CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CF - US1252691001 - Common Stock
92.38 USD
+3.15 (+3.53%)
92.38 USD
0 (0%)
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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally CF also has an excellent dividend rating. With these ratings, CF could be worth investigating further 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.
- In the past 5 years CF has always been profitable.
- In the past 5 years CF always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 9.71%, CF belongs to the best of the industry, outperforming 93.90% of the companies in the same industry.
- CF has a Return On Equity of 28.44%. This is amongst the best in the industry. CF outperforms 96.34% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 13.42%, CF belongs to the top of the industry, outperforming 90.24% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for CF is significantly above the industry average of 6.11%.
- 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
- The Profit Margin of CF (20.47%) is better than 97.56% of its industry peers.
- CF's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 31.03%, CF belongs to the top of the industry, outperforming 96.34% of the companies in the same industry.
- In the last couple of years the Operating Margin of CF has grown nicely.
- The Gross Margin of CF (36.86%) is better than 74.39% of its industry peers.
- CF's Gross Margin has improved in the last couple of years.
| 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.
- CF has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CF has less shares outstanding
- Compared to 1 year ago, CF has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.41 indicates that CF is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.41, CF is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
- 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.
- With an excellent Debt to FCF ratio value of 1.74, CF belongs to the best of the industry, outperforming 91.46% of the companies in the same industry.
- 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 | 2.41 |
ROIC/WACC0.98
WACC13.69%
2.3 Liquidity
- CF has a Current Ratio of 2.27. This indicates that CF is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 2.27, CF is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
- 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 79.27% 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.
- The Earnings Per Share has been growing by 24.81% on average over the past years. This is a very strong growth
- Looking at the last year, CF shows a quite strong growth in Revenue. The Revenue has grown by 12.59% in the last year.
- 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 Year18.36%
Revenue Next 2Y5.51%
Revenue Next 3Y2.11%
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.
- 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
- A Price/Earnings ratio of 11.08 indicates a reasonable valuation of CF.
- 85.37% of the companies in the same industry are more expensive than CF, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, CF is valued rather cheaply.
- A Price/Forward Earnings ratio of 12.64 indicates a correct valuation of CF.
- 76.83% of the companies in the same industry are more expensive than CF, based on the Price/Forward Earnings ratio.
- CF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 12.64 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CF is valued cheaply inside the industry as 95.12% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, CF is valued cheaply inside the industry as 90.24% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.42 | ||
| EV/EBITDA | 4.7 |
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)0.25
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 2.31%.
- Compared to an average industry Dividend Yield of 2.28, 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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 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 2Y7.46%
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 11.08 and the Price/Book (PB) ratio is 2.97.
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.