CF Industries Reports Record-Breaking Earnings and Revenue
May 2, 2023
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According to the company’s quarterly earnings report, CF ($NYSE:CF) Industries posted a GAAP EPS of $2.85, surpassing the consensus estimate by $0.40, and revenue of $2.01B, exceeding the expected figure by $150M. This impressive financial performance is largely attributed to the strong demand for crop nutrients globally amid the coronavirus pandemic.
Additionally, the company’s expansion plans have led to higher sales and profits. CF Industries operates in an industry with relatively low competition and its strategic acquisitions have strengthened its position in the market. Overall, CF Industries has delivered a set of record-breaking results that exceeded market expectations. The company’s strong financial results and attractive growth prospects make it an attractive investment for investors.
Price History
On Monday, CF INDUSTRIES reported record-breaking earnings and revenue for the quarter. Their stock opened at $71.8 and closed at $72.0, up by 0.5% from their last closing price of 71.6. The exceptional performance in the second quarter was largely attributed to their strong nitrogen fertilizer portfolio, which saw a large surge in demand due to rise in crop prices and higher crop acreage. CF Industries also reported that they have seen record-high volumes on their distribution network, which has contributed to their success over the past quarter. The company also stated that they expect their performance to remain strong in the upcoming quarter as they expand into new markets and continue to benefit from higher crop prices. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cf Industries. More…
| Total Revenues | Net Income | Net Margin |
| 11.19k | 3.35k | 31.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cf Industries. More…
| Operations | Investing | Financing |
| 3.85k | -440 | -2.7k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cf Industries. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.31k | 5.46k | 22.47 |
Key Ratios Snapshot
Some of the financial key ratios for Cf Industries are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 34.6% | 81.4% | 48.6% |
| FCF Margin | ROE | ROA |
| 30.3% | 71.5% | 25.5% |
Analysis
At GoodWhale, we conducted an analysis of CF INDUSTRIES‘s financials and classified it as a ‘gorilla’ company. This is a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Investors interested in such companies should be looking for dividend, growth, profitability, and medium asset levels. CF INDUSTRIES also scored a 10/10 on our health score. This means it has strong cashflows and debt, is capable of paying off debt and funding future operations. More…
Peers
The company has a number of competitors, including Nutrien Ltd, Intrepid Potash Inc, and The Mosaic Co. While each company has its own strengths and weaknesses, CF Industries Holdings Inc has been able to maintain a strong position in the market by offering a broad range of products and services.
– Nutrien Ltd ($TSX:NTR)
Nutrien Ltd is a Canadian company that produces and sells agricultural products. The company has a market cap of 62.04B as of 2022 and a return on equity of 23.76%. Nutrien is the world’s largest provider of crop inputs and services, and it is a leading producer of potash, nitrogen, and phosphate. The company’s products are used by farmers to grow food, fuel, and fiber crops.
– Intrepid Potash Inc ($NYSE:IPI)
Intrepid Potash Inc is a publicly traded company that mines and produces potash, a potassium-bearing salt, in the United States. The company has a market capitalization of $616.17 million and a return on equity of 8.14%. Intrepid Potash is the largest producer of potash in the U.S. and has been in operation for over 70 years. The company’s potash mines are located in New Mexico, Colorado, and Utah.
– The Mosaic Co ($NYSE:MOS)
Mosaic Co is a publicly traded agricultural company with a market cap of 18.56B as of 2022. The company focuses on the production and marketing of fertilizer and other agricultural products. Mosaic Co has a return on equity of 24.22%.
Summary
The company reported GAAP EPS of $2.85, a $0.40 beat compared to the consensus estimate of analysts’ predictions. Investors may be attracted to CF Industries due to its experienced management team and strong balance sheet, which houses more than $2B in total cash and investments. With shares trading at a discount to their five-year average, this could be an attractive opportunity for investors willing to take on moderate risk.
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