CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CF - US1252691001 - Common Stock
80.23 USD
+0.94 (+1.19%)
80.23 USD
0 (0%)
Taking everything into account, CF scores 7 out of 10 in our fundamental rating. CF was compared to 81 industry peers in the Chemicals industry. CF gets an excellent profitability rating and is at the same time showing great financial health properties. CF may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make CF suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year CF was profitable.
CF had a positive operating cash flow in the past year.
In the past 5 years CF has always been profitable.
CF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CF (9.71%) is better than 93.83% of its industry peers.
With an excellent Return On Equity value of 28.44%, CF belongs to the best of the industry, outperforming 95.06% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.42%, CF belongs to the top of the industry, outperforming 91.36% 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 6.15%.
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
With an excellent Profit Margin value of 20.47%, CF belongs to the best of the industry, outperforming 97.53% of the companies in the same industry.
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.
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.
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
CF has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.32 indicates that CF is not a great score, but indicates only limited risk for bankruptcy at the moment.
CF's Altman-Z score of 2.32 is fine compared to the rest of the industry. CF outperforms 67.90% of its industry peers.
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.
CF has a better Debt to FCF ratio (1.74) than 91.36% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that CF is somewhat dependend on debt financing.
The Debt to Equity ratio of CF (0.61) is comparable to the rest of the industry.
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 | 2.32 |
ROIC/WACC1.61
WACC8.36%
2.3 Liquidity
A Current Ratio of 2.27 indicates that CF has no problem at all paying 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 65.43% of the companies in the same industry.
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 77.78% 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.
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
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 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
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
CF is valuated reasonably with a Price/Earnings ratio of 9.62.
CF's Price/Earnings ratio is rather cheap when compared to the industry. CF is cheaper than 85.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of CF to the average of the S&P500 Index (26.41), we can say CF is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.25, the valuation of CF can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CF is valued a bit cheaper than 71.60% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.40. CF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.62 | ||
| Fwd PE | 11.25 |
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 96.30% of the companies listed in the same industry.
90.12% 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 | 7.31 | ||
| EV/EBITDA | 4.23 |
4.3 Compensation for Growth
CF's 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)0.26
PEG (5Y)0.39
EPS Next 2Y6.15%
EPS Next 3Y2.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.55%, CF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.88, CF pays a bit more dividend than its industry peers.
CF's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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 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
CF pays out 24.22% of its income as dividend. This is a 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 2Y6.15%
EPS Next 3Y2.15%
80.23
+0.94 (+1.19%)
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 Cap12.51B
Revenue(TTM)6.74B
Net Income(TTM)1.38B
Analysts69.29
Price Target96.43 (20.19%)
Short Float %7.01%
Short Ratio4.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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)-1.23%
EPS NQ rev (1m)1.65%
EPS NQ rev (3m)36.56%
EPS NY rev (1m)0.12%
EPS NY rev (3m)3.97%
Revenue NQ rev (1m)4.11%
Revenue NQ rev (3m)8.57%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.62 | ||
| Fwd PE | 11.25 | ||
| P/S | 1.86 | ||
| P/FCF | 7.31 | ||
| P/OCF | 4.75 | ||
| P/B | 2.58 | ||
| P/tB | 6.67 | ||
| EV/EBITDA | 4.23 |
EPS(TTM)8.34
EY10.4%
EPS(NY)7.13
Fwd EY8.89%
FCF(TTM)10.98
FCFY13.68%
OCF(TTM)16.88
OCFY21.04%
SpS43.19
BVpS31.09
TBVpS12.03
PEG (NY)0.26
PEG (5Y)0.39
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 | 2.32 |
F-Score8
WACC8.36%
ROIC/WACC1.61
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 9.62 and the Price/Book (PB) ratio is 2.58.
Can you provide the financial health for CF stock?
The financial health rating of CF INDUSTRIES HOLDINGS INC (CF) is 7 / 10.