📊 CF Key Takeaways
Is CF Industries Holdings, Inc. (CF) a Good Investment?
CF Industries demonstrates robust financial health with exceptional liquidity (3.54x current ratio), commanding operating margins (43.5%), and solid free cash flow generation ($273M). However, the 19.1% YoY decline in net income despite 19.3% revenue growth signals meaningful margin compression from elevated input costs, warranting careful monitoring of profitability recovery.
CF Industries shows strong underlying fundamentals with high margins, robust free cash flow generation, and a healthy balance sheet supported by strong liquidity and manageable leverage. Revenue growth is solid and operating profitability remains excellent, but the decline in net income and the gap between EPS growth and earnings growth suggest some caution around earnings quality and cyclicality.
CF Industries Holdings, Inc. Key Strengths (CF)
- Exceptional operating margins of 43.5% with 31.0% net margin demonstrate operational excellence and pricing power
- Strong balance sheet with 3.54x current ratio, 0.60x debt/equity, and 22.1x interest coverage indicating financial fortress status
- Robust free cash flow generation of $273M (13.7% FCF margin) provides capital flexibility for dividends, debt reduction, or reinvestment
- Solid revenue growth of 19.3% YoY reflects strong market demand and production volume increases
- Healthy $445M cash position with manageable $3.2B long-term debt load
- Excellent profitability with 38.5% gross margin, 32.5% operating margin, and 20.5% net margin
- Strong financial health with 3.37x current ratio, 2.93x quick ratio, and 14.8x interest coverage
- Robust cash generation with $2.75B operating cash flow and $1.80B free cash flow
CF Stock Risks: CF Industries Holdings, Inc. Investment Risks
- Net income declined 19.1% YoY despite revenue growth, indicating significant margin compression from commodity input cost inflation
- Cyclical commodity exposure: fertilizer markets are highly volatile and dependent on agricultural cycles, energy prices, and geopolitical factors
- Profitability headwinds from elevated natural gas, ammonia, and raw material costs may persist or worsen, constraining near-term earnings
- Difficulty passing through all input cost increases to customers, limiting margin recovery potential
- Net income declined 19.1% year over year despite higher revenue, indicating potential earnings volatility
- EPS growth outpaced net income growth, suggesting capital returns or share count changes may be masking weaker bottom-line trends
- Business fundamentals are likely exposed to commodity and agricultural cycle swings, which can pressure margins and cash flow
Key Metrics to Watch
- Gross margin recovery trend - critical to confirm stabilization after compression from current 37.6%
- Operating margin sustainability above 40% threshold amid cost normalization
- Free cash flow generation maintenance at $250M+ quarterly levels
- Input cost inflation trajectory for ammonia, natural gas, and phosphate feedstocks
- Net income rebound timing as commodity cost pressures ease
- Net income trend relative to revenue growth
- Free cash flow after capital expenditures
CF Industries Holdings, Inc. (CF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.54x current ratio provides a solid financial cushion.
CF Profit Margin, ROE & Profitability Analysis
CF vs Materials Sector: How CF Industries Holdings, Inc. Compares
How CF Industries Holdings, Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is CF Industries Holdings, Inc. Stock Overvalued? CF Valuation Analysis 2026
Based on fundamental analysis, CF Industries Holdings, Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
CF Industries Holdings, Inc. Balance Sheet: CF Debt, Cash & Liquidity
CF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: CF Industries Holdings, Inc.'s revenue has shown modest growth of 8% over the 5-year period. The most recent EPS of $7.87 reflects profitable operations.
CF Revenue Growth, EPS Growth & YoY Performance
CF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.7B | $351.0M | $1.85 |
| Q3 2025 | $1.4B | $341.0M | $1.55 |
| Q2 2025 | $1.6B | $492.0M | $2.30 |
| Q1 2025 | $1.5B | $238.0M | $1.03 |
| Q3 2024 | $1.3B | $230.0M | $0.85 |
| Q2 2024 | $1.6B | $506.0M | $2.30 |
| Q1 2024 | $1.5B | $238.0M | $1.03 |
| Q3 2023 | $1.3B | $230.0M | $0.85 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CF Industries Holdings, Inc. Dividends, Buybacks & Capital Allocation
CF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for CF Industries Holdings, Inc. (CIK: 0001324404)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CF
What is the AI rating for CF?
CF Industries Holdings, Inc. (CF) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CF's key strengths?
Claude: Exceptional operating margins of 43.5% with 31.0% net margin demonstrate operational excellence and pricing power. Strong balance sheet with 3.54x current ratio, 0.60x debt/equity, and 22.1x interest coverage indicating financial fortress status. ChatGPT: Excellent profitability with 38.5% gross margin, 32.5% operating margin, and 20.5% net margin. Strong financial health with 3.37x current ratio, 2.93x quick ratio, and 14.8x interest coverage.
What are the risks of investing in CF?
Claude: Net income declined 19.1% YoY despite revenue growth, indicating significant margin compression from commodity input cost inflation. Cyclical commodity exposure: fertilizer markets are highly volatile and dependent on agricultural cycles, energy prices, and geopolitical factors. ChatGPT: Net income declined 19.1% year over year despite higher revenue, indicating potential earnings volatility. EPS growth outpaced net income growth, suggesting capital returns or share count changes may be masking weaker bottom-line trends.
What is CF's revenue and growth?
CF Industries Holdings, Inc. reported revenue of $2.0B.
Does CF pay dividends?
CF Industries Holdings, Inc. pays dividends, with $78.0M distributed to shareholders in the trailing twelve months.
Where can I find CF SEC filings?
Official SEC filings for CF Industries Holdings, Inc. (CIK: 0001324404) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CF's EPS?
CF Industries Holdings, Inc. has a diluted EPS of $3.98.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CF's fundamental grade?
Based on our AI fundamental analysis in June 2026, CF Industries Holdings, Inc. has a A grade with 74% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CF stock overvalued or undervalued?
Valuation metrics for CF: ROE of 11.5% (sector avg: 14%), net margin of 31.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is CF's AI grade for 2026?
Our dual AI analysis gives CF Industries Holdings, Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CF's free cash flow?
CF Industries Holdings, Inc.'s operating cash flow is $496.0M, with capital expenditures of $223.0M. FCF margin is 13.7%.
How does CF compare to other Materials stocks?
Vs Materials sector averages: Net margin 31.0% (avg: 10%), ROE 11.5% (avg: 14%), current ratio 3.54 (avg: 1.6).