Whirlpool Stock: 9.1% Dividend Yield with 45% Upside Potential Today

Key Takeaways:

• The 2-Minute Valuation Model values WHR stock at $110 per share in 2 years.
• That’s a potential 45% upside from today’s price of $76.
• With a dividend yield of around 9.1%, Whirpool could potentially offer 20% total annual returns over the next 2 years.
• Get accurate financial data on over 100,000 global stocks for free on TIKR >>>

Today, Whirlpool Corporation (WHR) stands out as a potential deep-value opportunity with a high dividend yield and strong upside.

This global home appliance manufacturer could have serious upside today if the company successfully executes on its path to earnings recovery.

Let’s examine the investment case for Whirlpool.

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What is the 2-Minute Valuation Model?

Three core factors drive a stock’s long-term value:

1. Revenue Growth: How big the business becomes.
2. Margins: How much the business earns in profit.
3. Multiple: How much investors are willing to pay for a business’s earnings.

Our 2-Minute Valuation Model uses a simple formula to value stocks:

Expected Normalized EPS * Forward P/E ratio + Expected Dividends = Expected Share Price

Revenue growth and margins drive a company’s long-term normalized earnings per share (EPS), and investors can use a stock’s long-term average P/E multiple to get an idea of how the market values a company.

Is This Dividend Stock a Good Buy?

Forecast

With housing activity and big-ticket spending under pressure, Whirlpool’s earnings are expected to hit a low in 2025 with another year of earnings declines.

But, analysts see a strong rebound for the company’s earnings in 2026 and 2027, as analysts expect the company to be able to manage costs, improve margins, and benefit from a healthier consumer backdrop down the road.

This earnings growth for WHR stock is likely to be driven by:

• Brand Portfolio Strength: Whirlpool owns leading brands, including its namesake (Whirlpool), KitchenAid, Maytag, and Jenn-Air, which gives it pricing power and consumer recognition in the appliance market.
• Cost-Cutting Initiatives: The company has implemented aggressive restructuring programs aimed at reducing costs and improving operational efficiency, which should help margins recover faster than revenues.
• Housing Market Cycle Positioning: Current weakness in housing and renovations has depressed appliance demand, but any improvement in these markets would directly benefit Whirlpool’s core business.
• Dividend Commitment: Despite challenges, Whirlpool has maintained its dividend, demonstrating management’s confidence in its ability to generate cash flow.
• Potential for Strategic Actions: WHR has been streamlining operations and could consider divestitures or other value-unlocking moves if the stock continues to trade at depressed levels.

WHR pays shareholders a dividend yield of 9.1%. That means that a $1,000 investment in Whirlpool stock would help you earn $91 in annual dividends.

Moreover, a widening cash flow base suggests that Whirpool’s dividend payout ratio will improve to less than 60% in 2027, compared to 78% for 2025.

View Whirlpool’s full analyst estimates (It’s free) >>>

Is Whirlpool Stock Undervalued Right Now?

Whirlpool’s current valuation appears fairly cheap relative to its historical average and future prospects.

WHR stock is trading well below its historical average multiple, suggesting significant potential for multiple expansion as the company navigates through current challenges.

For our valuation, we will use a forward P/E multiple of 8x, which is below the stock’s historical 5-year average of nearly 9x.

Fair Value of WHR Stock

Using our 2-Minute Valuation Model and applying a conservative approach:

• Conservative 2027 EPS estimate: $12
• Conservative forward P/E multiple: 8x
• Expected dividends in the next 2 years: $14

Expected Normalized EPS ($12) * Forward P/E ratio (8x) + Dividends ($14) = Expected Share Price ($110)

The 2-year expected WHR stock price we would get from this valuation is $110 per share.

With Whirlpool stock currently trading at around $76 per share, this implies a potential upside of approximately 45% over the next two years, or a 20% annualized return.

Keep in mind, this is just a valuation exercise, and we don’t know for sure what the stock’s price will be in the future. But still, it definitely looks like Whirlpool is worth a closer look today.

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What is the Target Price for Whirpool Stock?

Analysts have an average price target of around $99 per share for WHR stock, indicating they see about 30% upside for the stock from its current share price:

Risks to Consider

While our valuation suggests meaningful upside, investors should be aware of several risks:

• Housing Market Dependency: Appliance sales are closely tied to housing activity and renovations, which remain vulnerable to higher interest rates and economic uncertainty.
• Competitive Pressures: The appliance industry faces intense global competition, particularly from lower-cost manufacturers based in Asia.
• Input Cost Volatility: Fluctuations in raw material prices, particularly steel, can significantly impact manufacturing costs and margins. Also, tariffs are likely to have a big impact.
• Consumer Spending Weakness: Extended weakness in consumer discretionary spending could delay the expected recovery in appliance demand.
• Dividend Sustainability Questions: The extraordinarily high dividend yield raises questions about long-term sustainability if earnings recovery is delayed.

Despite these risks, Whirlpool’s current valuation appears to already price in significant pessimism, potentially creating an asymmetric risk-reward opportunity for investors willing to weather near-term volatility.

TIKR Takeaway

Whirlpool today could be a deep-value opportunity with both a high dividend yield and significant potential for capital appreciation. While the company faces near-term challenges, the current valuation offers a substantial margin of safety and exceptional total return potential.

For investors seeking both income and value in today’s market, WHR offers a compelling proposition with its 9.1% dividend yield and clear path to earnings recovery by 2027.

Is WHR stock a buy over the next 24 months? Use TIKR to check the stock’s analyst price targets, growth forecasts, and see if the stock is undervalued today.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!