CORTEVA INC (CTVA) Stock Fundamental Analysis
NYSE:CTVA - New York Stock Exchange, Inc. - US22052L1044 - Common Stock - Currency: USD
Overall CTVA gets a fundamental rating of 5 out of 10. We evaluated CTVA 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
CTVA had positive earnings in the past year.
CTVA had a positive operating cash flow in the past year.
In the past 5 years CTVA has always been profitable.
Each year in the past 5 years CTVA had a positive operating cash flow.
1.2 Ratios
CTVA has a better Return On Assets (2.71%) than 61.18% of its industry peers.
CTVA has a Return On Equity (4.69%) which is in line with its industry peers.
CTVA has a Return On Invested Capital of 5.35%. This is comparable to the rest of the industry: CTVA outperforms 57.65% of its industry peers.
CTVA had an Average Return On Invested Capital over the past 3 years of 4.97%. This is in line with the industry average of 6.84%.
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.
CTVA's Profit Margin has declined in the last couple of years.
CTVA has a better Operating Margin (13.22%) than 72.94% of its industry peers.
In the last couple of years the Operating Margin of CTVA has grown nicely.
Looking at the Gross Margin, with a value of 44.63%, CTVA belongs to the top of the industry, outperforming 90.59% 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 | 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.
Compared to 1 year ago, CTVA has less shares outstanding
The number of shares outstanding for CTVA has been reduced compared to 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 2.50. 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.
The Altman-Z score of CTVA (2.50) is better than 68.24% of its industry peers.
The Debt to FCF ratio of CTVA is 1.94, which is an excellent value as it means it would take CTVA, only 1.94 years of fcf income to pay off all of its debts.
CTVA's Debt to FCF ratio of 1.94 is amongst the best of the industry. CTVA outperforms 90.59% of its industry peers.
CTVA has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
CTVA's Debt to Equity ratio of 0.13 is amongst the best of the industry. CTVA outperforms 84.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.59
WACC9.01%
2.3 Liquidity
A Current Ratio of 1.44 indicates that CTVA should not have too much problems paying its short term obligations.
CTVA has a worse Current ratio (1.44) than 70.59% of its industry peers.
CTVA has a Quick Ratio of 1.44. 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 1.00, CTVA is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| 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.
The Revenue has decreased by -0.01% in the past year.
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
Based on estimates for the next years, CTVA will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.51% on average per year.
The Revenue is expected to grow by 2.25% on average over the next years.
EPS Next Y19.78%
EPS Next 2Y18.65%
EPS Next 3Y17.34%
EPS Next 5Y10.51%
Revenue Next Year1.77%
Revenue Next 2Y2.63%
Revenue Next 3Y2.75%
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 27.45.
CTVA's Price/Earnings ratio is in line with the industry average.
CTVA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.29.
CTVA is valuated rather expensively with a Price/Forward Earnings ratio of 21.33.
CTVA's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.74. CTVA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.45 | ||
| Fwd PE | 21.33 |
4.2 Price Multiples
CTVA's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CTVA is more expensive than 62.35% of the companies in the same industry.
64.71% 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 | 24.85 | ||
| EV/EBITDA | 15.39 |
4.3 Compensation for Growth
CTVA's 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.
CTVA's earnings are expected to grow with 17.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.39
PEG (5Y)N/A
EPS Next 2Y18.65%
EPS Next 3Y17.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, CTVA is not a good candidate for dividend investing.
CTVA's Dividend Yield is comparable with the industry average which is at 3.57.
With a Dividend Yield of 0.88, CTVA pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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.
CTVA has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)30.66%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
CTVA pays out 40.53% of its income as dividend. 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.
DP40.53%
EPS Next 2Y18.65%
EPS Next 3Y17.34%
76.58
-0.54 (-0.7%)
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 Cap52.24B
Analysts80
Price Target75.95 (-0.82%)
Short Float %1.03%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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)7.19%
PT rev (3m)7.22%
EPS NQ rev (1m)0.9%
EPS NQ rev (3m)-3.94%
EPS NY rev (1m)0.36%
EPS NY rev (3m)2%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.45 | ||
| Fwd PE | 21.33 | ||
| P/S | 3.1 | ||
| P/FCF | 24.85 | ||
| P/OCF | 19.75 | ||
| P/B | 2.15 | ||
| P/tB | 9.98 | ||
| EV/EBITDA | 15.39 |
EPS(TTM)2.79
EY3.64%
EPS(NY)3.59
Fwd EY4.69%
FCF(TTM)3.08
FCFY4.02%
OCF(TTM)3.88
OCFY5.06%
SpS24.68
BVpS35.6
TBVpS7.67
PEG (NY)1.39
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 | 2.5 |
F-Score8
WACC9.01%
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 Y19.78%
EPS Next 2Y18.65%
EPS Next 3Y17.34%
EPS Next 5Y10.51%
Revenue 1Y (TTM)-0.01%
Revenue growth 3Y2.6%
Revenue growth 5Y4.08%
Sales Q2Q%-1.67%
Revenue Next Year1.77%
Revenue Next 2Y2.63%
Revenue Next 3Y2.75%
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%