NYSE:CF

Stock Analysis Report

CF Industries Holdings

Executive Summary

CF Industries Holdings, Inc. manufactures and distributes nitrogen fertilizers and other nitrogen products worldwide.

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has CF Industries Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.8%

NYSE:CF

-0.05%

US Chemicals

0.2%

US Market


1 Year Return

-1.3%

NYSE:CF

-16.1%

US Chemicals

-0.7%

US Market

CF outperformed the Chemicals industry which returned -15.3% over the past year.

CF underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

CFIndustryMarket
7 Day1.8%-0.05%0.2%
30 Day1.5%-4.5%-2.7%
90 Day18.6%-1.3%1.6%
1 Year1.4%-1.3%-2.8%-16.1%1.6%-0.7%
3 Year120.1%99.8%33.9%9.3%40.0%30.9%
5 Year8.4%-7.5%29.6%1.3%53.8%36.8%

Price Volatility Vs. Market

How volatile is CF Industries Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CF Industries Holdings undervalued based on future cash flows and its price relative to the stock market?

31%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

CF Industries Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

CF Industries Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

CF Industries Holdings is overvalued based on earnings compared to the US Chemicals industry average.

CF Industries Holdings is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

CF Industries Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

CF Industries Holdings is overvalued based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

How is CF Industries Holdings expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

CF Industries Holdings's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).

CF Industries Holdings's earnings are expected to grow by 11.4% yearly, however this is not considered high growth (20% yearly).

CF Industries Holdings's revenue growth is positive but not above the United States of America market average.

CF Industries Holdings's earnings growth is positive but not above the United States of America market average.

CF Industries Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

CF Industries Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has CF Industries Holdings performed over the past 5 years?

-34.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

CF Industries Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

CF Industries Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.

CF Industries Holdings's 1-year earnings growth is negative, it can't be compared to the US Chemicals industry average.


Return on Equity

CF Industries Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

CF Industries Holdings used its assets less efficiently than the US Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

CF Industries Holdings has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is CF Industries Holdings's financial position?


Financial Position Analysis

CF Industries Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

CF Industries Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

CF Industries Holdings's level of debt (80.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (94.8% vs 80.8% today).

Debt is well covered by operating cash flow (33.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

What is CF Industries Holdings's current dividend yield, its reliability and sustainability?

2.52%

Expected Dividend Yield


Dividend Yield and Payments Analysis

CF Industries Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

CF Industries Holdings's dividend is below the markets top 25% of dividend payers in United States of America (3.83%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).


Next Steps

Management

What is the CEO of CF Industries Holdings's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Tony Will (53yo)

5.6yrs

Tenure

US$7,758,005

Compensation

Mr. W. Anthony Will, also known as Tony, has been the Chief Executive Officer and President of CF Industries Holdings, Inc. since January 2, 2014. Mr. Will has been the Chief Executive Officer and Presiden ...


CEO Compensation Analysis

Tony's remuneration is lower than average for companies of similar size in United States of America.

Tony's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.6yrs

Average Tenure

54yo

Average Age

The tenure for the CF Industries Holdings management team is about average.


Board Age and Tenure

5.4yrs

Average Tenure

60yo

Average Age

The tenure for the CF Industries Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$126,03009 May 19
Stephen Furbacher
EntityIndividual
Role
Chairman of the Board
Chairman & Lead Independent Director
Shares3,000
Max PriceUS$42.01
SellUS$183,56113 Nov 18
Stephen Furbacher
EntityIndividual
Role
Chairman of the Board
Chairman & Lead Independent Director
Shares3,500
Max PriceUS$52.45
SellUS$51,43131 Aug 18
Stephen Furbacher
EntityIndividual
Role
Chairman of the Board
Chairman & Lead Independent Director
Shares1,000
Max PriceUS$51.43

Ownership Breakdown


Management Team

  • Sue Menzel (54yo)

    Senior Vice President of Human Resources

    • Tenure: 1.8yrs
  • Douglas Barnard (60yo)

    Senior VP

    • Tenure: 15.6yrs
    • Compensation: US$2.06m
  • Tony Will (53yo)

    President

    • Tenure: 5.6yrs
    • Compensation: US$7.76m
  • Bert Frost (54yo)

    Senior Vice President of Sales

    • Tenure: 3.3yrs
    • Compensation: US$2.37m
  • Rosemary O'Brien (67yo)

    Vice President of Public Affairs

    • Tenure: 35.6yrs
  • Christopher Bohn (51yo)

    Senior Vice President of Manufacturing & Distribution

    • Tenure: 3.7yrs
    • Compensation: US$1.88m
  • Martin Jarosick

    Vice President of Investor Relations

    • Tenure: 2.6yrs
  • Dennis Kelleher (55yo)

    Senior VP & CFO

    • Tenure: 8.0yrs
    • Compensation: US$2.62m
  • Tom Grooms

    Chief Information Officer & VP

    • Tenure: 3.5yrs
  • Mike McGrane

    Chief Compliance Officer

    • Tenure: 3.6yrs

Board Members

  • John Johnson (70yo)

    Independent Director

    • Tenure: 14.0yrs
    • Compensation: US$234.33k
  • John Eaves (61yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$234.17k
  • Bob Arzbaecher (59yo)

    Independent Director

    • Tenure: 14.0yrs
    • Compensation: US$248.08k
  • Stephen Hagge (67yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: US$248.08k
  • Steve Furbacher (72yo)

    Chairman & Lead Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$412.49k
  • William Davisson (71yo)

    Independent Director

    • Tenure: 14.0yrs
    • Compensation: US$234.33k
  • Michael Toelle (56yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$234.17k
  • Theresa Wagler (49yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$253.08k
  • Tony Will (53yo)

    President

    • Tenure: 5.6yrs
    • Compensation: US$7.76m
  • Anne Noonan (56yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$234.33k

Company Information

CF Industries Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CF Industries Holdings, Inc.
  • Ticker: CF
  • Exchange: NYSE
  • Founded: 1946
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: US$10.488b
  • Shares outstanding: 218.33m
  • Website: https://www.cfindustries.com

Number of Employees


Location

  • CF Industries Holdings, Inc.
  • 4 Parkway North
  • Suite 400
  • Deerfield
  • Illinois
  • 60015
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CFNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 2005
C4FDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2005
0HQULSE (London Stock Exchange)YesCommon StockGBUSDAug 2005

Biography

CF Industries Holdings, Inc. manufactures and distributes nitrogen fertilizers and other nitrogen products worldwide. Its principal nitrogen fertilizer products include ammonia, granular urea, urea ammoniu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 00:15
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.