CORTEVA INC (CTVA)
US22052L1044 - Common Stock
Taking everything into account, CTVA scores 4 out of 10 in our fundamental rating. CTVA was compared to 84 industry peers in the Chemicals industry. CTVA has only an average score on both its financial health and profitability. CTVA is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CTVA was profitable.
CTVA had a positive operating cash flow in the past year.
Of the past 5 years CTVA 4 years were profitable.
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 1.66%, CTVA is in line with its industry, outperforming 48.24% of the companies in the same industry.
CTVA's Return On Equity of 2.81% is in line compared to the rest of the industry. CTVA outperforms 43.53% of its industry peers.
CTVA has a Return On Invested Capital of 4.85%. This is comparable to the rest of the industry: CTVA outperforms 55.29% 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 6.50%.
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
The Profit Margin of CTVA (4.18%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CTVA has declined.
CTVA has a better Operating Margin (11.73%) than 64.71% of its industry peers.
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 87.06% 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.
Compared to 1 year ago, CTVA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.16 indicates that CTVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
CTVA has a Altman-Z score (2.16) which is comparable to the rest of the 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.
CTVA's Debt to FCF ratio of 3.27 is amongst the best of the industry. CTVA outperforms 82.35% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that CTVA is not too dependend on debt financing.
CTVA has a better Debt to Equity ratio (0.20) than 78.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 2.16 |
ROIC/WACC0.53
WACC9.12%
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 72.94% of its industry peers.
CTVA has a Quick Ratio of 1.50. This is a bad value and indicates that CTVA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.96, CTVA is doing worse than 70.59% of the companies in the same industry.
| 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
CTVA shows a decrease in Revenue. In the last year, the revenue decreased by -4.08%.
Measured over the past years, CTVA shows a small growth in Revenue. The Revenue has been growing by 3.81% on average per year.
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 8.66% on average per year.
CTVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.92% yearly.
EPS Next Y1.03%
EPS Next 2Y12.29%
EPS Next 3Y12.75%
EPS Next 5Y8.66%
Revenue Next Year0.25%
Revenue Next 2Y2.13%
Revenue Next 3Y2.74%
Revenue Next 5Y2.92%
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 decreasing.
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
A Price/Earnings ratio of 25.53 indicates a quite expensive valuation of CTVA.
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 (28.96), we can say CTVA is valued inline with the index average.
With a Price/Forward Earnings ratio of 17.98, CTVA is valued on the expensive side.
CTVA's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CTVA to the average of the S&P500 Index (23.82), we can say CTVA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.53 | ||
| Fwd PE | 17.98 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as CTVA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.92 | ||
| EV/EBITDA | 13.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CTVA does not grow enough to justify the current Price/Earnings ratio.
CTVA has a very decent 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 12.75% in the coming years.
PEG (NY)24.75
PEG (5Y)N/A
EPS Next 2Y12.29%
EPS Next 3Y12.75%
5. Dividend
5.1 Amount
CTVA has a Yearly Dividend Yield of 1.18%.
CTVA's Dividend Yield is comparable with the industry average which is at 2.95.
Compared to an average S&P500 Dividend Yield of 2.23, CTVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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 last 3 years.
Dividend Growth(5Y)30.66%
Div Incr Years4
Div Non Decr Years4
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 2Y12.29%
EPS Next 3Y12.75%
CORTEVA INC
NYSE:CTVA (11/21/2024, 8:21:30 PM)
After market: 60.76 0 (0%)60.76
+2 (+3.4%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap41.76B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.53 | ||
| Fwd PE | 17.98 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)24.75
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.66% | ||
| ROE | 2.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.73% | ||
| PM (TTM) | 4.18% | ||
| GM | 43.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-11.52%
EPS 3Y21.34%
EPS 5Y
EPS Q2Q%
EPS Next Y1.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.08%
Revenue growth 3Y6.61%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y