CORTEVA INC (CTVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CTVA - US22052L1044 - Common Stock
71.7 USD
+0.14 (+0.2%)
71.7 USD
0 (0%)
Taking everything into account, CTVA scores 6 out of 10 in our fundamental rating. CTVA was compared to 83 industry peers in the Chemicals industry. CTVA gets an excellent profitability rating and is at the same time showing great financial health properties. CTVA has a correct valuation and a medium growth rate. These ratings could make CTVA a good candidate for quality investing.
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.
- 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
- The Return On Assets of CTVA (3.80%) is better than 71.95% of its industry peers.
- CTVA's Return On Equity of 6.36% is fine compared to the rest of the industry. CTVA outperforms 68.29% 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 68.29% 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 6.11%.
- 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 84.15% 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 76.83% 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 46.11% is amongst the best of the industry. CTVA outperforms 90.24% 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.
- Compared to 1 year ago, CTVA has less shares outstanding
- 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 2.53. 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 (2.53) is better than 70.73% 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.
- The Debt to FCF ratio of CTVA (1.65) is better than 92.68% 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 85.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.39
WACC15.4%
2.3 Liquidity
- CTVA has a Current Ratio of 1.58. 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 1.58. This is in the lower half of the industry: CTVA underperforms 65.85% 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.
- CTVA's Quick ratio of 1.07 is in line compared to the rest of the industry. CTVA outperforms 40.24% of its industry peers.
- 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.
- 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
- 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.
- The Revenue is expected to grow by 2.98% on average over the next years.
EPS Next Y32.74%
EPS Next 2Y20.88%
EPS Next 3Y18.01%
EPS Next 5Y12.87%
Revenue Next Year4.54%
Revenue Next 2Y4.02%
Revenue Next 3Y3.73%
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
- The Price/Earnings ratio is 20.96, which indicates a rather expensive current valuation of CTVA.
- The rest of the industry has a similar Price/Earnings ratio as CTVA.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, CTVA is valued a bit cheaper.
- CTVA is valuated rather expensively with a Price/Forward Earnings ratio of 19.24.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CTVA is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, CTVA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 19.24 |
4.2 Price Multiples
- CTVA's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, CTVA is valued a bit cheaper than the industry average as 74.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.26 | ||
| EV/EBITDA | 12.67 |
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.
- CTVA has an outstanding profitability rating, which may justify a higher PE ratio.
- CTVA's earnings are expected to grow with 18.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)N/A
EPS Next 2Y20.88%
EPS Next 3Y18.01%
5. Dividend
5.1 Amount
- CTVA has a Yearly Dividend Yield of 1.01%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.25, CTVA has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, CTVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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.
- 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 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 2Y20.88%
EPS Next 3Y18.01%
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 20.96 and the Price/Book (PB) ratio is 1.92.
How financially healthy is CORTEVA INC?
The financial health rating of CORTEVA INC (CTVA) is 7 / 10.