CORTEVA INC (CTVA) Stock Fundamental Analysis
NYSE:CTVA - New York Stock Exchange, Inc. - US22052L1044 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CTVA. CTVA was compared to 85 industry peers in the Chemicals industry. CTVA has an excellent profitability rating, but there are some minor concerns on its financial health. CTVA is quite expensive at the moment. It does show a decent 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.
CTVA had positive earnings in each of the past 5 years.
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 2.22%, CTVA is in line with its industry, outperforming 51.81% of the companies in the same industry.
The Return On Equity of CTVA (3.81%) is comparable to the rest of the industry.
The Return On Invested Capital of CTVA (5.29%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CTVA is in line with the industry average of 6.65%.
The last Return On Invested Capital (5.29%) for CTVA is above the 3 year average (4.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 3.81% | ||
| ROIC | 5.29% |
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 (5.36%) than 62.65% of its industry peers.
CTVA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.40%, CTVA is in the better half of the industry, outperforming 68.67% of the companies in the same industry.
In the last couple of years the Operating Margin of CTVA has grown nicely.
CTVA's Gross Margin of 43.64% is amongst the best of the industry. CTVA outperforms 87.95% of its industry peers.
In the last couple of years the Gross Margin of CTVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.4% | ||
| PM (TTM) | 5.36% | ||
| GM | 43.64% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CTVA is destroying value.
The number of shares outstanding for CTVA has been reduced compared to 1 year ago.
Compared to 5 years ago, CTVA has less shares outstanding
CTVA has a worse debt/assets ratio than last year.
2.2 Solvency
CTVA has an Altman-Z score of 2.27. 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 2.27, CTVA is doing good in the industry, outperforming 62.65% of the companies in the same industry.
CTVA has a debt to FCF ratio of 1.75. This is a very positive value and a sign of high solvency as it would only need 1.75 years to pay back of all of its debts.
The Debt to FCF ratio of CTVA (1.75) is better than 89.16% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that CTVA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.08, CTVA belongs to the top of the industry, outperforming 85.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.75 | ||
| Altman-Z | 2.27 |
ROIC/WACC0.59
WACC8.96%
2.3 Liquidity
A Current Ratio of 1.45 indicates that CTVA should not have too much problems paying its short term obligations.
CTVA has a worse Current ratio (1.45) than 71.08% of its industry peers.
CTVA has a Quick Ratio of 1.45. This is a bad value and indicates that CTVA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.93, CTVA is not doing good in the industry: 68.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
CTVA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.85%.
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 decreased by -1.85% in the past year.
The Revenue has been growing slightly by 4.08% on average over the past years.
EPS 1Y (TTM)-4.85%
EPS 3Y6.18%
EPS 5YN/A
EPS Q2Q%113.33%
Revenue 1Y (TTM)-1.85%
Revenue growth 3Y2.6%
Revenue growth 5Y4.08%
Sales Q2Q%7.31%
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 11.83% yearly.
The Revenue is expected to grow by 4.86% on average over the next years.
EPS Next Y17.78%
EPS Next 2Y17.47%
EPS Next 3Y16.2%
EPS Next 5Y11.83%
Revenue Next Year2.01%
Revenue Next 2Y2.91%
Revenue Next 3Y2.99%
Revenue Next 5Y4.86%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.61, the valuation of CTVA can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CTVA is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.63, CTVA is valued at the same level.
A Price/Forward Earnings ratio of 20.90 indicates a rather expensive valuation of CTVA.
CTVA's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, CTVA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.61 | ||
| Fwd PE | 20.9 |
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.
CTVA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.8 | ||
| EV/EBITDA | 13.01 |
4.3 Compensation for Growth
CTVA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent 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 16.20% in the coming years.
PEG (NY)1.38
PEG (5Y)N/A
EPS Next 2Y17.47%
EPS Next 3Y16.2%
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 3.27, CTVA has a dividend in line with its industry peers.
With a Dividend Yield of 1.08, CTVA pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
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
50.50% of the earnings are spent on dividend by CTVA. This is a bit on the high side, but may be sustainable.
The dividend of CTVA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.5%
EPS Next 2Y17.47%
EPS Next 3Y16.2%
62.76
-1.07 (-1.68%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners84.86%
Inst Owner Change0.46%
Ins Owners0.09%
Ins Owner Change7.17%
Market Cap43.03B
Analysts79.31
Price Target67.27 (7.19%)
Short Float %1.52%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
Yearly Dividend0.66
Dividend Growth(5Y)30.66%
DP50.5%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-30.48%
Min EPS beat(2)-61.17%
Max EPS beat(2)0.21%
EPS beat(4)3
Avg EPS beat(4)-13.32%
Min EPS beat(4)-61.17%
Max EPS beat(4)4.01%
EPS beat(8)6
Avg EPS beat(8)15.4%
EPS beat(12)10
Avg EPS beat(12)33.69%
EPS beat(16)13
Avg EPS beat(16)29.92%
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)0
Avg Revenue beat(4)-6.52%
Min Revenue beat(4)-15.45%
Max Revenue beat(4)-2.71%
Revenue beat(8)2
Avg Revenue beat(8)-4.62%
Revenue beat(12)5
Avg Revenue beat(12)-2.66%
Revenue beat(16)8
Avg Revenue beat(16)-0.48%
PT rev (1m)0.62%
PT rev (3m)3.62%
EPS NQ rev (1m)-12.47%
EPS NQ rev (3m)-17.84%
EPS NY rev (1m)-7.47%
EPS NY rev (3m)-11.12%
Revenue NQ rev (1m)-2.26%
Revenue NQ rev (3m)-2.57%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-3.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.61 | ||
| Fwd PE | 20.9 | ||
| P/S | 2.54 | ||
| P/FCF | 27.8 | ||
| P/OCF | 20.06 | ||
| P/B | 1.81 | ||
| P/tB | 9.55 | ||
| EV/EBITDA | 13.01 |
EPS(TTM)2.55
EY4.06%
EPS(NY)3
Fwd EY4.79%
FCF(TTM)2.26
FCFY3.6%
OCF(TTM)3.13
OCFY4.99%
SpS24.66
BVpS34.7
TBVpS6.57
PEG (NY)1.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 3.81% | ||
| ROCE | 6.89% | ||
| ROIC | 5.29% | ||
| ROICexc | 5.91% | ||
| ROICexgc | 20.18% | ||
| OM | 12.4% | ||
| PM (TTM) | 5.36% | ||
| GM | 43.64% | ||
| FCFM | 9.16% |
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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.75 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 48.66% | ||
| Cap/Sales | 3.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.55% | ||
| Profit Quality | 170.67% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 2.27 |
F-Score8
WACC8.96%
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)-4.85%
EPS 3Y6.18%
EPS 5YN/A
EPS Q2Q%113.33%
EPS Next Y17.78%
EPS Next 2Y17.47%
EPS Next 3Y16.2%
EPS Next 5Y11.83%
Revenue 1Y (TTM)-1.85%
Revenue growth 3Y2.6%
Revenue growth 5Y4.08%
Sales Q2Q%7.31%
Revenue Next Year2.01%
Revenue Next 2Y2.91%
Revenue Next 3Y2.99%
Revenue Next 5Y4.86%
EBIT growth 1Y-0.66%
EBIT growth 3Y16.75%
EBIT growth 5Y29.12%
EBIT Next Year54.28%
EBIT Next 3Y20.11%
EBIT Next 5Y16.38%
FCF growth 1Y31.86%
FCF growth 3Y-10.43%
FCF growth 5YN/A
OCF growth 1Y21.25%
OCF growth 3Y-7.69%
OCF growth 5Y14.92%