CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CF - US1252691001 - Common Stock
78.7 USD
+0.41 (+0.52%)
78.7 USD
0 (0%)
CF gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 84 industry peers in the Chemicals industry. CF scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on CF. 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.
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
CF's Return On Assets of 9.71% is amongst the best of the industry. CF outperforms 95.18% of its industry peers.
CF has a Return On Equity of 28.44%. This is amongst the best in the industry. CF outperforms 96.39% of its industry peers.
The Return On Invested Capital of CF (13.42%) is better than 91.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CF is significantly above the industry average of 6.09%.
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 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 has a better Operating Margin (31.03%) than 96.39% of its industry peers.
CF's Operating Margin has improved in the last couple of years.
CF's Gross Margin of 36.86% is fine compared to the rest of the industry. CF outperforms 74.70% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CF 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.
CF has a worse debt/assets ratio than last year.
2.2 Solvency
CF has an Altman-Z score of 2.30. 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 (2.30) is better than 68.67% 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.
CF has a Debt to FCF ratio of 1.74. This is amongst the best in the industry. CF outperforms 91.57% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that 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 | 2.3 |
ROIC/WACC1.62
WACC8.29%
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.
CF's Current ratio of 2.27 is fine compared to the rest of the industry. CF outperforms 66.27% of its industry peers.
A Quick Ratio of 1.99 indicates that CF should not have too much problems paying its short term obligations.
The Quick ratio of CF (1.99) is better than 78.31% of its industry peers.
| 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.
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%.
The Revenue has been growing slightly by 5.28% on average over the past years.
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
Based on estimates for the next years, CF will show a small growth in Earnings Per Share. The EPS will grow by 4.48% on average per year.
Based on estimates for the next years, CF will show a small growth in Revenue. The Revenue will grow by 3.01% on average per year.
EPS Next Y44.25%
EPS Next 2Y7.16%
EPS Next 3Y0.48%
EPS Next 5Y4.48%
Revenue Next Year18.41%
Revenue Next 2Y5.54%
Revenue Next 3Y2.11%
Revenue Next 5Y3.01%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 9.44, which indicates a very decent valuation of CF.
Based on the Price/Earnings ratio, CF is valued cheaply inside the industry as 86.75% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CF to the average of the S&P500 Index (26.38), we can say CF is valued rather cheaply.
A Price/Forward Earnings ratio of 10.83 indicates a reasonable valuation of CF.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CF indicates a somewhat cheap valuation: CF is cheaper than 79.52% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CF to the average of the S&P500 Index (23.83), we can say CF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 10.83 |
4.2 Price Multiples
95.18% of the companies in the same industry are more expensive than CF, based on the Enterprise Value to EBITDA ratio.
91.57% 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 | 7.17 | ||
| EV/EBITDA | 4.13 |
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)0.21
PEG (5Y)0.38
EPS Next 2Y7.16%
EPS Next 3Y0.48%
5. Dividend
5.1 Amount
CF has a Yearly Dividend Yield of 2.54%.
Compared to an average industry Dividend Yield of 2.46, CF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, CF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
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 their dividend for at least 10 years, which is a reliable track record.
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 3Y0.48%
78.7
+0.41 (+0.52%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners105.55%
Inst Owner Change1.03%
Ins Owners0.74%
Ins Owner Change-1.36%
Market Cap12.27B
Revenue(TTM)6.74B
Net Income(TTM)1.38B
Analysts70
Price Target95.77 (21.69%)
Short Float %7.11%
Short Ratio4.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
Yearly Dividend2.03
Dividend Growth(5Y)10.99%
DP24.22%
Div Incr Years3
Div Non Decr Years19
Ex-Date
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)-1.11%
PT rev (3m)-1.9%
EPS NQ rev (1m)6.5%
EPS NQ rev (3m)19.31%
EPS NY rev (1m)4.91%
EPS NY rev (3m)9.07%
Revenue NQ rev (1m)3.02%
Revenue NQ rev (3m)7.15%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)2.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 10.83 | ||
| P/S | 1.82 | ||
| P/FCF | 7.17 | ||
| P/OCF | 4.66 | ||
| P/B | 2.53 | ||
| P/tB | 6.54 | ||
| EV/EBITDA | 4.13 |
EPS(TTM)8.34
EY10.6%
EPS(NY)7.27
Fwd EY9.24%
FCF(TTM)10.98
FCFY13.95%
OCF(TTM)16.88
OCFY21.45%
SpS43.19
BVpS31.09
TBVpS12.03
PEG (NY)0.21
PEG (5Y)0.38
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 | 2.3 |
F-Score8
WACC8.29%
ROIC/WACC1.62
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 Y44.25%
EPS Next 2Y7.16%
EPS Next 3Y0.48%
EPS Next 5Y4.48%
Revenue 1Y (TTM)12.59%
Revenue growth 3Y-3.17%
Revenue growth 5Y5.28%
Sales Q2Q%21.09%
Revenue Next Year18.41%
Revenue Next 2Y5.54%
Revenue Next 3Y2.11%
Revenue Next 5Y3.01%
EBIT growth 1Y22.44%
EBIT growth 3Y-7.81%
EBIT growth 5Y12.87%
EBIT Next Year69.67%
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.
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 9.44 and the Price/Book (PB) ratio is 2.53.
Can you provide the financial health for CF stock?
The financial health rating of CF INDUSTRIES HOLDINGS INC (CF) is 7 / 10.