CF INDUSTRIES HOLDINGS INC (CF)

US1252691001 - Common Stock

75.26  -1.55 (-2.02%)

Fundamental Rating

7

Overall CF gets a fundamental rating of 7 out of 10. We evaluated CF against 84 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 cheap, but on the other hand it scores bad on growth. These ratings would make CF suitable for value investing!



9

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.
In the past 5 years CF has always been profitable.
Each year in the past 5 years CF had a positive operating cash flow.

1.2 Ratios

CF's Return On Assets of 8.36% is amongst the best of the industry. CF outperforms 88.10% of its industry peers.
CF has a better Return On Equity (21.31%) than 90.48% of its industry peers.
The Return On Invested Capital of CF (10.68%) is better than 90.48% 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 6.70%.
The last Return On Invested Capital (10.68%) 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 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

Looking at the Profit Margin, with a value of 19.03%, CF belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
In the last couple of years the Profit Margin of CF has grown nicely.
CF has a Operating Margin of 29.05%. This is amongst the best in the industry. CF outperforms 92.86% of its industry peers.
In the last couple of years the Operating Margin of CF has grown nicely.
CF has a better Gross Margin (34.34%) than 73.81% of its industry peers.
In the last couple of years the Gross Margin of CF has grown nicely.
Industry RankSector 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%

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.
CF has less shares outstanding than it did 1 year ago.
CF has less shares outstanding than it did 5 years ago.
CF has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 2.50 indicates that CF is not a great score, but indicates only limited risk for bankruptcy at the moment.
CF has a better Altman-Z score (2.50) than 71.43% of its industry peers.
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 90.48% of the companies in the same industry.
A Debt/Equity ratio of 0.55 indicates that CF is somewhat dependend on debt financing.
CF's Debt to Equity ratio of 0.55 is in line compared to the rest of the industry. CF outperforms 55.95% 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 0.55
Debt/FCF 1.72
Altman-Z 2.5
ROIC/WACC1.3
WACC8.2%

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.
The Current ratio of CF (3.94) is better than 86.90% of its industry peers.
CF has a Quick Ratio of 3.55. This indicates that CF is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.55, CF belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.94
Quick Ratio 3.55

3

3. Growth

3.1 Past

The earnings per share for CF have decreased strongly by -59.53% 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.
CF shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -41.06%.
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)-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

The Earnings Per Share is expected to grow by 0.45% on average over the next years.
Based on estimates for the next years, CF will show a decrease in Revenue. The Revenue will decrease by -0.40% on average per year.
EPS Next Y-33.16%
EPS Next 2Y-14.54%
EPS Next 3Y-10%
EPS Next 5Y0.45%
Revenue Next Year-10.09%
Revenue Next 2Y-4.34%
Revenue Next 3Y-2.74%
Revenue Next 5Y-0.4%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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

The Price/Earnings ratio is 11.89, which indicates a very decent valuation of CF.
CF's Price/Earnings ratio is rather cheap when compared to the industry. CF is cheaper than 85.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of CF to the average of the S&P500 Index (28.24), we can say CF is valued rather cheaply.
CF is valuated correctly with a Price/Forward Earnings ratio of 12.37.
Based on the Price/Forward Earnings ratio, CF is valued a bit cheaper than 67.86% of the companies in the same industry.
CF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 19.93, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 11.89
Fwd PE 12.37

4.2 Price Multiples

CF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CF is cheaper than 92.86% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CF indicates a rather cheap valuation: CF is cheaper than 88.10% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 7.97
EV/EBITDA 5.56

4.3 Compensation for Growth

The excellent profitability rating of CF may justify a higher PE ratio.
CF's earnings are expected to decrease with -10.00% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-14.54%
EPS Next 3Y-10%

6

5. Dividend

5.1 Amount

CF has a Yearly Dividend Yield of 2.59%. 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 3.11.
Compared to an average S&P500 Dividend Yield of 2.37, CF has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.59%

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

CF pays out 28.39% 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.
DP28.39%
EPS Next 2Y-14.54%
EPS Next 3Y-10%

CF INDUSTRIES HOLDINGS INC

NYSE:CF (6/12/2024, 2:52:07 PM)

75.26

-1.55 (-2.02%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.76B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.59%
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 11.89
Fwd PE 12.37
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 RankSector 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 RankSector 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-33.16%
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