CF - Embedded Expectations Analysis - 2020 04 08
ï€ CF Industries Holdings, Inc. (CF:USA) currently trades below recent averages relative to UAFRS-based (Uniform) earnings, with a 27.8x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management appears concerned about their supply chain in China, Urea demand, and UAN productionï€ Specifically, management may be exaggerating the demand for ammonia and urea, particularly in India and Brazil, and they may be concerned about ammonia inventory levels and global UAN production. Moreover, they may lack confidence in their ability to sustain peer group outperformance and record ammonia production. Furthermore, they may be concerned about the potential of their asset investments and tank additions and the supply chain impact of COVID-19. Also, they may be exaggerating their logistics capabilities and their UAN margin structure strength
CF Industries Holdings is a global fertilizer and chemical company. The company's principal nitrogen fertilizer products are anhydrous ammonia, granular urea, urea ammonium nitrate solution and ammonium nitrate. The company's other nitrogen products include diesel exhaust fluid, urea liquor, nitric acid and aqua ammonia, which are sold primarily to its industrial customers, and compound fertilizer products, which are solid granular fertilizer products for which the nutrient content is a combination of nitrogen, phosphorus, and potassium. The company serves its customers in North America through its production, storage, transportation and distribution network.
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