Why CF Industries Is Ready to Rebound

Brian Pacampara, The Motley Fool
Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fertilizer supplier has earned a coveted five-star ranking.

With that in mind, let's take a closer look at CF's business and see what CAPS investors are saying about the stock right now.

CF facts

Headquarters (Founded)

Deerfield, Ill. (1946)

Market Cap

$11.7 billion

Industry

Fertilizers and agricultural chemicals

Trailing-12-Month Revenue

$6.1 billion

Management

Chairman/CEO Dr. Stephen Wilson

CFO Dennis Kelleher

28.7%

Cash/Debt

$2.3 billion / $1.6 billion

Dividend Yield

0.9%

Competitors

Agrium

PotashCorp


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 840 members who have rated CF believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, Nehams, succinctly summed up the CF bull case for our community:

Demand for nitrogen, CF's core product, is relatively inelastic because it is also the most widely applied nutrient. Corn can't do without nitrogen, and the U.S. is all ready for record spring planting this year. Industry leadership, low debt, solid cash flows, great margins -- CF is a complete package. For all the goodness, CF is trading the cheapest among peers at current price. A golden opportunity for Fools.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a perfect five-star rating, CF may not be your top choice.

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The article Why CF Industries Is Ready to Rebound originally appeared on Fool.com.

Motley Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of CF Industries Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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