An Update on CF Industries for the Year to Come
CF Industries: A Fertile Year to Come?
CF Industries update
CF Industries (CF) is trading at ~$42 and has returned -21% so far this year. 2015 has been a negative year overall for the agricultural fertilizer business, with PotashCorp (POT) returning -48%, The Mosaic Company (MOS) returning -36%, and Agrium (AGU) returning -3% YTD (year-to-date). The Market Vectors Agribusiness ETF (MOO) is also in negative territory, with a YTD return of -10%.
Price chart
CF Industries’ and other companies’ bad performance can be attributed to the agricultural environment, which was less favorable in 2015. Several factors led to a dismal 2015, but the most important was a very positive year in 2014 for crops, which continues to trouble most fertilizer companies in 2015 and will continue to do so in 2016. As 2016 approaches, investors are eager to know what it will hold for CF Industries.
Series overview
In this series, we’ll discuss CF Industries’ most recent developments, how the company was impacted by realized prices, and some of the factors pressuring the company’s shipments. As we step into 2016, we’ll take a look at the outlook for realized prices and how CF Industries has recently combined with OCI and moved its tax base to the Netherlands. Also, we’ll discuss the company’s cash management, debt position, and analysts’ ratings and price targets for the next 12 months.
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