CF Industries logged a -3.8% change during today's morning session, and is now trading at a price of $82.75 per share. The S&P 500 index moved -0.1% and the Nasdaq posted a -0.2% change. CF's trading volume is 1,200,820 compared to the stock's average volume of 2,674,761.
CF Industries shares moved 24.3% over the last 52 weeks, with a high of $119.6 and a low of $63.1. During this time, the stock outperformed the S&P 500 index by 41.8%. As of January 2022, the company's 50-day average price is $99.0. CF Industries Holdings, Inc. manufactures and sells hydrogen and nitrogen products for energy, fertilizer, emissions abatement, and other industrial activities worldwide. The large-cap Basic Materials company has 2,970 full time employees and is based in Deerfield, IL. CF Industries has returned a 1.6% dividend yield over the last 12 months.
Overview of the Company's Strong Financials:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|
| Revenue (MM) | $4,590 | $4,124 | $6,538 |
| Revenue Growth | n/a | -10.15% | 58.54% |
| Gross Margins | 25.6% | 19.4% | 36.5% |
| Gross Margins Growth | n/a | -24.22% | 88.14% |
| Operating Margins | 20.4% | 14.5% | 33.4% |
| Operating Margins Growth | n/a | -28.92% | 130.34% |
| Earnings Per Share | $2.23 | $1.47 | $4.24 |
| EPS Growth | n/a | -34.08% | 188.44% |
| Free Cash Flow (MM) | $1,101 | $922 | $2,349 |
| FCF Growth | n/a | -16.26% | 154.77% |
| Capital Expenditures (MM) | -$404 | -$309 | -$524 |
| Net Debt / EBITDA | 2.07 | 2.21 | 0.62 |
CF Industries Is Reasonably Priced:
Compared to the Basic Materials sector's average of 8.57, CF Industries has a trailing twelve month price to earnings (P/E) ratio of 5.6 and, based on its EPS guidance of 14.18, an expected P/E ratio of 5.8.
The firm's price to earnings growth (PEG) is 0.86, which indicates that the company is undervalued in terms of its expected earnings growth.
CF Industries's price to book (P/B) ratio is 3.7 compared to its sector average of 1.86. The company is likely overvalued in terms of its net tangible assets. The company's shares are currently trading 126.1% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 2.65 * 22.473) = $36.61
CF Industries Is the Subject of Mixed Market Indicators:
19 analysts are following CF Industries and have set target prices ranging from $75 to $135 per share. On average, they have given the company a rating of buy. At the current price of $82.75, CF is trading -28.66% away from its average analyst target price of $116 per share, implying an analyst consensus of strong upside potential for the stock.
The company has an average amount of shares sold short since 3.5% of the company's shares are tied to short positions. Institutions own 96.6% of CF Industries's shares, while the insider ownership rate stands at 0.43%. The biggest shareholder is the Vanguard Group, Inc. with a 13% stake in the company worth approximately $2,073,245,393.
