CF

CF Industries Holdings Inc

Industrial/Transportation


Presented:06/07/2019
Price:$42.03
Cap:$9.29B
Current Price:$85.07
Cap:$15.35B

Presented

Date06/07/2019
Price$42.03
Market Cap$9.29B
Ent Value$16.21B
P/E Ratio30.66x
Book Value$13.34
Div Yield2.86%
Shares O/S221.08M
Ave Daily Vol2,556,347
Short Int2.84%

Current

Price$85.07
Market Cap$15.35B
CF Industries Holdings, Inc. engages in the manufacture and distribution of nitrogen fertilizer. It owns and operates nitrogen plants and serves agricultural and industrial customers through its distribution system. It operates through following segments: Ammonia, Granular Urea, UAN, AN, and Other. The Ammonia segment produces anhydrous ammonia, which is company's most concentrated nitrogen fertilizer product as it contains 82% nitrogen. The Granular Urea segment produces granular urea, which contains 46% nitrogen. The UAN segment produces urea ammonium nitrate solution, which is a liquid fertilizer product with a nitrogen content from 28% to 32%, is produced by combining urea and ammonium nitrate. The AN segment produces ammonium nitrate, which is a nitrogen-based product with a nitrogen content between 29% and 35%. The Other segment includes diesel exhaust fluid, nitric acid, urea liquor and aqua ammonia. The company was founded in 1946 and is headquartered in Deerfield, IL.

Publicly traded companies mentioned herein: CF Industries (CF)

Highlights

The presenter is long CF Industries (CF), a producer of nitrogen fertilizers from natural gas for the agriculture industry. CF is one of the lowest-cost producers, and the industry is coming out of the trough of the last cycle. With the stock trading at a 15% FCF yield currently, applying his 18-month FCF forecast (which is expected to grow significantly), he models CF trading at $75 by the end of 2020 assuming a normalized FCF yield of 10%. From there, incremental upside looking out 2 - 4 years is possible when new capacity is needed to meet growing demand.

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Idea Discussion

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