CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
USA - NYSE:CF - US1252691001 - Common Stock
81.13 USD
+0.44 (+0.55%)
81.13 USD
0 (0%)
Taking everything into account, CF scores 7 out of 10 in our fundamental rating. CF was compared to 82 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on CF. These ratings could make CF a good candidate 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.
CF had positive earnings in each of the past 5 years.
Each year in the past 5 years CF had a positive operating cash flow.
1.2 Ratios
CF has a better Return On Assets (9.71%) than 95.12% of its industry peers.
Looking at the Return On Equity, with a value of 28.44%, CF belongs to the top of the industry, outperforming 96.34% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.42%, CF belongs to the top of the industry, outperforming 91.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CF is significantly above the industry average of 6.13%.
The last Return On Invested Capital (13.42%) 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 | 9.71% | ||
| ROE | 28.44% | ||
| ROIC | 13.42% |
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
With an excellent Profit Margin value of 20.47%, CF belongs to the best of the industry, outperforming 97.56% of the companies in the same industry.
CF's Profit Margin has improved in the last couple of years.
CF's Operating Margin of 31.03% is amongst the best of the industry. CF outperforms 96.34% of its industry peers.
In the last couple of years the Operating Margin of CF has grown nicely.
The Gross Margin of CF (36.86%) is better than 76.83% of its industry peers.
In the last couple of years the Gross Margin of CF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.03% | ||
| PM (TTM) | 20.47% | ||
| GM | 36.86% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CF is creating value.
Compared to 1 year ago, CF has less shares outstanding
CF has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CF is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.35 indicates that CF is not a great score, but indicates only limited risk for bankruptcy at the moment.
CF has a Altman-Z score of 2.35. This is in the better half of the industry: CF outperforms 74.39% of its industry peers.
CF has a debt to FCF ratio of 1.74. This is a very positive value and a sign of high solvency as it would only need 1.74 years to pay back of all of its debts.
The Debt to FCF ratio of CF (1.74) is better than 91.46% of its industry peers.
CF has a Debt/Equity ratio of 0.61. This is a neutral value indicating CF is somewhat dependend on debt financing.
CF's Debt to Equity ratio of 0.61 is in line compared to the rest of the industry. CF outperforms 56.10% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 2.35 |
ROIC/WACC1.63
WACC8.23%
2.3 Liquidity
A Current Ratio of 2.27 indicates that CF has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.27, CF is in the better half of the industry, outperforming 64.63% of the companies in the same industry.
CF has a Quick Ratio of 1.99. This is a normal value and indicates that CF is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.99, CF is doing good in the industry, outperforming 79.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
CF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.27%, which is quite impressive.
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.
The Revenue has grown by 12.59% in the past year. This is quite good.
CF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.28% yearly.
EPS 1Y (TTM)36.27%
EPS 3Y13.85%
EPS 5Y24.81%
EPS Q2Q%65.67%
Revenue 1Y (TTM)12.59%
Revenue growth 3Y-3.17%
Revenue growth 5Y5.28%
Sales Q2Q%21.09%
3.2 Future
Based on estimates for the next years, CF will show a small growth in Earnings Per Share. The EPS will grow by 5.14% on average per year.
The Revenue is expected to grow by 4.26% on average over the next years.
EPS Next Y37.5%
EPS Next 2Y6.15%
EPS Next 3Y2.15%
EPS Next 5Y5.14%
Revenue Next Year16.95%
Revenue Next 2Y4.97%
Revenue Next 3Y2.39%
Revenue Next 5Y4.26%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.73, which indicates a very decent valuation of CF.
Based on the Price/Earnings ratio, CF is valued cheaper than 85.37% of the companies in the same industry.
CF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.51.
A Price/Forward Earnings ratio of 11.37 indicates a reasonable valuation of CF.
Based on the Price/Forward Earnings ratio, CF is valued a bit cheaper than 71.95% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, CF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.73 | ||
| Fwd PE | 11.37 |
4.2 Price Multiples
CF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CF is cheaper than 93.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CF is valued cheaply inside the industry as 89.02% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.68 | ||
| EV/EBITDA | 4.42 |
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)0.26
PEG (5Y)0.39
EPS Next 2Y6.15%
EPS Next 3Y2.15%
5. Dividend
5.1 Amount
CF has a Yearly Dividend Yield of 2.37%. Purely for dividend investing, there may be better candidates out there.
CF's Dividend Yield is a higher than the industry average which is at 4.00.
Compared to an average S&P500 Dividend Yield of 2.44, CF has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
5.2 History
The dividend of CF is nicely growing with an annual growth rate of 10.99%!
CF has paid a dividend for at least 10 years, which is 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
24.22% 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.
DP24.22%
EPS Next 2Y6.15%
EPS Next 3Y2.15%
81.13
+0.44 (+0.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners105.15%
Inst Owner Change0.99%
Ins Owners0.71%
Ins Owner Change-3.42%
Market Cap13.14B
Revenue(TTM)6.74B
Net Income(TTM)1.38B
Analysts69.29
Price Target96.85 (19.38%)
Short Float %6.94%
Short Ratio4.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend2.03
Dividend Growth(5Y)10.99%
DP24.22%
Div Incr Years3
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.77%
Min EPS beat(2)-10.26%
Max EPS beat(2)0.72%
EPS beat(4)3
Avg EPS beat(4)8.06%
Min EPS beat(4)-10.26%
Max EPS beat(4)28.54%
EPS beat(8)5
Avg EPS beat(8)2.34%
EPS beat(12)8
Avg EPS beat(12)4.42%
EPS beat(16)8
Avg EPS beat(16)0.15%
Revenue beat(2)1
Avg Revenue beat(2)0.15%
Min Revenue beat(2)-2.35%
Max Revenue beat(2)2.66%
Revenue beat(4)2
Avg Revenue beat(4)1.1%
Min Revenue beat(4)-2.35%
Max Revenue beat(4)5.52%
Revenue beat(8)4
Avg Revenue beat(8)0.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.59%
Revenue beat(16)6
Avg Revenue beat(16)-0.97%
PT rev (1m)-0.25%
PT rev (3m)-1.22%
EPS NQ rev (1m)9.99%
EPS NQ rev (3m)51.21%
EPS NY rev (1m)1.24%
EPS NY rev (3m)19.98%
Revenue NQ rev (1m)3.47%
Revenue NQ rev (3m)11.33%
Revenue NY rev (1m)1.17%
Revenue NY rev (3m)5.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.73 | ||
| Fwd PE | 11.37 | ||
| P/S | 1.95 | ||
| P/FCF | 7.68 | ||
| P/OCF | 4.99 | ||
| P/B | 2.71 | ||
| P/tB | 7 | ||
| EV/EBITDA | 4.42 |
EPS(TTM)8.34
EY10.28%
EPS(NY)7.13
Fwd EY8.79%
FCF(TTM)10.57
FCFY13.03%
OCF(TTM)16.26
OCFY20.04%
SpS41.59
BVpS29.94
TBVpS11.59
PEG (NY)0.26
PEG (5Y)0.39
Graham Number74.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.71% | ||
| ROE | 28.44% | ||
| ROCE | 16.21% | ||
| ROIC | 13.42% | ||
| ROICexc | 15.65% | ||
| ROICexgc | 21.41% | ||
| OM | 31.03% | ||
| PM (TTM) | 20.47% | ||
| GM | 36.86% | ||
| FCFM | 25.42% |
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%
ROICexgc growth 3Y-11.21%
ROICexgc 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-Score8
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 1.74 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 103.37% | ||
| Cap/Sales | 13.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.33% | ||
| Profit Quality | 124.15% | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z | 2.35 |
F-Score8
WACC8.23%
ROIC/WACC1.63
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)36.27%
EPS 3Y13.85%
EPS 5Y24.81%
EPS Q2Q%65.67%
EPS Next Y37.5%
EPS Next 2Y6.15%
EPS Next 3Y2.15%
EPS Next 5Y5.14%
Revenue 1Y (TTM)12.59%
Revenue growth 3Y-3.17%
Revenue growth 5Y5.28%
Sales Q2Q%21.09%
Revenue Next Year16.95%
Revenue Next 2Y4.97%
Revenue Next 3Y2.39%
Revenue Next 5Y4.26%
EBIT growth 1Y22.44%
EBIT growth 3Y-7.81%
EBIT growth 5Y12.87%
EBIT Next Year64.85%
EBIT Next 3Y11.41%
EBIT Next 5Y8.39%
FCF growth 1Y-29.17%
FCF growth 3Y-9.42%
FCF growth 5Y9.75%
OCF growth 1Y-8%
OCF growth 3Y-7.54%
OCF growth 5Y8.58%
CF INDUSTRIES HOLDINGS INC / CF FAQ
What is the ChartMill fundamental rating of CF INDUSTRIES HOLDINGS INC (CF) stock?
ChartMill assigns a fundamental rating of 7 / 10 to CF.
Can you provide the valuation status for CF INDUSTRIES HOLDINGS INC?
ChartMill assigns a valuation rating of 8 / 10 to CF INDUSTRIES HOLDINGS INC (CF). This can be considered as Undervalued.
How profitable is CF INDUSTRIES HOLDINGS INC (CF) stock?
CF INDUSTRIES HOLDINGS INC (CF) has a profitability rating of 9 / 10.
What is the valuation of CF INDUSTRIES HOLDINGS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CF INDUSTRIES HOLDINGS INC (CF) is 9.73 and the Price/Book (PB) ratio is 2.71.
Can you provide the financial health for CF stock?
The financial health rating of CF INDUSTRIES HOLDINGS INC (CF) is 7 / 10.