CF Industries Holdings, Inc. Fundamental Analysis (NYSE: CF)
CF Industries Holdings, Inc. Fundamental Analysis (NYSE: CF)
CF Industries Holdings, Inc. (NYSE: CF) shows strong financial fundamentals with a PE ratio of 9.28, profit margin of 27.12%, and ROE of 40.41%. The company generates $7.7B in annual revenue with strong year-over-year growth of 19.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 93.1/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze CF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCF demonstrates superior asset utilization.
Valuation Score
ExcellentCF trades at attractive valuation levels.
Growth Score
ExcellentCF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCF maintains a strong and stable balance sheet.
Profitability Score
ExcellentCF achieves industry-leading margins.
Key Financial Metrics
Is CF Expensive or Cheap?
P/E Ratio
CF trades at 9.28 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CF's PEG of 0.12 indicates potential undervaluation.
Price to Book
The market values CF Industries Holdings, Inc. at 3.35 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.60 times EBITDA. This is generally considered low.
How Well Does CF Make Money?
Net Profit Margin
For every $100 in sales, CF Industries Holdings, Inc. keeps $27.12 as profit after all expenses.
Operating Margin
Core operations generate 38.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $40.41 in profit for every $100 of shareholder equity.
ROA
CF Industries Holdings, Inc. generates $13.90 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CF Industries Holdings, Inc. generates strong operating cash flow of $2.98B, reflecting robust business health.
Free Cash Flow
CF Industries Holdings, Inc. generates strong free cash flow of $1.91B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $12.43 in free cash annually.
FCF Yield
CF converts 9.90% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.49
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.40
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How CF Stacks Against Its Sector Peers
| Metric | CF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.28 | 27.31 | Better (Cheaper) |
| ROE | 40.41% | 1175.00% | Weak |
| Net Margin | 27.12% | 198.00% | Weak |
| Debt/Equity | 0.63 | 0.73 | Neutral |
| Current Ratio | 4.86 | 3.13 | Strong Liquidity |
| ROA | 13.90% | 2742.00% | Weak |
CF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CF Industries Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
127.73%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
508.50%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
196.38%
Industry Style: Cyclical, Commodity, Value
High Growth