Should you consider NYSE:CF for quality investing?

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.

Looking into the quality metrics of CF INDUSTRIES HOLDINGS INC

• CF INDUSTRIES HOLDINGS INC has demonstrated significant revenue growth over the past 5 years, with a 22.05% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a robust ROIC excluding cash and goodwill at 37.42%, CF INDUSTRIES HOLDINGS INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• 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.
• CF INDUSTRIES HOLDINGS INC exhibits impressive Profit Quality (5-year) with a 249.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• CF INDUSTRIES HOLDINGS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 88.51%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, CF INDUSTRIES HOLDINGS INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

What is the full fundamental picture of NYSE:CF telling us.

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Taking everything into account, CF scores 7 out of 10 in our fundamental rating. CF was compared to 85 industry peers in the Chemicals industry. CF gets an excellent profitability rating and is at the same time showing great financial health properties. CF is valued quite cheap, but it does not seem to be growing. These ratings could make CF a good candidate 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

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.