CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CF - US1252691001 - Common Stock
82.6 USD
+1.27 (+1.56%)
82.47 USD
-0.13 (-0.16%)
Overall CF gets a fundamental rating of 7 out of 10. We evaluated CF against 82 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. CF is valued quite cheap, while showing a decent growth score. This is a good combination! Finally CF also has an excellent dividend rating. These ratings could make CF a good candidate for value and dividend and quality investing.
1. Profitability
1.1 Basic Checks
CF had positive earnings in the past year.
In the past year CF had a positive cash flow from operations.
CF had positive earnings in each of the past 5 years.
Each year in the past 5 years CF had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.71%, CF belongs to the top of the industry, outperforming 93.98% of the companies in the same industry.
With an excellent Return On Equity value of 28.44%, CF belongs to the best of the industry, outperforming 96.39% of the companies in the same industry.
CF's Return On Invested Capital of 13.42% is amongst the best of the industry. CF outperforms 90.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CF is significantly above the industry average of 6.10%.
The 3 year average ROIC (20.79%) for CF is well above the current ROIC(13.42%). The reason for the recent decline needs to be investigated.
| 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 has a Profit Margin of 20.47%. This is amongst the best in the industry. CF outperforms 97.59% of its industry peers.
CF's Profit Margin has improved in the last couple of years.
CF's Operating Margin of 31.03% is amongst the best of the industry. CF outperforms 96.39% of its industry peers.
CF's Operating Margin has improved in the last couple of years.
CF has a Gross Margin of 36.86%. This is in the better half of the industry: CF outperforms 74.70% of its industry peers.
In the last couple of years the Gross Margin of CF has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CF is creating some value.
The number of shares outstanding for CF has been reduced compared to 1 year ago.
The number of shares outstanding for CF has been reduced compared to 5 years ago.
CF has a worse debt/assets ratio than last year.
2.2 Solvency
CF has an Altman-Z score of 2.34. 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.
The Altman-Z score of CF (2.34) is better than 63.86% 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.
Looking at the Debt to FCF ratio, with a value of 1.74, CF belongs to the top of the industry, outperforming 91.57% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that CF is somewhat dependend on debt financing.
The Debt to Equity ratio of CF (0.61) is comparable to the rest of the industry.
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 | 2.34 |
ROIC/WACC1
WACC13.44%
2.3 Liquidity
A Current Ratio of 2.27 indicates that CF has no problem at all paying its short term obligations.
CF's Current ratio of 2.27 is fine compared to the rest of the industry. CF outperforms 66.27% of its industry peers.
CF has a Quick Ratio of 1.99. This is a normal value and indicates that CF is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CF (1.99) is better than 78.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.27% 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.
CF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.59%.
CF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.28% yearly.
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
Based on estimates for the next years, CF will show a small growth in Earnings Per Share. The EPS will grow by 4.44% on average per year.
The Revenue is expected to grow by 1.82% on average over the next years.
EPS Next Y44.85%
EPS Next 2Y7.16%
EPS Next 3Y0.51%
EPS Next 5Y4.44%
Revenue Next Year18.43%
Revenue Next 2Y5.75%
Revenue Next 3Y2.17%
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
With a Price/Earnings ratio of 9.90, the valuation of CF can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CF indicates a rather cheap valuation: CF is cheaper than 89.16% of the companies listed in the same industry.
CF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 11.36 indicates a reasonable valuation of CF.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CF indicates a somewhat cheap valuation: CF is cheaper than 79.52% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CF to the average of the S&P500 Index (23.92), we can say CF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 11.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CF is valued cheaper than 95.18% of the companies in the same industry.
91.57% of the companies in the same industry are more expensive than CF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.53 | ||
| EV/EBITDA | 4.36 |
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)0.22
PEG (5Y)0.4
EPS Next 2Y7.16%
EPS Next 3Y0.51%
5. Dividend
5.1 Amount
CF has a Yearly Dividend Yield of 2.46%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.34, CF pays a bit more dividend than its industry peers.
CF's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
5.2 History
On average, the dividend of CF grows each year by 10.99%, which is quite nice.
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
CF pays out 24.22% of its income as dividend. This is a sustainable payout ratio.
CF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.22%
EPS Next 2Y7.16%
EPS Next 3Y0.51%
82.6
+1.27 (+1.56%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners105.73%
Inst Owner Change-0.3%
Ins Owners0.74%
Ins Owner Change1.55%
Market Cap12.88B
Revenue(TTM)6.74B
Net Income(TTM)1.38B
Analysts69.66
Price Target95.32 (15.4%)
Short Float %8.21%
Short Ratio5.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
Yearly Dividend2.03
Dividend Growth(5Y)10.99%
DP24.22%
Div Incr Years3
Div Non Decr Years19
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.77%
Min EPS beat(2)-10.26%
Max EPS beat(2)0.72%
EPS beat(4)3
Avg EPS beat(4)8.06%
Min EPS beat(4)-10.26%
Max EPS beat(4)28.54%
EPS beat(8)5
Avg EPS beat(8)2.34%
EPS beat(12)8
Avg EPS beat(12)4.42%
EPS beat(16)8
Avg EPS beat(16)0.15%
Revenue beat(2)1
Avg Revenue beat(2)0.15%
Min Revenue beat(2)-2.35%
Max Revenue beat(2)2.66%
Revenue beat(4)2
Avg Revenue beat(4)1.1%
Min Revenue beat(4)-2.35%
Max Revenue beat(4)5.52%
Revenue beat(8)4
Avg Revenue beat(8)0.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.59%
Revenue beat(16)6
Avg Revenue beat(16)-0.97%
PT rev (1m)-0.47%
PT rev (3m)-1.82%
EPS NQ rev (1m)2.29%
EPS NQ rev (3m)19.82%
EPS NY rev (1m)0.41%
EPS NY rev (3m)6.65%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)6.63%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 11.36 | ||
| P/S | 1.91 | ||
| P/FCF | 7.53 | ||
| P/OCF | 4.89 | ||
| P/B | 2.66 | ||
| P/tB | 6.86 | ||
| EV/EBITDA | 4.36 |
EPS(TTM)8.34
EY10.1%
EPS(NY)7.27
Fwd EY8.8%
FCF(TTM)10.98
FCFY13.29%
OCF(TTM)16.88
OCFY20.44%
SpS43.19
BVpS31.09
TBVpS12.03
PEG (NY)0.22
PEG (5Y)0.4
Graham Number76.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.71% | ||
| ROE | 28.44% | ||
| ROCE | 16.21% | ||
| ROIC | 13.42% | ||
| ROICexc | 15.65% | ||
| ROICexgc | 21.41% | ||
| OM | 31.03% | ||
| PM (TTM) | 20.47% | ||
| GM | 36.86% | ||
| FCFM | 25.42% |
ROA(3y)14.93%
ROA(5y)10.97%
ROE(3y)39.12%
ROE(5y)31.36%
ROIC(3y)20.79%
ROIC(5y)16.71%
ROICexc(3y)25.05%
ROICexc(5y)19.9%
ROICexgc(3y)32.66%
ROICexgc(5y)25.93%
ROCE(3y)25.11%
ROCE(5y)20.18%
ROICexgc growth 3Y-11.21%
ROICexgc 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-Score8
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 1.74 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 103.37% | ||
| Cap/Sales | 13.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.33% | ||
| Profit Quality | 124.15% | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z | 2.34 |
F-Score8
WACC13.44%
ROIC/WACC1
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)36.27%
EPS 3Y13.85%
EPS 5Y24.81%
EPS Q2Q%65.67%
EPS Next Y44.85%
EPS Next 2Y7.16%
EPS Next 3Y0.51%
EPS Next 5Y4.44%
Revenue 1Y (TTM)12.59%
Revenue growth 3Y-3.17%
Revenue growth 5Y5.28%
Sales Q2Q%21.09%
Revenue Next Year18.43%
Revenue Next 2Y5.75%
Revenue Next 3Y2.17%
Revenue Next 5Y1.82%
EBIT growth 1Y22.44%
EBIT growth 3Y-7.81%
EBIT growth 5Y12.87%
EBIT Next Year69.9%
EBIT Next 3Y9.75%
EBIT Next 5Y8.93%
FCF growth 1Y-29.17%
FCF growth 3Y-9.42%
FCF growth 5Y9.75%
OCF growth 1Y-8%
OCF growth 3Y-7.54%
OCF growth 5Y8.58%
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 9.9 and the Price/Book (PB) ratio is 2.66.
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 44.85% in the next year.