CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CF - US1252691001 - Common Stock
91.4 USD
-0.25 (-0.27%)
Overall CF gets a fundamental rating of 7 out of 10. We evaluated CF against 83 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 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
- 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
- With an excellent Return On Assets value of 9.71%, CF belongs to the best of the industry, outperforming 93.98% of the companies in the same industry.
- CF has a Return On Equity of 28.44%. This is amongst the best in the industry. CF outperforms 96.39% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 13.42%, CF belongs to the top of the industry, outperforming 90.36% 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 6.11%.
- The last Return On Invested Capital (13.42%) 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 | 9.71% | ||
| 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 97.59% 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 31.03%, CF belongs to the best of the industry, outperforming 96.39% of the companies in the same industry.
- CF's Operating Margin has improved in the last couple of years.
- CF's Gross Margin of 36.86% is fine compared to the rest of the industry. CF outperforms 74.70% 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.
- CF has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, CF has a worse debt to assets ratio.
2.2 Solvency
- CF has an Altman-Z score of 2.43. 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 2.43, CF is doing good in the industry, outperforming 63.86% of the companies in the same industry.
- The Debt to FCF ratio of CF is 1.74, which is an excellent value as it means it would take CF, only 1.74 years of fcf income to pay off all of its debts.
- CF's Debt to FCF ratio of 1.74 is amongst the best of the industry. CF outperforms 90.36% of its industry peers.
- A Debt/Equity ratio of 0.61 indicates that CF is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.61, CF perfoms like the industry average, outperforming 54.22% 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 | 2.43 |
ROIC/WACC0.98
WACC13.68%
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 Current ratio of 2.27. This is in the better half of the industry: CF outperforms 65.06% of its industry peers.
- A Quick Ratio of 1.99 indicates that CF should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.99, CF is doing good in the industry, outperforming 78.31% 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
- Looking at the last year, CF shows a quite strong growth in Revenue. The Revenue has grown by 12.59% in the last 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)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 4.44% on average per year.
- CF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.82% yearly.
EPS Next Y45.01%
EPS Next 2Y7.46%
EPS Next 3Y-0.09%
EPS Next 5Y4.44%
Revenue Next Year18.35%
Revenue Next 2Y5.5%
Revenue Next 3Y2.01%
Revenue Next 5Y1.82%
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
- CF is valuated reasonably with a Price/Earnings ratio of 10.96.
- Based on the Price/Earnings ratio, CF is valued cheaper than 85.54% of the companies in the same industry.
- CF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- CF is valuated correctly with a Price/Forward Earnings ratio of 12.50.
- Based on the Price/Forward Earnings ratio, CF is valued a bit cheaper than 74.70% 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 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 12.5 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CF indicates a rather cheap valuation: CF is cheaper than 95.18% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, CF is valued cheaply inside the industry as 89.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.33 | ||
| EV/EBITDA | 4.83 |
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)0.24
PEG (5Y)0.44
EPS Next 2Y7.46%
EPS Next 3Y-0.09%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.24%, CF has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.23, CF pays a bit more dividend than its industry peers.
- CF's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
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 24.22% of its income as dividend. This is a sustainable payout ratio.
- CF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.22%
EPS Next 2Y7.46%
EPS Next 3Y-0.09%
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.
What is the valuation status of CF INDUSTRIES HOLDINGS INC (CF) stock?
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 are the PE and PB ratios of CF INDUSTRIES HOLDINGS INC (CF) stock?
The Price/Earnings (PE) ratio for CF INDUSTRIES HOLDINGS INC (CF) is 10.96 and the Price/Book (PB) ratio is 2.94.
Can you provide the expected EPS growth for CF stock?
The Earnings per Share (EPS) of CF INDUSTRIES HOLDINGS INC (CF) is expected to grow by 45.01% in the next year.