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Why NYSE:CF qualifies as a quality stock.

By Mill Chart

Last update: Aug 10, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if CF INDUSTRIES HOLDINGS INC (NYSE:CF) is suited for quality investing. Investors should of couse do their own research, but we spotted CF INDUSTRIES HOLDINGS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NYSE:CF highlighted

  • CF INDUSTRIES HOLDINGS INC has achieved substantial revenue growth over the past 5 years, with a 22.05% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • CF INDUSTRIES HOLDINGS INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 37.42% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • With a favorable Debt/Free Cash Flow Ratio of 1.08, CF INDUSTRIES HOLDINGS INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • With a favorable Profit Quality (5-year) ratio of 249.0%, CF INDUSTRIES HOLDINGS INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • CF INDUSTRIES HOLDINGS INC has consistently achieved strong EBIT growth over the past 5 years, with a 88.51% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • CF INDUSTRIES HOLDINGS INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental Analysis Observations

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

CF gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 86 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 valued quite cheap, but it does not seem to be growing. With these ratings, CF could be worth investigating further for value investing!.

Our latest full fundamental report of CF contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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