Today's Post-Market Loser: CF Industries Holdings (CF)

Trade-Ideas LLC identified CF Industries Holdings (CF) as a post-market laggard candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

CF Industries Holdings

(

CF

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified CF Industries Holdings as such a stock due to the following factors:

  • CF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $103.1 million.
  • CF is down 9.2% today from today's close.

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More details on CF:

CF Industries Holdings, Inc. manufactures and distributes nitrogen fertilizers and other nitrogen products worldwide. The company's principal nitrogen fertilizer products include ammonia, granular urea, and urea ammonium nitrate solution. The stock currently has a dividend yield of 2.3%. CF has a PE ratio of 13. Currently there are 5 analysts that rate CF Industries Holdings a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for CF Industries Holdings has been 2.7 million shares per day over the past 30 days. CF has a market cap of $12.2 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.02 and a short float of 3.3% with 3.18 days to cover. Shares are down 4.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates CF Industries Holdings as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity.

Highlights from the ratings report include:

  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Chemicals industry average. The net income increased by 12.6% when compared to the same quarter one year prior, going from $312.60 million to $351.90 million.
  • The gross profit margin for CF INDUSTRIES HOLDINGS INC is rather high; currently it is at 60.22%. It has increased significantly from the same period last year. Along with this, the net profit margin of 26.83% significantly outperformed against the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 19.1%. Since the same quarter one year prior, revenues fell by 10.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • In its most recent trading session, CF has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. In comparison to other companies in the Chemicals industry and the overall market on the basis of return on equity, CF INDUSTRIES HOLDINGS INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.

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