CF CF Industries Holdings Inc

CF Industries is a leading manufacturer and distributor of hydrogen and nitrogen-based energy and fertilizer products, serving agricultural and industrial customers globally. Sector: Materials.

CF Industries Holdings Inc (CF) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Assessing the quality of returns on invested capital, ROIC is 19.70%, WACC is 6.36%, and the economic spread is 13.34%. On balance, the company is clearing their capital cost hurdle with room to spare. Supporting metrics show ROE at 31.39% and ROA at 11.95%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company with credible compounding capacity if current operating execution persists.

The market currently prices the company at trailing P/E of 11.52, forward P/E of 8.11, PEG of 0.72. The gap between P/E and forward P/E is small, suggesting the valuation is not contingent on a near-term earnings step-change. The PEG ratio points to a company where growth is not yet fully priced in — a setup that historically tends to be favorable for forward returns. At 3.54, the aggregate current ratio reflects strong balance sheet liquidity across the company. Valuation and liquidity together frame a company where the price paid today is a reasonable bet on earnings delivery — but not a margin-of-safety purchase at current levels.

Looking at margins from gross to free cash flow, gross margin sits at 39.13%, operating margin at 34.56%, and free cash flow margin at 21.86%. The gross margin reading is middling — acceptable, but leaving less room for error at the production level. Exceptional operating margins signal that overhead costs are well managed relative to the revenue base. The company's cash conversion is solid — a sign that operating profits are translating into real liquidity for the company. Margins indicate a company that is operating effectively in some areas while still showing efficiency gaps in others.

Projected 12-month EPS growth of 41.9% adds a powerful forward signal — analyst consensus expects earnings to accelerate materially, which, if delivered, could make current multiples look increasingly modest. Zooming out from the valuation discussion, TTM revenue growth of 19.42% pointing to stable operational progress without outsized acceleration, while the estimated 12-month price change of -1.92%, where the target profile indicates a negative expected price trajectory. Anchoring to reported revenues provides discipline; analyst price targets add context about how the market currently values that operating reality. The path to realizing analyst-implied returns runs through revenue execution, margin stability, and a macro environment that doesn't undermine either. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Taken together, the metrics present a favorable setup — not without risk, but with enough quality and momentum to support a positive view.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.