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NYSE:CF is probably undervalued for the fundamentals it is displaying.

By Mill Chart

Last update: Feb 21, 2024

Uncover the potential of CF INDUSTRIES HOLDINGS INC (NYSE:CF) as our stock screener's choice for an undervalued stock. NYSE:CF maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

ChartMill's Evaluation of Valuation

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:CF boasts a 7 out of 10:

  • CF is valuated cheaply with a Price/Earnings ratio of 7.00.
  • Compared to the rest of the industry, the Price/Earnings ratio of CF indicates a rather cheap valuation: CF is cheaper than 87.06% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.00, CF is valued rather cheaply.
  • CF is valuated reasonably with a Price/Forward Earnings ratio of 11.11.
  • Based on the Price/Forward Earnings ratio, CF is valued a bit cheaper than the industry average as 77.65% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.37, CF is valued a bit cheaper.
  • CF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CF is cheaper than 90.59% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, CF is valued cheaply inside the industry as 91.76% of the companies are valued more expensively.
  • The excellent profitability rating of CF may justify a higher PE ratio.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:CF has earned a 8 out of 10:

  • The Return On Assets of CF (15.59%) is better than 96.47% of its industry peers.
  • CF has a Return On Equity of 36.89%. This is amongst the best in the industry. CF outperforms 96.47% of its industry peers.
  • CF has a Return On Invested Capital of 19.11%. This is amongst the best in the industry. CF outperforms 96.47% of its industry peers.
  • CF's Profit Margin of 27.53% is amongst the best of the industry. CF outperforms 96.47% of its industry peers.
  • CF's Profit Margin has improved in the last couple of years.
  • The Operating Margin of CF (39.55%) is better than 98.82% of its industry peers.
  • CF's Operating Margin has improved in the last couple of years.
  • CF has a Gross Margin of 43.04%. This is amongst the best in the industry. CF outperforms 87.06% of its industry peers.
  • In the last couple of years the Gross Margin of CF has grown nicely.

Health Examination for NYSE:CF

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:CF has earned a 9 out of 10:

  • An Altman-Z score of 3.21 indicates that CF is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.21, CF belongs to the top of the industry, outperforming 83.53% of the companies in the same industry.
  • CF has a debt to FCF ratio of 1.23. This is a very positive value and a sign of high solvency as it would only need 1.23 years to pay back of all of its debts.
  • CF has a better Debt to FCF ratio (1.23) than 92.94% of its industry peers.
  • Although CF does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
  • A Current Ratio of 4.52 indicates that CF has no problem at all paying its short term obligations.
  • CF has a better Current ratio (4.52) than 89.41% of its industry peers.
  • A Quick Ratio of 4.18 indicates that CF has no problem at all paying its short term obligations.
  • The Quick ratio of CF (4.18) is better than 89.41% of its industry peers.

A Closer Look at Growth for NYSE:CF

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:CF has received a 4 out of 10:

  • The Earnings Per Share has been growing by 47.09% on average over the past years. This is a very strong growth
  • The Revenue has been growing by 8.41% on average over the past years. This is quite good.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Check the latest full fundamental report of CF for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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CF INDUSTRIES HOLDINGS INC

NYSE:CF (5/29/2024, 7:04:00 PM)

After market: 77.1 0 (0%)

77.1

-1.61 (-2.05%)

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