CF
CF Industries Holding, Inc.
stock NYSE

I fully understand. So let's say the PE and P/CF moves like a sinus curve. Do you buy it when the PE reach the level of its past peaks from previous cycles? What if it earnings are negative (no PE value available)?

I fully understand. So let's say the PE and P/CF moves like a sinus curve. Do you buy it when the PE reach the level of its past peaks from previous cycles? What if it earnings are negative (no PE value available)?

Revenue miss and CF disappointing and no raise in guidance. Oh and the investor relations call was garbage oh and leadership doesn’t know what they are doing. So it’ll go down to 50 maybe then it might be interesting to buy

**Trailing Twelve Months (TTM):**
**•** Revenue: $3.73B
**•** Net Income: $763.2M (9 consecutive profitable quarters)
**•** Free Cash Flow: $740.8M (Op. CF $759.9M / CapEx $19.1M)
**•** EBITDA (Adj.): $376.4M
**•** Gross Profit: $1.28B (34.4% margin)
**•** Operating Income: $386.2M (10.3% margin)
**•** Adjusted Net Income: $743.6M (excl. derivative gain, BTC, impairments)
**•** Adjusted EPS: $1.66 (GAAP TTM EPS: $1.71 basic)
Hardware $333.7M (40%) — Software $152.7M (18%) — Collectibles $348.9M (42%, +65% YoY) — Collectibles is now the largest category.
Numbers don’t lie. Nothing irrelevant about these number chum

Decent track record
**Trailing Twelve Months (TTM):**
* Revenue: $3.73B
* Net Income: $763.2M (9 consecutive profitable quarters)
* Free Cash Flow: $740.8M (Op. CF $759.9M / CapEx $19.1M)
* EBITDA (Adj.): $376.4M
* Gross Profit: $1.28B (34.4% margin)
* Operating Income: $386.2M (10.3% margin)
* Adjusted Net Income: $743.6M (excl. derivative gain, BTC, impairments)
* Adjusted EPS: $1.66 (GAAP TTM EPS: $1.71 basic)

There are two scenarios, is Nvidia investing in the company for cash and the company using the cash to buy chips or is Nvidia selling their chips for stock. These two have the same result because money is fungible but would show differently on the Cash Flow Statement but you will be able to see both scenarios.
If they receive stock as payment for the chips this wouldn’t show as OCF. It would be included in net income profit but would be reconciled out of OCF as an other non-cash item. The investment wouldn’t be a cash investment so that wouldn’t show on the cash flow statement because it isn’t a cash investment, and the only sign of this deal on cash flow profit is you would see inventory decline and they get nothing for it.
The more complicated scenario is if Nvidia gives a company cash in exchange for equity and the company uses that cash to purchase Nvidia chips. This scenario the investment wouldn’t be a show as non-capex CF from investing as an equity investment and the purchase would be OCF which would count towards FCF.
I am not sure how GAAP treats this but I would guess that if the investment agreement says the company will buy Nvidia chips it would be scenario 1 and if the company chooses to invest on their own it would be scenario 2. Regardless how Nvidia treats it, if you look at FCF - equity investments in cash flow from investing that should give you a conservative number that doesn’t include circular financing.