CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
USA - NYSE:CF - US1252691001 - Common Stock
85.04 USD
+0.71 (+0.84%)
84.84 USD
-0.2 (-0.24%)
Taking everything into account, CF scores 7 out of 10 in our fundamental rating. CF was compared to 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! This makes CF very considerable for value 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.
CF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CF has a Return On Assets of 9.71%. This is amongst the best in the industry. CF outperforms 96.34% of its industry peers.
The Return On Equity of CF (28.44%) is better than 96.34% of its industry peers.
CF has a better Return On Invested Capital (13.42%) than 92.68% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CF is significantly above the industry average of 6.13%.
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
The Profit Margin of CF (20.47%) is better than 98.78% of its industry peers.
In the last couple of years the Profit Margin of CF has grown nicely.
CF's Operating Margin of 31.03% is amongst the best of the industry. CF outperforms 96.34% of its industry peers.
In the last couple of years the Operating Margin of CF has grown nicely.
CF has a better Gross Margin (36.86%) than 76.83% 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
CF has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
CF has less shares outstanding than it did 1 year ago.
CF has less shares outstanding than it did 5 years ago.
CF has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.39 indicates that CF is not a great score, but indicates only limited risk for bankruptcy at the moment.
CF's Altman-Z score of 2.39 is fine compared to the rest of the industry. CF outperforms 73.17% 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.
CF has a Debt to FCF ratio of 1.74. This is amongst the best in the industry. CF outperforms 90.24% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that CF is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, CF is in line with its industry, outperforming 57.32% of the companies in the same industry.
Although CF does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 2.39 |
ROIC/WACC1.64
WACC8.2%
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 65.85% 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.
Looking at the Quick ratio, with a value of 1.99, CF is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
| 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.
CF shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.81% yearly.
Looking at the last year, CF shows a quite strong growth in Revenue. The Revenue has grown by 12.59% in the last year.
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
CF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.14% yearly.
Based on estimates for the next years, CF will show a small growth in Revenue. The Revenue will grow by 4.26% on average per year.
EPS Next Y37.5%
EPS Next 2Y6.15%
EPS Next 3Y2.15%
EPS Next 5Y5.14%
Revenue Next Year16.95%
Revenue Next 2Y4.97%
Revenue Next 3Y2.39%
Revenue Next 5Y4.26%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.20, which indicates a very decent valuation of CF.
Based on the Price/Earnings ratio, CF is valued cheaper than 84.15% of the companies in the same industry.
When comparing the Price/Earnings ratio of CF to the average of the S&P500 Index (25.89), we can say CF is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.92, the valuation of CF can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CF is valued a bit cheaper than 73.17% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. CF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.2 | ||
| Fwd PE | 11.92 |
4.2 Price Multiples
CF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CF is cheaper than 93.90% of the companies in the same industry.
CF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CF is cheaper than 89.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.05 | ||
| EV/EBITDA | 4.62 |
4.3 Compensation for Growth
CF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of CF may justify a higher PE ratio.
PEG (NY)0.27
PEG (5Y)0.41
EPS Next 2Y6.15%
EPS Next 3Y2.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.37%, CF has a reasonable but not impressive dividend return.
CF's Dividend Yield is a higher than the industry average which is at 3.96.
CF's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
5.2 History
The dividend of CF is nicely growing with an annual growth rate of 10.99%!
CF has been paying a dividend for at least 10 years, so it has 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.
The dividend of CF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.22%
EPS Next 2Y6.15%
EPS Next 3Y2.15%
85.04
+0.71 (+0.84%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners105.15%
Inst Owner Change-0.15%
Ins Owners0.71%
Ins Owner Change-3.13%
Market Cap13.77B
Revenue(TTM)6.74B
Net Income(TTM)1.38B
Analysts69.29
Price Target96.85 (13.89%)
Short Float %6.16%
Short Ratio4.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend2.03
Dividend Growth(5Y)10.99%
DP24.22%
Div Incr Years3
Div Non Decr Years19
Ex-Date
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)-0.25%
PT rev (3m)-1.22%
EPS NQ rev (1m)3.1%
EPS NQ rev (3m)34.8%
EPS NY rev (1m)1.24%
EPS NY rev (3m)19.98%
Revenue NQ rev (1m)2.85%
Revenue NQ rev (3m)7.26%
Revenue NY rev (1m)1.17%
Revenue NY rev (3m)5.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.2 | ||
| Fwd PE | 11.92 | ||
| P/S | 2.04 | ||
| P/FCF | 8.05 | ||
| P/OCF | 5.23 | ||
| P/B | 2.84 | ||
| P/tB | 7.34 | ||
| EV/EBITDA | 4.62 |
EPS(TTM)8.34
EY9.81%
EPS(NY)7.13
Fwd EY8.39%
FCF(TTM)10.57
FCFY12.43%
OCF(TTM)16.26
OCFY19.12%
SpS41.59
BVpS29.94
TBVpS11.59
PEG (NY)0.27
PEG (5Y)0.41
Graham Number74.95
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 | 2.39 |
F-Score8
WACC8.2%
ROIC/WACC1.64
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 Y37.5%
EPS Next 2Y6.15%
EPS Next 3Y2.15%
EPS Next 5Y5.14%
Revenue 1Y (TTM)12.59%
Revenue growth 3Y-3.17%
Revenue growth 5Y5.28%
Sales Q2Q%21.09%
Revenue Next Year16.95%
Revenue Next 2Y4.97%
Revenue Next 3Y2.39%
Revenue Next 5Y4.26%
EBIT growth 1Y22.44%
EBIT growth 3Y-7.81%
EBIT growth 5Y12.87%
EBIT Next Year64.85%
EBIT Next 3Y11.41%
EBIT Next 5Y8.39%
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.
Can you provide the valuation status for CF INDUSTRIES HOLDINGS INC?
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 is the valuation of CF INDUSTRIES HOLDINGS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CF INDUSTRIES HOLDINGS INC (CF) is 10.2 and the Price/Book (PB) ratio is 2.84.
Can you provide the financial health for CF stock?
The financial health rating of CF INDUSTRIES HOLDINGS INC (CF) is 7 / 10.