CORTEVA INC (CTVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CTVA - US22052L1044 - Common Stock
68.65 USD
-1.49 (-2.12%)
68.65 USD
0 (0%)
CTVA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. CTVA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CTVA has a correct valuation and a medium growth rate. These ratings would make CTVA suitable for quality investing!
1. Profitability
1.1 Basic Checks
CTVA had positive earnings in the past year.
In the past year CTVA had a positive cash flow from operations.
CTVA had positive earnings in each of the past 5 years.
In the past 5 years CTVA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.80%, CTVA is in the better half of the industry, outperforming 72.29% of the companies in the same industry.
CTVA has a Return On Equity of 6.36%. This is in the better half of the industry: CTVA outperforms 69.88% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.99%, CTVA is in the better half of the industry, outperforming 68.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CTVA is in line with the industry average of 6.10%.
The 3 year average ROIC (4.97%) for CTVA is below the current ROIC(5.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.8% | ||
| ROE | 6.36% | ||
| ROIC | 5.99% |
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
CTVA has a better Profit Margin (9.19%) than 84.34% of its industry peers.
In the last couple of years the Profit Margin of CTVA has declined.
With a decent Operating Margin value of 14.96%, CTVA is doing good in the industry, outperforming 77.11% of the companies in the same industry.
In the last couple of years the Operating Margin of CTVA has grown nicely.
CTVA has a better Gross Margin (46.11%) than 90.36% of its industry peers.
CTVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.96% | ||
| PM (TTM) | 9.19% | ||
| GM | 46.11% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CTVA is destroying value.
CTVA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CTVA has less shares outstanding
Compared to 1 year ago, CTVA has a worse debt to assets ratio.
2.2 Solvency
CTVA has an Altman-Z score of 2.49. 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.
CTVA has a Altman-Z score of 2.49. This is in the better half of the industry: CTVA outperforms 74.70% of its industry peers.
CTVA has a debt to FCF ratio of 1.65. This is a very positive value and a sign of high solvency as it would only need 1.65 years to pay back of all of its debts.
CTVA has a Debt to FCF ratio of 1.65. This is amongst the best in the industry. CTVA outperforms 92.77% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that CTVA is not too dependend on debt financing.
CTVA has a Debt to Equity ratio of 0.14. This is amongst the best in the industry. CTVA outperforms 85.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.39
WACC15.33%
2.3 Liquidity
A Current Ratio of 1.58 indicates that CTVA should not have too much problems paying its short term obligations.
CTVA's Current ratio of 1.58 is on the low side compared to the rest of the industry. CTVA is outperformed by 65.06% of its industry peers.
A Quick Ratio of 1.07 indicates that CTVA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.07, CTVA is doing worse than 60.24% of the companies in the same industry.
CTVA does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
CTVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.70%, which is quite impressive.
The Earnings Per Share has been growing slightly by 6.18% on average over the past years.
Looking at the last year, CTVA shows a small growth in Revenue. The Revenue has grown by 5.00% in the last year.
CTVA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.08% yearly.
EPS 1Y (TTM)43.7%
EPS 3Y6.18%
EPS 5YN/A
EPS Q2Q%53.06%
Revenue 1Y (TTM)5%
Revenue growth 3Y2.6%
Revenue growth 5Y4.08%
Sales Q2Q%12.55%
3.2 Future
The Earnings Per Share is expected to grow by 12.87% on average over the next years. This is quite good.
Based on estimates for the next years, CTVA will show a small growth in Revenue. The Revenue will grow by 2.98% on average per year.
EPS Next Y32.42%
EPS Next 2Y21.17%
EPS Next 3Y18.02%
EPS Next 5Y12.87%
Revenue Next Year4.54%
Revenue Next 2Y4.02%
Revenue Next 3Y3.72%
Revenue Next 5Y2.98%
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
With a Price/Earnings ratio of 20.07, CTVA is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CTVA is on the same level as its industry peers.
When comparing the Price/Earnings ratio of CTVA to the average of the S&P500 Index (27.19), we can say CTVA is valued slightly cheaper.
A Price/Forward Earnings ratio of 18.34 indicates a rather expensive valuation of CTVA.
The rest of the industry has a similar Price/Forward Earnings ratio as CTVA.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, CTVA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.07 | ||
| Fwd PE | 18.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CTVA is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTVA indicates a somewhat cheap valuation: CTVA is cheaper than 74.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.48 | ||
| EV/EBITDA | 12.42 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of CTVA may justify a higher PE ratio.
A more expensive valuation may be justified as CTVA's earnings are expected to grow with 18.02% in the coming years.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y21.17%
EPS Next 3Y18.02%
5. Dividend
5.1 Amount
CTVA has a Yearly Dividend Yield of 1.07%. Purely for dividend investing, there may be better candidates out there.
CTVA's Dividend Yield is comparable with the industry average which is at 2.47.
With a Dividend Yield of 1.07, CTVA pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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
CTVA pays out 29.41% of its income as dividend. This is a sustainable payout ratio.
CTVA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.41%
EPS Next 2Y21.17%
EPS Next 3Y18.02%
68.65
-1.49 (-2.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.17%
Inst Owner Change0%
Ins Owners0.07%
Ins Owner Change-0.69%
Market Cap46.39B
Revenue(TTM)17.47B
Net Income(TTM)1.60B
Analysts80
Price Target79.14 (15.28%)
Short Float %1.9%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Yearly Dividend0.66
Dividend Growth(5Y)30.66%
DP29.41%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.88%
Min EPS beat(2)14.15%
Max EPS beat(2)57.61%
EPS beat(4)4
Avg EPS beat(4)24.51%
Min EPS beat(4)0.21%
Max EPS beat(4)57.61%
EPS beat(8)7
Avg EPS beat(8)24.59%
EPS beat(12)10
Avg EPS beat(12)35.59%
EPS beat(16)13
Avg EPS beat(16)30.82%
Revenue beat(2)2
Avg Revenue beat(2)2.38%
Min Revenue beat(2)1%
Max Revenue beat(2)3.77%
Revenue beat(4)2
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-4.68%
Max Revenue beat(4)3.77%
Revenue beat(8)3
Avg Revenue beat(8)-3.19%
Revenue beat(12)4
Avg Revenue beat(12)-3.16%
Revenue beat(16)7
Avg Revenue beat(16)-2.07%
PT rev (1m)0.31%
PT rev (3m)-4.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.61%
EPS NY rev (1m)0%
EPS NY rev (3m)5.56%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.07 | ||
| Fwd PE | 18.34 | ||
| P/S | 2.66 | ||
| P/FCF | 17.48 | ||
| P/OCF | 14.48 | ||
| P/B | 1.84 | ||
| P/tB | 7.39 | ||
| EV/EBITDA | 12.42 |
EPS(TTM)3.42
EY4.98%
EPS(NY)3.74
Fwd EY5.45%
FCF(TTM)3.93
FCFY5.72%
OCF(TTM)4.74
OCFY6.91%
SpS25.85
BVpS37.32
TBVpS9.29
PEG (NY)0.62
PEG (5Y)N/A
Graham Number53.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.8% | ||
| ROE | 6.36% | ||
| ROCE | 8.22% | ||
| ROIC | 5.99% | ||
| ROICexc | 6.49% | ||
| ROICexgc | 16.71% | ||
| OM | 14.96% | ||
| PM (TTM) | 9.19% | ||
| GM | 46.11% | ||
| FCFM | 15.19% |
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%
ROICexgc growth 3Y17.34%
ROICexgc 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-Score9
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.65 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 45.87% | ||
| Cap/Sales | 3.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.05% | ||
| Profit Quality | 165.36% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 2.49 |
F-Score9
WACC15.33%
ROIC/WACC0.39
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)43.7%
EPS 3Y6.18%
EPS 5YN/A
EPS Q2Q%53.06%
EPS Next Y32.42%
EPS Next 2Y21.17%
EPS Next 3Y18.02%
EPS Next 5Y12.87%
Revenue 1Y (TTM)5%
Revenue growth 3Y2.6%
Revenue growth 5Y4.08%
Sales Q2Q%12.55%
Revenue Next Year4.54%
Revenue Next 2Y4.02%
Revenue Next 3Y3.72%
Revenue Next 5Y2.98%
EBIT growth 1Y33.86%
EBIT growth 3Y16.75%
EBIT growth 5Y29.12%
EBIT Next Year58.33%
EBIT Next 3Y21.78%
EBIT Next 5Y13.88%
FCF growth 1Y1955.94%
FCF growth 3Y-10.43%
FCF growth 5YN/A
OCF growth 1Y673.91%
OCF growth 3Y-7.69%
OCF growth 5Y14.92%
CORTEVA INC / CTVA FAQ
What is the ChartMill fundamental rating of CORTEVA INC (CTVA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to CTVA.
What is the valuation status for CTVA stock?
ChartMill assigns a valuation rating of 5 / 10 to CORTEVA INC (CTVA). This can be considered as Fairly Valued.
How profitable is CORTEVA INC (CTVA) stock?
CORTEVA INC (CTVA) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for CTVA stock?
The Price/Earnings (PE) ratio for CORTEVA INC (CTVA) is 20.07 and the Price/Book (PB) ratio is 1.84.
How financially healthy is CORTEVA INC?
The financial health rating of CORTEVA INC (CTVA) is 7 / 10.