CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CF - US1252691001 - Common Stock
82.6 USD
+1.27 (+1.56%)
82.47 USD
-0.13 (-0.16%)
CF gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 83 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. CF may be a bit undervalued, certainly considering the very reasonable score on growth Finally CF also has an excellent dividend rating. These ratings could make CF a good candidate for value and dividend 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.
In the past 5 years CF has always been profitable.
In the past 5 years CF always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CF (9.71%) is better than 93.98% of its industry peers.
CF has a Return On Equity of 28.44%. This is amongst the best in the industry. CF outperforms 96.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.42%, CF belongs to the top of the industry, outperforming 90.36% 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 6.10%.
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
CF has a better Profit Margin (20.47%) than 97.59% of its industry peers.
CF's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 31.03%, CF belongs to the top of the industry, outperforming 96.39% of the companies in the same industry.
CF's Operating Margin has improved in the last couple of years.
CF has a better Gross Margin (36.86%) than 74.70% 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
CF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CF has less shares outstanding
Compared to 5 years ago, CF has less shares outstanding
Compared to 1 year ago, CF has a worse debt to assets ratio.
2.2 Solvency
CF has an Altman-Z score of 2.33. 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.
CF has a better Altman-Z score (2.33) than 63.86% 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.
CF has a better Debt to FCF ratio (1.74) than 91.57% 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 has a Debt to Equity ratio of 0.61. This is comparable to the rest of the industry: CF outperforms 55.42% 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 | 0.61 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 2.33 |
ROIC/WACC1
WACC13.45%
2.3 Liquidity
A Current Ratio of 2.27 indicates that CF has no problem at all paying its short term obligations.
The Current ratio of CF (2.27) is better than 66.27% of its industry peers.
A Quick Ratio of 1.99 indicates that CF should not have too much problems paying its short term obligations.
CF has a better Quick ratio (1.99) than 78.31% of its industry peers.
| 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.
CF shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.81% yearly.
CF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.59%.
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)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
CF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.48% yearly.
Based on estimates for the next years, CF will show a small growth in Revenue. The Revenue will grow by 3.01% on average per year.
EPS Next Y44.85%
EPS Next 2Y7.16%
EPS Next 3Y0.51%
EPS Next 5Y4.48%
Revenue Next Year18.43%
Revenue Next 2Y5.75%
Revenue Next 3Y2.17%
Revenue Next 5Y3.01%
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
With a Price/Earnings ratio of 9.90, the valuation of CF can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CF indicates a rather cheap valuation: CF is cheaper than 89.16% of the companies listed in the same industry.
CF is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
CF is valuated reasonably with a Price/Forward Earnings ratio of 11.36.
Based on the Price/Forward Earnings ratio, CF is valued cheaply inside the industry as 80.72% of the companies are valued more expensively.
CF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 11.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CF is valued cheaper than 95.18% 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 91.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.53 | ||
| EV/EBITDA | 4.29 |
4.3 Compensation for Growth
CF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of CF may justify a higher PE ratio.
PEG (NY)0.22
PEG (5Y)0.4
EPS Next 2Y7.16%
EPS Next 3Y0.51%
5. Dividend
5.1 Amount
CF has a Yearly Dividend Yield of 2.59%.
Compared to an average industry Dividend Yield of 2.47, 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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.
The dividend of CF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.22%
EPS Next 2Y7.16%
EPS Next 3Y0.51%
82.6
+1.27 (+1.56%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners105.73%
Inst Owner Change0%
Ins Owners0.74%
Ins Owner Change-0.16%
Market Cap12.88B
Revenue(TTM)6.74B
Net Income(TTM)1.38B
Analysts70
Price Target95.32 (15.4%)
Short Float %8.21%
Short Ratio5.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
Yearly Dividend2.03
Dividend Growth(5Y)10.99%
DP24.22%
Div Incr Years3
Div Non Decr Years19
Ex-DateN/A
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)-1.15%
PT rev (3m)-2.36%
EPS NQ rev (1m)2.29%
EPS NQ rev (3m)22.04%
EPS NY rev (1m)0.41%
EPS NY rev (3m)6.65%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)6.63%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 11.36 | ||
| P/S | 1.91 | ||
| P/FCF | 7.53 | ||
| P/OCF | 4.89 | ||
| P/B | 2.66 | ||
| P/tB | 6.86 | ||
| EV/EBITDA | 4.29 |
EPS(TTM)8.34
EY10.1%
EPS(NY)7.27
Fwd EY8.8%
FCF(TTM)10.98
FCFY13.29%
OCF(TTM)16.88
OCFY20.44%
SpS43.19
BVpS31.09
TBVpS12.03
PEG (NY)0.22
PEG (5Y)0.4
Graham Number76.38
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 | 2.33 |
F-Score8
WACC13.45%
ROIC/WACC1
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 Y44.85%
EPS Next 2Y7.16%
EPS Next 3Y0.51%
EPS Next 5Y4.48%
Revenue 1Y (TTM)12.59%
Revenue growth 3Y-3.17%
Revenue growth 5Y5.28%
Sales Q2Q%21.09%
Revenue Next Year18.43%
Revenue Next 2Y5.75%
Revenue Next 3Y2.17%
Revenue Next 5Y3.01%
EBIT growth 1Y22.44%
EBIT growth 3Y-7.81%
EBIT growth 5Y12.87%
EBIT Next Year69.9%
EBIT Next 3Y9.75%
EBIT Next 5Y8.93%
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.
What is the valuation status of CF INDUSTRIES HOLDINGS INC (CF) stock?
ChartMill assigns a valuation rating of 9 / 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 are the PE and PB ratios of CF INDUSTRIES HOLDINGS INC (CF) stock?
The Price/Earnings (PE) ratio for CF INDUSTRIES HOLDINGS INC (CF) is 9.9 and the Price/Book (PB) ratio is 2.66.
Can you provide the expected EPS growth for CF stock?
The Earnings per Share (EPS) of CF INDUSTRIES HOLDINGS INC (CF) is expected to grow by 44.85% in the next year.