Q: Hello,
Can I please get your opinion of CF Holdings (CF). Would you prefer Nutrien? Thanks
Dave
Can I please get your opinion of CF Holdings (CF). Would you prefer Nutrien? Thanks
Dave
5i Research Answer:
CF is very cheap at 10X earnings and offers a 2% dividend. The stock has not done a lot in the past year. The balance sheet is quite strong, but earnings are expected to fall the next two years, largely due to pricing. NTR faces similar issues. It is a bit more expensive (12X) but the dividend is 3.4% and has shown good growth. It has a less-strong balance sheet, but more growth is expected in 2024 after a drop in earnings this year. This is mostly a tie. Both have industry worries, but both look OK for a longer term sector investment. NTR of course gets the dividend tax credit and CF dividends would have a 15% withholding tax on most account, which would make us prefer NTR for a taxable Canadian account.