RelianceCF Industries

Reliance vs CF Industries

This page compares Reliance and CF Industries Holdings, Inc., covering business models, financial performance, and market context to offer a clear, neutral view. It presents context, value drivers, an...

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Domestic Auto Suppliers | Stellantis $10B Opportunity

Domestic Auto Suppliers | Stellantis $10B Opportunity

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The Domestic Advantage: Tariff-Resistant Industrials

The Domestic Advantage: Tariff-Resistant Industrials

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U.S. Protectionism: American Advantage

U.S. Protectionism: American Advantage

This carefully selected group of stocks represents companies set to benefit from the new 35% tariff on Canadian imports. Our professional analysts have identified these U.S. businesses as being uniquely positioned to capture greater market share and increase their pricing power as foreign competition becomes more expensive.

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Investment Analysis

Reliance

Pros

  • Reliance Steel & Aluminum Co. has a strong market presence with diversified metal product offerings across various industries including aerospace and energy.
  • The company demonstrated solid Q3 2025 performance with operating cash flow of approximately $262 million, supporting strategic investments.
  • Analysts average a 'Buy' rating with a 12-month price target indicating potential upside of over 17%, reflecting positive medium-term growth expectations.

Considerations

  • Revenue and earnings decreased in 2024 by around 6.5% and 34.5% respectively, indicating recent profitability challenges.
  • The stock price has been under short-term downtrend pressure, with forecasts predicting declines through late 2025.
  • Falling trading volumes on higher prices signal potential weakening momentum and risk of trend reversal.
CF Industries

Pros

  • CF Industries is a leading producer and distributor of nitrogen fertilizers, operating with strong liquidity evidenced by a quick ratio above 2.
  • The company shows robust profitability metrics with a normalized return on equity exceeding 30%, well above industry peers.
  • Interest coverage ratio of nearly 14 indicates strong ability to meet interest obligations, demonstrating financial stability.

Considerations

  • CF Industries operates in a cyclical and commodity-sensitive sector, making it vulnerable to fluctuating fertilizer prices and agricultural demand.
  • The price-to-sales and price-to-book ratios are higher than some peers, suggesting relatively elevated valuation levels.
  • Exposure to regulatory changes in agricultural inputs and environmental policies could pose operational risks.

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