CF INDUSTRIES reports strong FY2022 Q4 earnings with total revenue of USD 860.0 million and net income of USD 2608.0 million.
March 22, 2023
Earnings Overview
CF INDUSTRIES ($NYSE:CF) announced their fourth quarter results for fiscal year 2022 on February 15 2023, posting total revenue of USD 860.0 million and net income of USD 2608.0 million – an increase of 22.0% and 2.7% respectively over the same quarter the previous year.
Transcripts Simplified
CF Industries reported Q4 2022 net earnings attributable to common stockholders of $860 million or $4.35 per diluted share. EBITDA was $1.25 billion and adjusted EBITDA was $1.3 billion. For the full year, the company reported net earnings attributable to common stockholders of $3.35 billion or $16.38 per diluted share. EBITDA was $5.5 billion and adjusted EBITDA was $5.9 billion. Net cash from operations was approximately $3.9 billion, and free cash flow was $2.8 billion.
Excluding one-time tax and interest payments, free cash flow was $3.3 billion, representing a free cash flow to adjusted EBITDA conversion rate of 56% and a free cash flow yield of almost 20%. The company is expecting ammonia production of 9.5 million tons in 2023 with capital expenditures of $500-$550 million. It is also investing in clean energy projects in collaboration with other companies and plans to return capital to shareholders.
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% |
Stock Price
On Wednesday, CF INDUSTRIES saw its stock open at $84.4, closing at $85.0, down by 0.6% from prior closing price of 85.5. Despite strong financial results, investors were not impressed with the company’s performance as the share price dropped during the trading session. However, analysts remain positive about the long-term prospects of CF INDUSTRIES as it is well positioned to capitalize on the growing demand for its products in the global market. Live Quote…
Analysis
GoodWhale has conducted an analysis of CF INDUSTRIES‘ financials and found that it has a high health score of 10/10 with regard to its cashflows and debt, demonstrating its capability to safely ride out any crisis without the risk of bankruptcy. Additionally, CF INDUSTRIES is strong in dividend, growth, profitability, and medium in asset. As a result, we have classified CF INDUSTRIES as a ‘gorilla’, a type of company we conclude that achieved stable and high revenue or earning growth due to its strong competitive advantage. This makes CF INDUSTRIES an attractive investment opportunity for a variety of investors. For instance, investors who are looking for reliable dividend income will be drawn to CF INDUSTRIES’ strong dividend yield. Investors more focused on capital growth will appreciate the company’s strong earnings growth. Furthermore, long-term investors may consider CF INDUSTRIES’ strong competitive advantages when evaluating the company’s potential for long-term success. More…
Peers
The company has a number of competitors, including Nutrien Ltd, Intrepid Potash Inc, and The Mosaic Co. While each company has its own strengths and weaknesses, CF Industries Holdings Inc has been able to maintain a strong position in the market by offering a broad range of products and services.
– Nutrien Ltd ($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
CF Industries reported strong fourth quarter earnings, with total revenue of USD 860.0 million and net income of USD 2608.0 million, both up significantly from the previous year. The stronger performance was partially due to higher average selling prices for nitrogen products and higher sales volumes in global markets. The company also benefited from lower energy costs and more efficient operations.
Investors should note that CF Industries’ margins remain healthy and the company continues to generate strong cash flow. With their solid financial performance and good prospects, CF Industries is a promising investment opportunity.
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