CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
USA - NYSE:CF - US1252691001 - Common Stock
85.09 USD
+0.99 (+1.18%)
85.09 USD
0 (0%)
CF gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 83 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. These ratings would make CF suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year CF was profitable.
In the past year CF had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 9.47%, CF belongs to the top of the industry, outperforming 96.39% of the companies in the same industry.
The Return On Equity of CF (26.23%) is better than 93.98% of its industry peers.
With an excellent Return On Invested Capital value of 12.07%, CF belongs to the best of the industry, outperforming 91.57% 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 6.34%.
The last Return On Invested Capital (12.07%) 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 | 9.47% | ||
| ROE | 26.23% | ||
| ROIC | 12.07% |
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 20.20%, CF belongs to the best of the industry, outperforming 98.80% of the companies in the same industry.
CF's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 29.21%, CF belongs to the best of the industry, outperforming 98.80% of the companies in the same industry.
CF's Operating Margin has improved in the last couple of years.
CF has a better Gross Margin (35.60%) than 71.08% of its industry peers.
In the last couple of years the Gross Margin of CF has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.21% | ||
| PM (TTM) | 20.2% | ||
| GM | 35.6% |
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.
CF has less shares outstanding than it did 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 2.41 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 (2.41) than 68.67% of its industry peers.
CF has a debt to FCF ratio of 1.66. This is a very positive value and a sign of high solvency as it would only need 1.66 years to pay back of all of its debts.
CF's Debt to FCF ratio of 1.66 is amongst the best of the industry. CF outperforms 90.36% of its industry peers.
CF has a Debt/Equity ratio of 0.60. This is a neutral value indicating CF is somewhat dependend on debt financing.
CF has a Debt to Equity ratio (0.60) which is comparable to the rest of the 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 | 0.6 | ||
| Debt/FCF | 1.66 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.39
WACC8.7%
2.3 Liquidity
A Current Ratio of 3.22 indicates that CF has no problem at all paying its short term obligations.
CF's Current ratio of 3.22 is amongst the best of the industry. CF outperforms 84.34% of its industry peers.
CF has a Quick Ratio of 2.84. This indicates that CF is financially healthy and has no problem in meeting its short term obligations.
CF has a Quick ratio of 2.84. This is amongst the best in the industry. CF outperforms 90.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.22 | ||
| Quick Ratio | 2.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.01% 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 grown by 9.53% 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)26.01%
EPS 3Y13.85%
EPS 5Y24.81%
EPS Q2Q%2.17%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y-3.17%
Revenue growth 5Y5.28%
Sales Q2Q%20.23%
3.2 Future
The Earnings Per Share is expected to grow by 5.82% on average over the next years.
The Revenue is expected to grow by 3.56% on average over the next years.
EPS Next Y32.25%
EPS Next 2Y5.17%
EPS Next 3Y2.75%
EPS Next 5Y5.82%
Revenue Next Year15.3%
Revenue Next 2Y4.64%
Revenue Next 3Y2.4%
Revenue Next 5Y3.56%
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 reasonably with a Price/Earnings ratio of 11.41.
83.13% of the companies in the same industry are more expensive than CF, based on the Price/Earnings ratio.
CF is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.15, CF is valued correctly.
72.29% of the companies in the same industry are more expensive than CF, based on the Price/Forward Earnings ratio.
CF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 12.15 |
4.2 Price Multiples
CF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CF is cheaper than 92.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CF is valued cheaply inside the industry as 92.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.71 | ||
| EV/EBITDA | 5.04 |
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)0.35
PEG (5Y)0.46
EPS Next 2Y5.17%
EPS Next 3Y2.75%
5. Dividend
5.1 Amount
CF has a Yearly Dividend Yield of 2.32%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.43, CF pays a bit more dividend than its industry peers.
CF's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
The dividend of CF is nicely growing with an annual growth rate of 10.99%!
CF has paid a dividend for at least 10 years, which is 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 26.34% 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.
DP26.34%
EPS Next 2Y5.17%
EPS Next 3Y2.75%
85.09
+0.99 (+1.18%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners104.21%
Inst Owner Change-5.04%
Ins Owners0.71%
Ins Owner Change-1.91%
Market Cap13.78B
Analysts69.29
Price Target97.63 (14.74%)
Short Float %6.76%
Short Ratio4.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend2.03
Dividend Growth(5Y)10.99%
DP26.34%
Div Incr Years3
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.14%
Min EPS beat(2)-10.26%
Max EPS beat(2)28.54%
EPS beat(4)3
Avg EPS beat(4)10.38%
Min EPS beat(4)-10.26%
Max EPS beat(4)28.54%
EPS beat(8)5
Avg EPS beat(8)3.23%
EPS beat(12)7
Avg EPS beat(12)1.54%
EPS beat(16)7
Avg EPS beat(16)-11.42%
Revenue beat(2)2
Avg Revenue beat(2)4.09%
Min Revenue beat(2)2.66%
Max Revenue beat(2)5.52%
Revenue beat(4)3
Avg Revenue beat(4)2.36%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)5.52%
Revenue beat(8)4
Avg Revenue beat(8)0.53%
Revenue beat(12)5
Avg Revenue beat(12)-0.92%
Revenue beat(16)6
Avg Revenue beat(16)-1.07%
PT rev (1m)-0.43%
PT rev (3m)6.6%
EPS NQ rev (1m)13.67%
EPS NQ rev (3m)109.33%
EPS NY rev (1m)15.4%
EPS NY rev (3m)23.69%
Revenue NQ rev (1m)3.77%
Revenue NQ rev (3m)18.93%
Revenue NY rev (1m)3.87%
Revenue NY rev (3m)5.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 12.15 | ||
| P/S | 2.14 | ||
| P/FCF | 7.71 | ||
| P/OCF | 5.51 | ||
| P/B | 2.78 | ||
| P/tB | 6.95 | ||
| EV/EBITDA | 5.04 |
EPS(TTM)7.46
EY8.77%
EPS(NY)7
Fwd EY8.23%
FCF(TTM)11.03
FCFY12.97%
OCF(TTM)15.44
OCFY18.14%
SpS39.8
BVpS30.64
TBVpS12.24
PEG (NY)0.35
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.47% | ||
| ROE | 26.23% | ||
| ROCE | 14.57% | ||
| ROIC | 12.07% | ||
| ROICexc | 13.88% | ||
| ROICexgc | 18.89% | ||
| OM | 29.21% | ||
| PM (TTM) | 20.2% | ||
| GM | 35.6% | ||
| FCFM | 27.72% |
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 Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 1.66 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 78.96% | ||
| Cap/Sales | 11.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.73% | ||
| Profit Quality | 137.25% | ||
| Current Ratio | 3.22 | ||
| Quick Ratio | 2.84 | ||
| Altman-Z | 2.41 |
F-Score7
WACC8.7%
ROIC/WACC1.39
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)26.01%
EPS 3Y13.85%
EPS 5Y24.81%
EPS Q2Q%2.17%
EPS Next Y32.25%
EPS Next 2Y5.17%
EPS Next 3Y2.75%
EPS Next 5Y5.82%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y-3.17%
Revenue growth 5Y5.28%
Sales Q2Q%20.23%
Revenue Next Year15.3%
Revenue Next 2Y4.64%
Revenue Next 3Y2.4%
Revenue Next 5Y3.56%
EBIT growth 1Y14.33%
EBIT growth 3Y-7.81%
EBIT growth 5Y12.87%
EBIT Next Year56.13%
EBIT Next 3Y11.66%
EBIT Next 5Y9.25%
FCF growth 1Y-34.92%
FCF growth 3Y-9.42%
FCF growth 5Y9.75%
OCF growth 1Y-22.7%
OCF growth 3Y-7.54%
OCF growth 5Y8.58%