| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 71.20 | -9 |
| Intrinsic value (DCF) | 39.22 | -50 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 26.00 | -67 |
Whirlpool Corporation (LSE: 0LWH.L) is a global leader in home appliances, manufacturing and marketing a wide range of products under well-known brands such as Whirlpool, Maytag, KitchenAid, and Indesit. Headquartered in Benton Harbor, Michigan, the company operates across four key regions: North America, Europe/Middle East/Africa, Latin America, and Asia. Its product portfolio includes refrigerators, laundry appliances, cooking equipment, dishwashers, and small domestic appliances. Whirlpool serves a diverse customer base, including retailers, distributors, builders, and direct consumers. Founded in 1911, Whirlpool has established itself as a trusted name in the consumer cyclical sector, leveraging innovation and brand strength to maintain market leadership. Despite recent financial challenges, the company remains a significant player in the global appliance industry, with a strong focus on sustainability and smart home technology.
Whirlpool Corporation presents a mixed investment profile. The company benefits from strong brand recognition, a diversified product portfolio, and a global footprint. However, recent financial performance has been weak, with a net loss of $323 million in the latest fiscal year and negative diluted EPS of -$5.87. The company's high total debt of $7.34 billion and a beta of 1.174 indicate elevated financial risk and market volatility sensitivity. On the positive side, Whirlpool maintains a solid operating cash flow of $835 million and offers a dividend yield, with a dividend per share of $7. Investors should weigh the company's established market position against its financial challenges and competitive pressures in the appliance industry.
Whirlpool Corporation competes in a highly competitive global appliance market, where brand strength, innovation, and cost efficiency are critical. The company's competitive advantage lies in its extensive brand portfolio, including premium labels like KitchenAid and JennAir, which cater to different market segments. Whirlpool's global manufacturing and distribution network provides economies of scale, though it faces stiff competition from Asian manufacturers with lower cost structures. The company has invested in smart home technology and sustainability initiatives to differentiate itself, but execution risks remain. In North America, Whirlpool holds a strong market position, but in Europe and Asia, it struggles against local players and aggressive competitors like Haier and LG. Supply chain disruptions and raw material cost inflation further pressure margins. Whirlpool's ability to innovate and streamline operations will be key to maintaining competitiveness in an industry increasingly driven by energy efficiency and connected appliances.