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

3.5%

CF

2.0%

US Chemicals

1.0%

US Market


1 Year Return

-0.3%

CF

-5.9%

US Chemicals

6.7%

US Market

Return vs Industry: CF exceeded the US Chemicals industry which returned -5.9% over the past year.

Return vs Market: CF underperformed the US Market which returned 6.7% over the past year.


Share holder returns

CFIndustryMarket
7 Day3.5%2.0%1.0%
30 Day1.4%-2.8%-1.8%
90 Day6.1%-2.6%-1.8%
1 Year2.4%-0.3%8.1%-5.9%9.1%6.7%
3 Year146.7%124.0%43.4%17.3%46.1%36.6%
5 Year19.4%1.9%46.1%14.8%66.9%48.6%

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?

8%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: CF ($50.62) is trading below our estimate of fair value ($54.87)

Significantly Undervalued: CF is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: CF is poor value based on its PE Ratio (25.4x) compared to the Chemicals industry average (19.4x).

PE vs Market: CF is poor value based on its PE Ratio (25.4x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: CF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price Based on Value of Assets

PB vs Industry: CF is overvalued based on its PB Ratio (3.6x) compared to the US Chemicals industry average (2x).


Next Steps

Future Growth

How is CF Industries Holdings expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

-3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: CF's earnings are forecast to decline over the next 3 years (-3.6% per year).

Earnings vs Market: CF's earnings are forecast to decline over the next 3 years (-3.6% per year).

High Growth Earnings: CF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CF's revenue (3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CF's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: CF's Return on Equity is forecast to be low in 3 years time (19.2%).


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

Earnings Trend: CF's earnings have declined by -34.8% per year over the past 5 years.

Accelerating Growth: CF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CF had negative earnings growth (-23.3%) over the past year, making it difficult to compare to the Chemicals industry average (-2%).


Return on Equity

High ROE: CF's Return on Equity (10.4%) is considered low.


Return on Assets

ROA vs Industry: CF's Return on Assets is below or equal to the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: CF has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is CF Industries Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CF's short term assets ($1.5B) exceeds its short term liabilities ($1.0B)

Long Term Liabilities: CF's short term assets (1.5B) do not cover its long term liabilities (6.0B)


Debt to Equity History and Analysis

Debt Level: CF's debt to equity ratio (80.8%) is considered high

Reducing Debt: CF's debt to equity ratio has reduced from 94.8% to 80.8% over the past 5 years.

Debt Coverage: CF's debt is well covered by operating cash flow (33.9%).

Interest Coverage: CF's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

Inventory Level: CF has a high level of physical assets or inventory.

Debt Coverage by Assets: CF's 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?

2.39%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase CF Industries Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.4%marketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Years2.4%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: CF's dividend (2.37%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: CF's dividend (2.37%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: CF's dividends per share have been stable in the past 10 years.

Growing Dividend: CF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.2%), CF's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CF's dividends in 3 years are forecast to be well covered by earnings (41.9% payout ratio).


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?

3.5yrs

Average management tenure


CEO

Tony Will (53yo)

5.8yrs

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

Compensation vs. Market: Tony's total compensation ($USD7.76M) is below average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Tony's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.5yrs

Average Tenure

54yo

Average Age

Experienced Management: CF's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

60yo

Average Age

Experienced Board: CF's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

Insider Buying: CF insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$2,008,07003 Sep 19
Dennis Kelleher
EntityIndividual
Shares41,693
Max PriceUS$48.19
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

Ownership Breakdown


Management Team

  • Sue Menzel (54yo)

    Senior Vice President of Human Resources

    • Tenure: 2yrs
  • Douglas Barnard (60yo)

    Senior VP

    • Tenure: 15.8yrs
    • Compensation: US$2.06m
  • Tony Will (53yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$7.76m
  • Ashraf Malik

    Senior Vice President of Manufacturing & Distribution

    • Tenure: 0.08yrs
  • Bert Frost (54yo)

    Senior Vice President of Sales

    • Tenure: 3.4yrs
    • Compensation: US$2.37m
  • Rosemary O'Brien (67yo)

    Vice President of Public Affairs

    • Tenure: 35.8yrs
  • Christopher Bohn (51yo)

    Senior VP & CFO

    • Tenure: 0.08yrs
    • Compensation: US$1.88m
  • Martin Jarosick

    Vice President of Investor Relations

    • Tenure: 2.8yrs
  • Tom Grooms

    Chief Information Officer & VP

    • Tenure: 3.7yrs
  • Mike McGrane

    Chief Compliance Officer

    • Tenure: 3.8yrs

Board Members

  • John Johnson (70yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$234.33k
  • John Eaves (61yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$234.17k
  • Bob Arzbaecher (59yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$248.08k
  • Stephen Hagge (67yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$248.08k
  • Steve Furbacher (72yo)

    Chairman & Lead Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$412.49k
  • William Davisson (71yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$234.33k
  • Michael Toelle (56yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$234.17k
  • Theresa Wagler (49yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$253.08k
  • Tony Will (53yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$7.76m
  • Anne Noonan (56yo)

    Independent Director

    • Tenure: 4.3yrs
    • 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$11.052b
  • 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 Analysis2019/10/14 01:47
End of Day Share Price2019/10/11 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.

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