CORTEVA INC (CTVA) Stock Fundamental Analysis
NYSE:CTVA - New York Stock Exchange, Inc. - US22052L1044 - Common Stock
Overall CTVA gets a fundamental rating of 5 out of 10. We evaluated CTVA against 85 industry peers in the Chemicals industry. CTVA has only an average score on both its financial health and profitability. CTVA has a expensive valuation and it also scores bad on growth.
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.
CTVA had positive earnings in 4 of the past 5 years.
CTVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CTVA has a Return On Assets of 1.66%. This is comparable to the rest of the industry: CTVA outperforms 45.78% of its industry peers.
The Return On Equity of CTVA (2.81%) is comparable to the rest of the industry.
CTVA's Return On Invested Capital of 4.85% is in line compared to the rest of the industry. CTVA outperforms 55.42% of its industry peers.
CTVA had an Average Return On Invested Capital over the past 3 years of 4.72%. This is in line with the industry average of 6.57%.
The 3 year average ROIC (4.72%) for CTVA is below the current ROIC(4.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.66% | ||
| ROE | 2.81% | ||
| ROIC | 4.85% |
ROA(3y)2.85%
ROA(5y)1.58%
ROE(3y)4.8%
ROE(5y)2.64%
ROIC(3y)4.72%
ROIC(5y)3.55%
1.3 Margins
CTVA's Profit Margin of 4.18% is in line compared to the rest of the industry. CTVA outperforms 54.22% of its industry peers.
In the last couple of years the Profit Margin of CTVA has declined.
Looking at the Operating Margin, with a value of 11.73%, CTVA is in the better half of the industry, outperforming 63.86% of the companies in the same industry.
CTVA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 43.51%, CTVA belongs to the top of the industry, outperforming 87.95% of the companies in the same industry.
In the last couple of years the Gross Margin of CTVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.73% | ||
| PM (TTM) | 4.18% | ||
| GM | 43.51% |
OM growth 3Y27.36%
OM growth 5YN/A
PM growth 3Y-3.78%
PM growth 5YN/A
GM growth 3Y1.83%
GM growth 5Y6.91%
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.
CTVA has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CTVA has been reduced compared to 5 years ago.
The debt/assets ratio for CTVA is higher compared to a year ago.
2.2 Solvency
CTVA has an Altman-Z score of 2.20. 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 2.20, CTVA is doing good in the industry, outperforming 61.45% of the companies in the same industry.
The Debt to FCF ratio of CTVA is 3.27, which is a good value as it means it would take CTVA, 3.27 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CTVA (3.27) is better than 84.34% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that CTVA is not too dependend on debt financing.
CTVA's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. CTVA outperforms 78.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.52
WACC9.31%
2.3 Liquidity
CTVA has a Current Ratio of 1.50. This is a normal value and indicates that CTVA is financially healthy and should not expect problems in meeting its short term obligations.
CTVA has a Current ratio of 1.50. This is in the lower half of the industry: CTVA underperforms 69.88% of its industry peers.
A Quick Ratio of 0.96 indicates that CTVA may have some problems paying its short term obligations.
CTVA has a Quick ratio of 0.96. This is in the lower half of the industry: CTVA underperforms 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
CTVA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.52%.
The Earnings Per Share has been growing by 21.34% on average over the past years. This is a very strong growth
The Revenue has decreased by -4.08% in the past year.
CTVA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.81% yearly.
EPS 1Y (TTM)-11.52%
EPS 3Y21.34%
EPS 5YN/A
EPS Q2Q%-113.04%
Revenue 1Y (TTM)-4.08%
Revenue growth 3Y6.61%
Revenue growth 5Y3.81%
Sales Q2Q%-10.19%
3.2 Future
Based on estimates for the next years, CTVA will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.28% on average per year.
Based on estimates for the next years, CTVA will show a small growth in Revenue. The Revenue will grow by 2.15% on average per year.
EPS Next Y-2.38%
EPS Next 2Y10.05%
EPS Next 3Y11.33%
EPS Next 5Y8.28%
Revenue Next Year-0.77%
Revenue Next 2Y0.71%
Revenue Next 3Y1.74%
Revenue Next 5Y2.15%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.52, CTVA can be considered very expensive at the moment.
CTVA's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CTVA to the average of the S&P500 Index (28.29), we can say CTVA is valued inline with the index average.
CTVA is valuated rather expensively with a Price/Forward Earnings ratio of 19.45.
CTVA's Price/Forward Earnings ratio is in line with the industry average.
CTVA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.52 | ||
| Fwd PE | 19.45 |
4.2 Price Multiples
CTVA's Enterprise Value to EBITDA ratio is in line with the industry average.
CTVA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.85 | ||
| EV/EBITDA | 13.49 |
4.3 Compensation for Growth
The decent profitability rating of CTVA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.05%
EPS Next 3Y11.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.10%, CTVA has a reasonable but not impressive dividend return.
CTVA's Dividend Yield is comparable with the industry average which is at 3.26.
Compared to an average S&P500 Dividend Yield of 2.28, CTVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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
65.04% of the earnings are spent on dividend by CTVA. This is not a sustainable payout ratio.
CTVA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP65.04%
EPS Next 2Y10.05%
EPS Next 3Y11.33%
CORTEVA INC
NYSE:CTVA (1/21/2025, 8:04:00 PM)
After market: 63.12 0 (0%)63.12
+0.8 (+1.28%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners84.86%
Inst Owner Change-0.21%
Ins Owners0.09%
Ins Owner Change2.87%
Market Cap43.38B
Analysts79.33
Price Target66.85 (5.91%)
Short Float %1.64%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend0.62
Dividend Growth(5Y)30.66%
DP65.04%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-28.58%
Min EPS beat(2)-61.17%
Max EPS beat(2)4.01%
EPS beat(4)3
Avg EPS beat(4)24.66%
Min EPS beat(4)-61.17%
Max EPS beat(4)152.12%
EPS beat(8)6
Avg EPS beat(8)41.12%
EPS beat(12)9
Avg EPS beat(12)32.92%
EPS beat(16)13
Avg EPS beat(16)40.84%
Revenue beat(2)0
Avg Revenue beat(2)-9.08%
Min Revenue beat(2)-15.45%
Max Revenue beat(2)-2.71%
Revenue beat(4)1
Avg Revenue beat(4)-5.73%
Min Revenue beat(4)-15.45%
Max Revenue beat(4)0.46%
Revenue beat(8)2
Avg Revenue beat(8)-4.41%
Revenue beat(12)5
Avg Revenue beat(12)-2.54%
Revenue beat(16)9
Avg Revenue beat(16)0.05%
PT rev (1m)0.63%
PT rev (3m)3.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)24.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.87%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.52 | ||
| Fwd PE | 19.45 | ||
| P/S | 2.61 | ||
| P/FCF | 24.85 | ||
| P/OCF | 18.5 | ||
| P/B | 1.75 | ||
| P/tB | 8.63 | ||
| EV/EBITDA | 13.49 |
EPS(TTM)2.38
EY3.77%
EPS(NY)3.25
Fwd EY5.14%
FCF(TTM)2.54
FCFY4.02%
OCF(TTM)3.41
OCFY5.41%
SpS24.21
BVpS35.99
TBVpS7.31
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.66% | ||
| ROE | 2.81% | ||
| ROCE | 6.2% | ||
| ROIC | 4.85% | ||
| ROICexc | 5.23% | ||
| ROICexgc | 13.66% | ||
| OM | 11.73% | ||
| PM (TTM) | 4.18% | ||
| GM | 43.51% | ||
| FCFM | 10.49% |
ROA(3y)2.85%
ROA(5y)1.58%
ROE(3y)4.8%
ROE(5y)2.64%
ROIC(3y)4.72%
ROIC(5y)3.55%
ROICexc(3y)5.28%
ROICexc(5y)3.95%
ROICexgc(3y)16.84%
ROICexgc(5y)12.59%
ROCE(3y)5.51%
ROCE(5y)4.14%
ROICexcg growth 3Y34.24%
ROICexcg growth 5YN/A
ROICexc growth 3Y36.47%
ROICexc growth 5YN/A
OM growth 3Y27.36%
OM growth 5YN/A
PM growth 3Y-3.78%
PM growth 5YN/A
GM growth 3Y1.83%
GM growth 5Y6.91%
F-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.27 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 48.42% | ||
| Cap/Sales | 3.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.53% | ||
| Profit Quality | 251.22% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 2.2 |
F-Score6
WACC9.31%
ROIC/WACC0.52
Cap/Depr(3y)48.23%
Cap/Depr(5y)51.56%
Cap/Sales(3y)3.53%
Cap/Sales(5y)4.46%
Profit Quality(3y)101.82%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.52%
EPS 3Y21.34%
EPS 5YN/A
EPS Q2Q%-113.04%
EPS Next Y-2.38%
EPS Next 2Y10.05%
EPS Next 3Y11.33%
EPS Next 5Y8.28%
Revenue 1Y (TTM)-4.08%
Revenue growth 3Y6.61%
Revenue growth 5Y3.81%
Sales Q2Q%-10.19%
Revenue Next Year-0.77%
Revenue Next 2Y0.71%
Revenue Next 3Y1.74%
Revenue Next 5Y2.15%
EBIT growth 1Y-6.2%
EBIT growth 3Y35.77%
EBIT growth 5YN/A
EBIT Next Year48.55%
EBIT Next 3Y21.96%
EBIT Next 5Y14.64%
FCF growth 1Y123.85%
FCF growth 3Y-9.6%
FCF growth 5YN/A
OCF growth 1Y67.5%
OCF growth 3Y-5.01%
OCF growth 5Y29.65%