CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
NYSE:CF - New York Stock Exchange, Inc. - US1252691001 - Common Stock - Currency: USD
CF gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. CF has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. A decent growth rate in combination with a cheap valuation! Better keep an eye on CF. With these ratings, CF could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
CF had positive earnings in the past year.
In the past year CF had a positive cash flow from operations.
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
CF's Return On Assets of 10.04% is amongst the best of the industry. CF outperforms 95.29% of its industry peers.
The Return On Equity of CF (27.95%) is better than 96.47% of its industry peers.
CF's Return On Invested Capital of 12.60% is amongst the best of the industry. CF outperforms 94.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CF is significantly above the industry average of 6.84%.
The 3 year average ROIC (20.79%) for CF is well above the current ROIC(12.60%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.04% | ||
| ROE | 27.95% | ||
| ROIC | 12.6% |
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 (21.80%) is better than 98.82% of its industry peers.
In the last couple of years the Profit Margin of CF has grown nicely.
CF's Operating Margin of 30.71% is amongst the best of the industry. CF outperforms 95.29% of its industry peers.
CF's Operating Margin has improved in the last couple of years.
CF has a Gross Margin of 36.20%. This is in the better half of the industry: CF outperforms 75.29% of its industry peers.
CF's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.71% | ||
| PM (TTM) | 21.8% | ||
| GM | 36.2% |
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.
CF has less shares outstanding than it did 1 year ago.
CF has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CF is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.60 indicates that CF is not a great score, but indicates only limited risk for bankruptcy at the moment.
CF has a Altman-Z score of 2.60. This is in the better half of the industry: CF outperforms 72.94% of its industry peers.
The Debt to FCF ratio of CF is 1.60, which is an excellent value as it means it would take CF, only 1.60 years of fcf income to pay off all of its debts.
CF's Debt to FCF ratio of 1.60 is amongst the best of the industry. CF outperforms 91.76% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that CF is somewhat dependend on debt financing.
CF has a Debt to Equity ratio (0.62) 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 | 0.62 | ||
| Debt/FCF | 1.6 | ||
| Altman-Z | 2.6 |
ROIC/WACC1.46
WACC8.63%
2.3 Liquidity
A Current Ratio of 2.59 indicates that CF has no problem at all paying its short term obligations.
The Current ratio of CF (2.59) is better than 71.76% of its industry peers.
CF has a Quick Ratio of 2.22. This indicates that CF is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of CF (2.22) is better than 81.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.59 | ||
| Quick Ratio | 2.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.06% over the past year.
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 been growing slightly by 0.66% in the past 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)17.06%
EPS 3Y13.85%
EPS 5Y24.81%
EPS Q2Q%120%
Revenue 1Y (TTM)0.66%
Revenue growth 3Y-3.17%
Revenue growth 5Y5.28%
Sales Q2Q%13.13%
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 5.56% on average per year.
The Revenue is expected to grow by 3.42% on average over the next years.
EPS Next Y14.3%
EPS Next 2Y-1.9%
EPS Next 3Y1.51%
EPS Next 5Y5.56%
Revenue Next Year8.93%
Revenue Next 2Y2.63%
Revenue Next 3Y2%
Revenue Next 5Y3.42%
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.
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 correctly with a Price/Earnings ratio of 13.26.
CF's Price/Earnings ratio is rather cheap when compared to the industry. CF is cheaper than 81.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of CF to the average of the S&P500 Index (27.47), we can say CF is valued rather cheaply.
A Price/Forward Earnings ratio of 16.13 indicates a correct valuation of CF.
The rest of the industry has a similar Price/Forward Earnings ratio as CF.
When comparing the Price/Forward Earnings ratio of CF to the average of the S&P500 Index (21.91), we can say CF is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | 16.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CF is valued cheaply inside the industry as 88.24% of the companies are valued more expensively.
90.59% 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 | 8.56 | ||
| EV/EBITDA | 5.98 |
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)0.93
PEG (5Y)0.53
EPS Next 2Y-1.9%
EPS Next 3Y1.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.11%, CF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.57, CF pays a bit more dividend than its industry peers.
CF's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
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 26.42% 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.
DP26.42%
EPS Next 2Y-1.9%
EPS Next 3Y1.51%
98.24
+2.48 (+2.59%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners104.45%
Inst Owner Change0.01%
Ins Owners0.74%
Ins Owner Change1.52%
Market Cap15.92B
Analysts68.57
Price Target90.73 (-7.64%)
Short Float %5.09%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
Yearly Dividend2.03
Dividend Growth(5Y)10.99%
DP26.42%
Div Incr Years3
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.9%
Min EPS beat(2)13.26%
Max EPS beat(2)28.54%
EPS beat(4)4
Avg EPS beat(4)18.36%
Min EPS beat(4)9.97%
Max EPS beat(4)28.54%
EPS beat(8)6
Avg EPS beat(8)6.6%
EPS beat(12)7
Avg EPS beat(12)2.37%
EPS beat(16)7
Avg EPS beat(16)-12.57%
Revenue beat(2)1
Avg Revenue beat(2)2.05%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)5.52%
Revenue beat(4)2
Avg Revenue beat(4)1.62%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)5.52%
Revenue beat(8)3
Avg Revenue beat(8)-0.34%
Revenue beat(12)4
Avg Revenue beat(12)-1.43%
Revenue beat(16)5
Avg Revenue beat(16)-1.54%
PT rev (1m)0.66%
PT rev (3m)-1.77%
EPS NQ rev (1m)0.93%
EPS NQ rev (3m)10.63%
EPS NY rev (1m)6.9%
EPS NY rev (3m)27.06%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)6.55%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)5.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.26 | ||
| Fwd PE | 16.13 | ||
| P/S | 2.6 | ||
| P/FCF | 8.56 | ||
| P/OCF | 6.6 | ||
| P/B | 3.33 | ||
| P/tB | 8.9 | ||
| EV/EBITDA | 5.98 |
EPS(TTM)7.41
EY7.54%
EPS(NY)6.09
Fwd EY6.2%
FCF(TTM)11.48
FCFY11.69%
OCF(TTM)14.89
OCFY15.15%
SpS37.83
BVpS29.5
TBVpS11.04
PEG (NY)0.93
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.04% | ||
| ROE | 27.95% | ||
| ROCE | 15.22% | ||
| ROIC | 12.6% | ||
| ROICexc | 14.21% | ||
| ROICexgc | 19.55% | ||
| OM | 30.71% | ||
| PM (TTM) | 21.8% | ||
| GM | 36.2% | ||
| FCFM | 30.35% |
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%
ROICexcg growth 3Y-11.21%
ROICexcg 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-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 1.6 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 61.81% | ||
| Cap/Sales | 9.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.92% | ||
| Profit Quality | 139.22% | ||
| Current Ratio | 2.59 | ||
| Quick Ratio | 2.22 | ||
| Altman-Z | 2.6 |
F-Score7
WACC8.63%
ROIC/WACC1.46
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)17.06%
EPS 3Y13.85%
EPS 5Y24.81%
EPS Q2Q%120%
EPS Next Y14.3%
EPS Next 2Y-1.9%
EPS Next 3Y1.51%
EPS Next 5Y5.56%
Revenue 1Y (TTM)0.66%
Revenue growth 3Y-3.17%
Revenue growth 5Y5.28%
Sales Q2Q%13.13%
Revenue Next Year8.93%
Revenue Next 2Y2.63%
Revenue Next 3Y2%
Revenue Next 5Y3.42%
EBIT growth 1Y8.54%
EBIT growth 3Y-7.81%
EBIT growth 5Y12.87%
EBIT Next Year49.45%
EBIT Next 3Y11.37%
EBIT Next 5Y13.57%
FCF growth 1Y-36.99%
FCF growth 3Y-9.42%
FCF growth 5Y9.75%
OCF growth 1Y-29.29%
OCF growth 3Y-7.54%
OCF growth 5Y8.58%