CF Industries Holdings (HAM:C4F) Beneish M-Score : -2.16 (As of May. 17, 2024)

View and export this data going back to 2015. Start your Free Trial

What is CF Industries Holdings Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.16 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for CF Industries Holdings's Beneish M-Score or its related term are showing as below:

HAM:C4F' s Beneish M-Score Range Over the Past 10 Years
Min: -3.43 Med: -2.6 Max: -1.78
Current: -2.16

During the past 13 years, the highest Beneish M-Score of CF Industries Holdings was -1.78. The lowest was -3.43. And the median was -2.60.

CF Industries Holdings Beneish M-Score Historical Data

The historical data trend for CF Industries Holdings's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

CF Industries Holdings Beneish M-Score Chart

CF Industries Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.94

-2.56

-2.62

-2.24

-2.60

CF Industries Holdings Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.66	-3.15	-3.12	-2.60	-2.16

Competitive Comparison of CF Industries Holdings's Beneish M-Score

For the Agricultural Inputs subindustry, CF Industries Holdings's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

CF Industries Holdings's Beneish M-Score Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, CF Industries Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where CF Industries Holdings's Beneish M-Score falls into.

CF Industries Holdings Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of CF Industries Holdings for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.9229

0.528 * 1.4135

0.404 * 1.2766

0.892 * 0.5686

0.115 * 1.0343

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.7155

4.679 * -0.078591

0.327 * 0.9232

-2.15

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was €492 Mil.
Revenue was 1352.4 + 1440.607 + 1192.801 + 1638.325 = €5,624 Mil.
Gross Profit was 376.28 + 459.417 + 353.249 + 742.092 = €1,931 Mil.
Total Current Assets was €2,501 Mil.
Total Assets was €12,752 Mil.
Property, Plant and Equipment(Net PPE) was €6,644 Mil.
Depreciation, Depletion and Amortization(DDA) was €846 Mil.
Selling, General, & Admin. Expense(SGA) was €280 Mil.
Total Current Liabilities was €635 Mil.
Long-Term Debt & Capital Lease Obligation was €2,889 Mil.
Net Income was 178.48 + 251.258 + 153.668 + 486.421 = €1,070 Mil.
Non Operating Income was 2.76 + 23.842 + -45.913 + 5.538 = €-14 Mil.
Cash Flow from Operations was 409.4 + 440.16 + 579.066 + 657.176 = €2,086 Mil.

Total Receivables was €450 Mil.
Revenue was 1879.208 + 2461.952 + 2344.21 + 3205.994 = €9,891 Mil.
Gross Profit was 806.042 + 1185.664 + 925.16 + 1883.486 = €4,800 Mil.
Total Current Assets was €3,594 Mil.
Total Assets was €12,514 Mil.
Property, Plant and Equipment(Net PPE) was €6,148 Mil.
Depreciation, Depletion and Amortization(DDA) was €813 Mil.
Selling, General, & Admin. Expense(SGA) was €287 Mil.
Total Current Liabilities was €805 Mil.
Long-Term Debt & Capital Lease Obligation was €2,940 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(492.2 / 5624.133)	/	(450.188 / 9891.364)
	=	0.087516	/	0.045513
	=	1.9229

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(4800.352 / 9891.364)	/	(1931.038 / 5624.133)
	=	0.485307	/	0.343349
	=	1.4135

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (2501.48 + 6644.24) / 12752.12)	/	(1 - (3594.032 + 6147.588) / 12513.732)
	=	0.282808	/	0.221526
	=	1.2766

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	5624.133	/	9891.364
	=	0.5686

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(813.484 / (813.484 + 6147.588))	/	(846.317 / (846.317 + 6644.24))
	=	0.116862	/	0.112985
	=	1.0343

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(279.901 / 5624.133)	/	(286.962 / 9891.364)
	=	0.049768	/	0.029011
	=	1.7155

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((2888.8 + 634.8) / 12752.12)	/	((2940.232 + 805.108) / 12513.732)
	=	0.276315	/	0.299298
	=	0.9232

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(1069.827 - -13.773	-	2085.802)	/	12752.12
	=	-0.078591

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

CF Industries Holdings has a M-score of -2.15 suggests that the company is unlikely to be a manipulator.

CF Industries Holdings Beneish M-Score Related Terms

Thank you for viewing the detailed overview of CF Industries Holdings's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

CF Industries Holdings (HAM:C4F) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » CF Industries Holdings Inc (HAM:C4F) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

CF:USA C4F:Germany

Address

4 Parkway North, Suite 400, Deerfield, IL, USA, 60015

Website

https://www.cfindustries.com

CF Industries is a leading producer and distributor of nitrogen, which is primarily used in fertilizers. The company operates nitrogen manufacturing plants primarily in North America. CF also produces nitrogen in the United Kingdom and holds a joint venture interest in a nitrogen production facility in Trinidad and Tobago. CF makes nitrogen primarily using low-cost U.S. natural gas as its feedstock, making CF one of the lowest-cost nitrogen producers globally. The company is also investing in carbon-free blue and green ammonia, which can be used an alternative fuel to hydrogen or as a means to transport hydrogen.

CF Industries Holdings (HAM:C4F) Headlines

No Headlines