CF Industries Holdings, Inc. (CF) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Mosaic Co.

CVR Partners LP

Corteva, Inc.

LSB Industries, Inc.

Oil-Dri Corp. of America

CF Industries Holdings, Inc.

American Vanguard Corp.

Piedmont Lithium, Inc.

Scotts Miracle-Gro Co.

FMC Corp.

Bioceres Crop Solutions Corp.

Why is CF Industries Holdings, Inc. ?

High Management Efficiency with a high ROE of 42.19%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.67 times

Healthy long term growth as Net Sales has grown by an annual rate of 8.63% and Operating profit at 22.81%

Negative results in Jun 25

DEBT-EQUITY RATIO (HY) Highest at 33.04 %
DEBTORS TURNOVER RATIO(HY) Lowest at 11.54 times

With ROE of 33.65%, it has a attractive valuation with a 3.14 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -12.32%, its profits have risen by 10.3% ; the PEG ratio of the company is 0.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -12.32% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CF Industries Holdings, Inc. should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Chemicals & Petrochemicals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is CF Industries Holdings, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

CF Industries Holdings, Inc.

-12.32%

0.06

33.12%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.63%

EBIT Growth (5y)

22.81%

EBIT to Interest (avg)

14.08

Debt to EBITDA (avg)

0.67

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

0.83

Tax Ratio

16.27%

Dividend Payout Ratio

29.67%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

44.72%

ROE (avg)

42.19%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.14

EV to EBIT

8.31

EV to EBITDA

5.74

EV to Capital Employed

2.59

EV to Sales

2.72

PEG Ratio

0.42

Dividend Yield

256.77%

ROCE (Latest)

31.21%

ROE (Latest)

33.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.72% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 12.8 times

NET SALES(Q)

Highest at USD 1,890 MM

OPERATING PROFIT(Q)

Highest at USD 977 MM

PRE-TAX PROFIT(Q)

Highest at USD 635 MM

EPS(Q)

Highest at USD 2.37

-3What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 33.04 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 11.54 times

Here's what is working for CF Industries Holdings, Inc.

Net Sales

Highest at USD 1,890 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Net Sales

At USD 1,890 MM has Grown at 23.35%

over average net sales of the previous four periods of USD 1,532.25 MM

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 977 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 635 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

EPS

Highest at USD 2.37

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Highest at 12.8 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -3.72% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 232 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for CF Industries Holdings, Inc.

Debt-Equity Ratio

Highest at 33.04 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 11.54 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio