CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
USA - NYSE:CF - US1252691001 - Common Stock
85.09 USD
+0.99 (+1.18%)
85.09 USD
0 (0%)
Taking everything into account, CF scores 8 out of 10 in our fundamental rating. CF was compared to 83 industry peers in the Chemicals industry. CF has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CF is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, CF could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
CF had positive earnings in the past year.
CF had a positive operating cash flow in the past year.
Each year in the past 5 years CF has been profitable.
Each year in the past 5 years CF had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 9.47%, CF belongs to the best of the industry, outperforming 96.39% of the companies in the same industry.
The Return On Equity of CF (26.23%) is better than 93.98% of its industry peers.
CF's Return On Invested Capital of 12.07% is amongst the best of the industry. CF outperforms 91.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CF is significantly above the industry average of 6.34%.
The last Return On Invested Capital (12.07%) for CF is well below the 3 year average (20.79%), which needs to be investigated, but indicates that CF had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.47% | ||
| ROE | 26.23% | ||
| ROIC | 12.07% |
ROA(3y)14.93%
ROA(5y)10.97%
ROE(3y)39.12%
ROE(5y)31.36%
ROIC(3y)20.79%
ROIC(5y)16.71%
1.3 Margins
CF's Profit Margin of 20.20% is amongst the best of the industry. CF outperforms 98.80% of its industry peers.
In the last couple of years the Profit Margin of CF has grown nicely.
CF has a better Operating Margin (29.21%) than 98.80% of its industry peers.
CF's Operating Margin has improved in the last couple of years.
CF's Gross Margin of 35.60% is fine compared to the rest of the industry. CF outperforms 71.08% of its industry peers.
In the last couple of years the Gross Margin of CF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.21% | ||
| PM (TTM) | 20.2% | ||
| GM | 35.6% |
OM growth 3Y-4.8%
OM growth 5Y7.21%
PM growth 3Y13.52%
PM growth 5Y13.82%
GM growth 3Y-1.74%
GM growth 5Y6.25%
2. Health
2.1 Basic Checks
CF has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for CF has been reduced compared to 1 year ago.
CF has less shares outstanding than it did 5 years ago.
CF has a worse debt/assets ratio than last year.
2.2 Solvency
CF has an Altman-Z score of 2.41. This is not the best score and indicates that CF is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.41, CF is doing good in the industry, outperforming 68.67% of the companies in the same industry.
CF has a debt to FCF ratio of 1.66. This is a very positive value and a sign of high solvency as it would only need 1.66 years to pay back of all of its debts.
The Debt to FCF ratio of CF (1.66) is better than 90.36% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that CF is somewhat dependend on debt financing.
CF has a Debt to Equity ratio (0.60) which is in line with 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.38
WACC8.73%
2.3 Liquidity
A Current Ratio of 3.22 indicates that CF has no problem at all paying its short term obligations.
CF's Current ratio of 3.22 is amongst the best of the industry. CF outperforms 84.34% of its industry peers.
CF has a Quick Ratio of 2.84. This indicates that CF is financially healthy and has no problem in meeting its short term obligations.
CF has a Quick ratio of 2.84. This is amongst the best in the industry. CF outperforms 90.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.22 | ||
| Quick Ratio | 2.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.01% over the past year.
Measured over the past years, CF shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.81% on average per year.
CF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.53%.
Measured over the past years, CF shows a small growth in Revenue. The Revenue has been growing by 5.28% on average per year.
EPS 1Y (TTM)26.01%
EPS 3Y13.85%
EPS 5Y24.81%
EPS Q2Q%2.17%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y-3.17%
Revenue growth 5Y5.28%
Sales Q2Q%20.23%
3.2 Future
CF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.82% yearly.
The Revenue is expected to grow by 3.56% on average over the next years.
EPS Next Y32.25%
EPS Next 2Y5.17%
EPS Next 3Y2.75%
EPS Next 5Y5.82%
Revenue Next Year15.3%
Revenue Next 2Y4.64%
Revenue Next 3Y2.4%
Revenue Next 5Y3.56%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.41, which indicates a very decent valuation of CF.
Based on the Price/Earnings ratio, CF is valued cheaper than 83.13% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.38, CF is valued rather cheaply.
A Price/Forward Earnings ratio of 12.15 indicates a correct valuation of CF.
Based on the Price/Forward Earnings ratio, CF is valued a bit cheaper than the industry average as 72.29% of the companies are valued more expensively.
CF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 12.15 |
4.2 Price Multiples
92.77% of the companies in the same industry are more expensive than CF, based on the Enterprise Value to EBITDA ratio.
CF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CF is cheaper than 92.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.71 | ||
| EV/EBITDA | 5.04 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CF has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.35
PEG (5Y)0.46
EPS Next 2Y5.17%
EPS Next 3Y2.75%
5. Dividend
5.1 Amount
CF has a Yearly Dividend Yield of 2.38%.
CF's Dividend Yield is a higher than the industry average which is at 3.47.
Compared to an average S&P500 Dividend Yield of 2.38, CF has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
5.2 History
The dividend of CF is nicely growing with an annual growth rate of 10.99%!
CF has been paying a dividend for at least 10 years, so it has a reliable track record.
CF has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.99%
Div Incr Years3
Div Non Decr Years19
5.3 Sustainability
CF pays out 26.34% of its income as dividend. This is a sustainable payout ratio.
The dividend of CF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP26.34%
EPS Next 2Y5.17%
EPS Next 3Y2.75%
85.09
+0.99 (+1.18%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners105.15%
Inst Owner Change-5.04%
Ins Owners0.71%
Ins Owner Change-1.91%
Market Cap13.78B
Analysts69.29
Price Target97.63 (14.74%)
Short Float %6.76%
Short Ratio4.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
Yearly Dividend2.03
Dividend Growth(5Y)10.99%
DP26.34%
Div Incr Years3
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.14%
Min EPS beat(2)-10.26%
Max EPS beat(2)28.54%
EPS beat(4)3
Avg EPS beat(4)10.38%
Min EPS beat(4)-10.26%
Max EPS beat(4)28.54%
EPS beat(8)5
Avg EPS beat(8)3.23%
EPS beat(12)7
Avg EPS beat(12)1.54%
EPS beat(16)7
Avg EPS beat(16)-11.42%
Revenue beat(2)2
Avg Revenue beat(2)4.09%
Min Revenue beat(2)2.66%
Max Revenue beat(2)5.52%
Revenue beat(4)3
Avg Revenue beat(4)2.36%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)5.52%
Revenue beat(8)4
Avg Revenue beat(8)0.53%
Revenue beat(12)5
Avg Revenue beat(12)-0.92%
Revenue beat(16)6
Avg Revenue beat(16)-1.07%
PT rev (1m)-0.43%
PT rev (3m)6.6%
EPS NQ rev (1m)13.67%
EPS NQ rev (3m)109.33%
EPS NY rev (1m)15.4%
EPS NY rev (3m)23.69%
Revenue NQ rev (1m)3.77%
Revenue NQ rev (3m)18.93%
Revenue NY rev (1m)3.87%
Revenue NY rev (3m)5.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 12.15 | ||
| P/S | 2.14 | ||
| P/FCF | 7.71 | ||
| P/OCF | 5.51 | ||
| P/B | 2.78 | ||
| P/tB | 6.95 | ||
| EV/EBITDA | 5.04 |
EPS(TTM)7.46
EY8.77%
EPS(NY)7
Fwd EY8.23%
FCF(TTM)11.03
FCFY12.97%
OCF(TTM)15.44
OCFY18.14%
SpS39.8
BVpS30.64
TBVpS12.24
PEG (NY)0.35
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.47% | ||
| ROE | 26.23% | ||
| ROCE | 14.57% | ||
| ROIC | 12.07% | ||
| ROICexc | 13.88% | ||
| ROICexgc | 18.89% | ||
| OM | 29.21% | ||
| PM (TTM) | 20.2% | ||
| GM | 35.6% | ||
| FCFM | 27.72% |
ROA(3y)14.93%
ROA(5y)10.97%
ROE(3y)39.12%
ROE(5y)31.36%
ROIC(3y)20.79%
ROIC(5y)16.71%
ROICexc(3y)25.05%
ROICexc(5y)19.9%
ROICexgc(3y)32.66%
ROICexgc(5y)25.93%
ROCE(3y)25.11%
ROCE(5y)20.18%
ROICexcg growth 3Y-11.21%
ROICexcg growth 5Y14.8%
ROICexc growth 3Y-12.87%
ROICexc growth 5Y13.25%
OM growth 3Y-4.8%
OM growth 5Y7.21%
PM growth 3Y13.52%
PM growth 5Y13.82%
GM growth 3Y-1.74%
GM growth 5Y6.25%
F-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 1.66 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 78.96% | ||
| Cap/Sales | 11.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.73% | ||
| Profit Quality | 137.25% | ||
| Current Ratio | 3.22 | ||
| Quick Ratio | 2.84 | ||
| Altman-Z | 2.41 |
F-Score7
WACC8.73%
ROIC/WACC1.38
Cap/Depr(3y)55.57%
Cap/Depr(5y)51.85%
Cap/Sales(3y)6.77%
Cap/Sales(5y)7.13%
Profit Quality(3y)131.22%
Profit Quality(5y)188.35%
High Growth Momentum
Growth
EPS 1Y (TTM)26.01%
EPS 3Y13.85%
EPS 5Y24.81%
EPS Q2Q%2.17%
EPS Next Y32.25%
EPS Next 2Y5.17%
EPS Next 3Y2.75%
EPS Next 5Y5.82%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y-3.17%
Revenue growth 5Y5.28%
Sales Q2Q%20.23%
Revenue Next Year15.3%
Revenue Next 2Y4.64%
Revenue Next 3Y2.4%
Revenue Next 5Y3.56%
EBIT growth 1Y14.33%
EBIT growth 3Y-7.81%
EBIT growth 5Y12.87%
EBIT Next Year56.13%
EBIT Next 3Y11.66%
EBIT Next 5Y9.25%
FCF growth 1Y-34.92%
FCF growth 3Y-9.42%
FCF growth 5Y9.75%
OCF growth 1Y-22.7%
OCF growth 3Y-7.54%
OCF growth 5Y8.58%