Should you consider NYSE:CF for quality investing?

In this article we will dive into CF INDUSTRIES HOLDINGS INC (NYSE:CF) as a possible candidate for quality investing. Investors should always do their own research, but we noticed CF INDUSTRIES HOLDINGS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NYSE:CF highlighted

• CF INDUSTRIES HOLDINGS INC has shown strong performance in revenue growth over the past 5 years, with a 8.41% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• CF INDUSTRIES HOLDINGS INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 17.08% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a Debt/Free Cash Flow Ratio of 1.63, CF INDUSTRIES HOLDINGS INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• CF INDUSTRIES HOLDINGS INC demonstrates consistent Profit Quality over the past 5 years, with a strong 204.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• With a robust 5-year EBIT growth of 25.55%, CF INDUSTRIES HOLDINGS INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• 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 Observations

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

We assign a fundamental rating of 7 out of 10 to CF. CF was compared to 85 industry peers in the Chemicals industry. Both the health and profitability get an excellent rating, making CF a very profitable company, without any liquidiy or solvency issues. CF has a valuation in line with the averages, but it does not seem to be growing.

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

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.