Whirlpool Is Down A Lot But Struggling With High Debt

A reader commented on an article of mine:

"I demand, not request, your analysis on WHR. I am bagholding and need someone intellectual and smart to look into this company for me."

That was on June 13th, and I told the commenter that "it is not on my coverage list, nor is it likely to get there." Well, I never wrote about Whirlpool (WHR), and it is not on my watch list, but I want to explain here why I don't care for the stock, which is currently $38.48 and which reports its Q2 on August 3rd after the close with a call on August 4th.

What Is WHR?

WHR was founded in 1911 and is based in Michigan. "Whirlpool manufactures products in four countries and markets products in nearly every country around the world, and it is "committed to being the best kitchen and laundry company, in constant pursuit of improving life at home." So, it is basically a global seller of products for the home. The brands that it highlights are well known and include KitchenAid, Maytag and Amana.

Whirlpool has some competitors, but they tend to be foreign companies, like Electrolux (ELUXY) and Bosch. It also competes with Haier (HSHCY), which is owned by GE. It's a highly competitive industry.

The CEO, who is also Chairman, Marc Bitzer, has served in that role since 2017 and joined the company in 1999. Insiders do not own a tremendous amount of stock. The proxy, in March, showed a total ownership of the directors and officers of 1.11 million shares (2% of shares outstanding). Bitzer's stake was 1.4%.

In 2025, the company generated revenue of $15.5 billion, which was down 7% and down 20% from 2023. Operating profit increased to $838 million from $143 million in 2024, but it was higher in 2023 at $1.02 billion. Diluted EPS in 2025 totaled $5.68. Cash flow from operations was $470 million, which was well below the prior two years but above capital expenditures of $389 million marginally.

The Valuation of the Stock

At $38.48, the company has a market cap of about $2.5 billion. According to Koyfin, the 12-month forward PE is just 13.2X. Here is the problem: Total debt is $6.1 billion as of 3/31, according to the 10-Q. The current ratio is a yellow flag level of 0.9X. There is cash of $626 million. The enterprise value, then, is about $8 billion.

For companies that have a lot of debt, I like to see what the tangible book value is, and WHR has a tangible book value as of 3/31 of -$669 million, which is a red flag. Lots of debt but no tangible equity.

Analysts, according to Koyfin, project that 2026 revenue will fall 4% to $14.9 billion and then rise to $15.4 billion in 2027. They expect that adjusted EBITDA will decline to $911 million and then rebound in 2027 to $1.11 billion. The EPS forecast is just $2.35 this year and then $3.96 next year.

The 2027 PE of 9.7X seems low, but looking at EV/EBITDA, the stock trades at 7X. This level could be cheap enough, but it has plenty of competition from other stocks.

The Chart

While beaten-up stocks like WHR are doing very well in 2026, it is down 47% in price. Here is the chart (Schwab Think or Swim) over the past year:

There is a gap from May that is above the current price and still open. My first resistance level of $50, which is at the old low in March, is in that gap, and the second resistance level of $55 is above it. The stock has recently set a 52-week low near $35, and this was the lowest price of more than a decade. The last time the price was this low was in 2012, and the current price is well above the low in 2009, when the Great Recession hit.

WHR was removed from the S&P 500 in 2024, and it is in the S&P 400. The S&P 400 has done well in 2026, and WHR is lagging badly. Over the past decade, mid-caps have outpaced it a lot, and measuring from March 31st of 2009, WHR, up, has lagged greatly:

Conclusion

I tend to gravitate towards stocks like WHR, with a beaten up price and a seemingly low PE. I continue to expect that the economy is facing a recession and view the housing market, to which WHR is very tied, to be under pressure. The company has a lot of debt. I am not interested in this one at this price, and I caution holders from increasing their positions at this time.