CF

CF Industries Holdings Inc

Industrial/Transportation


Presented:11/28/2022
Price:$104.40
Cap:$20.48B
Current Price:$85.07
Cap:$15.35B

Presented

Date11/28/2022
Price$104.40
Market Cap$20.48B
Ent Value$23.04B
P/E Ratio6.85x
Book Value$22.47
Div Yield1.44%
Shares O/S196.19M
Ave Daily Vol2,665,701
Short Int3.39%

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. The Granular Urea segment offers granular urea. The UAN segment creates urea ammonium nitrate solution. The AN segment makes ammonium nitrate. 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), Mitsui & Co Ltd (8031 JP)

Highlights

The presenter is long shares of CF Industries, the largest nitrogen fertilizer producer in North America and one of the largest in the world. Ammonia is the key intermediate product in the production of all nitrogen fertilizers; urea is the main nitrogen fertilizer product. Producing fertilizer is incredibly energy intensive. Eighty percent of the cost of producing urea/ammonia is the cost of the hydrocarbon cracking in the production of that fertilizer. CF relies heavily on relatively inexpensive US shale gas for this process. Producers in China and Europe have to use dirtier coal or high-cost LNG to do this cracking. With access to cheap US shale gas, CF resides at the low end of the cost curve globally on fertilizer production.

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