CF INDUSTRIES HOLDINGS INC (CF)

US1252691001 - Common Stock

82.145  -0.47 (-0.56%)

Fundamental Rating

7

Taking everything into account, CF scores 7 out of 10 in our fundamental rating. 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on CF. These ratings would make CF suitable for value investing!



9

1. Profitability

1.1 Basic Checks

In the past year CF was profitable.
In the past year CF had a positive cash flow from operations.
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

CF has a better Return On Assets (10.61%) than 90.59% of its industry peers.
CF has a Return On Equity of 26.67%. This is amongst the best in the industry. CF outperforms 92.94% of its industry peers.
With an excellent Return On Invested Capital value of 13.40%, CF belongs to the best of the industry, outperforming 91.76% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CF is significantly above the industry average of 7.53%.
The last Return On Invested Capital (13.40%) for CF is well below the 3 year average (21.67%), which needs to be investigated, but indicates that CF had better years and this may not be a problem.
Industry RankSector Rank
ROA 10.61%
ROE 26.67%
ROIC 13.4%
ROA(3y)14.38%
ROA(5y)9.97%
ROE(3y)40.51%
ROE(5y)29.88%
ROIC(3y)21.67%
ROIC(5y)15.19%

1.3 Margins

The Profit Margin of CF (23.00%) is better than 95.29% of its industry peers.
In the last couple of years the Profit Margin of CF has grown nicely.
CF has a better Operating Margin (34.49%) than 94.12% of its industry peers.
CF's Operating Margin has improved in the last couple of years.
CF has a Gross Margin of 38.38%. This is in the better half of the industry: CF outperforms 78.82% of its industry peers.
In the last couple of years the Gross Margin of CF has grown nicely.
Industry RankSector Rank
OM 34.49%
PM (TTM) 23%
GM 38.38%
OM growth 3Y30.93%
OM growth 5Y15.81%
PM growth 3Y44.1%
PM growth 5Y28.56%
GM growth 3Y24.16%
GM growth 5Y13.14%

9

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CF is creating value.
The number of shares outstanding for CF has been reduced compared to 1 year ago.
Compared to 5 years ago, CF has less shares outstanding
The debt/assets ratio for CF has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 2.69 indicates that CF is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.69, CF is doing good in the industry, outperforming 74.12% of the companies in the same industry.
CF has a debt to FCF ratio of 1.31. This is a very positive value and a sign of high solvency as it would only need 1.31 years to pay back of all of its debts.
CF has a better Debt to FCF ratio (1.31) than 90.59% of its industry peers.
CF has a Debt/Equity ratio of 0.52. This is a neutral value indicating CF is somewhat dependend on debt financing.
CF has a Debt to Equity ratio of 0.52. This is comparable to the rest of the industry: CF outperforms 57.65% 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.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF 1.31
Altman-Z 2.69
ROIC/WACC1.66
WACC8.08%

2.3 Liquidity

CF has a Current Ratio of 3.81. This indicates that CF is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.81, CF belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
A Quick Ratio of 3.44 indicates that CF has no problem at all paying its short term obligations.
CF has a better Quick ratio (3.44) than 89.41% of its industry peers.
Industry RankSector Rank
Current Ratio 3.81
Quick Ratio 3.44

4

3. Growth

3.1 Past

The earnings per share for CF have decreased strongly by -50.86% in the last year.
Measured over the past years, CF shows a very strong growth in Earnings Per Share. The EPS has been growing by 47.09% on average per year.
The Revenue for CF has decreased by -40.72% in the past year. This is quite bad
CF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.41% yearly.
EPS 1Y (TTM)-50.86%
EPS 3Y76.69%
EPS 5Y47.09%
EPS growth Q2Q-63.08%
Revenue 1Y (TTM)-40.72%
Revenue growth 3Y17.15%
Revenue growth 5Y8.41%
Revenue growth Q2Q-39.76%

3.2 Future

The Earnings Per Share is expected to grow by 1.28% on average over the next years.
Based on estimates for the next years, CF will show a small growth in Revenue. The Revenue will grow by 2.36% on average per year.
EPS Next Y-22.36%
EPS Next 2Y-11.64%
EPS Next 3Y-6.12%
EPS Next 5Y1.28%
Revenue Next Year-7.64%
Revenue Next 2Y-3.1%
Revenue Next 3Y-2.08%
Revenue Next 5Y2.36%

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

7

4. Valuation

4.1 Price/Earnings Ratio

CF is valuated reasonably with a Price/Earnings ratio of 9.86.
Based on the Price/Earnings ratio, CF is valued cheaply inside the industry as 87.06% of the companies are valued more expensively.
CF is valuated cheaply when we compare the Price/Earnings ratio to 26.42, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.70, the valuation of CF can be described as correct.
Based on the Price/Forward Earnings ratio, CF is valued cheaper than 83.53% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.74, CF is valued a bit cheaper.
Industry RankSector Rank
PE 9.86
Fwd PE 12.7

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CF indicates a rather cheap valuation: CF is cheaper than 89.41% of the companies listed 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.
Industry RankSector Rank
P/FCF 6.83
EV/EBITDA 5.1

4.3 Compensation for Growth

CF has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as CF's earnings are expected to decrease with -6.12% in the coming years.
PEG (NY)N/A
PEG (5Y)0.21
EPS Next 2Y-11.64%
EPS Next 3Y-6.12%

5

5. Dividend

5.1 Amount

CF has a Yearly Dividend Yield of 2.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.25, CF pays a bit more dividend than its industry peers.
CF's Dividend Yield is comparable with the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 2.34%

5.2 History

The dividend of CF has a limited annual growth rate of 5.68%.
CF has paid a dividend for at least 10 years, which is a reliable track record.
CF has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)5.68%
Div Incr Years2
Div Non Decr Years7

5.3 Sustainability

20.39% of the earnings are spent on dividend by CF. This is a low number and sustainable payout ratio.
CF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.39%
EPS Next 2Y-11.64%
EPS Next 3Y-6.12%

CF INDUSTRIES HOLDINGS INC

NYSE:CF (3/28/2024, 10:15:56 AM)

82.145

-0.47 (-0.56%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.42B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.34%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 9.86
Fwd PE 12.7
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.21
Profitability
Industry RankSector Rank
ROA 10.61%
ROE 26.67%
ROCE
ROIC
ROICexc
ROICexgc
OM 34.49%
PM (TTM) 23%
GM 38.38%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 3.81
Quick Ratio 3.44
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-50.86%
EPS 3Y76.69%
EPS 5Y
EPS growth Q2Q
EPS Next Y-22.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-40.72%
Revenue growth 3Y17.15%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y