CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CF - US1252691001 - Common Stock
77.26 USD
-0.62 (-0.8%)
77.26 USD
0 (0%)
Overall CF gets a fundamental rating of 7 out of 10. We evaluated CF against 82 industry peers in the Chemicals industry. CF gets an excellent profitability rating and is at the same time showing great financial health properties. 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
CF had positive earnings in the past year.
CF had a positive operating cash flow in the past year.
Each year in the past 5 years CF has 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 95.12% of its industry peers.
CF has a Return On Equity of 28.44%. This is amongst the best in the industry. CF outperforms 95.12% of its industry peers.
The Return On Invested Capital of CF (13.42%) is better than 91.46% 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 6.05%.
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.
CF's Operating Margin of 31.03% is amongst the best of the industry. CF outperforms 96.34% of its industry peers.
In the last couple of years the Operating Margin of CF has grown nicely.
CF has a better Gross Margin (36.86%) than 74.39% 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 well above the Cost of Capital (WACC), so CF is creating value.
CF has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CF has been reduced compared to 5 years ago.
CF has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.29 indicates that CF is not a great score, but indicates 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 63.41% 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.
The Debt to FCF ratio of CF (1.74) is better than 91.46% of its industry peers.
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.
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/WACC1.61
WACC8.35%
2.3 Liquidity
A Current Ratio of 2.27 indicates that CF has no problem at all paying its short term obligations.
CF has a better Current ratio (2.27) than 65.85% 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 78.05% 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.
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.
The Revenue has been growing slightly by 5.28% on average over the past years.
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
Based on estimates for the next years, CF will show a small growth in Earnings Per Share. The EPS will grow by 4.48% on average per year.
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 Y44.25%
EPS Next 2Y7.16%
EPS Next 3Y0.48%
EPS Next 5Y4.48%
Revenue Next Year18.41%
Revenue Next 2Y5.54%
Revenue Next 3Y2.11%
Revenue Next 5Y3.01%
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
The Price/Earnings ratio is 9.26, which indicates a very decent valuation of CF.
Based on the Price/Earnings ratio, CF is valued cheaper than 86.59% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, CF is valued rather cheaply.
CF is valuated reasonably with a Price/Forward Earnings ratio of 10.63.
Based on the Price/Forward Earnings ratio, CF is valued a bit cheaper than the industry average as 78.05% of the companies are valued more expensively.
CF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 10.63 |
4.2 Price Multiples
96.34% of the companies in the same industry are more expensive than CF, based on the Enterprise Value to EBITDA ratio.
91.46% 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 | 7.04 | ||
| EV/EBITDA | 4.11 |
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 3Y0.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.49%, CF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.98, CF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, CF has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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
24.22% 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.
DP24.22%
EPS Next 2Y7.16%
EPS Next 3Y0.48%
77.26
-0.62 (-0.8%)
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-2.46%
Market Cap12.05B
Revenue(TTM)6.74B
Net Income(TTM)1.38B
Analysts70
Price Target95.77 (23.96%)
Short Float %7.01%
Short Ratio4.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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)-1.11%
PT rev (3m)-1.9%
EPS NQ rev (1m)6.5%
EPS NQ rev (3m)28.69%
EPS NY rev (1m)4.91%
EPS NY rev (3m)9.07%
Revenue NQ rev (1m)3.02%
Revenue NQ rev (3m)7.15%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)3.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 10.63 | ||
| P/S | 1.79 | ||
| P/FCF | 7.04 | ||
| P/OCF | 4.58 | ||
| P/B | 2.49 | ||
| P/tB | 6.42 | ||
| EV/EBITDA | 4.11 |
EPS(TTM)8.34
EY10.79%
EPS(NY)7.27
Fwd EY9.41%
FCF(TTM)10.98
FCFY14.21%
OCF(TTM)16.88
OCFY21.85%
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
WACC8.35%
ROIC/WACC1.61
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 Y44.25%
EPS Next 2Y7.16%
EPS Next 3Y0.48%
EPS Next 5Y4.48%
Revenue 1Y (TTM)12.59%
Revenue growth 3Y-3.17%
Revenue growth 5Y5.28%
Sales Q2Q%21.09%
Revenue Next Year18.41%
Revenue Next 2Y5.54%
Revenue Next 3Y2.11%
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 9.26 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.