While most may think of ammonia as a harmful chemical, it is used in the production of countless products leading to a market size of over USD 75 billion annually. CF Industries Holdings, Inc. (NYSE: CF) manufactures and sells ammonia products, which are used in energy production, fertilizer, emissions abatement, and other industrial activities. As of today, they are the world’s largest producer of ammonia leading to net earnings of USD 2.49 billion through the first nine months of 2022.
Comps: Sociedad Química y Minera de Chile S.A. (NYSE: SQM), Air Products and Chemicals, Inc. (NYSE: APD)
To compare, all 3 enterprises are worth well over USD 10 billion and both Sociedad Química y Minera de Chile and Air Products and Chemicals compete directly with CF Industries Holdings, allowing for a like-for-like comparison. With this in mind, CF Industries Holdings achieved a higher price to earnings than both. Furthermore, they exhibited a higher profit margin as well as better return and debt relative to their equity relative to Air Products and Chemicals.