CF Industries Revenue vs. Current Valuation

CF Stock  USD 85.40  0.55  0.65%   
Based on CF Industries' profitability indicators, CF Industries' profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess CF Industries' ability to earn profits and add value for shareholders.
 
Total Revenue  
First Reported
2003-03-31
Previous Quarter
1.6 B
Current Value
1.4 B
Quarterly Volatility
586.4 M
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
The current Price To Sales Ratio is estimated to decrease to 1.37. The current Days Sales Outstanding is estimated to decrease to 15.47. At this time, CF Industries' Net Interest Income is most likely to increase significantly in the upcoming years. The CF Industries' current Net Income Per Share is estimated to increase to 8.28, while Operating Income is projected to decrease to roughly 1.3 B.
For CF Industries profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CF Industries to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CF Industries Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CF Industries's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CF Industries Holdings over time as well as its relative position and ranking within its peers.
  

CF Industries' Revenue Breakdown by Earning Segment

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Is Fertilizers & Agricultural Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CF Industries. If investors know CF Industries will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CF Industries listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.82
Dividend Share
1.9
Earnings Share
6.31
Revenue Per Share
32.397
Quarterly Revenue Growth
0.076
The market value of CF Industries Holdings is measured differently than its book value, which is the value of CF Industries that is recorded on the company's balance sheet. Investors also form their own opinion of CF Industries' value that differs from its market value or its book value, called intrinsic value, which is CF Industries' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CF Industries' market value can be influenced by many factors that don't directly affect CF Industries' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CF Industries' value and its price as these two are different measures arrived at by different means. Investors typically determine if CF Industries is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CF Industries' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

CF Industries Holdings Current Valuation vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining CF Industries's current stock value. Our valuation model uses many indicators to compare CF Industries value to that of its competitors to determine the firm's financial worth.
CF Industries Holdings is rated second in revenue category among its peers. It also is rated second in current valuation category among its peers reporting about  2.44  of Current Valuation per Revenue. At this time, CF Industries' Total Revenue is most likely to increase significantly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value CF Industries by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

CF Industries Revenue vs. Competition

CF Industries Holdings is rated second in revenue category among its peers. Market size based on revenue of Materials industry is currently estimated at about 40.46 Billion. CF Industries retains roughly 6.63 Billion in revenue claiming about 16% of all equities under Materials industry.

CF Industries Current Valuation vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

CF Industries

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
6.63 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

CF Industries

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
16.16 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

CF Industries Current Valuation vs Competition

CF Industries Holdings is rated second in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Materials industry is currently estimated at about 61.14 Billion. CF Industries totals roughly 16.16 Billion in current valuation claiming about 26% of all equities under Materials industry.

CF Industries Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in CF Industries, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CF Industries will eventually generate negative long term returns. The profitability progress is the general direction of CF Industries' change in net profit over the period of time. It can combine multiple indicators of CF Industries, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-209 M-219.4 M
Operating Income2.2 B1.3 B
Income Before Tax2.2 B1.2 B
Total Other Income Expense Net18 M18.9 M
Net Income1.5 B937.5 M
Income Tax Expense410 M227.3 M
Net Income Applicable To Common Shares3.8 BB
Net Income From Continuing Ops2.5 B1.3 B
Non Operating Income Net Other37.8 M21.6 M
Interest Income124 M84.6 M
Net Interest Income34 M35.7 M
Change To Netincome-59.8 M-56.8 M
Net Income Per Share 7.89  8.28 
Income Quality 1.81  1.88 
Net Income Per E B T 0.68  0.51 

CF Industries Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on CF Industries. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of CF Industries position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the CF Industries' important profitability drivers and their relationship over time.

Use CF Industries in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CF Industries position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CF Industries will appreciate offsetting losses from the drop in the long position's value.

CF Industries Pair Trading

CF Industries Holdings Pair Trading Analysis

The ability to find closely correlated positions to CF Industries could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CF Industries when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CF Industries - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CF Industries Holdings to buy it.
The correlation of CF Industries is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CF Industries moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CF Industries Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for CF Industries can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your CF Industries position

In addition to having CF Industries in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
To fully project CF Industries' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of CF Industries Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include CF Industries' income statement, its balance sheet, and the statement of cash flows.
Potential CF Industries investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although CF Industries investors may work on each financial statement separately, they are all related. The changes in CF Industries's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on CF Industries's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.