📊 CF Key Takeaways
Is CF Industries Holdings, Inc. (CF) a Good Investment?
CF Industries demonstrates strong operational fundamentals with expanding margins (32.5% operating margin), robust profitability (20.5% net margin), and exceptional returns on equity (30.1% ROE). The company generated substantial free cash flow of $1.8B with solid liquidity metrics, though net income declined 19.1% YoY despite 19.3% revenue growth, warranting monitoring of margin sustainability.
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.
Why Buy CF Industries Holdings, Inc. Stock? CF Key Strengths
- Strong revenue growth of 19.3% YoY in a cyclical industry demonstrates market strength
- Exceptional profitability metrics: 30.1% ROE and 20.5% net margin indicate efficient capital deployment
- Robust free cash flow generation of $1.8B with 25.4% FCF margin supports sustainability
- Excellent liquidity position with 3.37x current ratio and conservative 0.66x debt/equity leverage
- High interest coverage of 14.8x provides significant debt service flexibility
- 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, suggesting margin compression or cost pressures
- Agricultural chemicals sector is highly cyclical and exposed to commodity price volatility
- Long-term debt of $3.2B represents meaningful leverage obligation despite solid coverage ratios
- High insider trading activity (48 Form 4 filings in 90 days) may indicate opportunistic selling at elevated levels
- 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 and operating margin trends to confirm sustainability of 2025 profitability levels
- Free cash flow generation and capital allocation decisions given strong FCF production
- Commodity price exposure and input cost dynamics affecting agricultural chemical demand and pricing
- Debt levels and refinancing activity given $3.2B long-term debt position
- 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
The 25.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 3.37x 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. appears fundamentally strong 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $1.8B | $606.0M | $2.70 |
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 Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CF's key strengths?
Claude: Strong revenue growth of 19.3% YoY in a cyclical industry demonstrates market strength. Exceptional profitability metrics: 30.1% ROE and 20.5% net margin indicate efficient capital deployment. 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, suggesting margin compression or cost pressures. Agricultural chemicals sector is highly cyclical and exposed to commodity price volatility. 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 $7.1B.
Does CF pay dividends?
CF Industries Holdings, Inc. pays dividends, with $326.0M 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 $8.97.
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 rating reflects both perspectives for balanced insights.
Is CF a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, CF Industries Holdings, Inc. has a BUY rating with 78% 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 30.1% (sector avg: 14%), net margin of 20.5% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy CF stock in 2026?
Our dual AI analysis gives CF Industries Holdings, Inc. a combined BUY rating 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 $2.8B, with capital expenditures of $950.0M. FCF margin is 25.4%.
How does CF compare to other Materials stocks?
Vs Materials sector averages: Net margin 20.5% (avg: 10%), ROE 30.1% (avg: 14%), current ratio 3.37 (avg: 1.6).
Why is CF's return on equity (ROE) so high?
CF Industries Holdings, Inc. has a return on equity of 30.1%, significantly above the Materials sector average of 14%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 20.5% net margin.