CF INDUSTRIES HOLDINGS INC (CF)
US1252691001 - Common Stock
We assign a fundamental rating of 7 out of 10 to CF. CF was compared to 84 industry peers in the Chemicals industry. Both the health and profitability get an excellent rating, making CF a very profitable company, without any liquidiy or solvency issues. CF has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CF was profitable.
CF had a positive operating cash flow in the past year.
CF had positive earnings in each of the past 5 years.
Each year in the past 5 years CF had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CF (8.41%) is better than 90.48% of its industry peers.
CF's Return On Equity of 22.41% is amongst the best of the industry. CF outperforms 90.48% of its industry peers.
CF's Return On Invested Capital of 10.58% is amongst the best of 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 6.43%.
The 3 year average ROIC (21.67%) for CF is well above the current ROIC(10.58%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 22.41% | ||
| ROIC | 10.58% |
ROA(3y)14.38%
ROA(5y)9.97%
ROE(3y)40.51%
ROE(5y)29.88%
ROIC(3y)21.67%
ROIC(5y)15.19%
1.3 Margins
Looking at the Profit Margin, with a value of 19.46%, CF belongs to the top of the industry, outperforming 97.62% of the companies in the same industry.
CF's Profit Margin has improved in the last couple of years.
The Operating Margin of CF (28.53%) is better than 94.05% of its industry peers.
In the last couple of years the Operating Margin of CF has grown nicely.
CF has a Gross Margin of 33.98%. This is in the better half of the industry: CF outperforms 70.24% of its industry peers.
CF's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.53% | ||
| PM (TTM) | 19.46% | ||
| GM | 33.98% |
OM growth 3Y30.93%
OM growth 5Y15.81%
PM growth 3Y44.1%
PM growth 5Y28.56%
GM growth 3Y24.16%
GM growth 5Y13.14%
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.
CF has less shares outstanding than it did 5 years ago.
CF has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.51 indicates that CF is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.51, CF is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
CF has a debt to FCF ratio of 1.63. This is a very positive value and a sign of high solvency as it would only need 1.63 years to pay back of all of its debts.
CF's Debt to FCF ratio of 1.63 is amongst the best of the industry. CF outperforms 89.29% of its industry peers.
A Debt/Equity ratio of 0.57 indicates that CF is somewhat dependend on debt financing.
CF's Debt to Equity ratio of 0.57 is in line compared to the rest of the industry. CF outperforms 53.57% of its industry peers.
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 | 0.57 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 2.51 |
ROIC/WACC1.29
WACC8.22%
2.3 Liquidity
CF has a Current Ratio of 2.81. This indicates that CF is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.81, CF is doing good in the industry, outperforming 75.00% of the companies in the same industry.
CF has a Quick Ratio of 2.52. This indicates that CF is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.52, CF belongs to the best of the industry, outperforming 86.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.52 |
3. Growth
3.1 Past
The earnings per share for CF have decreased strongly by -44.51% in the last year.
The Earnings Per Share has been growing by 47.09% on average over the past years. This is a very strong growth
CF shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.97%.
CF shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.41% yearly.
EPS 1Y (TTM)-44.51%
EPS 3Y76.69%
EPS 5Y47.09%
EPS Q2Q%17.54%
Revenue 1Y (TTM)-21.97%
Revenue growth 3Y17.15%
Revenue growth 5Y8.41%
Sales Q2Q%7.62%
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 0.11% on average per year.
CF is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.80% yearly.
EPS Next Y-23.07%
EPS Next 2Y-12.38%
EPS Next 3Y-7.75%
EPS Next 5Y0.11%
Revenue Next Year-10.31%
Revenue Next 2Y-4.64%
Revenue Next 3Y-2.41%
Revenue Next 5Y-0.8%
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 14.23, the valuation of CF can be described as correct.
Based on the Price/Earnings ratio, CF is valued a bit cheaper than 76.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of CF to the average of the S&P500 Index (28.53), we can say CF is valued rather cheaply.
The Price/Forward Earnings ratio is 13.61, which indicates a correct valuation of CF.
Based on the Price/Forward Earnings ratio, CF is valued a bit cheaper than the industry average as 69.05% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.40, CF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 13.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CF is valued cheaper than 90.48% 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 90.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.32 | ||
| EV/EBITDA | 5.96 |
4.3 Compensation for Growth
CF has an outstanding profitability rating, which may justify a higher PE ratio.
CF's earnings are expected to decrease with -7.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y-12.38%
EPS Next 3Y-7.75%
5. Dividend
5.1 Amount
CF has a Yearly Dividend Yield of 2.33%.
CF's Dividend Yield is a higher than the industry average which is at 2.93.
CF's Dividend Yield is comparable with the S&P500 average which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
5.2 History
The dividend of CF has a limited annual growth rate of 5.68%.
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)5.68%
Div Incr Years2
Div Non Decr Years18
5.3 Sustainability
30.41% 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.
DP30.41%
EPS Next 2Y-12.38%
EPS Next 3Y-7.75%
CF INDUSTRIES HOLDINGS INC
NYSE:CF (11/15/2024, 8:04:00 PM)
After market: 87.07 0 (0%)87.07
+1.33 (+1.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap15.15B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 13.61 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 22.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.53% | ||
| PM (TTM) | 19.46% | ||
| GM | 33.98% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.52 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-44.51%
EPS 3Y76.69%
EPS 5Y
EPS Q2Q%
EPS Next Y-23.07%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-21.97%
Revenue growth 3Y17.15%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y