CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CF - US1252691001 - Common Stock
77.66 USD
-0.88 (-1.12%)
77.66 USD
0 (0%)
Overall CF gets a fundamental rating of 7 out of 10. We evaluated CF against 81 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. These ratings could make CF a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
In the past year CF was profitable.
In the past year CF had a positive cash flow from operations.
CF had positive earnings in each of the past 5 years.
Each year in the past 5 years CF had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.71%, CF belongs to the top of the industry, outperforming 93.83% of the companies in the same industry.
CF has a better Return On Equity (28.44%) than 95.06% of its industry peers.
CF's Return On Invested Capital of 13.42% is amongst the best of the industry. CF outperforms 91.36% 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 6.08%.
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 97.53% 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 96.30% 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 75.31% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CF is creating value.
The number of shares outstanding for CF has been reduced compared to 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
CF has an Altman-Z score of 2.29. 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 better Altman-Z score (2.29) than 69.14% 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.
With an excellent Debt to FCF ratio value of 1.74, CF belongs to the best of the industry, outperforming 91.36% of the companies in the same industry.
A Debt/Equity ratio of 0.61 indicates that 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 58.02% 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 | 2.29 |
ROIC/WACC1.64
WACC8.19%
2.3 Liquidity
A Current Ratio of 2.27 indicates that CF has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.27, CF is doing good in the industry, outperforming 65.43% 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.
CF has a better Quick ratio (1.99) than 77.78% 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.
CF shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.81% yearly.
The Revenue has grown by 12.59% in the past year. This is quite good.
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.
The Revenue is expected to grow by 3.01% on average over the next years.
EPS Next Y37.5%
EPS Next 2Y6.15%
EPS Next 3Y2.15%
EPS Next 5Y4.48%
Revenue Next Year16.95%
Revenue Next 2Y4.97%
Revenue Next 3Y2.39%
Revenue Next 5Y3.01%
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 9.31, which indicates a very decent valuation of CF.
85.19% of the companies in the same industry are more expensive than CF, based on the Price/Earnings ratio.
CF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.65.
With a Price/Forward Earnings ratio of 10.89, the valuation of CF can be described as very reasonable.
75.31% of the companies in the same industry are more expensive than CF, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, CF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.31 | ||
| Fwd PE | 10.89 |
4.2 Price Multiples
CF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CF is cheaper than 96.30% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CF is valued cheaply inside the industry as 91.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.08 | ||
| EV/EBITDA | 4.1 |
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)0.38
EPS Next 2Y6.15%
EPS Next 3Y2.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.57%, CF has a reasonable but not impressive dividend return.
CF's Dividend Yield is a higher than the industry average which is at 4.16.
Compared to an average S&P500 Dividend Yield of 2.41, CF has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
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.
CF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.22%
EPS Next 2Y6.15%
EPS Next 3Y2.15%
77.66
-0.88 (-1.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners105.15%
Inst Owner Change0.98%
Ins Owners0.71%
Ins Owner Change-2.46%
Market Cap12.11B
Revenue(TTM)6.74B
Net Income(TTM)1.38B
Analysts69.29
Price Target96.43 (24.17%)
Short Float %6.94%
Short Ratio4.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
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)-0.68%
PT rev (3m)-1.65%
EPS NQ rev (1m)9.25%
EPS NQ rev (3m)36.56%
EPS NY rev (1m)0.12%
EPS NY rev (3m)19.98%
Revenue NQ rev (1m)4.94%
Revenue NQ rev (3m)10.06%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)5.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.31 | ||
| Fwd PE | 10.89 | ||
| P/S | 1.8 | ||
| P/FCF | 7.08 | ||
| P/OCF | 4.6 | ||
| P/B | 2.5 | ||
| P/tB | 6.45 | ||
| EV/EBITDA | 4.1 |
EPS(TTM)8.34
EY10.74%
EPS(NY)7.13
Fwd EY9.18%
FCF(TTM)10.98
FCFY14.13%
OCF(TTM)16.88
OCFY21.74%
SpS43.19
BVpS31.09
TBVpS12.03
PEG (NY)0.25
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 | 2.29 |
F-Score8
WACC8.19%
ROIC/WACC1.64
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 Y37.5%
EPS Next 2Y6.15%
EPS Next 3Y2.15%
EPS Next 5Y4.48%
Revenue 1Y (TTM)12.59%
Revenue growth 3Y-3.17%
Revenue growth 5Y5.28%
Sales Q2Q%21.09%
Revenue Next Year16.95%
Revenue Next 2Y4.97%
Revenue Next 3Y2.39%
Revenue Next 5Y3.01%
EBIT growth 1Y22.44%
EBIT growth 3Y-7.81%
EBIT growth 5Y12.87%
EBIT Next Year64.85%
EBIT Next 3Y11.41%
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 9.31 and the Price/Book (PB) ratio is 2.5.
Can you provide the financial health for CF stock?
The financial health rating of CF INDUSTRIES HOLDINGS INC (CF) is 7 / 10.