CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CF - US1252691001 - Common Stock
89.23 USD
-2.63 (-2.86%)
89.23 USD
0 (0%)
CF gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 82 industry peers in the Chemicals industry. CF gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on CF. Finally CF also has an excellent dividend rating. With these ratings, CF could be worth investigating further for value and dividend and quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year CF was profitable.
- In the past year CF had a positive cash flow from operations.
- Each year in the past 5 years CF has been profitable.
- CF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CF has a better Return On Assets (9.71%) than 93.90% of its industry peers.
- With an excellent Return On Equity value of 28.44%, CF belongs to the best of the industry, outperforming 96.34% of the companies in the same industry.
- CF has a Return On Invested Capital of 13.42%. This is amongst the best in the industry. CF outperforms 90.24% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CF is significantly above the industry average of 6.11%.
- 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's Profit Margin of 20.47% is amongst the best of the industry. CF outperforms 97.56% of its industry peers.
- CF's Profit Margin has improved in the last couple of years.
- CF has a Operating Margin of 31.03%. This is amongst the best in the industry. CF outperforms 96.34% of its industry peers.
- CF's Operating Margin has improved in the last couple of years.
- CF has a better Gross Margin (36.86%) than 74.39% of its industry peers.
- CF's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CF is still creating some value.
- CF has less shares outstanding than it did 1 year ago.
- CF has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, CF has a worse debt to assets ratio.
2.2 Solvency
- CF has an Altman-Z score of 2.41. 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's Altman-Z score of 2.41 is fine compared to the rest of the industry. CF outperforms 63.41% 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.
- The Debt to FCF ratio of CF (1.74) is better than 91.46% 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 54.88% 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 | 2.41 |
ROIC/WACC0.98
WACC13.65%
2.3 Liquidity
- A Current Ratio of 2.27 indicates that CF has no problem at all paying its short term obligations.
- CF has a Current ratio of 2.27. This is in the better half of the industry: CF outperforms 65.85% 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 79.27% 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.
- The Earnings Per Share has been growing by 24.81% on average over the past years. This is a very strong growth
- The Revenue has grown by 12.59% in the past year. This is quite good.
- The Revenue has been growing slightly by 5.28% on average over the past years.
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 4.44% yearly.
- The Revenue is expected to grow by 1.82% on average over the next years.
EPS Next Y45.01%
EPS Next 2Y7.46%
EPS Next 3Y-0.09%
EPS Next 5Y4.44%
Revenue Next Year18.36%
Revenue Next 2Y5.51%
Revenue Next 3Y2.11%
Revenue Next 5Y1.82%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- CF is valuated reasonably with a Price/Earnings ratio of 10.70.
- Based on the Price/Earnings ratio, CF is valued cheaper than 85.37% of the companies in the same industry.
- CF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.32.
- The Price/Forward Earnings ratio is 12.21, which indicates a correct valuation of CF.
- Based on the Price/Forward Earnings ratio, CF is valued a bit cheaper than 76.83% of the companies in the same industry.
- CF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.7 | ||
| Fwd PE | 12.21 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CF is valued cheaply inside the industry as 95.12% of the companies are valued more expensively.
- CF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CF is cheaper than 90.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.13 | ||
| EV/EBITDA | 4.7 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- CF has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.24
PEG (5Y)0.43
EPS Next 2Y7.46%
EPS Next 3Y-0.09%
5. Dividend
5.1 Amount
- CF has a Yearly Dividend Yield of 2.31%. Purely for dividend investing, there may be better candidates out there.
- CF's Dividend Yield is a higher than the industry average which is at 2.29.
- Compared to an average S&P500 Dividend Yield of 1.83, CF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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 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
- 24.22% of the earnings are spent on dividend by CF. This is a low number and sustainable payout ratio.
- CF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.22%
EPS Next 2Y7.46%
EPS Next 3Y-0.09%
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 8 / 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 10.7 and the Price/Book (PB) ratio is 2.87.
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 45.01% in the next year.