CORTEVA INC (CTVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CTVA - US22052L1044 - Common Stock
73.46 USD
+0.41 (+0.56%)
Overall CTVA gets a fundamental rating of 6 out of 10. We evaluated CTVA against 83 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 would make CTVA suitable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year CTVA was profitable.
- 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 72.29% of its industry peers.
- CTVA has a better Return On Equity (6.36%) than 68.67% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.99%, CTVA is in the better half of the industry, outperforming 68.67% of the companies in the same industry.
- 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
- The Profit Margin of CTVA (9.19%) is better than 84.34% of its industry peers.
- In the last couple of years the Profit Margin of CTVA has declined.
- CTVA has a better Operating Margin (14.96%) than 77.11% of its industry peers.
- CTVA's Operating Margin has improved in the last couple of years.
- CTVA's Gross Margin of 46.11% is amongst the best of the industry. CTVA outperforms 90.36% 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.
- CTVA has less shares outstanding than it did 1 year ago.
- CTVA has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for CTVA is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.56 indicates that CTVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
- CTVA's Altman-Z score of 2.56 is fine compared to the rest of the industry. CTVA outperforms 71.08% 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.
- CTVA's Debt to FCF ratio of 1.65 is amongst the best of the industry. CTVA outperforms 91.57% of its industry peers.
- A Debt/Equity ratio of 0.14 indicates that CTVA is not too dependend on debt financing.
- CTVA's Debt to Equity ratio of 0.14 is amongst the best of the industry. CTVA outperforms 84.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 2.56 |
ROIC/WACC0.39
WACC15.41%
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 66.27% 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: 60.24% of the companies in the same industry are doing better.
- CTVA does not score too well on the current and quick ratio evaluation. However, as it has 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
- CTVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.70%, which is quite impressive.
- 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.
- The Revenue has been growing slightly by 4.08% on average over the past years.
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 Y32.74%
EPS Next 2Y20.88%
EPS Next 3Y18.01%
EPS Next 5Y12.87%
Revenue Next Year4.54%
Revenue Next 2Y4.05%
Revenue Next 3Y3.75%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 21.48, which indicates a rather expensive current 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.
- CTVA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.60.
- A Price/Forward Earnings ratio of 19.71 indicates a rather expensive valuation of CTVA.
- The rest of the industry has a similar Price/Forward Earnings ratio as CTVA.
- CTVA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.48 | ||
| Fwd PE | 19.71 |
4.2 Price Multiples
- CTVA's Enterprise Value to EBITDA ratio is in line with the industry average.
- 74.70% 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 | 18.7 | ||
| EV/EBITDA | 12.93 |
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.
- The excellent profitability rating of CTVA 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)0.66
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.
- CTVA's Dividend Yield is comparable with the industry average which is at 2.23.
- Compared to an average S&P500 Dividend Yield of 1.82, CTVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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
- 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 21.48 and the Price/Book (PB) ratio is 1.97.
How financially healthy is CORTEVA INC?
The financial health rating of CORTEVA INC (CTVA) is 7 / 10.