Recent News
On February 18, 2026 the company confirmed its quarterly results schedule and conference call timing; the firm also announced participation at investor conferences in late February. The company distributed its annual meeting materials scheduling the 2026 virtual annual meeting for April 28, 2026. Additional industry commentary in March highlighted strategic positioning in low-carbon hydrogen and analyst coverage noted upward revisions to select price targets.
Technical Analysis
ADX at 16.19 indicates no established trend; this reduces conviction for a sustained directional move and complements the valuation view that the stock currently sits below modeled upside. In this environment, price reactions to fundamental catalysts will likely determine direction rather than a dominant technical trend.
Directional Indicators: DI+ at 32.41 shows a recent peak-and-reversal, a bearish signal per the DI+ peak-and-reverse rule; DI- at 29.76 also shows a peak-and-reversal, which reads as bullish when DI- decreases. Those opposing DI signals create short-term directional ambiguity and temper the ascent implied by valuation support.
MACD sits at 0.94 with a dip-and-reversal trend, indicating bullish momentum development; however MACD remains below its signal line (1.85), so a confirming MACD crossover has yet to occur. Momentum must sustain above the signal line before technical momentum aligns with fundamental strength.
MRO at 20.02 sits positive and has peaked and reversed, meaning price sits above the WMDST target framework and faces downside pressure until momentum rebalances; this argues for cautious near-term positioning despite favorable fundamentals.
RSI of 56.79 with a decreasing trend signals waning upside momentum and a tilt toward consolidation. Price remains above major long-term averages (price close $123.63 versus 200-day average $93.62), which supports the longer-term valuation case even as short-term oscillators cool.
Fundamental Analysis
Profitability: EBIT of $641,000,000 and EBITDA of $869,000,000 produce an EBIT margin of 34.24%, which sits above the industry peer range high of 30.753% and materially above the industry peer mean (19.038%) and median (26.061%). QoQ, EBIT margin fell by 5.64%, while YoY EBIT margin improved by 11.50%. High margins provide valuation support and explain the under-valued assessment despite near-term margin compression QoQ.
Earnings and cash flow: Reported EPS of $2.59 beat the $2.35 estimate by $0.24, a 10.21% surprise. Operating cash flow reached $539,000,000 and free cash flow totaled $313,000,000, producing a free cash flow yield of 2.34% and a free-cash-to-net-income ratio of 77.48%. Cash on hand of $1,982,000,000 and a cash ratio of 2.23 bolster liquidity and provide flexibility for capital allocation.
Leverage and coverage: Total debt stands at $3,636,000,000 with net debt $1,233,000,000 and debt-to-EBITDA roughly 4.18x; interest coverage at 16.44x indicates ample ability to service interest. Debt-to-equity of 0.75 and debt-to-assets of 25.81% show moderate leverage relative to the balance sheet size.
Operational efficiency: Asset turnover at 0.132 increased QoQ by 11.49% and YoY by 18.57%, indicating improved asset utilization. Inventory turnover near 2.95 and a cash conversion cycle of ~20.4 days reflect efficient working-capital management; change in working capital contributed a $285,000,000 release during the period.
Valuation metrics: Price-to-earnings at 33.58 and forward P/E of 46.60 reflect elevated multiples relative to historical norms, while enterprise multiple of 17.27 and EV/revenue near 8.02 reflect the market’s premium for CF’s margins and growth prospects. WMDST values the stock as under-valued in the current context, given strong margin and cash-flow characteristics relative to the peer benchmarks provided.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-18 |
| NEXT REPORT DATE: | 2026-05-20 |
| CASH FLOW | Begin Period Cash Flow | $ 1.8 B |
| Operating Cash Flow | $ 539.0 M | |
| Capital Expenditures | $ -226.00 M | |
| Change In Working Capital | $ -285.00 M | |
| Dividends Paid | $ -78.00 M | |
| Cash Flow Delta | $ 144.0 M | |
| End Period Cash Flow | $ 2.0 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.9 B | |
| Forward Revenue | $ 415.7 M | |
| COSTS | ||
| Cost Of Revenue | $ 1.1 B | |
| Depreciation | $ 228.0 M | |
| Depreciation and Amortization | $ 228.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 1.2 B | |
| PROFITABILITY | ||
| Gross Profit | $ 765.0 M | |
| EBITDA | $ 869.0 M | |
| EBIT | $ 641.0 M | |
| Operating Income | $ 681.0 M | |
| Interest Income | $ 24.0 M | |
| Interest Expense | $ 39.0 M | |
| Net Interest Income | $ -17.00 M | |
| Income Before Tax | $ 602.0 M | |
| Tax Provision | $ 107.0 M | |
| Tax Rate | 17.774 % | |
| Net Income | $ 404.0 M | |
| Net Income From Continuing Operations | $ 495.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.35 | |
| EPS Actual | $ 2.59 | |
| EPS Difference | $ 0.24 | |
| EPS Surprise | 10.213 % | |
| Forward EPS | $ 2.34 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 14.1 B | |
| Intangible Assets | $ 3.0 B | |
| Net Tangible Assets | $ 1.9 B | |
| Total Current Assets | $ 3.0 B | |
| Cash and Short-Term Investments | $ 2.0 B | |
| Cash | $ 2.0 B | |
| Net Receivables | $ 444.0 M | |
| Inventory | $ 383.0 M | |
| Long-Term Investments | $ 308.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 148.0 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 887.0 M | |
| Net Debt | $ 1.2 B | |
| Total Debt | $ 3.6 B | |
| Total Liabilities | $ 6.3 B | |
| EQUITY | ||
| Total Equity | $ 4.8 B | |
| Retained Earnings | $ 3.9 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 31.51 | |
| Shares Outstanding | 153.552 M | |
| Revenue Per-Share | $ 12.19 | |
| VALUATION | Market Capitalization | $ 13.4 B |
| Enterprise Value | $ 15.0 B | |
| Enterprise Multiple | 17.271 | |
| Enterprise Multiple QoQ | -7.205 % | |
| Enterprise Multiple YoY | -27.611 % | |
| Enterprise Multiple IPRWA | high: 201.531 median: 69.978 mean: 63.986 CF: 17.271 low: -65.785 |
|
| EV/R | 8.017 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.912 | |
| Asset To Liability | 2.232 | |
| Debt To Capital | 0.429 | |
| Debt To Assets | 0.258 | |
| Debt To Assets QoQ | 7.942 % | |
| Debt To Assets YoY | 7.069 % | |
| Debt To Assets IPRWA | high: 0.677 mean: 0.369 median: 0.323 CF: 0.258 low: 0.005 |
|
| Debt To Equity | 0.752 | |
| Debt To Equity QoQ | 7.311 % | |
| Debt To Equity YoY | 15.419 % | |
| Debt To Equity IPRWA | high: 3.443 mean: 1.199 CF: 0.752 median: 0.734 low: -2.333 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.76 | |
| Price To Book QoQ | -2.195 % | |
| Price To Book YoY | -7.067 % | |
| Price To Book IPRWA | high: 7.87 median: 5.316 mean: 4.042 CF: 2.76 low: -3.248 |
|
| Price To Earnings (P/E) | 33.579 | |
| Price To Earnings QoQ | -15.266 % | |
| Price To Earnings YoY | -31.037 % | |
| Price To Earnings IPRWA | high: 152.705 median: 134.49 mean: 97.81 CF: 33.579 low: -249.678 |
|
| PE/G Ratio | 1.838 | |
| Price To Sales (P/S) | 7.134 | |
| Price To Sales QoQ | -13.52 % | |
| Price To Sales YoY | -26.574 % | |
| Price To Sales IPRWA | high: 23.197 median: 18.503 mean: 16.351 CF: 7.134 low: 0.853 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 46.599 | |
| Forward PE/G | 2.551 | |
| Forward P/S | 43.05 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 0.505 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.132 | |
| Asset Turnover Ratio QoQ | 11.491 % | |
| Asset Turnover Ratio YoY | 18.574 % | |
| Asset Turnover Ratio IPRWA | high: 0.321 CF: 0.132 mean: 0.132 median: 0.101 low: 0.003 |
|
| Receivables Turnover | 3.579 | |
| Receivables Turnover Ratio QoQ | 28.158 % | |
| Receivables Turnover Ratio YoY | 0.992 % | |
| Receivables Turnover Ratio IPRWA | CF: 3.579 high: 3.277 median: 1.702 mean: 1.67 low: 0.278 |
|
| Inventory Turnover | 2.952 | |
| Inventory Turnover Ratio QoQ | -1.84 % | |
| Inventory Turnover Ratio YoY | -9.226 % | |
| Inventory Turnover Ratio IPRWA | CF: 2.952 high: 2.694 median: 2.174 mean: 1.774 low: 0.542 |
|
| Days Sales Outstanding (DSO) | 25.493 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 20.429 | |
| Cash Conversion Cycle Days QoQ | 367.243 % | |
| Cash Conversion Cycle Days YoY | -7.973 % | |
| Cash Conversion Cycle Days IPRWA | high: 253.698 mean: 56.493 median: 40.342 CF: 20.429 low: -25.808 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.892 | |
| CapEx To Revenue | -0.121 | |
| CapEx To Depreciation | -0.991 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 8.1 B | |
| Net Invested Capital | $ 8.1 B | |
| Invested Capital | $ 8.1 B | |
| Net Tangible Assets | $ 1.9 B | |
| Net Working Capital | $ 2.1 B | |
| LIQUIDITY | ||
| Cash Ratio | 2.235 | |
| Current Ratio | 3.365 | |
| Current Ratio QoQ | 48.036 % | |
| Current Ratio YoY | 9.238 % | |
| Current Ratio IPRWA | CF: 3.365 high: 3.342 mean: 1.178 median: 0.877 low: 0.797 |
|
| Quick Ratio | 2.933 | |
| Quick Ratio QoQ | 47.18 % | |
| Quick Ratio YoY | 8.776 % | |
| Quick Ratio IPRWA | CF: 2.933 high: 2.289 mean: 0.867 median: 0.742 low: 0.471 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 4.184 | |
| Cost Of Debt | 0.912 % | |
| Interest Coverage Ratio | 16.436 | |
| Interest Coverage Ratio QoQ | 1.018 % | |
| Interest Coverage Ratio YoY | 22.918 % | |
| Interest Coverage Ratio IPRWA | high: 16.611 CF: 16.436 median: 8.366 mean: 7.316 low: -6.068 |
|
| Operating Cash Flow Ratio | 0.232 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 38.384 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 5.179 | |
| Dividend Payout Ratio | 0.193 | |
| Dividend Rate | $ 0.51 | |
| Dividend Yield | 0.006 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -0.81 % | |
| Revenue Growth | 12.839 % | |
| Revenue Growth QoQ | -205.048 % | |
| Revenue Growth YoY | 14.216 % | |
| Revenue Growth IPRWA | high: 42.575 % CF: 12.839 % median: -2.034 % mean: -3.325 % low: -23.729 % |
|
| Earnings Growth | 18.265 % | |
| Earnings Growth QoQ | -340.487 % | |
| Earnings Growth YoY | -45.611 % | |
| Earnings Growth IPRWA | high: 55.556 % CF: 18.265 % median: -20.293 % mean: -22.9 % low: -190.476 % |
|
| MARGINS | ||
| Gross Margin | 40.865 % | |
| Gross Margin QoQ | 7.271 % | |
| Gross Margin YoY | 18.852 % | |
| Gross Margin IPRWA | high: 60.41 % median: 48.117 % mean: 40.984 % CF: 40.865 % low: 5.793 % |
|
| EBIT Margin | 34.241 % | |
| EBIT Margin QoQ | -5.638 % | |
| EBIT Margin YoY | 11.502 % | |
| EBIT Margin IPRWA | CF: 34.241 % high: 30.753 % median: 26.061 % mean: 19.038 % low: -14.049 % |
|
| Return On Sales (ROS) | 36.378 % | |
| Return On Sales QoQ | 5.142 % | |
| Return On Sales YoY | 18.46 % | |
| Return On Sales IPRWA | CF: 36.378 % high: 32.733 % median: 24.384 % mean: 19.675 % low: -3.006 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 313.0 M | |
| Free Cash Flow Yield | 2.344 % | |
| Free Cash Flow Yield QoQ | -55.259 % | |
| Free Cash Flow Yield YoY | 56.371 % | |
| Free Cash Flow Yield IPRWA | high: 12.585 % CF: 2.344 % mean: 1.071 % median: 0.773 % low: -6.674 % |
|
| Free Cash Growth | -56.346 % | |
| Free Cash Growth QoQ | -144.654 % | |
| Free Cash Growth YoY | -21.709 % | |
| Free Cash Growth IPRWA | high: 228.736 % median: -5.981 % mean: -23.586 % CF: -56.346 % low: -332.845 % |
|
| Free Cash To Net Income | 0.775 | |
| Cash Flow Margin | 11.004 % | |
| Cash Flow To Earnings | 0.51 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.856 % | |
| Return On Assets QoQ | 13.064 % | |
| Return On Assets YoY | 18.901 % | |
| Return On Assets IPRWA | high: 4.12 % CF: 2.856 % median: 1.771 % mean: 1.316 % low: -2.582 % |
|
| Return On Capital Employed (ROCE) | 4.856 % | |
| Return On Equity (ROE) | 0.084 | |
| Return On Equity QoQ | 14.712 % | |
| Return On Equity YoY | 26.915 % | |
| Return On Equity IPRWA | high: 0.104 CF: 0.084 mean: 0.041 median: 0.04 low: -0.096 |
|
| DuPont ROE | 8.341 % | |
| Return On Invested Capital (ROIC) | 6.545 % | |
| Return On Invested Capital QoQ | 4.486 % | |
| Return On Invested Capital YoY | -74.789 % | |
| Return On Invested Capital IPRWA | CF: 6.545 % high: 5.897 % median: 2.664 % mean: 2.301 % low: -3.838 % |
|