Analyzing CF Industries Holdings Inc’s (NYSE:CF) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess CF’s recent performance announced on 30 June 2018 and compare these figures to its long-term trend and industry movements.
Did CF perform better than its track record and industry?
CF’s trailing twelve-month earnings (from 30 June 2018) of US$589.0m has
In terms of returns from investment, CF Industries Holdings has fallen short of achieving a 20% return on equity (ROE), recording 11.0% instead. Furthermore, its return on assets (ROA) of 6.6% is below the US Chemicals industry of 7.7%, indicating CF Industries Holdings’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for CF Industries Holdings’s debt level, has declined over the past 3 years from 14.7% to 2.0%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 58.0% to 74.3% over the past 5 years.
What does this mean?
Though CF Industries Holdings’s past data is helpful, it is only one aspect of my investment thesis. I suggest you continue to research CF Industries Holdings to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for CF’s future growth? Take a look at our free research report of analyst consensus for CF’s outlook.
- Financial Health: Are CF’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.