CORTEVA INC (CTVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CTVA - US22052L1044 - Common Stock
66.31 USD
-0.65 (-0.97%)
66.31 USD
0 (0%)
CTVA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 84 industry peers in the Chemicals industry. Both the health and profitability get an excellent rating, making CTVA a very profitable company, without any liquidiy or solvency issues. CTVA has a decent growth rate and is not valued too expensively. These ratings could make CTVA a good candidate for quality investing.
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.
Each year in the past 5 years CTVA has been profitable.
Each year in the past 5 years CTVA had a positive operating cash flow.
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 72.62% 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 70.24% of its industry peers.
CTVA has a Return On Invested Capital of 5.99%. This is in the better half of the industry: CTVA outperforms 69.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CTVA is in line with the industry average of 6.09%.
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
Looking at the Profit Margin, with a value of 9.19%, CTVA belongs to the top of the industry, outperforming 84.52% of the companies in the same industry.
In the last couple of years the Profit Margin of CTVA has declined.
CTVA has a Operating Margin of 14.96%. This is in the better half of the industry: CTVA outperforms 77.38% of its industry peers.
In the last couple of years the Operating Margin of CTVA has grown nicely.
CTVA has a better Gross Margin (46.11%) than 90.48% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CTVA is destroying value.
Compared to 1 year ago, CTVA has less shares outstanding
CTVA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CTVA has a worse debt to assets ratio.
2.2 Solvency
CTVA has an Altman-Z score of 2.40. 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 2.40. This is in the better half of the industry: CTVA outperforms 72.62% of its industry peers.
The Debt to FCF ratio of CTVA is 1.65, which is an excellent value as it means it would take CTVA, only 1.65 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.65, CTVA belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
CTVA has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CTVA (0.14) is better than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.69
WACC8.72%
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 65.48% of its industry peers.
CTVA has a Quick Ratio of 1.07. 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 Quick ratio value of 1.07, CTVA is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
The current and quick ratio evaluation for CTVA is rather negative, while it does have 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
The Earnings Per Share has grown by an impressive 43.70% over the past year.
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.
The Revenue has been growing slightly by 5.00% in the past 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
CTVA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.87% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 rather expensively with a Price/Earnings ratio of 19.39.
The rest of the industry has a similar Price/Earnings ratio as CTVA.
CTVA is valuated rather cheaply when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.71, the valuation of CTVA can be described as rather expensive.
CTVA's Price/Forward Earnings ratio is in line with the industry average.
CTVA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.39 | ||
| Fwd PE | 17.71 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CTVA.
Based on the Price/Free Cash Flow ratio, CTVA is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.88 | ||
| EV/EBITDA | 11.74 |
4.3 Compensation for Growth
CTVA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CTVA has an outstanding 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 18.02% in the coming years.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y21.17%
EPS Next 3Y18.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.08%, CTVA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.46, CTVA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, CTVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
5.2 History
The dividend of CTVA is nicely growing with an annual growth rate of 30.66%!
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
29.41% of the earnings are spent on dividend by CTVA. This is a low number and 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%
66.31
-0.65 (-0.97%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.09%
Inst Owner Change-1.59%
Ins Owners0.07%
Ins Owner Change-0.69%
Market Cap44.81B
Revenue(TTM)17.47B
Net Income(TTM)1.60B
Analysts80
Price Target79.14 (19.35%)
Short Float %1.75%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
Yearly Dividend0.66
Dividend Growth(5Y)30.66%
DP29.41%
Div Incr Years5
Div Non Decr Years5
Ex-Date
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)-0.97%
PT rev (3m)-4.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.61%
EPS NY rev (1m)5.93%
EPS NY rev (3m)5.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.39 | ||
| Fwd PE | 17.71 | ||
| P/S | 2.56 | ||
| P/FCF | 16.88 | ||
| P/OCF | 13.98 | ||
| P/B | 1.78 | ||
| P/tB | 7.14 | ||
| EV/EBITDA | 11.74 |
EPS(TTM)3.42
EY5.16%
EPS(NY)3.74
Fwd EY5.65%
FCF(TTM)3.93
FCFY5.92%
OCF(TTM)4.74
OCFY7.15%
SpS25.85
BVpS37.32
TBVpS9.29
PEG (NY)0.6
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 | 2.4 |
F-Score9
WACC8.72%
ROIC/WACC0.69
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 Year58.29%
EBIT Next 3Y21.73%
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
Can you provide the ChartMill fundamental rating for CORTEVA INC?
ChartMill assigns a fundamental rating of 6 / 10 to CTVA.
What is the valuation status of CORTEVA INC (CTVA) stock?
ChartMill assigns a valuation rating of 5 / 10 to CORTEVA INC (CTVA). This can be considered as Fairly Valued.
Can you provide the profitability details for CORTEVA INC?
CORTEVA INC (CTVA) has a profitability rating of 8 / 10.
What is the financial health of CORTEVA INC (CTVA) stock?
The financial health rating of CORTEVA INC (CTVA) is 7 / 10.
How sustainable is the dividend of CORTEVA INC (CTVA) stock?
The dividend rating of CORTEVA INC (CTVA) is 5 / 10 and the dividend payout ratio is 29.41%.