Aureus
AExcellent

CF Industries Holdings, Inc.(CF)

A

Financial data as of Dec 31, 2024Stable · Materials

FCF Margin29.5%Free Cash Flow / Revenue
Cash Conversion186.5%Operating CF / Net Income
Free Cash Flow$1.8B
Revenue$5.9B
Net Cash-$1.6BNet debt position
Debt / FCF1.9xManageable debt load
Current Ratio3.08Adequate short-term liquidity
YoY FCF Growth-9.5%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (29.5%, 1.9x)
→
+1Very low debt-to-FCF ratio (1.9x)
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (29.5%)
  • Excellent cash conversion (186%)
  • Very low debt relative to cash flow (1.9x)
  • Strong liquidity (current ratio: 3.08)

Concerns

  • Net debt position ($1.6B)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin29.5%
Net Margin20.5%
Operating CF Margin38.3%
CapEx Ratio8.8%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$1.6BNet debt position
Debt / FCF1.9xManageable debt load
Current Ratio3.08Strong liquidity
Debt / Equity0.65Low leverage

Quarterly FCF Trend

-9.5% YoYStable (-9.5%)

Free cash flow per quarter

Sector Comparison — Materials

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameCF Industries Holdings, Inc.
SectorMaterials
Free Cash Flow$1.8B
Revenue$5.9B
Net Income$1.2B
Operating Cash Flow$2.3B
Capital Expenditure$521.0M
FCF Margin29.5%
Cash Conversion Rate186.5%
Net Margin20.5%
Total Debt$3.2B
Total Cash$1.6B
Net Cash-$1.6B
Current Ratio3.08
Debt / Equity0.65
Debt / FCF1.9x
YoY FCF Growth-9.5%
Positive Quarters5 of 5
Trend DirectionStable
Report DateDec 31, 2024
GradeA
Data SourceYahoo Finance

Related Research

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Sector Report5 min read

Materials: Six A-Grades and Six Total Failures

The materials sector splits cleanly in half: six companies generating real cash, six burning through it. CF's 29.5% margin sits 1,800 basis points above the sector median.

Feb 13, 2026
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