CF

CF Industries Holdings, Inc.

Industrial/Transportation


Presented:03/12/2018
Price:$41.88
Cap:$9.80B
Current Price:$85.07
Cap:$15.35B

Presented

Date03/12/2018
Price$41.88
Market Cap$9.80B
Ent Value$16.92B
P/E Ratio27.44x
Book Value$15.34
Div Yield2.87%
Shares O/S234.10M
Ave Daily Vol3,383,480
Short IntN/A

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 Holdings Inc (CF)

Highlights

The presenter is short shares of CF Industries (CF) due to his concerns about valuation and urea pricing. He noted an “uncanny” occurrence, with New Orleans urea seeing an average price of $213/ ton in both 2016 and 2017, and thinks the market is oversupplied. If his assessment of the setup is accurate and prices start to fall, CF could earn a “more normalized” $3/share of FCF. Assuming a 10x multiple, the implied downside is to $30 from ~$40 today.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.