CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
NYSE:CF - US1252691001 - Common Stock
84.18 USD
-0.59 (-0.7%)
84.18 USD
0 (0%)
Overall CF gets a fundamental rating of 8 out of 10. We evaluated CF 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on CF. With these ratings, CF could be worth investigating further 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.
Each year in the past 5 years CF has been profitable.
In the past 5 years CF always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 9.47%, CF belongs to the best of the industry, outperforming 96.39% of the companies in the same industry.
CF's Return On Equity of 26.23% is amongst the best of the industry. CF outperforms 93.98% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.07%, CF belongs to the top of the industry, outperforming 91.57% of the companies in the same industry.
CF had an Average Return On Invested Capital over the past 3 years of 20.79%. This is significantly above the industry average of 6.34%.
The last Return On Invested Capital (12.07%) 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 | 9.47% | ||
| ROE | 26.23% | ||
| ROIC | 12.07% |
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 (20.20%) than 98.80% of its industry peers.
In the last couple of years the Profit Margin of CF has grown nicely.
The Operating Margin of CF (29.21%) is better than 98.80% of its industry peers.
In the last couple of years the Operating Margin of CF has grown nicely.
CF has a Gross Margin of 35.60%. This is in the better half of the industry: CF outperforms 71.08% of its industry peers.
CF's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.21% | ||
| PM (TTM) | 20.2% | ||
| GM | 35.6% |
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.
CF has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CF has been reduced compared to 5 years ago.
The debt/assets ratio for CF is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.42 indicates that CF is not a great score, but indicates only limited risk for bankruptcy at the moment.
CF's Altman-Z score of 2.42 is fine compared to the rest of the industry. CF outperforms 68.67% of its industry peers.
The Debt to FCF ratio of CF is 1.66, which is an excellent value as it means it would take CF, only 1.66 years of fcf income to pay off all of its debts.
CF has a Debt to FCF ratio of 1.66. This is amongst the best in the industry. CF outperforms 90.36% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that CF is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.60, CF perfoms like the industry average, outperforming 59.04% of the companies in the same industry.
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 | 0.6 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.4
WACC8.63%
2.3 Liquidity
CF has a Current Ratio of 3.22. This indicates that CF is financially healthy and has no problem in meeting its short term obligations.
CF's Current ratio of 3.22 is amongst the best of the industry. CF outperforms 84.34% of its industry peers.
CF has a Quick Ratio of 2.84. This indicates that CF is financially healthy and has no problem in meeting its short term obligations.
CF has a Quick ratio of 2.84. This is amongst the best in the industry. CF outperforms 90.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.22 | ||
| Quick Ratio | 2.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.01% over the past year.
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.
Looking at the last year, CF shows a quite strong growth in Revenue. The Revenue has grown by 9.53% in the last year.
CF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.28% yearly.
EPS 1Y (TTM)26.01%
EPS 3Y13.85%
EPS 5Y24.81%
EPS Q2Q%2.17%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y-3.17%
Revenue growth 5Y5.28%
Sales Q2Q%20.23%
3.2 Future
CF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.82% yearly.
Based on estimates for the next years, CF will show a small growth in Revenue. The Revenue will grow by 3.56% on average per year.
EPS Next Y32.25%
EPS Next 2Y5.17%
EPS Next 3Y2.75%
EPS Next 5Y5.82%
Revenue Next Year14.54%
Revenue Next 2Y4.67%
Revenue Next 3Y2.43%
Revenue Next 5Y3.56%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.28, which indicates a very decent valuation of CF.
81.93% of the companies in the same industry are more expensive than CF, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.03. CF is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 12.02, the valuation of CF can be described as correct.
Based on the Price/Forward Earnings ratio, CF is valued a bit cheaper than the industry average as 69.88% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.63. CF is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 12.02 |
4.2 Price Multiples
CF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CF is cheaper than 92.77% 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 92.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.63 | ||
| EV/EBITDA | 5.08 |
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)0.35
PEG (5Y)0.45
EPS Next 2Y5.17%
EPS Next 3Y2.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.29%, CF has a reasonable but not impressive dividend return.
CF's Dividend Yield is a higher than the industry average which is at 3.44.
CF's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
5.2 History
On average, the dividend of CF grows each year by 10.99%, which is quite nice.
CF has been paying a dividend for at least 10 years, so it has a reliable track record.
CF has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.99%
Div Incr Years3
Div Non Decr Years19
5.3 Sustainability
CF pays out 26.34% 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.
DP26.34%
EPS Next 2Y5.17%
EPS Next 3Y2.75%
84.18
-0.59 (-0.7%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners104.21%
Inst Owner Change-5.04%
Ins Owners0.71%
Ins Owner Change-1.91%
Market Cap13.63B
Analysts69.29
Price Target97.63 (15.98%)
Short Float %5.73%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Yearly Dividend2.03
Dividend Growth(5Y)10.99%
DP26.34%
Div Incr Years3
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.14%
Min EPS beat(2)-10.26%
Max EPS beat(2)28.54%
EPS beat(4)3
Avg EPS beat(4)10.38%
Min EPS beat(4)-10.26%
Max EPS beat(4)28.54%
EPS beat(8)5
Avg EPS beat(8)3.23%
EPS beat(12)7
Avg EPS beat(12)1.54%
EPS beat(16)7
Avg EPS beat(16)-11.42%
Revenue beat(2)2
Avg Revenue beat(2)4.09%
Min Revenue beat(2)2.66%
Max Revenue beat(2)5.52%
Revenue beat(4)3
Avg Revenue beat(4)2.36%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)5.52%
Revenue beat(8)4
Avg Revenue beat(8)0.53%
Revenue beat(12)5
Avg Revenue beat(12)-0.92%
Revenue beat(16)6
Avg Revenue beat(16)-1.07%
PT rev (1m)3.17%
PT rev (3m)8.31%
EPS NQ rev (1m)20.85%
EPS NQ rev (3m)94.29%
EPS NY rev (1m)15.4%
EPS NY rev (3m)23.69%
Revenue NQ rev (1m)4.29%
Revenue NQ rev (3m)18.93%
Revenue NY rev (1m)3.19%
Revenue NY rev (3m)7.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.28 | ||
| Fwd PE | 12.02 | ||
| P/S | 2.11 | ||
| P/FCF | 7.63 | ||
| P/OCF | 5.45 | ||
| P/B | 2.75 | ||
| P/tB | 6.88 | ||
| EV/EBITDA | 5.08 |
EPS(TTM)7.46
EY8.86%
EPS(NY)7
Fwd EY8.32%
FCF(TTM)11.03
FCFY13.11%
OCF(TTM)15.44
OCFY18.34%
SpS39.8
BVpS30.64
TBVpS12.24
PEG (NY)0.35
PEG (5Y)0.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.47% | ||
| ROE | 26.23% | ||
| ROCE | 14.57% | ||
| ROIC | 12.07% | ||
| ROICexc | 13.88% | ||
| ROICexgc | 18.89% | ||
| OM | 29.21% | ||
| PM (TTM) | 20.2% | ||
| GM | 35.6% | ||
| FCFM | 27.72% |
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%
ROICexcg growth 3Y-11.21%
ROICexcg 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-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 1.66 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 78.96% | ||
| Cap/Sales | 11.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.73% | ||
| Profit Quality | 137.25% | ||
| Current Ratio | 3.22 | ||
| Quick Ratio | 2.84 | ||
| Altman-Z | 2.42 |
F-Score7
WACC8.63%
ROIC/WACC1.4
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)26.01%
EPS 3Y13.85%
EPS 5Y24.81%
EPS Q2Q%2.17%
EPS Next Y32.25%
EPS Next 2Y5.17%
EPS Next 3Y2.75%
EPS Next 5Y5.82%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y-3.17%
Revenue growth 5Y5.28%
Sales Q2Q%20.23%
Revenue Next Year14.54%
Revenue Next 2Y4.67%
Revenue Next 3Y2.43%
Revenue Next 5Y3.56%
EBIT growth 1Y14.33%
EBIT growth 3Y-7.81%
EBIT growth 5Y12.87%
EBIT Next Year56.13%
EBIT Next 3Y11.66%
EBIT Next 5Y9.25%
FCF growth 1Y-34.92%
FCF growth 3Y-9.42%
FCF growth 5Y9.75%
OCF growth 1Y-22.7%
OCF growth 3Y-7.54%
OCF growth 5Y8.58%