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%)
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. 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. CF also has an excellent dividend rating. These ratings would make CF suitable for value and dividend and quality investing!
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 Return On Assets of 9.71%. This is amongst the best in the industry. CF outperforms 93.98% of its industry peers.
CF's Return On Equity of 28.44% is amongst the best of the industry. CF outperforms 96.39% of its industry peers.
CF has a Return On Invested Capital of 13.42%. This is amongst the best in 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 6.10%.
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.
In the last couple of years the Operating Margin of CF has grown nicely.
CF has a better Gross Margin (36.86%) than 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CF is still creating some value.
The number of shares outstanding for CF has been reduced compared to 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
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.
CF has a Altman-Z score of 2.34. This is in the better half of the industry: CF outperforms 63.86% of its industry peers.
The Debt to FCF ratio of CF is 1.74, which is an excellent value as it means it would take CF, only 1.74 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CF (1.74) is better than 91.57% 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 (0.61) which 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.
The Current ratio of CF (2.27) is better than 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.
CF has a better Quick ratio (1.99) than 78.31% 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.
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
CF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.44% yearly.
CF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.82% yearly.
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
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 9.90, which indicates a very decent valuation of CF.
Based on the Price/Earnings ratio, CF is valued cheaply inside the industry as 89.16% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CF to the average of the S&P500 Index (27.19), we can say CF is valued rather cheaply.
CF is valuated reasonably with a Price/Forward Earnings ratio of 11.36.
79.52% 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 rather cheap valuation when compared to the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 11.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CF indicates a rather cheap valuation: CF is cheaper than 95.18% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CF is valued cheaper than 91.57% of the companies in the same industry.
| 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.
The excellent profitability rating of CF 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
With a Yearly Dividend Yield of 2.46%, CF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.34, CF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, CF pays a bit more dividend than the S&P500 average.
| 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 been paying a dividend for at least 10 years, so it has 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.
The dividend of CF is growing, but the earnings are growing slower. 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 9 / 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.