Aureus
AExcellent

CF Industries Holdings, Inc.(CF)

A

Financial data as of Dec 31, 2025Improving · Materials

FCF Margin25.4%Free Cash Flow / Revenue
Cash Conversion189.1%Operating CF / Net Income
Free Cash Flow$1.8B
Revenue$7.1B
Net Cash-$1.7BNet debt position
Debt / FCF2.0xManageable debt load
Current Ratio3.37Adequate short-term liquidity
YoY FCF Growth+41.0%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 (25.4%, 2.0x)
→
+1Strong YoY FCF growth (41.0% YoY)
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (25.4%)
  • Excellent cash conversion (189%)
  • Strong liquidity (current ratio: 3.37)
  • Strong YoY FCF growth (+41.0%)

Concerns

  • Net debt position ($1.7B) — 2.0x FCF, manageable

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin25.4%
Net Margin20.5%
Operating CF Margin38.8%
CapEx Ratio13.4%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$1.7BNet debt position
Debt / FCF2.0xManageable debt load
Current Ratio3.37Strong liquidity
Debt / Equity0.75Low leverage

Quarterly FCF Trend

+41.0% YoYImproving (+41.0%)

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$7.1B
Net Income$1.5B
Operating Cash Flow$2.8B
Capital Expenditure$951.0M
FCF Margin25.4%
Cash Conversion Rate189.1%
Net Margin20.5%
Total Debt$3.6B
Total Cash$2.0B
Net Cash-$1.7B
Current Ratio3.37
Debt / Equity0.75
Debt / FCF2.0x
YoY FCF Growth+41.0%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
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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