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Why CF INDUSTRIES HOLDINGS INC (NYSE:CF) Deserves Consideration as a Quality Investment.

By Mill Chart

Last update: Apr 5, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if CF INDUSTRIES HOLDINGS INC (NYSE:CF) is suited for quality investing. Investors should of course do their own research, but we spotted CF INDUSTRIES HOLDINGS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Exploring Why NYSE:CF Holds Appeal for Quality Investors.

  • CF INDUSTRIES HOLDINGS INC has demonstrated significant revenue growth over the past 5 years, with a 8.41% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • CF INDUSTRIES HOLDINGS INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 21.37% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • With a favorable Debt/Free Cash Flow Ratio of 1.31, CF INDUSTRIES HOLDINGS INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • With a favorable Profit Quality (5-year) ratio of 204.0%, CF INDUSTRIES HOLDINGS INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • CF INDUSTRIES HOLDINGS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 25.55%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • CF INDUSTRIES HOLDINGS INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental analysis of NYSE:CF

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Overall CF gets a fundamental rating of 7 out of 10. We evaluated CF against 84 industry peers in the Chemicals industry. CF gets an excellent profitability rating and is at the same time showing great financial health properties. CF may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make CF suitable for value investing!

For an up to date full fundamental analysis you can check the fundamental report of CF

Our Caviar Cruise screen will find you more ideas suited for quality investing.

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 (4/29/2024, 12:26:03 PM)

80.89

+0.89 (+1.11%)

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