CF Industries Holdings Inc. is the holding company for the operations of CF Industries Inc. Founded in 1946, CF Industries is a global leader in fertilizer manufacturing and distribution, the second largest nitrogen fertilizer producer in the world and the third largest phosphate fertilizer producer among public companies. CF Industries owns and operates world-scale nitrogen and phosphate plants and serves agricultural and industrial customers through its best-in-class distribution system.
The market cap of CF Industries Holdings Inc. is $13.48 billion; its shares were traded at around $222.82 with a P/E ratio of 7.9 and a P/S ratio of 2.2. Their enterprise value is 13.7 billion and the P/B is 2.6. The dividend yield of their stocks is at 0.7%. Over the past five years they had an annual average earnings growth of 52.7%.
2012 Second Quarter SEC Report
Their second quarter earnings reports a strong profitability as a result of robust nitrogen demand and low natural gas prices. Record quarterly earnings before interest, taxes, depreciation and amortization (EBITDA) of $1,054.4 million compared to $889.2 million in the second quarter of 2011. Their net sales reported $3.3 billion as compared to $3.0 billion in the same period of 2011. The sales measure 7.7 million tons, including record 6.7 million tons of nitrogen products.
Nitrogen sales were unchanged during the 2012 second quarter as compared to the 2011 same period. A lower realized natural gas price contributed to a 29 percent decline in cost of sales. Ammonia, granular urea, urea ammonium nitrate solutions (UAN), ammonium nitrate (AN) and other nitrogen products sold at $3.5 million in the 2012 second quarter as compared to $3.8 million in the 2011 same period. Their phosphate net sales were $231.5 million in the 2012 second quarter as compared to $296.6 million in the 2011 same period.
During this period, the company repurchased 3.5 million shares of its common stock for $300 million, a share price of $163.89. This buy was part of a company repurchase program that was approved in August 2011. The Board of Directors approved an expenditure of up to $3.0 billion for the purchasing of company stock that will go through until December 31, 2016.
The following reflects Mr. Wilson’s trade history over the last three years:
- 11/15/10 sold 9,600 shares at $120.58/share
- 12/15/10 sold 10,000 shares at $117.30/share
- 1/18/11 sold 19,600 shares at $146.13/share
- 2/15/11 sold 70,000 shares at $145.41/share
- 3/15/11 sold 40,000 shares at $120.95/share
- 4/15/11 sold 70,000 shares at $130.68/share
- 5/16/11 sold 70,000 shares at $136.51/share
- 6/15/11 sold 70,000 shares at $151.48/share
- 7/15/11 sold 50,000 shares at $150.62/share
- 8/15/11 sold 20,000 shares at $168.28/share
- 9/15/11 sold 20,000 shares at $180.11/share
- 10/17/11 sold 20,000 shares at $416.13/share
- 11/15/11 sold 20,000 shares at $170.67/share
- 12/15/11 sold 10,000 shares at $130.18/share
- 1/23/12 sold 50,000 shares at $175.39/share
- 2/2/12 sold 50,000 shares at $178.62/share
- 3/15/12 sold 50,000 shares at $182.38/share
- 4/16/12 sold 50,000 shares at $184.77/share
- 5/15/12 sold 25,000 shares at $166.39/share
- 6/15/12 sold 25,000 shares at $163.42/share
- 7/16/12 sold 50,000 shares at $194.39/share
- 8/15/12 sold 75,000 shares at $209.53/share
- 9/17/12 sold 25,000 shares at $220.25/share
Insiders who bought CF stock since 2010 are the following:
- Lynn F. White, Vice President of Corporate Development, bought 2,700 shares at $73.99/share on 5/12/10
- Robert C. Arzbaecher, Director, bought 1,900 shares at $73.46/share on 5/12/10
- W. Anthony Will, Vice President of Manufacturing & Distribution, bought 1,300 shares at $69.82/share on 5/17/10
- Stephen A. Furbacher, Director, bought 1,646 shares at $60.65/share on 6/9/10
CF Industries Holding Inc. are expecting high 2013 corn planting, strong global demand, tight domestic nitrogen supply and favorable natural gas costs which are working towards a supportive operating environment into 2013. Many global factors are attributing to a healthy outlook for CF Industries Holdings Inc. such as global population growth, need for more grain and plant nutrients, and higher protein diets.
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