and positive free cash flow for two consecutive quarters. It would downgrade to Sell if free cash flow remains negative and the current ratio falls below 0.7. On valuation, the stock is deeply discounted relative to its history and peers, but the discount is warranted by fundamental deterioration. It is not undervalued in a traditional sense; rather, it is a distressed asset with binary outcomes.
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WHR 12-Month Price Forecast
The forward-looking view is bearish due to the company's deteriorating fundamentals, negative free cash flow, and high leverage. The deep value metrics are not sufficient to offset the operational risks, and the analyst consensus is neutral at best. The stock is likely to remain under pressure until there are clear signs of margin stabilization and cash flow improvement. An upgrade to neutral would require two consecutive quarters of positive free cash flow and gross margin above 14%. A downgrade to strong sell would occur if the current ratio falls below 0.7 or if the company announces a dilutive equity raise.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Whirlpool Corp.'s 12-month outlook, with a consensus price target around $49.83 and implied upside of +72.8% versus the current price.
Average Target
$49.83
0 analysts
Implied Upside
+72.8%
vs. current price
Analyst Count
—
covering this stock
Price Range
$22 - $137
Analyst target range
Whirlpool is covered by 12 analysts with a consensus recommendation of "hold" (recommendation mean of 3.15 on a scale where 1 is Strong Buy and 5 is Strong Sell), indicating a neutral-to-cautious stance. The average target price is $49.83, which implies approximately +72.9% upside from the current price of $28.83 — a seemingly large gap that primarily reflects the stock's collapse rather than analyst optimism, as targets are typically slow to adjust downward. The consensus leans neutral at best: the recommendation mean of 3.15 is closer to Hold/Sell than to Buy, and the recent institutional ratings show a clear pattern of downgrades and maintained bearish stances, including Goldman Sachs cutting to Neutral from Buy in May 2026 and B of A Securities maintaining Underperform in September 2026. The target range is extraordinarily wide, from a low of $22.00 to a high of $137.00 — a spread of $115, or more than 5x the low target — which signals very low conviction and high uncertainty about the company's future. The high target of $137.00 implies a scenario of dramatic multiple expansion and earnings recovery, potentially assuming a successful turnaround, housing market rebound, and tariff relief that restores margins to historical levels; this appears increasingly disconnected from the current fundamental trajectory. The low target of $22.00, roughly 24% below the current price, prices in continued margin compression, further earnings deterioration, and possibly a liquidity or covenant stress scenario given the negative free cash flow and 0.756 current ratio. The recent ratings actions — with no upgrades and multiple maintained Underperform/Neutral ratings from major firms including RBC Capital, Wells Fargo, Mizuho, Citigroup, and JP Morgan — suggest analysts are not yet seeing signs of stabilization, and the wide target spread combined with the "hold" consensus indicates that even the bullish analysts are cautious about timing a bottom.
Bulls vs Bears: WHR Investment Factors
The bear case currently has stronger evidence, driven by deteriorating fundamentals, negative free cash flow, and a highly leveraged balance sheet. The bull case rests on deep value metrics and a potential earnings recovery, but these are speculative given the company's operational challenges. The most critical tension is whether Whirlpool can stabilize margins and cash generation before its debt burden forces drastic action. If margins continue to compress and free cash flow remains negative, the stock could break below its 52-week low and enter price discovery with no support. Conversely, any sign of margin stabilization or tariff relief could trigger a sharp re-rating given the extreme pessimism priced in.
Bullish
- Deep value on sales and book: WHR trades at a PS ratio of 0.26x and a PB ratio of 1.48x, far below the sector's typical 0.8-1.5x PS range. This suggests the market is pricing in a severe downturn, potentially offering upside if fundamentals stabilize.
- Analyst target implies large upside: The average analyst target price is $49.83, representing 72.9% upside from the current price of $28.83. Even the low target of $22.00 is only 24% below current levels, indicating limited downside according to analysts.
- Forward PE suggests earnings recovery: The forward PE of 8.01x is based on estimated EPS of $5.90, implying a substantial rebound from the current trailing EPS of $0.078. If estimates are met, the stock is cheap on forward earnings.
- Brand portfolio and scale: Whirlpool owns iconic brands like KitchenAid, Maytag, and Whirlpool, and generates over $14 billion in annual revenue. Its scale and distribution network provide a competitive moat in the appliance industry.
Bearish
- Severe revenue and margin deterioration: Q2 2026 revenue fell 6.81% YoY to $3.517 billion, and gross margin contracted 343 basis points to 12.57% from 16.00%. This indicates pricing pressure and cost inflation are eroding profitability.
- Negative free cash flow and high leverage: TTM free cash flow is -$161 million, and debt-to-equity is 2.88x. The current ratio of 0.756 shows liquidity stress, raising concerns about the company's ability to meet short-term obligations.
- Dividend cut and unsustainable payout: The dividend yield of 7.40% comes with a payout ratio of 94.32%, which is unsustainable given negative free cash flow. The May 2026 dividend cut reflects deep operational stress.
- Analyst downgrades and bearish sentiment: The consensus recommendation is 'hold' with a mean of 3.15, and recent actions include Goldman Sachs cutting to Neutral and B of A maintaining Underperform. Analysts see no signs of stabilization.
WHR Technical Analysis
Whirlpool is in a severe, sustained downtrend, with the stock down 61.28% over the past year and 61.30% year-to-date, dramatically underperforming the S&P 500's +16.00% 1-year and +14.17% YTD returns. At a current price of $28.83 against a 52-week range of $28.39 to $94.82, the stock is trading at just 0.6% of its 52-week range — essentially pinned to its lows, which signals persistent selling pressure and a falling-knife profile rather than a value opportunity. The maximum drawdown of -69.82% underscores how deeply the market has repriced the equity, and with the price sitting only $0.44 above the 52-week low, there is no meaningful technical cushion beneath current levels. Recent momentum is uniformly negative and worsening: the stock is down 21.72% over the past month, 29.20% over three months, and 48.98% over six months, with every timeframe deteriorating sequentially. Relative strength is deeply negative across all horizons — -23.84% versus SPY over one month, -32.33% over three months, and -77.28% over one year — confirming that this is not a market-wide issue but company-specific capitulation. The 1-month decline of 21.72% is steeper than the 3-month decline of 29.20% would imply on a pro-rata basis, indicating momentum is still accelerating to the downside rather than decelerating, and the short ratio of 6.26 suggests heavy short interest that could amplify further weakness or fuel a violent squeeze on any positive catalyst. Key technical levels are stark: support sits at the 52-week low of $28.39, just $0.44 below the current price of $28.83, and a breakdown below that level would open the door to price discovery with no historical reference points, likely triggering momentum-driven selling. Resistance is anchored at the 52-week high of $94.82, but meaningful intermediate resistance would first need to form well above current levels, meaning any recovery attempt faces a long climb. With a beta of 1.176, the stock is about 18% more volatile than the broader market, but the realized drawdown of -69.82% and the -61.28% 1-year decline show that idiosyncratic risk is vastly exceeding what beta alone would predict — position sizing must account for the possibility of further gap-down moves given the deteriorating fundamental backdrop.
Beta
1.18
1.18x market volatility
Max Drawdown
-69.8%
Largest decline past year
52-Week Range
$28-$95
Price range past year
Annual Return
-61.3%
Cumulative gain past year
| Period | WHR Return | S&P 500 |
|---|---|---|
| 1m | -21.7% | +1.9% |
| 3m | -29.2% | +3.9% |
| 6m | -49.0% | +12.1% |
| 1y | -61.3% | +19.2% |
| ytd | -61.3% | +14.2% |
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WHR Fundamental Analysis
Whirlpool's revenue trajectory is contracting, with the most recent quarter (Q2 2026, ended June 30, 2026) posting revenue of $3.517 billion, down 6.81% year-over-year from $3.774 billion in Q2 2025. The multi-quarter trend shows persistent erosion: revenue fell from $4.098 billion in Q4 2025 to $3.273 billion in Q1 2026 and $3.517 billion in Q2 2026, with the Q1 2026 figure representing a sharp sequential drop. Within the product mix, Laundry ($1.064 billion) and Refrigeration ($1.053 billion) are the largest revenue contributors, followed by Cooking ($790 million), Dishwashing ($270 million), Spare Parts and Warranties ($135 million), and Other ($205 million), but the data does not provide segment-level growth rates to isolate which lines are driving the decline. The 6.81% YoY revenue decline, combined with analyst estimates of roughly $16.63 billion in forward revenue, implies continued top-line pressure in a weak housing and consumer demand environment, undermining the investment case for a cyclical recovery. Profitability is thin and deteriorating: Q2 2026 net income was $88 million on $3.517 billion in revenue, a net margin of just 2.50%, while gross margin compressed to 12.57% from 16.00% in Q2 2025 — a 343 basis point year-over-year contraction that signals severe pricing and cost pressure. The Q1 2026 quarter was outright unprofitable with a net loss of $82 million (EPS of -$1.43), and the trailing twelve-month picture is weighed down by the Q4 2024 net loss of $391 million (EPS of -$7.09). Operating margin stands at just 4.68%, and with gross margin at 12.57% versus the 15.20% company-level figure cited in the valuation data, the trend is clearly one of margin compression rather than expansion, leaving little buffer against tariff costs or demand weakness. The balance sheet is highly leveraged and liquidity is tight: debt-to-equity is 2.88x, the current ratio is 0.756 (below 1.0, indicating current liabilities exceed current assets), and free cash flow TTM is negative at -$161 million. Q2 2026 operating cash flow was -$120 million with free cash flow of -$214 million, following a catastrophic Q1 2026 in which operating cash flow was -$827 million and free cash flow was -$895 million, driven by an $885 million working capital drain. ROE of 11.63% and ROA of just 1.51% reflect the distorting effect of leverage on a weak earnings base, and with a payout ratio of 94.32% against a dividend yield of 7.40%, the dividend appears unsustainable without a recovery in cash generation — a risk already flagged by the May 2026 dividend cut headlines.
Quarterly Revenue
$3.5B
2026-06
Revenue YoY Growth
-6.8%
YoY Comparison
Gross Margin
12.6%
Latest Quarter
Free Cash Flow
$-161000000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is WHR Overvalued?
Because Whirlpool's trailing net income is positive (EPS of $0.078 on a trailing basis, with Q2 2026 net income of $88 million), the PE ratio is the appropriate primary metric, though the extremely low trailing EPS makes the trailing PE of 12.70x somewhat unreliable as a signal. The forward PE of 8.01x, based on estimated EPS of $5.90, is far more informative and implies the market expects a substantial earnings recovery from the current depressed run-rate — a gap that reflects either deep skepticism about those estimates or a market pricing in further deterioration. The PS ratio of 0.26x and EV/Sales of 0.584x are extraordinarily low for a branded consumer manufacturer, suggesting the market is valuing the business at a fraction of its revenue base, consistent with distress pricing. Relative to typical Furnishings, Fixtures & Appliances sector valuations — where established manufacturers often trade at PS ratios of 0.8x to 1.5x and forward PEs in the low-to-mid teens — Whirlpool's 0.26x PS and 8.01x forward PE represent a steep discount of roughly 65-80% on sales and 30-45% on forward earnings. This discount is partially justified by the company's 2.88x debt-to-equity, negative free cash flow, 0.756 current ratio, and 12.57% gross margin, all of which are well below what a healthy appliance manufacturer would exhibit. However, the magnitude of the discount suggests the market is pricing in a scenario closer to restructuring or severe earnings impairment than a normal cyclical trough, and the PEG ratio of -0.065 (negative due to negative earnings growth) confirms that growth is currently working against the valuation. Historically, Whirlpool's own valuation band has compressed dramatically: the PS ratio has fallen from 1.50x in Q2 2025 to 0.73x in Q2 2026 and now 0.26x, while the PB ratio has dropped from 2.44x in Q2 2025 to 0.65x in Q2 2026 and 1.48x currently. The trailing PE has ranged from 21.86x in Q2 2025 to 8.57x in Q2 2026, and the current 12.70x sits in the lower portion of that historical range. The PB ratio of 1.48x is near the low end of its multi-year band (which ranged from roughly 0.65x to 4.06x over the past several years), suggesting the market is assigning minimal value to the company's equity book — a classic signal of either deep value or impending fundamental deterioration, and the negative FCF and high leverage tilt the interpretation toward the latter.
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 and operational risks are severe. Whirlpool's debt-to-equity ratio of 2.88x and current ratio of 0.756 indicate a highly leveraged balance sheet with tight liquidity. Free cash flow is negative at -$161 million TTM, and the company burned $895 million in Q1 2026 alone due to working capital drains. The dividend payout ratio of 94.32% is unsustainable, leading to a dividend cut in May 2026. Gross margin has compressed to 12.57% from 16.00% a year ago, and net margin is just 2.50%, leaving little buffer for further cost pressures. Revenue is declining, down 6.81% YoY, and the company has significant exposure to a slowing housing cycle and tariff costs.
Market and competitive risks are also high. The stock has a beta of 1.176, meaning it is 18% more volatile than the market, but its idiosyncratic risk is far greater, with a 1-year decline of 61.28% versus the S&P 500's +16.00%. The valuation is distressed, with a PS ratio of 0.26x and forward PE of 8.01x, but this could compress further if earnings fail to recover. Competition from low-cost manufacturers and changing consumer preferences pose threats. Recent news highlights earnings misses, lowered guidance, and tariff pressures, with analysts downgrading the stock. The wide analyst target range ($22 to $137) signals extremely low conviction and high uncertainty.
In a worst-case scenario, continued margin erosion, negative free cash flow, and a breach of debt covenants could force asset sales or restructuring, leading to further equity dilution. The 52-week low is $28.39, just 1.5% below the current price of $28.83. If the stock breaks below that level, it could fall to the analyst low target of $22.00, representing a 23.7% decline from current levels. In a more severe scenario, if the company faces a liquidity crisis, the stock could drop to single digits, implying a loss of 65% or more from the current price. The maximum drawdown over the past year is already -69.82%, and further downside is plausible given the deteriorating fundamentals.
FAQ
The key risks include financial risk from high debt (debt-to-equity of 2.88x) and negative free cash flow (-$161 million TTM), which could lead to a liquidity crisis. Operational risk from margin compression (gross margin down to 12.57% from 16.00%) and revenue decline (-6.81% YoY) threatens profitability. Market risk from a slowing housing cycle and tariff pressures could further reduce demand. Company-specific risk includes the recent dividend cut and potential covenant breaches. These risks are ranked from highest to lowest severity, with financial and operational risks being the most immediate.
The 12-month forecast has three scenarios: bull case (20% probability) with a target range of $49.83-$70.00, base case (50% probability) with a range of $30-$45, and bear case (30% probability) with a range of $15-$22. The base case is most likely, assuming revenue declines modestly and margins stabilize around 13-14%. The key assumption is that the company avoids a liquidity crisis and shows gradual improvement. However, if free cash flow remains negative and the housing market weakens further, the bear case could play out, pushing the stock below its 52-week low.
WHR appears undervalued on traditional metrics, with a PS ratio of 0.26x and a PB ratio of 1.48x, both well below sector averages. However, these low multiples reflect the company's distressed financials, including negative free cash flow and high leverage. The forward PE of 8.01x is based on optimistic earnings estimates of $5.90, which may not materialize. Compared to its own history, the PS ratio has fallen from 1.50x in Q2 2025 to 0.26x now, indicating a severe de-rating. The market is pricing in a high probability of continued deterioration, so the stock is not undervalued in a traditional sense but rather fairly valued given the risks.
WHR is not a good buy for most investors due to its high risk profile. The stock has fallen 61.28% over the past year and is trading near its 52-week low of $28.39. While the average analyst target of $49.83 implies 72.9% upside, this is offset by negative free cash flow of -$161 million and a debt-to-equity ratio of 2.88x. The dividend was recently cut, and the company faces severe margin pressure. Only investors with a high risk tolerance and a long time horizon might consider a speculative position, but the risk of further downside is substantial.
WHR is not suitable for short-term trading due to its high volatility (beta of 1.176) and unpredictable news flow. For long-term investors, it could be a speculative turnaround play, but the risks are high. The company is in a mature industry with cyclical demand, and its earnings visibility is low. A minimum holding period of 3-5 years would be required to potentially realize a recovery, but even then, success is not guaranteed. Income investors should avoid the stock due to the unsustainable dividend. It is best suited for deep value investors with a high risk tolerance.