Is CF a high-quality business?

AlphaMadera's AlphaQuality grade scores CF Industries Holdings, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how CF compares to a Buffett-style quality bar.

What is CF Industries Holdings, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to CF based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes CF a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

CF - CF Industries Holdings, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $109.44 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

B+ 76.3 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

B 70.4

5yr Avg ROIC 25.3% 100/100
Operating Margin Trend -1.93 pp/yr 1/100

Capital Efficiency

Weight: 15%

A+ 100.0

5yr Avg ROE 35.0% 100/100
5yr Share-Count CAGR -6.9% 100/100

Growth Quality

Weight: 10%

B- 62.1

5yr Revenue CAGR 2.0% 37/100
5yr EPS CAGR 20.6% 96/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 15%

A+ 95.4

5yr FCF Margin 31.1% 100/100
5yr FCF/NI Conversion 1.55x 90/100

Balance Sheet

Weight: 25%

A 88.2

Net Debt / EBITDA 0.60x 89/100
Interest Coverage (EBIT/Int) 15.45x 93/100
Altman Z-Score 3.06 81/100

Stability

Weight: 20%

D+ 40.3

EPS Volatility (σ/μ) 0.89 4/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 2/5 60/100

5 of 5 gurus held; 1 new buy; 3 added; 1 trimmed.

Holders: 5 +1
Avg Δ position: +156.5%
New buys: 1
Full exits: 0

Soros new
Wood increased +350%
Cooperman increased +300%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.