Core Viewpoint - Whirlpool (NYSE: WHR) is considered a buy due to its consistent dividend payments for over 70 years and its current trading at decade lows, with potential for a 15% return if the company manages its debt effectively [1]. Company Analysis - The company has a long history of dividend payments, which is a positive indicator for investors looking for stable income [1]. - Current trading levels are at decade lows, suggesting a potential undervaluation in the market [1]. - Effective debt management is crucial for the company to achieve the projected 15% return [1].

Core Insights - Whirlpool and Altria both offer high-yield dividends exceeding 7%, despite their differing industries [1][2] - Current stock performance for both companies is underwhelming, prompting a comparison to identify potential bargains [2] Company Analysis Whirlpool - Whirlpool is facing market concerns related to a potential trade war and disappointing fourth-quarter earnings, which have led to a significant decline in share price [3][4] - The price-to-sales ratio for Whirlpool is notably low at 0.31, indicating it may be undervalued compared to Altria [3][4] - The challenges faced by Whirlpool are considered more temporary, as it operates in a stable home appliance industry [5][6] Altria - Altria is struggling with a long-term decline in cigarette popularity, which poses a significant challenge for the company [5][6] - Despite attempts to offset declining sales through price increases and a push into alternative products like vaping, growth has been limited [6] - Altria's price-to-sales ratio is over 4.8, which is viewed as unjustified given the stagnation in sales growth [3][6]

Core Insights - Whirlpool Corporation achieved significant recognition at the 2025 Kitchen & Bath Industry Show (KBIS) in Las Vegas, winning seven awards across four of its brands: JennAir, KitchenAid, Whirlpool, and Maytag, highlighting its commitment to innovation in home appliances [1][2][4] Awards and Recognition - The company secured four spots in the Reviewed Awards, which honor standout products from KBIS, showcasing groundbreaking innovations within its brand portfolio [2] - Two new products received "Best in Show" seals from Apartment Therapy and The Kitchn, further emphasizing the brand's impact in home design and cooking [3] Product Innovations - The JennAir® Induction Downdraft Cooktop was awarded "Best of KBIS" from Reviewed, noted for its powerful extraction capabilities that maintain a pleasant kitchen environment [9] - KitchenAid's new Juniper appliance finishes, a vibrant dark green hue, received the "Best of KBIS" award from Apartment Therapy, set to enhance creative expression in kitchens [16] - The Maytag® Pet Pro Front Load Laundry System, designed to tackle pet hair, was recognized as "Best of KBIS" from Reviewed, showcasing the brand's focus on practical solutions for consumers [13] Collaborative Efforts - Whirlpool collaborated with interior designer Noz Nozawa to unveil a reimagined design language with new color and personalization options, reflecting consumer and designer preferences [5] - The JennAir space at KBIS featured a design by Kerrie Kelly, incorporating elements from leading kitchen brands to resonate with the interior design community [6] Event Highlights - The KBIS event is recognized as North America's largest trade show dedicated to kitchen and bath design, bringing together top manufacturers, designers, and industry professionals to celebrate innovations and trends [13]

Core Viewpoint - The article highlights three high-yield dividend stocks: Chevron, ExxonMobil, and Whirlpool, emphasizing their potential to provide passive income through dividends, especially during market downturns [1][2]. Group 1: Chevron - Chevron offers a forward dividend yield of 4.5% and has increased its dividend for 38 consecutive years, indicating strong management commitment to shareholders [3][4]. - The company maintains a conservative net debt-to-EBITDA ratio of 0.4, showcasing its financial stability despite oil price volatility [5]. - Future free cash flow growth is anticipated due to asset development and acquisitions, positioning Chevron well for continued dividend increases [6]. Group 2: ExxonMobil - ExxonMobil has a dividend yield of 3.8% and has raised its dividend for 42 consecutive years, making it a solid choice for dividend investors [12]. - The company plans to grow annual cash flows by $30 billion based on a $65 per barrel Brent crude oil price, indicating a focus on sustainable financial planning [11]. - Despite lower oil prices affecting margins, ExxonMobil's diversified operations and long-term investment strategy support its dividend sustainability [10][12]. Group 3: Whirlpool - Whirlpool presents a speculative investment opportunity with a high dividend yield of 7.7%, but faces challenges due to a weak housing market and consumer spending [14][15]. - The company has $1.85 billion of its $6.6 billion net debt maturing this year, raising concerns about the sustainability of its dividend [16]. - Management expects to generate $500 million to $600 million in free cash flow in 2025 and plans to sell a stake in Whirlpool India to improve its financial position [17].

Group 1: Impact of Tariffs on Companies - Tariffs can have varied impacts on companies, with some benefiting from rising commodity prices while others face increased costs for raw materials and imports [1] - Whirlpool is expected to be negatively impacted by steel tariffs, which will raise input costs, and it may also incur higher expenses from tariffs on imported parts and goods [2] - Concerns over rising costs led to a significant decline in Whirlpool's stock, which fell by approximately 9% [3] Group 2: Economic Context and Consumer Behavior - Tariffs are likely to increase the prices of affected goods, as evidenced by research from the 2018-2019 trade war showing that prices of U.S. imported goods rose nearly in line with the tariffs imposed [4] - Companies like Whirlpool may struggle to pass on increased costs to consumers, especially given current challenges in the housing market, including interest rates and consumer confidence [4] - There are fears that trade wars and tariff-induced price increases could lead to stagflation, creating a challenging environment for Whirlpool with lagging demand and rising costs [5] Group 3: Whirlpool's Production and Market Position - Whirlpool is somewhat insulated from tariff impacts as approximately 80% of its products sold in the U.S. are manufactured domestically, but it still relies on production in China and Mexico for the remaining products [6] - The reliance on international production places Whirlpool in a difficult position amid evolving tariff landscapes, prompting investors to act quickly rather than wait for clarity [6]

Company Performance - Whirlpool's stock closed at $91.58, showing a +0.96% change from the previous day's closing price, but underperformed compared to the S&P 500's gain of 1.12% [1] - Over the past month, Whirlpool's shares have decreased by 9.64%, which is significantly worse than the Consumer Discretionary sector's loss of 2.8% and the S&P 500's loss of 4.13% [1] Upcoming Earnings - Analysts predict Whirlpool will report an EPS of $1.73, reflecting a 2.81% decline from the same quarter last year [2] - Revenue is expected to be $3.66 billion, indicating an 18.46% decrease compared to the corresponding quarter of the previous year [2] Annual Forecast - For the entire year, earnings are forecasted at $9.52 per share and revenue at $15.44 billion, representing declines of -22.03% and -7.04% respectively compared to the previous year [3] Analyst Revisions - Recent revisions to analyst forecasts for Whirlpool are important as they reflect short-term business trends, with positive revisions indicating analyst optimism about the company's performance [4] Valuation Metrics - Whirlpool's Forward P/E ratio is 9.53, which is in line with the industry average of 9.53, indicating no significant deviation from its peers [7] - The Household Appliances industry, which includes Whirlpool, is currently ranked 228 in the Zacks Industry Rank, placing it in the bottom 10% of over 250 industries [7]

Company Participation - Whirlpool Corporation will participate in the Raymond James 46th Annual Institutional Investors Conference on March 3rd at 8:40 a.m. ET [1] - Roxanne Warner, Senior Vice President, Corporate Controller and Investor Relations, will present for the company [1] Webcast Availability - Investors and the general public can view the webcast of the presentation on the company's Investor Relations website [2] - An archived recording of the event will be available for at least 30 days [2] Company Overview - Whirlpool Corporation is a leading home appliance company with approximately $17 billion in annual sales in 2024, with nearly 90% of sales in the Americas [3] - The company employs 44,000 people and operates 40 manufacturing and technology research centers [3] - Whirlpool's brand portfolio includes Whirlpool, KitchenAid, JennAir, Maytag, Amana, Brastemp, Consul, and InSinkErator [3]

Core Insights - Whirlpool Corporation will showcase new products and interactive experiences at the Kitchen & Bath Industry Show (KBIS) from February 25-27, 2025, in Las Vegas, emphasizing design and innovation across its iconic brands [1][2][3] Group 1: Brand Highlights - The booth will feature offerings from Whirlpool, KitchenAid, JennAir, and Maytag, focusing on improving life at home through innovative appliances [2][3] - JennAir will present a luxury experience with live cooking demonstrations by renowned chefs, showcasing advancements in design and technology [4][5] - KitchenAid will debut a new line of vibrant appliances that challenge conventional kitchen design, inviting creativity and exploration [6][7][9] - Whirlpool will highlight its "Gallery of Care," demonstrating how its appliances address everyday family challenges [11][12] - Maytag will focus on performance, showcasing appliances designed for demanding households [12][17] Group 2: Product Innovations - New products from JennAir include advanced induction cooktops and ranges that blend style and performance [7][8] - KitchenAid will introduce a 30-inch Commercial-Style Gas Range and a Smart Slide-in Gas Range with innovative cooking features [8][15] - Whirlpool will feature a Smart Front Load Washer and Dryer with advanced technology for enhanced laundry care [16][18] - Maytag will present a Pet Pro Front Load Laundry System and a Gas Range with Grill Mode, catering to specific consumer needs [17] Group 3: Event Engagement - The event will facilitate meaningful interactions between the company and its customers, with exclusive tours and design insights from industry experts [3][10] - Design professionals will have opportunities to engage in exclusive happy hours and discussions about the latest trends in kitchen and bath design [5][10] Group 4: Company Overview - Whirlpool Corporation is a leading home appliance manufacturer, reporting approximately $17 billion in annual sales in 2024, with a strong focus on innovation to meet consumer needs [14][18] - The company operates with a significant workforce of 44,000 employees and maintains 40 manufacturing and technology research centers across the Americas [18]

Group 1 - Whirlpool Corporation has appointed John Morikis, former chairman and CEO of The Sherwin-Williams Company, to its board of directors, effective immediately [1][2] - Morikis will serve on the corporate governance and nominating committee and the human resources committee [1] - Marc Bitzer, chairman and CEO of Whirlpool, expressed excitement about Morikis joining the board, highlighting his experience in establishing resilient supply chains and insights into the U.S. home builder market as valuable assets for the company [2] Group 2 - Morikis, aged 61, was president and CEO of Sherwin-Williams from 2016 and became chairman in 2017, having started his career there in 1984 [2] - He will remain on the board of directors for Sherwin-Williams until his term expires in April and is also a director at General Mills, Inc. and University Hospitals [3] Group 3 - Whirlpool Corporation is a leading home appliance company, focusing on improving life at home and is the last major U.S.-based manufacturer of kitchen and laundry appliances [4] - In 2024, Whirlpool reported approximately $17 billion in annual sales, with nearly 90% of sales occurring in the Americas, and employs 44,000 people across 40 manufacturing and technology research centers [4]

Financial Performance - Whirlpool Corporation reported approximately $17 billion in annual net sales for 2024[11]. - GAAP net earnings available to Whirlpool were $(323) million, with a net earnings margin of (1.9%) or $(5.87) per share, compared to $481 million and 2.5% margin or $8.72 per share in the prior year[173]. - Ongoing (non-GAAP) earnings per share were $12.21, with a full-year ongoing EBIT margin of 5.3%, down from $16.16 and 6.1% in the prior year[173]. - Cash provided by operating activities was $835 million, compared to $915 million in 2023, while free cash flow was $385 million, up from $366 million in 2023[175]. - Consolidated net sales for 2024 decreased by 14.6% compared to 2023, with a 13.7% decrease when excluding foreign currency impact[177]. - The consolidated gross margin percentage for 2024 decreased to 15.5% from 16.3% in 2023, primarily due to unfavorable product/price mix[179]. - Net sales for MDA North America decreased 4.9% in 2024 compared to 2023, primarily driven by unfavorable product price/mix[184]. - Cost of products sold for 2024 decreased 1.6% compared to 2023, primarily driven by lower volumes[185]. - EBIT margin for 2024 was 6.5%, down from 9.4% in 2023, primarily due to unfavorable product price/mix impacts[186]. - Net sales for 2024 increased by 4.3% compared to 2023, driven by increased volume, with a 9.7% increase when excluding foreign currency impacts[190]. - Cost of products sold for 2024 increased by 4.0% compared to 2023, primarily due to increased volume[191]. - EBIT margin for 2024 was 7.0%, up from 5.6% in 2023, attributed to increased volume and favorable cost productivity[192]. - Net sales for 2024 in Asia increased by 9.0% compared to 2023, with a 10.2% increase when excluding foreign currency impacts[195]. - Cost of products sold for 2024 in Asia increased by 8.2% compared to 2023, driven by increased volume[196]. - EBIT margin for 2024 in SDA Global remained at 14.3%, unchanged from 2023, as increased volume was offset by unfavorable product price/mix[202]. - Consolidated selling, general and administrative expenses for 2024 were $1,684 million, representing 10.1% of net sales, a decrease from 10.2% in 2023[207]. - Restructuring charges incurred were $79 million in 2024, compared to $16 million in 2023[208]. - An impairment charge of $381 million related to the Maytag trademark was recorded in Q4 2024 due to a decline in fair value[209]. Strategic Initiatives - The company completed a significant portfolio transformation by contributing its European major domestic appliance business to a new company with Arcelik and selling its Middle East and North Africa business to Arcelik[17]. - Whirlpool's operating segments were reorganized effective January 1, 2024, with the MDA Europe segment deconsolidated as of April 1, 2024[36]. - The company announced a strategic portfolio transformation initiative in 2022, focusing on higher-growth, higher-margin businesses, which included divesting operations in Russia and MENA, and acquiring InSinkErator[81]. - In April 2024, the company closed the sale of its MENA major domestic appliance business and contributed its European major domestic appliance business to Beko Europe, retaining a 25% interest in Beko Europe[90]. - The company is transitioning certain functional processes to a third-party partner in 2025 to optimize operations and capture efficiency gains[56]. Innovation and Product Development - In 2024, Whirlpool launched over 100 new products globally, including the KitchenAid Espresso collection and the FreshFlowVent System[21]. - Whirlpool's innovation pipeline includes connected appliances with features like voice control and WiFi connectivity, enhancing consumer experience[23]. - The company has applied for intellectual property protection for innovations and new products, but faces challenges in securing and maintaining these rights, which could weaken its competitive advantage[87]. - The introduction of Accelerator Centers of Excellence in 2024 aims to refine the organizational model, but reliance on third-party providers may increase risks related to service disruptions and data breaches[84]. Environmental and Compliance Efforts - Whirlpool Corporation aims for a 20% reduction in emissions linked to the use of its products by 2030, compared to 2016 levels[46]. - The company has committed to achieving net zero emissions in its plants and operations by 2030, focusing on renewable energy and energy efficiency improvements[47]. - The company is facing increased costs and potential product redesigns due to stricter government energy and environmental standards[49]. - Compliance with evolving environmental regulations may increase costs or require product redesign, impacting the company's financial condition[134]. - The company is subject to various federal, foreign, and state laws, including antitrust laws, which could result in civil or criminal sanctions if violated[126]. Workforce and Employee Relations - As of December 31, 2024, Whirlpool employed approximately 44,000 employees across 27 countries, with 39% located in the United States[54]. - Whirlpool's leadership development programs are internally designed and facilitated, focusing on building a deep succession bench for leadership roles[58]. - The company is investing in employee health and well-being through a global well-being strategy that includes various support pathways[62]. - The company has approximately 44,000 employees globally, and labor relations could impact operational results due to collective bargaining agreements[114]. Market and Competitive Landscape - The company aims to maintain a leading position in the Americas and expects to continue growth in multiple countries[20]. - Whirlpool's competitive landscape includes intense competition from well-established companies and the need to adapt to changing consumer preferences and technological innovations[76]. - International sales represented a significant portion of net sales for the year ended December 31, 2024, and the company anticipates continued exposure to political, legal, and economic instability in various regions[99]. - The company is adapting to changes in consumer preferences, particularly towards e-commerce and connected appliances, which necessitates timely product development and innovation[85]. Risks and Challenges - The company faces risks associated with supply chain disruptions, which could impact product availability and sales, particularly due to reliance on single-source suppliers for certain components[94]. - Supply chain risks include potential disruptions from geopolitical instability, labor shortages, and natural disasters, which could adversely affect manufacturing capabilities[95]. - The company is exposed to foreign currency exchange rate fluctuations and changes in foreign tax regulations, which could negatively impact financial performance[100]. - Cybersecurity risks are increasing, with potential impacts on operations and financial statements due to sophisticated cyber attacks[108]. - The company relies on information technology for operational efficiency, and failures in these systems could disrupt business processes and financial accuracy[104]. - The company may incur unanticipated costs from acquisitions due to potential violations of anti-bribery laws by targets[101]. - Product-related liabilities and recalls could lead to significant adverse publicity and impact financial performance[109]. - The company is currently disputing certain income and indirect tax assessments issued by Brazilian authorities, which could materially affect financial statements in specific reporting periods[124]. - The second part of a French Competition Authority investigation is expected to be completed in 2025, potentially impacting financial statements and reputation[126]. - Economic uncertainty and potential recession may lead customers to delay or cancel orders, adversely affecting sales and inventory levels[141]. - The company is exposed to risks from changes in foreign trade policies, tariffs, and sanctions that could negatively impact business and financial performance[129]. - Whirlpool experienced significant raw material inflation in 2021 and 2022, impacting overall costs and necessitating strong cost reduction initiatives[116]. - The U.S. Federal Reserve raised its benchmark interest rate by a total of 5.25% to 5.5% as of July 2023, which may increase costs of obtaining new debt and refinancing existing obligations[144].