CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CF - US1252691001 - Common Stock
82.6 USD
+1.27 (+1.56%)
82.47 USD
-0.13 (-0.16%)
Overall CF gets a fundamental rating of 7 out of 10. We evaluated CF against 82 industry peers in the Chemicals industry. CF gets an excellent profitability rating and is at the same time showing great financial health properties. CF scores decently on growth, while it is valued quite cheap. This could make an interesting combination. CF also has an excellent dividend rating. These ratings would make CF suitable 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.
CF had positive earnings in each of the past 5 years.
In the past 5 years CF always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CF (9.71%) is better than 93.90% of its industry peers.
CF has a better Return On Equity (28.44%) than 96.34% of its industry peers.
With an excellent Return On Invested Capital value of 13.42%, CF belongs to the best 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 6.10%.
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
Looking at the Profit Margin, with a value of 20.47%, CF belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
CF's Profit Margin has improved in the last couple of years.
CF has a Operating Margin of 31.03%. This is amongst the best in the industry. CF outperforms 96.34% of its industry peers.
CF's Operating Margin has improved in the last couple of years.
CF has a better Gross Margin (36.86%) 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.
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
An Altman-Z score of 2.34 indicates that CF is not a great score, but indicates only limited risk for bankruptcy at the moment.
CF has a better Altman-Z score (2.34) than 63.41% 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's Debt to FCF ratio of 1.74 is amongst the best of the industry. CF outperforms 91.46% of its industry peers.
CF has a Debt/Equity ratio of 0.61. This is a neutral value indicating CF is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, CF is in line with its industry, outperforming 54.88% of the companies in the same 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 | 2.34 |
ROIC/WACC1
WACC13.44%
2.3 Liquidity
A Current Ratio of 2.27 indicates that CF has no problem at all paying its short term obligations.
CF has a Current ratio of 2.27. This is in the better half of the industry: CF outperforms 65.85% of its industry peers.
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 78.05% 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.
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.
The Revenue has grown by 12.59% in the past year. This is quite good.
CF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.28% yearly.
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
CF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.44% yearly.
The Revenue is expected to grow by 1.82% on average over the next years.
EPS Next Y44.85%
EPS Next 2Y7.16%
EPS Next 3Y0.51%
EPS Next 5Y4.44%
Revenue Next Year18.43%
Revenue Next 2Y5.75%
Revenue Next 3Y2.17%
Revenue Next 5Y1.82%
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
Based on the Price/Earnings ratio of 9.90, the valuation of CF can be described as reasonable.
Based on the Price/Earnings ratio, CF is valued cheaply inside the industry as 89.02% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.19, CF is valued rather cheaply.
CF is valuated reasonably with a Price/Forward Earnings ratio of 11.36.
CF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CF is cheaper than 79.27% of the companies in the same industry.
CF is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 11.36 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CF is valued cheaper than 95.12% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CF is valued cheaply inside the industry as 91.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.53 | ||
| EV/EBITDA | 4.36 |
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.
The excellent profitability rating of CF may justify a higher PE ratio.
PEG (NY)0.22
PEG (5Y)0.4
EPS Next 2Y7.16%
EPS Next 3Y0.51%
5. Dividend
5.1 Amount
CF has a Yearly Dividend Yield of 2.46%.
CF's Dividend Yield is a higher than the industry average which is at 2.34.
Compared to an average S&P500 Dividend Yield of 1.92, CF pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
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
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 3Y0.51%
82.6
+1.27 (+1.56%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners105.73%
Inst Owner Change-0.3%
Ins Owners0.74%
Ins Owner Change1.55%
Market Cap12.88B
Revenue(TTM)6.74B
Net Income(TTM)1.38B
Analysts69.66
Price Target95.32 (15.4%)
Short Float %8.21%
Short Ratio5.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
Yearly Dividend2.03
Dividend Growth(5Y)10.99%
DP24.22%
Div Incr Years3
Div Non Decr Years19
Ex-DateN/A
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)-0.47%
PT rev (3m)-1.82%
EPS NQ rev (1m)2.29%
EPS NQ rev (3m)19.82%
EPS NY rev (1m)0.41%
EPS NY rev (3m)6.65%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)6.63%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 11.36 | ||
| P/S | 1.91 | ||
| P/FCF | 7.53 | ||
| P/OCF | 4.89 | ||
| P/B | 2.66 | ||
| P/tB | 6.86 | ||
| EV/EBITDA | 4.36 |
EPS(TTM)8.34
EY10.1%
EPS(NY)7.27
Fwd EY8.8%
FCF(TTM)10.98
FCFY13.29%
OCF(TTM)16.88
OCFY20.44%
SpS43.19
BVpS31.09
TBVpS12.03
PEG (NY)0.22
PEG (5Y)0.4
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 | 2.34 |
F-Score8
WACC13.44%
ROIC/WACC1
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 Y44.85%
EPS Next 2Y7.16%
EPS Next 3Y0.51%
EPS Next 5Y4.44%
Revenue 1Y (TTM)12.59%
Revenue growth 3Y-3.17%
Revenue growth 5Y5.28%
Sales Q2Q%21.09%
Revenue Next Year18.43%
Revenue Next 2Y5.75%
Revenue Next 3Y2.17%
Revenue Next 5Y1.82%
EBIT growth 1Y22.44%
EBIT growth 3Y-7.81%
EBIT growth 5Y12.87%
EBIT Next Year69.9%
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.
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 9.9 and the Price/Book (PB) ratio is 2.66.
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 44.85% in the next year.