In this article we will dive into CF INDUSTRIES HOLDINGS INC (NYSE:CF) as a possible candidate for quality investing. Investors should always do their own research, but we noticed CF INDUSTRIES HOLDINGS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.
Some of the quality metrics of NYSE:CF highlighted
CF INDUSTRIES HOLDINGS INC has demonstrated significant revenue growth over the past 5 years, with a 8.41% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
The ROIC excluding cash and goodwill of CF INDUSTRIES HOLDINGS INC stands at 17.08%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
CF INDUSTRIES HOLDINGS INC maintains a healthy Debt/Free Cash Flow Ratio of 1.63, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
The Profit Quality (5-year) of CF INDUSTRIES HOLDINGS INC stands at 204.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
CF INDUSTRIES HOLDINGS INC has consistently achieved strong EBIT growth over the past 5 years, with a 25.55% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
The EBIT 5-year growth of CF INDUSTRIES HOLDINGS INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.
Zooming in on the fundamentals.
Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.
We assign a fundamental rating of 7 out of 10 to CF. 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.