Why CF Industries Holdings Inc. [CF] is a Good Long-Term Investment – The Dwinnex

The share price of CF Industries Holdings Inc. [NYSE: CF] inclined by $27.20, presently trading at $25.85. The companys shares saw 31.02% gains compared to the lowest price in the period of the last 52 weeks, set at 19.73 recorded on 04/01/20. The last few days have been tough to the share price as CF fall by -4.33% during the last week, even though the stock is still up by 28.96 compared to -1.17 of all time high it touched on 03/26/20. However, the stock had a poor performance during the past 3 months, roughly losing -32.22%, while additionally dropping -37.98% during the last 12 months. CF Industries Holdings Inc. is said to have a 12-month price target set at $43.17. That means that the stock has a strong potential to acquire 17.32% increase from the current trading price.

Experts stock market traders frequently make a point to check what top Wall Street analysts say regarding a potential buy. Regarding CF Industries Holdings Inc. [CF] currently, the latest Wall Street ratings we can see is from the fiscal quarter thats going to end in 12/30/2019. On average, stock market experts give CF an Overweight rating. The average 12-month price forecast for this stock is $25.85, with the high estimate being $63.00, the low estimate being $30.00 and the median estimate amounting to $39.50. This is compared to its latest closing price of $27.20.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for CF Industries Holdings Inc. [CF] is sitting at 3.75. This is compared to 1 month ago, when its average rating was 3.50.

Stay on the lookout for the next publication of this organizations financial results for the quarter, which will be made public on 04/29/2020.

Now lets turn to look at profitability: with a current Operating Margin for CF Industries Holdings Inc. [CF] sitting at 21.40% and its Gross Margin at 25.60%, this companys Net Margin is now 10.70. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This companys Return on Total Capital is 9.31, and its Return on Invested Capital has reached 6.71. Its Return on Equity is 16.60%, and its Return on Assets is 3.90%. These metrics show a mixed bag, which means that this investments attractiveness can be quickly increased or decreased in the short term, depending on future updates CF financial performance.

Turning to investigate this organizations capital structure, CF Industries Holdings Inc. [CF] has generated a Total Debt to Total Equity ratio of 146.36. Similarly, its Total Debt to Total Capital is 59.41, while its Total Debt to Total Assets stands at 33.95. Looking toward the future, this publicly-traded companys Long-Term Debt to Equity is 143.25, and its Long-Term Debt to Total Capital is 58.15.

What about valuation? This companys Enterprise Value to EBITDA is 6.59 and its Total Debt to EBITDA Value is 2.19. The Enterprise Value to Sales for this firm is now 2.60, and its Total Debt to Enterprise Value stands at 0.25. CF Industries Holdings Inc. [CF] has a Price to Book Ratio of 3.56, a Price to Cash Flow Ratio of 7.03 and P/E Ratio of 11.65. These metrics all suggest that CF Industries Holdings Inc. is more likely to generate a positive ROI.

CF Industries Holdings Inc. [CF] has 239.01M shares outstanding, amounting to a total market cap of 6.18B. Its stock price has been found in the range of 19.73 to 55.15. At its current price, it has moved down by -53.13% from its 52-week high, and it has moved up 31.02% from its 52-week low.

This stocks Beta value is currently 1.20, which indicates that it is 6.37% more volatile that the wider market. This stocks Relative Strength Index (RSI) is at 41.86. This RSI score is good, suggesting this stock is neither overbought or oversold.

Shares of CF Industries Holdings Inc. [CF], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this companys financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.

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Why CF Industries Holdings Inc. [CF] is a Good Long-Term Investment - The Dwinnex