CORTEVA INC (CTVA) Stock Fundamental Analysis
NYSE:CTVA - New York Stock Exchange, Inc. - US22052L1044 - Common Stock - Currency: USD
CTVA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. While CTVA has a great profitability rating, there are some minor concerns on its financial health. CTVA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CTVA was profitable.
In the past year CTVA had a positive cash flow from operations.
In the past 5 years CTVA has always been profitable.
In the past 5 years CTVA always reported a positive cash flow from operatings.
1.2 Ratios
CTVA has a better Return On Assets (2.71%) than 61.18% of its industry peers.
With a Return On Equity value of 4.69%, CTVA perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
CTVA's Return On Invested Capital of 5.35% is in line compared to the rest of the industry. CTVA outperforms 57.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CTVA is in line with the industry average of 6.83%.
The last Return On Invested Capital (5.35%) for CTVA is above the 3 year average (4.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | 4.69% | ||
| ROIC | 5.35% |
ROA(3y)2.21%
ROA(5y)2.47%
ROE(3y)3.76%
ROE(5y)4.19%
ROIC(3y)4.97%
ROIC(5y)3.98%
1.3 Margins
The Profit Margin of CTVA (6.77%) is better than 75.29% of its industry peers.
In the last couple of years the Profit Margin of CTVA has declined.
The Operating Margin of CTVA (13.22%) is better than 72.94% of its industry peers.
In the last couple of years the Operating Margin of CTVA has grown nicely.
CTVA's Gross Margin of 44.63% is amongst the best of the industry. CTVA outperforms 90.59% of its industry peers.
CTVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.22% | ||
| PM (TTM) | 6.77% | ||
| GM | 44.63% |
OM growth 3Y13.79%
OM growth 5Y24.06%
PM growth 3Y-21.84%
PM growth 5YN/A
GM growth 3Y2.02%
GM growth 5Y2.77%
2. Health
2.1 Basic Checks
CTVA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CTVA has been reduced compared to 1 year ago.
The number of shares outstanding for CTVA has been reduced compared to 5 years ago.
CTVA has a worse debt/assets ratio than last year.
2.2 Solvency
CTVA has an Altman-Z score of 2.42. This is not the best score and indicates that CTVA is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.42, CTVA is doing good in the industry, outperforming 65.88% of the companies in the same industry.
CTVA has a debt to FCF ratio of 1.94. This is a very positive value and a sign of high solvency as it would only need 1.94 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.94, CTVA belongs to the top of the industry, outperforming 90.59% of the companies in the same industry.
CTVA has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
CTVA has a better Debt to Equity ratio (0.13) than 85.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.59
WACC9.09%
2.3 Liquidity
CTVA has a Current Ratio of 1.44. This is a normal value and indicates that CTVA is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.44, CTVA is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
A Quick Ratio of 1.00 indicates that CTVA may have some problems paying its short term obligations.
CTVA has a worse Quick ratio (1.00) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
CTVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.77%, which is quite good.
Measured over the past 5 years, CTVA shows a small growth in Earnings Per Share. The EPS has been growing by 6.18% on average per year.
CTVA shows a decrease in Revenue. In the last year, the revenue decreased by -0.01%.
Measured over the past years, CTVA shows a small growth in Revenue. The Revenue has been growing by 4.08% on average per year.
EPS 1Y (TTM)15.77%
EPS 3Y6.18%
EPS 5YN/A
EPS Q2Q%26.97%
Revenue 1Y (TTM)-0.01%
Revenue growth 3Y2.6%
Revenue growth 5Y4.08%
Sales Q2Q%-1.67%
3.2 Future
CTVA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.51% yearly.
Based on estimates for the next years, CTVA will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
EPS Next Y20.58%
EPS Next 2Y19.02%
EPS Next 3Y17.54%
EPS Next 5Y10.51%
Revenue Next Year2.02%
Revenue Next 2Y2.77%
Revenue Next 3Y2.9%
Revenue Next 5Y2.25%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CTVA is valuated quite expensively with a Price/Earnings ratio of 26.18.
The rest of the industry has a similar Price/Earnings ratio as CTVA.
Compared to an average S&P500 Price/Earnings ratio of 27.50, CTVA is valued at the same level.
With a Price/Forward Earnings ratio of 20.22, CTVA is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as CTVA.
The average S&P500 Price/Forward Earnings ratio is at 36.44. CTVA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.18 | ||
| Fwd PE | 20.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CTVA is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
65.88% of the companies in the same industry are more expensive than CTVA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.71 | ||
| EV/EBITDA | 14.71 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CTVA has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CTVA's earnings are expected to grow with 17.54% in the coming years.
PEG (NY)1.27
PEG (5Y)N/A
EPS Next 2Y19.02%
EPS Next 3Y17.54%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, CTVA is not a good candidate for dividend investing.
CTVA's Dividend Yield is comparable with the industry average which is at 3.53.
With a Dividend Yield of 0.91, CTVA pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
On average, the dividend of CTVA grows each year by 30.66%, which is quite nice.
CTVA has been paying a dividend for over 5 years, so it has already some track record.
As CTVA did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)30.66%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
40.53% of the earnings are spent on dividend by CTVA. This is a bit on the high side, but may be sustainable.
CTVA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.53%
EPS Next 2Y19.02%
EPS Next 3Y17.54%
73.05
-0.12 (-0.16%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners86.62%
Inst Owner Change0.01%
Ins Owners0.07%
Ins Owner Change3.49%
Market Cap49.83B
Analysts80
Price Target75.95 (3.97%)
Short Float %1.22%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend0.66
Dividend Growth(5Y)30.66%
DP40.53%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.15%
Min EPS beat(2)0.21%
Max EPS beat(2)26.09%
EPS beat(4)3
Avg EPS beat(4)-7.72%
Min EPS beat(4)-61.17%
Max EPS beat(4)26.09%
EPS beat(8)6
Avg EPS beat(8)15.91%
EPS beat(12)10
Avg EPS beat(12)34.5%
EPS beat(16)13
Avg EPS beat(16)30.33%
Revenue beat(2)0
Avg Revenue beat(2)-3.7%
Min Revenue beat(2)-4.68%
Max Revenue beat(2)-2.71%
Revenue beat(4)0
Avg Revenue beat(4)-6.39%
Min Revenue beat(4)-15.45%
Max Revenue beat(4)-2.71%
Revenue beat(8)1
Avg Revenue beat(8)-5.27%
Revenue beat(12)4
Avg Revenue beat(12)-3.08%
Revenue beat(16)7
Avg Revenue beat(16)-1.25%
PT rev (1m)2.14%
PT rev (3m)7.22%
EPS NQ rev (1m)1.49%
EPS NQ rev (3m)-3.82%
EPS NY rev (1m)1.03%
EPS NY rev (3m)2.68%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.18 | ||
| Fwd PE | 20.22 | ||
| P/S | 2.96 | ||
| P/FCF | 23.71 | ||
| P/OCF | 18.84 | ||
| P/B | 2.05 | ||
| P/tB | 9.52 | ||
| EV/EBITDA | 14.71 |
EPS(TTM)2.79
EY3.82%
EPS(NY)3.61
Fwd EY4.95%
FCF(TTM)3.08
FCFY4.22%
OCF(TTM)3.88
OCFY5.31%
SpS24.68
BVpS35.6
TBVpS7.67
PEG (NY)1.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | 4.69% | ||
| ROCE | 7.26% | ||
| ROIC | 5.35% | ||
| ROICexc | 5.71% | ||
| ROICexgc | 15.65% | ||
| OM | 13.22% | ||
| PM (TTM) | 6.77% | ||
| GM | 44.63% | ||
| FCFM | 12.49% |
ROA(3y)2.21%
ROA(5y)2.47%
ROE(3y)3.76%
ROE(5y)4.19%
ROIC(3y)4.97%
ROIC(5y)3.98%
ROICexc(3y)5.51%
ROICexc(5y)4.45%
ROICexgc(3y)17.68%
ROICexgc(5y)14.5%
ROCE(3y)6.47%
ROCE(5y)5.18%
ROICexcg growth 3Y17.34%
ROICexcg growth 5Y37%
ROICexc growth 3Y18.15%
ROICexc growth 5Y33.64%
OM growth 3Y13.79%
OM growth 5Y24.06%
PM growth 3Y-21.84%
PM growth 5YN/A
GM growth 3Y2.02%
GM growth 5Y2.77%
F-Score8
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.94 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 44.65% | ||
| Cap/Sales | 3.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.84% | ||
| Profit Quality | 184.39% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 2.42 |
F-Score8
WACC9.09%
ROIC/WACC0.59
Cap/Depr(3y)49.09%
Cap/Depr(5y)46.74%
Cap/Sales(3y)3.48%
Cap/Sales(5y)3.49%
Profit Quality(3y)117.89%
Profit Quality(5y)141.89%
High Growth Momentum
Growth
EPS 1Y (TTM)15.77%
EPS 3Y6.18%
EPS 5YN/A
EPS Q2Q%26.97%
EPS Next Y20.58%
EPS Next 2Y19.02%
EPS Next 3Y17.54%
EPS Next 5Y10.51%
Revenue 1Y (TTM)-0.01%
Revenue growth 3Y2.6%
Revenue growth 5Y4.08%
Sales Q2Q%-1.67%
Revenue Next Year2.02%
Revenue Next 2Y2.77%
Revenue Next 3Y2.9%
Revenue Next 5Y2.25%
EBIT growth 1Y17.41%
EBIT growth 3Y16.75%
EBIT growth 5Y29.12%
EBIT Next Year53.72%
EBIT Next 3Y21.36%
EBIT Next 5Y13.68%
FCF growth 1Y834.97%
FCF growth 3Y-10.43%
FCF growth 5YN/A
OCF growth 1Y808.94%
OCF growth 3Y-7.69%
OCF growth 5Y14.92%