CF INDUSTRIES HOLDINGS INC (CF)
US1252691001 - Common Stock
Taking everything into account, CF scores 7 out of 10 in our fundamental rating. CF was compared to 83 industry peers in the Chemicals industry. CF has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CF has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
CF had positive earnings in the past year.
CF had a positive operating cash flow in the past year.
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 better Return On Assets (8.41%) than 89.16% of its industry peers.
CF has a Return On Equity of 22.41%. This is amongst the best in the industry. CF outperforms 90.36% of its industry peers.
CF's Return On Invested Capital of 10.58% is amongst the best of the industry. CF outperforms 89.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CF is significantly above the industry average of 7.24%.
The last Return On Invested Capital (10.58%) for CF is well below the 3 year average (21.67%), which needs to be investigated, but indicates that CF had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 22.41% | ||
| ROIC | 10.58% |
ROA(3y)14.38%
ROA(5y)9.97%
ROE(3y)40.51%
ROE(5y)29.88%
ROIC(3y)21.67%
ROIC(5y)15.19%
1.3 Margins
With an excellent Profit Margin value of 19.46%, CF belongs to the best of the industry, outperforming 96.39% of the companies in the same industry.
CF's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 28.53%, CF belongs to the best of the industry, outperforming 92.77% of the companies in the same industry.
In the last couple of years the Operating Margin of CF has grown nicely.
CF has a Gross Margin of 33.98%. This is in the better half of the industry: CF outperforms 67.47% of its industry peers.
In the last couple of years the Gross Margin of CF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.53% | ||
| PM (TTM) | 19.46% | ||
| GM | 33.98% |
OM growth 3Y30.93%
OM growth 5Y15.81%
PM growth 3Y44.1%
PM growth 5Y28.56%
GM growth 3Y24.16%
GM growth 5Y13.14%
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.
The debt/assets ratio for CF has been reduced compared to a year ago.
2.2 Solvency
CF has an Altman-Z score of 2.50. 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 (2.50) is better than 72.29% of its industry peers.
CF has a debt to FCF ratio of 1.63. This is a very positive value and a sign of high solvency as it would only need 1.63 years to pay back of all of its debts.
CF has a better Debt to FCF ratio (1.63) than 90.36% of its industry peers.
CF has a Debt/Equity ratio of 0.57. This is a neutral value indicating CF is somewhat dependend on debt financing.
CF has a Debt to Equity ratio of 0.57. This is comparable to the rest of the industry: CF outperforms 53.01% of its industry peers.
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 | 0.57 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 2.5 |
ROIC/WACC1.29
WACC8.19%
2.3 Liquidity
A Current Ratio of 2.81 indicates that CF has no problem at all paying its short term obligations.
CF's Current ratio of 2.81 is fine compared to the rest of the industry. CF outperforms 77.11% of its industry peers.
A Quick Ratio of 2.52 indicates that CF has no problem at all paying its short term obligations.
The Quick ratio of CF (2.52) is better than 87.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.52 |
3. Growth
3.1 Past
The earnings per share for CF have decreased strongly by -44.51% in the last year.
CF shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 47.09% yearly.
CF shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.97%.
Measured over the past years, CF shows a quite strong growth in Revenue. The Revenue has been growing by 8.41% on average per year.
EPS 1Y (TTM)-44.51%
EPS 3Y76.69%
EPS 5Y47.09%
EPS Q2Q%17.54%
Revenue 1Y (TTM)-21.97%
Revenue growth 3Y17.15%
Revenue growth 5Y8.41%
Sales Q2Q%7.62%
3.2 Future
CF is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.27% yearly.
The Revenue is expected to grow by 0.81% on average over the next years.
EPS Next Y-23.07%
EPS Next 2Y-12.58%
EPS Next 3Y-7.75%
EPS Next 5Y-0.27%
Revenue Next Year-10.19%
Revenue Next 2Y-4.57%
Revenue Next 3Y-2.33%
Revenue Next 5Y0.81%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.09, which indicates a correct valuation of CF.
CF's Price/Earnings ratio is a bit cheaper when compared to the industry. CF is cheaper than 75.90% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.77, CF is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.54, the valuation of CF can be described as correct.
63.86% of the companies in the same industry are more expensive than CF, based on the Price/Forward Earnings ratio.
CF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 13.54 |
4.2 Price Multiples
CF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CF is cheaper than 91.57% of the companies in the same industry.
87.95% 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 | 8.23 | ||
| EV/EBITDA | 5.94 |
4.3 Compensation for Growth
The excellent profitability rating of CF may justify a higher PE ratio.
CF's earnings are expected to decrease with -7.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y-12.58%
EPS Next 3Y-7.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.22%, CF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.14, CF pays a bit more dividend than its industry peers.
CF's Dividend Yield is comparable with the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
5.2 History
The dividend of CF has a limited annual growth rate of 5.68%.
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)5.68%
Div Incr Years3
Div Non Decr Years19
5.3 Sustainability
30.41% of the earnings are spent on dividend by CF. This is a low number and sustainable payout ratio.
DP30.41%
EPS Next 2Y-12.58%
EPS Next 3Y-7.75%
CF INDUSTRIES HOLDINGS INC
NYSE:CF (12/18/2024, 10:41:06 AM)
86.205
-0.48 (-0.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.00B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.09 | ||
| Fwd PE | 13.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 22.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.53% | ||
| PM (TTM) | 19.46% | ||
| GM | 33.98% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.52 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-44.51%
EPS 3Y76.69%
EPS 5Y
EPS Q2Q%
EPS Next Y-23.07%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-21.97%
Revenue growth 3Y17.15%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y