CF Industries Promotes Growth

That basic sector includes thirteen industries all related to mining, making and delivering essential commodities. The industries are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; industrial metals and minerals; paper; silver; specialty chemicals; steel.

Today I'm reviewing a large-cap agricultural inputs company.

The company's name is CF Industries Holdings, Inc.

 It's trading ticker symbol is CF.  

CF Industries Holdings Inc is a leading producer and distributor of nitrogen fertilizers. The company operates various nitrogen facilities in America UK, and Canada. It primarily serves the international agriculture sector.

The company operates through Ammonia, Granular Urea, UAN, AN, and Other segments. 

Its principal nitrogen fertilizer products include ammonia, granular urea, urea ammonium nitrate, and ammonium nitrate. The company also offers diesel exhaust fluid, urea liquor, nitric acid, and aqua ammonia, as well as compound fertilizer products with nitrogen, phosphorus, and potassium.

 It offers products primarily to cooperatives, independent fertilizer distributors, farmers, and industrial users. 

CF Industries Holdings, Inc. was founded in 1946 and is headquartered in Deerfield, Illinois.

I use three key data points gauge the value of any dividend equity or fund like CF Industries Holdings, Inc.: 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest. 

No matter what, it's the first three primary traits that best tell whether a company has made, is making, and will make money. 

CF Price

CF's price was $42.89 per share at yesterday's market close.  A year ago its price was $26.10 for a gain of $16.79 per share in the past year.  

Assuming CF's price will continue to trade in the range of $30.00 to $55.00 next year, its price could grow another $8.40 (half the past year gain) from $42.89 to $51.29 by June 8, 2019. 

CF Dividends

CF's most recently declared quarterly dividend was $0.30 per share paid in May. That $0.30 quarterly dividend equates to an estimated annual payout of $1.20 for 2018 which yields 2.8% at yesterday's $42.89 closing stock price.  

Gains For CF?

CF's $8.40 estimated year over year price gain plus an anticipated dividend of  $1.20 makes a projected gross annual gain of $9.60 per share, which will be reduced by the costs to trade those shares.  

$1,000.00 invested today at the $42.89 price buys 23 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts $0.43 per share.

Taking that $0.43 brokerage cost out of the estimated $9.60 gross gain per share leaves a net gain of $9.17 X 23 shares 

= $210.91

or a 21% potential net gain on a $986.47 investment.

Therefore, CF Industries Holdings, Inc. now shows a possible 21% net gain including a 2.8% dividend yield. 

Twenty analysts cover this stock:

Three say "buy" CF.

Two say CF will "outperform."

Eleven say "hold" the stock.

Three say CF will "underperform."

One says "sell" CF.

The median analyst recommendation is 2.85 or "Hold" and their median price target is $1.5 below the current number of $42.89.

Y Charts rates CF "neutral" for an overall "Y" rating. Y Charts also shows "Average" for a Value score of 7 out of ten points. And YCharts ranks CF "strong" with 8 out of 10  possible Fundamental points. Y Charts Historic Valuation score is 32.9% overvalued, based on a $32.28 historic value multiple.

You could look at all those numbers like this: CF Industries Holdings, Inc. has made money, is making money, and could net a 0% to 21% net gain next year including a 2.8% dividend yield. It could be more, it could be less.

The above speculation is conjecture based on past year performance. Actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if CF Industries Holdings, Inc. is worth your time and money.

Disclaimer: For more information and to get a two-week free sample of my stock portfolios just click on this link. Click ...

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