CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:CF • US1252691001
93.23 USD
-0.8 (-0.85%)
At close: Jan 30, 2026
93.23 USD
0 (0%)
After Hours: 1/30/2026, 5:05:00 PM
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. Both the health and profitability get an excellent rating, making CF a very profitable company, without any liquidiy or solvency issues. A decent growth rate in combination with a cheap valuation! Better keep an eye on CF. Finally CF also has an excellent dividend rating. This makes CF very considerable 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.
- In the past 5 years CF has always 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 93.98% of its industry peers.
- Looking at the Return On Equity, with a value of 28.44%, CF belongs to the top 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.
- CF had an Average Return On Invested Capital over the past 3 years of 20.79%. This 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 97.59% of its industry peers.
- In the last couple of years the Profit Margin of CF has grown nicely.
- Looking at the Operating Margin, with a value of 31.03%, CF belongs to the top of the industry, outperforming 96.39% of the companies in the same industry.
- 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
- CF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, CF has less shares outstanding
- 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
- An Altman-Z score of 2.46 indicates that CF is not a great score, but indicates only limited risk for bankruptcy at the moment.
- CF has a better Altman-Z score (2.46) than 65.06% 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 90.36% 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 54.22% 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 | 0.61 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 2.46 |
ROIC/WACC0.98
WACC13.71%
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 65.06% of its industry peers.
- A Quick Ratio of 1.99 indicates that CF should not have too much problems paying 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 78.31% of the companies in the same industry.
| 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.
- CF shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.81% yearly.
- CF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.59%.
- Measured over the past years, CF shows a small growth in Revenue. The Revenue has been growing by 5.28% on average per year.
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
- The Earnings Per Share is expected to grow by 4.44% on average over the next years.
- Based on estimates for the next years, CF will show a small growth in Revenue. The Revenue will grow by 1.82% on average per year.
EPS Next Y45.01%
EPS Next 2Y7.46%
EPS Next 3Y-0.09%
EPS Next 5Y4.44%
Revenue Next Year18.35%
Revenue Next 2Y5.5%
Revenue Next 3Y2.01%
Revenue Next 5Y1.82%
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
- CF is valuated reasonably with a Price/Earnings ratio of 11.18.
- Compared to the rest of the industry, the Price/Earnings ratio of CF indicates a rather cheap valuation: CF is cheaper than 85.54% 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 28.39.
- Based on the Price/Forward Earnings ratio of 12.75, the valuation of CF can be described as correct.
- Based on the Price/Forward Earnings ratio, CF is valued a bit cheaper than 75.90% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of CF to the average of the S&P500 Index (25.72), we can say CF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.18 | ||
| Fwd PE | 12.75 |
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.
- 89.16% 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 | 8.49 | ||
| EV/EBITDA | 4.95 |
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.
- CF has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.25
PEG (5Y)0.45
EPS Next 2Y7.46%
EPS Next 3Y-0.09%
5. Dividend
5.1 Amount
- CF has a Yearly Dividend Yield of 2.24%. 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 2.23.
- CF's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 11.18 and the Price/Book (PB) ratio is 3.
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.