CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CF - US1252691001 - Common Stock
78.54 USD
+0.75 (+0.96%)
78.54 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to CF. CF was compared to 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. 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.
CF had positive earnings in each of the past 5 years.
CF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CF has a Return On Assets of 9.71%. This is amongst the best in the industry. CF outperforms 95.12% of its industry peers.
Looking at the Return On Equity, with a value of 28.44%, CF belongs to the top of the industry, outperforming 96.34% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.42%, CF belongs to the best of the industry, outperforming 91.46% of the companies in the same industry.
CF had an Average Return On Invested Capital over the past 3 years of 20.79%. This is significantly above the industry average of 6.13%.
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
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.
In the last couple of years the Profit Margin of CF has grown nicely.
With an excellent Operating Margin value of 31.03%, CF belongs to the best of the industry, outperforming 96.34% of the companies in the same industry.
CF's Operating Margin has improved in the last couple of years.
The Gross Margin of CF (36.86%) is better than 76.83% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CF is creating value.
Compared to 1 year ago, CF has less shares outstanding
The number of shares outstanding for CF has been reduced compared to 5 years ago.
The debt/assets ratio for CF is higher compared to a year ago.
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 has a better Altman-Z score (2.32) than 73.17% 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.
With an excellent Debt to FCF ratio value of 1.74, CF belongs to the best of the industry, outperforming 91.46% of the companies in the same industry.
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 56.10% of the companies in the same 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/WACC1.65
WACC8.14%
2.3 Liquidity
A Current Ratio of 2.27 indicates that CF has no problem at all paying its short term obligations.
CF's Current ratio of 2.27 is fine compared to the rest of the industry. CF outperforms 64.63% 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 79.27% 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.
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
The Earnings Per Share is expected to grow by 5.14% on average over the next years.
CF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.26% yearly.
EPS Next Y37.5%
EPS Next 2Y6.15%
EPS Next 3Y2.15%
EPS Next 5Y5.14%
Revenue Next Year16.95%
Revenue Next 2Y4.97%
Revenue Next 3Y2.39%
Revenue Next 5Y4.26%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.42, the valuation of CF can be described as reasonable.
Based on the Price/Earnings ratio, CF is valued cheaply inside the industry as 85.37% of the companies are valued more expensively.
CF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.45.
The Price/Forward Earnings ratio is 11.01, which indicates a very decent 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 71.95% of the companies listed in the same industry.
CF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.42 | ||
| Fwd PE | 11.01 |
4.2 Price Multiples
CF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CF is cheaper than 93.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CF is valued cheaper than 91.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.43 | ||
| EV/EBITDA | 4.26 |
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)0.25
PEG (5Y)0.38
EPS Next 2Y6.15%
EPS Next 3Y2.15%
5. Dividend
5.1 Amount
CF has a Yearly Dividend Yield of 2.37%.
Compared to an average industry Dividend Yield of 4.00, CF pays a bit more dividend than its industry peers.
CF's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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 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
CF pays out 24.22% of its income as dividend. This is a 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%
78.54
+0.75 (+0.96%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners105.15%
Inst Owner Change0.99%
Ins Owners0.71%
Ins Owner Change-3.42%
Market Cap12.72B
Revenue(TTM)6.74B
Net Income(TTM)1.38B
Analysts69.29
Price Target96.85 (23.31%)
Short Float %6.94%
Short Ratio4.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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)-0.25%
PT rev (3m)-1.22%
EPS NQ rev (1m)9.99%
EPS NQ rev (3m)51.21%
EPS NY rev (1m)1.24%
EPS NY rev (3m)19.98%
Revenue NQ rev (1m)3.47%
Revenue NQ rev (3m)11.33%
Revenue NY rev (1m)1.17%
Revenue NY rev (3m)5.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.42 | ||
| Fwd PE | 11.01 | ||
| P/S | 1.89 | ||
| P/FCF | 7.43 | ||
| P/OCF | 4.83 | ||
| P/B | 2.62 | ||
| P/tB | 6.78 | ||
| EV/EBITDA | 4.26 |
EPS(TTM)8.34
EY10.62%
EPS(NY)7.13
Fwd EY9.08%
FCF(TTM)10.57
FCFY13.46%
OCF(TTM)16.26
OCFY20.7%
SpS41.59
BVpS29.94
TBVpS11.59
PEG (NY)0.25
PEG (5Y)0.38
Graham Number74.95
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
WACC8.14%
ROIC/WACC1.65
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 5Y5.14%
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 5Y4.26%
EBIT growth 1Y22.44%
EBIT growth 3Y-7.81%
EBIT growth 5Y12.87%
EBIT Next Year64.85%
EBIT Next 3Y11.41%
EBIT Next 5Y8.39%
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 9.42 and the Price/Book (PB) ratio is 2.62.
Can you provide the financial health for CF stock?
The financial health rating of CF INDUSTRIES HOLDINGS INC (CF) is 7 / 10.