CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CF - US1252691001 - Common Stock
77.43 USD
-1.27 (-1.61%)
77.43 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to CF. CF was compared to 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. CF may be a bit undervalued, certainly considering the very reasonable score on growth 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
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.
Each year in the past 5 years CF had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CF (9.71%) is better than 94.05% of its industry peers.
CF has a Return On Equity of 28.44%. This is amongst the best in the industry. CF outperforms 96.43% of its industry peers.
CF has a Return On Invested Capital of 13.42%. This is amongst the best in the industry. CF outperforms 90.48% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CF is significantly above the industry average of 6.09%.
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
With an excellent Profit Margin value of 20.47%, CF belongs to the best of the industry, outperforming 97.62% of the companies in the same industry.
In the last couple of years the Profit Margin of CF has grown nicely.
CF has a better Operating Margin (31.03%) than 96.43% of its industry peers.
CF's Operating Margin has improved in the last couple of years.
The Gross Margin of CF (36.86%) is better than 75.00% 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
The debt/assets ratio for CF is higher compared to a year ago.
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.
With a decent Altman-Z score value of 2.29, CF is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.74, CF belongs to the top of the industry, outperforming 91.67% 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.
CF has a Debt to Equity ratio (0.61) which is in line with its industry peers.
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 | 2.29 |
ROIC/WACC1.01
WACC13.3%
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 has a better Current ratio (2.27) than 66.67% of its industry peers.
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.
With a decent Quick ratio value of 1.99, CF is doing good in the industry, outperforming 77.38% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 24.81% on average over the past years. This is a very strong growth
The Revenue has grown by 12.59% in the past year. This is quite good.
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 4.48% on average over the next years.
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 Y44.85%
EPS Next 2Y7.16%
EPS Next 3Y0.51%
EPS Next 5Y4.48%
Revenue Next Year18.43%
Revenue Next 2Y5.75%
Revenue Next 3Y2.17%
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
Based on the Price/Earnings ratio of 9.28, the valuation of CF can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CF indicates a rather cheap valuation: CF is cheaper than 88.10% of the companies listed in the same industry.
CF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.61.
A Price/Forward Earnings ratio of 10.65 indicates a reasonable valuation of CF.
Based on the Price/Forward Earnings ratio, CF is valued a bit cheaper than 79.76% of the companies 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 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 10.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CF is valued cheaper than 95.24% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CF indicates a rather cheap valuation: CF is cheaper than 91.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.05 | ||
| EV/EBITDA | 4.09 |
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.
CF has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.21
PEG (5Y)0.37
EPS Next 2Y7.16%
EPS Next 3Y0.51%
5. Dividend
5.1 Amount
CF has a Yearly Dividend Yield of 2.55%.
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 | 2.55% |
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
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 2Y7.16%
EPS Next 3Y0.51%
77.43
-1.27 (-1.61%)
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-0.16%
Market Cap12.08B
Revenue(TTM)6.74B
Net Income(TTM)1.38B
Analysts70
Price Target95.32 (23.1%)
Short Float %7.11%
Short Ratio4.75
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)-1.58%
PT rev (3m)-2.36%
EPS NQ rev (1m)6.58%
EPS NQ rev (3m)22.04%
EPS NY rev (1m)5.34%
EPS NY rev (3m)6.65%
Revenue NQ rev (1m)-0.81%
Revenue NQ rev (3m)6.63%
Revenue NY rev (1m)1.27%
Revenue NY rev (3m)2.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 10.65 | ||
| P/S | 1.79 | ||
| P/FCF | 7.05 | ||
| P/OCF | 4.59 | ||
| P/B | 2.49 | ||
| P/tB | 6.43 | ||
| EV/EBITDA | 4.09 |
EPS(TTM)8.34
EY10.77%
EPS(NY)7.27
Fwd EY9.39%
FCF(TTM)10.98
FCFY14.18%
OCF(TTM)16.88
OCFY21.8%
SpS43.19
BVpS31.09
TBVpS12.03
PEG (NY)0.21
PEG (5Y)0.37
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
WACC13.3%
ROIC/WACC1.01
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 5Y4.48%
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 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 9.28 and the Price/Book (PB) ratio is 2.49.
Can you provide the financial health for CF stock?
The financial health rating of CF INDUSTRIES HOLDINGS INC (CF) is 7 / 10.