CORTEVA INC (CTVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CTVA - US22052L1044 - Common Stock
73 USD
+0.37 (+0.51%)
73 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to CTVA. CTVA was compared to 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 is not valued too expensively and it also shows a decent growth rate. This makes CTVA very considerable 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.
- CTVA had positive earnings in each of the past 5 years.
- In the past 5 years CTVA always reported a positive cash flow from operatings.
1.2 Ratios
- CTVA's Return On Assets of 3.80% is fine compared to the rest of the industry. CTVA outperforms 72.29% of its industry peers.
- The Return On Equity of CTVA (6.36%) is better than 68.67% of its industry peers.
- The Return On Invested Capital of CTVA (5.99%) is better than 68.67% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CTVA 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 Profit Margin of 9.19%. This is amongst the best in the industry. CTVA outperforms 84.34% of its industry peers.
- In the last couple of years the Profit Margin of CTVA has declined.
- CTVA has a Operating Margin of 14.96%. This is in the better half of the industry: CTVA outperforms 77.11% of its industry peers.
- In the last couple of years the Operating Margin of CTVA has grown nicely.
- CTVA has a Gross Margin of 46.11%. This is amongst the best in the industry. CTVA outperforms 90.36% of its industry peers.
- In the last couple of years the Gross Margin of CTVA has grown nicely.
| 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
- 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.
- CTVA has a worse debt/assets ratio than last year.
2.2 Solvency
- CTVA has an Altman-Z score of 2.56. 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 (2.56) is better than 72.29% 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 91.57% of its industry peers.
- CTVA has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of CTVA (0.14) is better than 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
WACC15.39%
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 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.
- CTVA has a worse Quick ratio (1.07) than 60.24% 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.
- 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.
- 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
- The Earnings Per Share is expected to grow by 12.87% on average over the next years. This is quite good.
- 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.
- 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 21.35 indicates a rather expensive valuation of CTVA.
- CTVA's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 28.87. CTVA is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 19.59, the valuation of CTVA can be described as rather expensive.
- CTVA's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. CTVA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.35 | ||
| Fwd PE | 19.59 |
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.
- Based on the Price/Free Cash Flow ratio, CTVA is valued a bit cheaper than 74.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.59 | ||
| EV/EBITDA | 12.92 |
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.
- A more expensive valuation may be justified as CTVA's earnings are expected to grow with 18.01% in the coming years.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y20.88%
EPS Next 3Y18.01%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.01%, CTVA has a reasonable but not impressive dividend return.
- CTVA's Dividend Yield is comparable with the industry average which is at 2.23.
- With a Dividend Yield of 1.01, CTVA pays less dividend than the S&P500 average, which is at 1.82.
| 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.
- 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
- 29.41% of the earnings are spent on dividend by CTVA. This is a low number and sustainable payout ratio.
- The dividend of CTVA is growing, but the earnings are growing slower. 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 21.35 and the Price/Book (PB) ratio is 1.96.
How financially healthy is CORTEVA INC?
The financial health rating of CORTEVA INC (CTVA) is 7 / 10.