CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
USA - NYSE:CF - US1252691001 - Common Stock
83.29 USD
+0.48 (+0.58%)
83.35 USD
+0.06 (+0.07%)
Taking everything into account, CF scores 8 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on CF. This makes CF very considerable for value 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.
Each year in the past 5 years CF has been profitable.
CF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.47%, CF belongs to the top of the industry, outperforming 96.34% of the companies in the same industry.
CF's Return On Equity of 26.23% is amongst the best of the industry. CF outperforms 93.90% of its industry peers.
CF's Return On Invested Capital of 12.07% is amongst the best of the industry. CF outperforms 91.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CF is significantly above the industry average of 6.28%.
The last Return On Invested Capital (12.07%) 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 | 9.47% | ||
| ROE | 26.23% | ||
| ROIC | 12.07% |
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 20.20%. This is amongst the best in the industry. CF outperforms 98.78% of its industry peers.
CF's Profit Margin has improved in the last couple of years.
CF's Operating Margin of 29.21% is amongst the best of the industry. CF outperforms 95.12% of its industry peers.
CF's Operating Margin has improved in the last couple of years.
CF has a Gross Margin of 35.60%. This is in the better half of the industry: CF outperforms 69.51% of its industry peers.
In the last couple of years the Gross Margin of CF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.21% | ||
| PM (TTM) | 20.2% | ||
| GM | 35.6% |
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.
Compared to 1 year ago, CF has less shares outstanding
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 2.40 indicates that CF is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CF (2.40) is better than 68.29% of its industry peers.
The Debt to FCF ratio of CF is 1.66, which is an excellent value as it means it would take CF, only 1.66 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.66, CF belongs to the best of the industry, outperforming 90.24% of the companies in the same industry.
CF has a Debt/Equity ratio of 0.60. This is a neutral value indicating CF is somewhat dependend on debt financing.
CF has a Debt to Equity ratio (0.60) 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 | 0.6 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.46
WACC8.26%
2.3 Liquidity
A Current Ratio of 3.22 indicates that CF has no problem at all paying its short term obligations.
CF has a better Current ratio (3.22) than 84.15% of its industry peers.
CF has a Quick Ratio of 2.84. This indicates that CF is financially healthy and has no problem in meeting its short term obligations.
CF has a Quick ratio of 2.84. This is amongst the best in the industry. CF outperforms 90.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.22 | ||
| Quick Ratio | 2.84 |
3. Growth
3.1 Past
CF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.01%, 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.
Looking at the last year, CF shows a quite strong growth in Revenue. The Revenue has grown by 9.53% 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)26.01%
EPS 3Y13.85%
EPS 5Y24.81%
EPS Q2Q%2.17%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y-3.17%
Revenue growth 5Y5.28%
Sales Q2Q%20.23%
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.
The Revenue is expected to grow by 3.56% on average over the next years.
EPS Next Y37.34%
EPS Next 2Y6.22%
EPS Next 3Y2.41%
EPS Next 5Y5.14%
Revenue Next Year16.77%
Revenue Next 2Y4.9%
Revenue Next 3Y2.38%
Revenue Next 5Y3.56%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 11.16, the valuation of CF can be described as reasonable.
Based on the Price/Earnings ratio, CF is valued cheaper than 81.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.10, CF is valued rather cheaply.
A Price/Forward Earnings ratio of 11.66 indicates a reasonable valuation of CF.
69.51% 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 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 11.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CF is valued cheaply inside the industry as 91.46% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CF is valued cheaper than 90.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.55 | ||
| EV/EBITDA | 4.99 |
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)0.3
PEG (5Y)0.45
EPS Next 2Y6.22%
EPS Next 3Y2.41%
5. Dividend
5.1 Amount
CF has a Yearly Dividend Yield of 2.42%. 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 3.99.
CF's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
5.2 History
On average, the dividend of CF grows each year by 10.99%, which is quite nice.
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
26.34% 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.
DP26.34%
EPS Next 2Y6.22%
EPS Next 3Y2.41%
83.29
+0.48 (+0.58%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners105.15%
Inst Owner Change-0.95%
Ins Owners0.71%
Ins Owner Change-1.91%
Market Cap13.49B
Revenue(TTM)6.45B
Net Income(TTM)1.30B
Analysts69.29
Price Target96.85 (16.28%)
Short Float %6.16%
Short Ratio4.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Yearly Dividend2.03
Dividend Growth(5Y)10.99%
DP26.34%
Div Incr Years3
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.14%
Min EPS beat(2)-10.26%
Max EPS beat(2)28.54%
EPS beat(4)3
Avg EPS beat(4)10.38%
Min EPS beat(4)-10.26%
Max EPS beat(4)28.54%
EPS beat(8)5
Avg EPS beat(8)3.23%
EPS beat(12)7
Avg EPS beat(12)1.54%
EPS beat(16)7
Avg EPS beat(16)-11.42%
Revenue beat(2)2
Avg Revenue beat(2)4.09%
Min Revenue beat(2)2.66%
Max Revenue beat(2)5.52%
Revenue beat(4)3
Avg Revenue beat(4)2.36%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)5.52%
Revenue beat(8)4
Avg Revenue beat(8)0.53%
Revenue beat(12)5
Avg Revenue beat(12)-0.92%
Revenue beat(16)6
Avg Revenue beat(16)-1.07%
PT rev (1m)-0.8%
PT rev (3m)2.35%
EPS NQ rev (1m)3.1%
EPS NQ rev (3m)36.74%
EPS NY rev (1m)1.12%
EPS NY rev (3m)19.84%
Revenue NQ rev (1m)2.85%
Revenue NQ rev (3m)7.26%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)7.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 11.66 | ||
| P/S | 2.09 | ||
| P/FCF | 7.55 | ||
| P/OCF | 5.4 | ||
| P/B | 2.72 | ||
| P/tB | 6.81 | ||
| EV/EBITDA | 4.99 |
EPS(TTM)7.46
EY8.96%
EPS(NY)7.14
Fwd EY8.57%
FCF(TTM)11.03
FCFY13.25%
OCF(TTM)15.44
OCFY18.53%
SpS39.8
BVpS30.64
TBVpS12.24
PEG (NY)0.3
PEG (5Y)0.45
Graham Number71.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.47% | ||
| ROE | 26.23% | ||
| ROCE | 14.57% | ||
| ROIC | 12.07% | ||
| ROICexc | 13.88% | ||
| ROICexgc | 18.89% | ||
| OM | 29.21% | ||
| PM (TTM) | 20.2% | ||
| GM | 35.6% | ||
| FCFM | 27.72% |
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-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 1.66 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 78.96% | ||
| Cap/Sales | 11.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.73% | ||
| Profit Quality | 137.25% | ||
| Current Ratio | 3.22 | ||
| Quick Ratio | 2.84 | ||
| Altman-Z | 2.4 |
F-Score7
WACC8.26%
ROIC/WACC1.46
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)26.01%
EPS 3Y13.85%
EPS 5Y24.81%
EPS Q2Q%2.17%
EPS Next Y37.34%
EPS Next 2Y6.22%
EPS Next 3Y2.41%
EPS Next 5Y5.14%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y-3.17%
Revenue growth 5Y5.28%
Sales Q2Q%20.23%
Revenue Next Year16.77%
Revenue Next 2Y4.9%
Revenue Next 3Y2.38%
Revenue Next 5Y3.56%
EBIT growth 1Y14.33%
EBIT growth 3Y-7.81%
EBIT growth 5Y12.87%
EBIT Next Year64.85%
EBIT Next 3Y11.41%
EBIT Next 5Y8.39%
FCF growth 1Y-34.92%
FCF growth 3Y-9.42%
FCF growth 5Y9.75%
OCF growth 1Y-22.7%
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 8 / 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 11.16 and the Price/Book (PB) ratio is 2.72.
Can you provide the financial health for CF stock?
The financial health rating of CF INDUSTRIES HOLDINGS INC (CF) is 8 / 10.