CF INDUSTRIES HOLDINGS INC (CF)
US1252691001 - Common Stock
Overall CF gets a fundamental rating of 7 out of 10. We evaluated CF against 83 industry peers in the Chemicals industry. CF scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CF is cheap, but on the other hand it scores bad on growth. This makes CF very considerable for value investing!
1. Profitability
1.1 Basic Checks
CF had positive earnings in the past year.
In the past year CF had a positive cash flow from operations.
CF had positive earnings in each of the past 5 years.
In the past 5 years CF always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CF (8.36%) is better than 87.95% of its industry peers.
CF has a better Return On Equity (21.31%) than 90.36% of its industry peers.
CF has a better Return On Invested Capital (10.68%) than 90.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CF is significantly above the industry average of 6.66%.
The 3 year average ROIC (21.67%) for CF is well above the current ROIC(10.68%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.36% | ||
| ROE | 21.31% | ||
| ROIC | 10.68% |
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
With an excellent Profit Margin value of 19.03%, CF belongs to the best of the industry, outperforming 95.18% of the companies in the same industry.
CF's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 29.05%, CF belongs to the top of the industry, outperforming 92.77% of the companies in the same industry.
In the last couple of years the Operating Margin of CF has grown nicely.
CF's Gross Margin of 34.34% is fine compared to the rest of the industry. CF outperforms 73.49% of its industry peers.
CF's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.05% | ||
| PM (TTM) | 19.03% | ||
| GM | 34.34% |
OM growth 3Y30.93%
OM growth 5Y15.81%
PM growth 3Y44.1%
PM growth 5Y28.56%
GM growth 3Y24.16%
GM growth 5Y13.14%
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.
CF has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CF has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.46 indicates that CF is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.46, CF is in the better half of the industry, outperforming 67.47% of the companies in the same industry.
The Debt to FCF ratio of CF is 1.72, which is an excellent value as it means it would take CF, only 1.72 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.72, CF belongs to the best of the industry, outperforming 90.36% of the companies in the same industry.
CF has a Debt/Equity ratio of 0.55. This is a neutral value indicating CF is somewhat dependend on debt financing.
CF has a Debt to Equity ratio of 0.55. This is comparable to the rest of the industry: CF outperforms 56.63% of its industry peers.
Even though the debt/equity ratio score it not favorable for CF, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 1.72 | ||
| Altman-Z | 2.46 |
ROIC/WACC1.33
WACC8.02%
2.3 Liquidity
CF has a Current Ratio of 3.94. 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 3.94, CF belongs to the top of the industry, outperforming 86.75% of the companies in the same industry.
A Quick Ratio of 3.55 indicates that CF has no problem at all paying its short term obligations.
CF has a Quick ratio of 3.55. This is amongst the best in the industry. CF outperforms 90.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.94 | ||
| Quick Ratio | 3.55 |
3. Growth
3.1 Past
CF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -59.53%.
CF shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 47.09% yearly.
The Revenue for CF has decreased by -41.06% in the past year. This is quite bad
The Revenue has been growing by 8.41% on average over the past years. This is quite good.
EPS 1Y (TTM)-59.53%
EPS 3Y76.69%
EPS 5Y47.09%
EPS Q2Q%-68.97%
Revenue 1Y (TTM)-41.06%
Revenue growth 3Y17.15%
Revenue growth 5Y8.41%
Sales Q2Q%-26.94%
3.2 Future
CF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.11% yearly.
CF is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.80% yearly.
EPS Next Y-34.84%
EPS Next 2Y-16.5%
EPS Next 3Y-11.73%
EPS Next 5Y0.11%
Revenue Next Year-10.33%
Revenue Next 2Y-4.4%
Revenue Next 3Y-2.55%
Revenue Next 5Y-0.8%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.85, the valuation of CF can be described as reasonable.
CF's Price/Earnings ratio is rather cheap when compared to the industry. CF is cheaper than 85.54% of the companies in the same industry.
When comparing the Price/Earnings ratio of CF to the average of the S&P500 Index (24.41), we can say CF is valued rather cheaply.
The Price/Forward Earnings ratio is 12.92, which indicates a correct valuation of CF.
65.06% of the companies in the same industry are more expensive than CF, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, CF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 12.92 |
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 93.98% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CF is valued cheaper than 90.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.94 | ||
| EV/EBITDA | 5.34 |
4.3 Compensation for Growth
The excellent profitability rating of CF may justify a higher PE ratio.
A cheap valuation may be justified as CF's earnings are expected to decrease with -11.73% in the coming years.
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-16.5%
EPS Next 3Y-11.73%
5. Dividend
5.1 Amount
CF has a Yearly Dividend Yield of 2.76%.
Compared to an average industry Dividend Yield of 3.07, CF pays a bit more dividend than its industry peers.
CF's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
5.2 History
The dividend of CF has a limited annual growth rate of 5.68%.
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)5.68%
Div Incr Years2
Div Non Decr Years18
5.3 Sustainability
28.39% of the earnings are spent on dividend by CF. This is a low number and sustainable payout ratio.
The dividend of CF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.39%
EPS Next 2Y-16.5%
EPS Next 3Y-11.73%
CF INDUSTRIES HOLDINGS INC
NYSE:CF (7/26/2024, 7:21:42 PM)
After market: 75.04 0 (0%)75.04
+1.53 (+2.08%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 12.92 | ||
| 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)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.36% | ||
| ROE | 21.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.05% | ||
| PM (TTM) | 19.03% | ||
| GM | 34.34% | ||
| 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 Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.94 | ||
| Quick Ratio | 3.55 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-59.53%
EPS 3Y76.69%
EPS 5Y
EPS Q2Q%
EPS Next Y-34.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-41.06%
Revenue growth 3Y17.15%
Revenue growth 5Y
Sales 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