CF INDUSTRIES HOLDINGS INC (CF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CF - US1252691001 - Common Stock
92.38 USD
+3.15 (+3.53%)
92.38 USD
0 (0%)
CF gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. CF gets an excellent profitability rating and is at the same time showing great financial health properties. CF may be a bit undervalued, certainly considering the very reasonable score on growth CF also has an excellent dividend rating. With these ratings, CF could be worth investigating further for value and dividend and quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year CF was profitable.
- CF had a positive operating cash flow in the past year.
- 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
- 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's Return On Equity of 28.44% is amongst the best of the industry. CF outperforms 96.39% of its industry peers.
- CF has a Return On Invested Capital of 13.42%. This is amongst the best in the industry. CF outperforms 90.36% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CF is significantly above the industry average of 6.11%.
- 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
- The Profit Margin of CF (20.47%) is better than 97.59% of its industry peers.
- CF's Profit Margin has improved in the last couple of years.
- CF's Operating Margin of 31.03% is amongst the best of the industry. CF outperforms 96.39% of its industry peers.
- In the last couple of years the Operating Margin of CF has grown nicely.
- CF has a Gross Margin of 36.86%. This is in the better half 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CF is creating some value.
- The number of shares outstanding for CF has been reduced compared to 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 2.44 indicates that CF is not a great score, but indicates only limited risk for bankruptcy at the moment.
- CF's Altman-Z score of 2.44 is fine compared to the rest of the industry. CF outperforms 63.86% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 1.74, CF belongs to the top of the industry, outperforming 90.36% of the companies in the same industry.
- A Debt/Equity ratio of 0.61 indicates that CF is somewhat dependend on debt financing.
- The Debt to Equity ratio of CF (0.61) 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 | 0.61 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.98
WACC13.69%
2.3 Liquidity
- A Current Ratio of 2.27 indicates that CF has no problem at all paying its short term obligations.
- With a decent Current ratio value of 2.27, CF is doing good in the industry, outperforming 65.06% of the companies in the same industry.
- A Quick Ratio of 1.99 indicates that CF should not have too much problems paying its short term obligations.
- CF's Quick ratio of 1.99 is fine compared to the rest of the industry. CF outperforms 78.31% of its industry peers.
| 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.
- The Revenue has grown by 12.59% in the past year. This is quite good.
- 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
- CF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.44% yearly.
- 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
- The Price/Earnings ratio is 11.08, which indicates a very decent valuation of CF.
- CF's Price/Earnings ratio is rather cheap when compared to the industry. CF is 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 27.21.
- A Price/Forward Earnings ratio of 12.64 indicates a correct valuation of CF.
- Based on the Price/Forward Earnings ratio, CF is valued a bit cheaper than 75.90% of the companies in the same industry.
- CF is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.08 | ||
| Fwd PE | 12.64 |
4.2 Price Multiples
- CF's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CF is cheaper than 95.18% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CF is valued cheaper than 90.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.42 | ||
| EV/EBITDA | 4.87 |
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)0.25
PEG (5Y)0.45
EPS Next 2Y7.46%
EPS Next 3Y-0.09%
5. Dividend
5.1 Amount
- CF has a Yearly Dividend Yield of 2.24%. Purely for dividend investing, there may be better candidates out there.
- 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 1.81.
| 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 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 24.22% 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.
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 11.08 and the Price/Book (PB) ratio is 2.97.
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.