CF Industries Holdings Inc.CF

Morningstar Rating

Stock Research and Analysis

by Ben Johnson

CF Industries is getting a lift from higher corn acreage in North America. This no-moat firm should generate piles of cash over the near term, but its long-term prospects hinge on how it ultimately allocates these funds in order to improve its cost Read more

Bulls Say

The recent decline in domestic natural gas prices has further improved CF's cost position vis-a-vis key exporters in Ukraine.

Access to the Valero VLO ammonia pipeline gives CF a substantial cost advantage in shipping product from the U.S. Gulf Coast to its Corn Belt customers. Read more

Bears Say

CF's restructured bid for Terra effectively prohibits shareholders from voicing their approval of the deal.

CF currently purchases all of its natural gas inputs from high-cost North American sources. Read more

Strategy

CF's bid for Terra would make it one of the largest nitrogen fertilizer producers in the world. The firm is also continuing to seek to diversify its raw-material base and geographic footprint in order Read more

Management

Stephen Wilson was named CEO in 2003; he had been CFO since joining the firm in 1991. Before CF, Wilson had an extended stay at Inland Steel. The firm's compensation policies are reasonable, and we are encouraged to see that incentive pay is determined Read more

Profile

CF Industries produces nitrogen and phosphate fertilizers for use in agriculture. CF's customers are primarily farmer cooperatives and independent fertilizer dealers in Read more

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