CF Industries Holdings Inc.
Find Ratings ReportsCF INDUSTRIES HOLDINGS INC's gross profit margin for the fourth quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its subsector. CF INDUSTRIES HOLDINGS INC is extremely liquid. Currently, the Quick Ratio is 3.17 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 13.18% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 1571.0 | 2608.0 |
EBITDA ($mil) | 665.0 | 1387.0 |
EBIT ($mil) | 437.0 | 1192.0 |
Net Income ($mil) | 274.0 | 860.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 2032.0 | 2323.0 |
Total Assets ($mil) | 14376.0 | 13313.0 |
Total Debt ($mil) | 3232.0 | 3225.0 |
Equity ($mil) | 5717.0 | 5051.0 |
Profitability | Q4 FY23 | Q4 FY22 |
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Gross Profit Margin | 46.4 | 55.64 |
EBITDA Margin | 42.32 | 53.18 |
Operating Margin | 27.82 | 45.71 |
Sales Turnover | 0.46 | 0.84 |
Return on Assets | 10.6 | 25.13 |
Return on Equity | 26.67 | 66.24 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 3.81 | 3.69 |
Debt/Capital | 0.36 | 0.39 |
Interest Expense | 37.0 | 41.0 |
Interest Coverage | 11.81 | 29.07 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 188.19 | 195.6 |
Div / share | 0.4 | 0.4 |
EPS | 1.44 | 4.35 |
Book value / share | 30.38 | 25.82 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 2153413.0 | 2206956.0 |
BUY. CF INDUSTRIES HOLDINGS INC's P/E ratio indicates a significant discount compared to an average of 85.83 for the Chemical Manufacturing subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 2.76 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 19.07. The price-to-sales ratio is below the S&P 500 average and is well below the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, CF INDUSTRIES HOLDINGS INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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CF 10.70 | Peers 85.83 | CF 5.72 | Peers 38.76 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. CF is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. CF is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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CF 13.48 | Peers 18.08 | CF NM | Peers 1.16 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. CF is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. CF's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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CF 2.76 | Peers 19.07 | CF -51.97 | Peers 12.58 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. CF is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, CF is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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CF 2.38 | Peers 84.44 | CF -40.73 | Peers 42.35 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. CF is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. CF significantly trails its peers on the basis of sales growth. |
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