CF

CF Industries Holdings Inc

Industrial/Transportation


Presented:10/14/2021
Price:$60.54
Cap:$13.02B
Current Price:$85.07
Cap:$15.35B

Presented

Date10/14/2021
Price$60.54
Market Cap$13.02B
Ent Value$17.03B
P/E Ratio28.71x
Book Value$15.09
Div Yield1.98%
Shares O/S215.10M
Ave Daily Vol2,589,167
Short Int2.61%

Current

Price$85.07
Market Cap$15.35B
CF Industries Holdings, Inc. engages in the manufacture and distribution of nitrogen fertilizer. The firm 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 Holdings Inc (CF)

Highlights

The presenter is long shares of CF Industries Holdings Inc (CF), the nitrogen fertilizer manufacturer, which he believes stands to benefit from margin expansion due to a large natural gas price difference between the US and Europe, creating increased earnings power for nitrogen fertilizer players. The Street estimates CF will generate earnings of $5.18 per share in 2022, but he believes the $6 - $8 per share range is more likely. The stock currently trades at $60 per share and he thinks shares will appreciate to at least ~$80 within the next 12 months (10x - 13x his 2022 earnings estimate range).

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Idea Discussion

Commentor 1 - 2 weeks ago

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