Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fertilizer supplier CF Industries
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.
|Headquarters (Founded)||Deerfield, Ill. (1946)|
|Market Cap||$12.2 billion|
|Industry||Fertilizers and agricultural chemicals|
|Trailing-12-Month Revenue||$5.13 billion|
Chairman/CEO Dr. Stephen Wilson
CFO Dennis Kelleher
|Return on Equity (Average, Past 3 Years)||23.9%|
|Cash/Debt||$1.36 billion / $1.62 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 1,159 members who have rated CF believe the stock will outperform the S&P 500 going forward. These bulls include jcelt and fellow Fool Thomas Engle (TMF1000), who is ranked in the top 5% of our community.
This past summer, jcelt tapped CF as a solid bargain opportunity: "Among the ag sector, this is a steal. ... Demand for fertilizer is growing at an astronomical rate, and this is a great way to profit off of this need."
In fact, CF currently sports a cheapish price-to-operating cash flow of 5.9. That represents a clear discount to industry peers like Agrium (35.6), PotashCorp. (15.1), and Mosaic
CAPS All-Star Thomas Engle elaborates on the bull case:
I think the fertilizer companies are very important holdings for me. I own Potash, but I feel CF is another good one. ... Last year, farmers held off on potash purchases, but you can't just keep delaying fertilizer purchases. If you do, the soil becomes depleted of nutrients and crops yield less. You can put it off just so long. This year, Potash recorded some big numbers which may have been a clue that CF would also do better.
What do you think about CF, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track CF? Add it to your watchlist.