Whirlpool: Great Valuation But At The Mercy Of Cyclicality

Summary

• Whirlpool's deep industry relationships and brand loyalty create a strong moat, but its business remains highly cyclical and sensitive to housing and economic trends.
• The stock is down over 50% from 2021 highs, offering a compelling 6.5% dividend yield for long-term, patient investors.
• Dividend safety is mixed: payout ratio is high by GAAP but more reasonable on a non-GAAP basis. Sustainability depends on business stabilization.
• Valuation is attractive on a forward basis, but meaningful earnings growth likely requires external tailwinds like lower interest rates or a housing rebound.

Roberto Galan

Introduction

Whirlpool Corporation (NYSE:WHR) is an American icon that's been making appliances since 1911. The company survived two world wars, the Great Depression, countless recessions, and a global crisis, and it continues to play a big role in the lives of Americans with

Analyst’s Disclosure:I/we have a beneficial long position in the shares of WHR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.