CORTEVA INC (CTVA) Stock Fundamental Analysis
USA - NYSE:CTVA - US22052L1044 - Common Stock
65.54 USD
+1.16 (+1.8%)
65.54 USD
0 (0%)
Overall CTVA gets a fundamental rating of 6 out of 10. We evaluated CTVA against 82 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. With these ratings, CTVA could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
CTVA had positive earnings in the past year.
In the past year CTVA had a positive cash flow from operations.
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
CTVA's Return On Assets of 3.80% is fine compared to the rest of the industry. CTVA outperforms 70.73% of its industry peers.
CTVA has a better Return On Equity (6.36%) than 67.07% 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 67.07% 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 6.13%.
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
Looking at the Profit Margin, with a value of 9.19%, CTVA belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
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 78.05% of its industry peers.
CTVA's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 46.11%, CTVA belongs to the best of the industry, outperforming 91.46% 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 | 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.
Compared to 5 years ago, CTVA has less shares outstanding
CTVA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.36 indicates that CTVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
CTVA has a better Altman-Z score (2.36) than 75.61% 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.
CTVA has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
CTVA's Debt to Equity ratio of 0.14 is amongst the best of the industry. CTVA outperforms 86.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.69
WACC8.66%
2.3 Liquidity
A Current Ratio of 1.58 indicates that CTVA should not have too much problems paying its short term obligations.
The Current ratio of CTVA (1.58) is worse than 67.07% of its industry peers.
A Quick Ratio of 1.07 indicates that CTVA should not have too much problems paying its short term obligations.
CTVA's Quick ratio of 1.07 is on the low side compared to the rest of the industry. CTVA is outperformed by 63.41% 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
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.
The Earnings Per Share has been growing slightly by 6.18% on average over the past years.
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
Based on estimates for the next years, CTVA will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.25% on average per year.
The Revenue is expected to grow by 2.90% on average over the next years.
EPS Next Y25.02%
EPS Next 2Y19.67%
EPS Next 3Y17.37%
EPS Next 5Y11.25%
Revenue Next Year3.84%
Revenue Next 2Y3.64%
Revenue Next 3Y3.4%
Revenue Next 5Y2.9%
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
A Price/Earnings ratio of 19.16 indicates a rather expensive valuation of CTVA.
The rest of the industry has a similar Price/Earnings ratio as CTVA.
The average S&P500 Price/Earnings ratio is at 25.45. CTVA is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.95, which indicates a rather expensive current valuation of CTVA.
CTVA's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CTVA to the average of the S&P500 Index (34.46), we can say CTVA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 17.95 |
4.2 Price Multiples
CTVA's Enterprise Value to EBITDA is on the same level as the industry average.
CTVA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CTVA is cheaper than 71.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.77 | ||
| EV/EBITDA | 11.45 |
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 17.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)N/A
EPS Next 2Y19.67%
EPS Next 3Y17.37%
5. Dividend
5.1 Amount
CTVA has a Yearly Dividend Yield of 1.09%.
Compared to an average industry Dividend Yield of 4.00, CTVA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, CTVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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
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 2Y19.67%
EPS Next 3Y17.37%
65.54
+1.16 (+1.8%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners86.31%
Inst Owner Change-1.8%
Ins Owners0.07%
Ins Owner Change-0.81%
Market Cap44.51B
Revenue(TTM)17.47B
Net Income(TTM)1.60B
Analysts80
Price Target79.92 (21.94%)
Short Float %1.61%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend0.66
Dividend Growth(5Y)30.66%
DP29.41%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.88%
Min EPS beat(2)14.15%
Max EPS beat(2)57.61%
EPS beat(4)4
Avg EPS beat(4)24.51%
Min EPS beat(4)0.21%
Max EPS beat(4)57.61%
EPS beat(8)7
Avg EPS beat(8)24.59%
EPS beat(12)10
Avg EPS beat(12)35.59%
EPS beat(16)13
Avg EPS beat(16)30.82%
Revenue beat(2)2
Avg Revenue beat(2)2.38%
Min Revenue beat(2)1%
Max Revenue beat(2)3.77%
Revenue beat(4)2
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-4.68%
Max Revenue beat(4)3.77%
Revenue beat(8)3
Avg Revenue beat(8)-3.19%
Revenue beat(12)4
Avg Revenue beat(12)-3.16%
Revenue beat(16)7
Avg Revenue beat(16)-2.07%
PT rev (1m)-3.67%
PT rev (3m)-0.77%
EPS NQ rev (1m)-20.51%
EPS NQ rev (3m)-30.39%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)3.68%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)1.73%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 17.95 | ||
| P/S | 2.55 | ||
| P/FCF | 16.77 | ||
| P/OCF | 13.89 | ||
| P/B | 1.76 | ||
| P/tB | 7.09 | ||
| EV/EBITDA | 11.45 |
EPS(TTM)3.42
EY5.22%
EPS(NY)3.65
Fwd EY5.57%
FCF(TTM)3.91
FCFY5.96%
OCF(TTM)4.72
OCFY7.2%
SpS25.72
BVpS37.14
TBVpS9.25
PEG (NY)0.77
PEG (5Y)N/A
Graham Number53.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.8% | ||
| ROE | 6.36% | ||
| ROCE | 8.22% | ||
| ROIC | 5.99% | ||
| ROICexc | 6.49% | ||
| ROICexgc | 16.71% | ||
| OM | 14.96% | ||
| PM (TTM) | 9.19% | ||
| GM | 46.11% | ||
| FCFM | 15.19% |
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%
ROICexgc growth 3Y17.34%
ROICexgc 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-Score9
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.65 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 45.87% | ||
| Cap/Sales | 3.15% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.05% | ||
| Profit Quality | 165.36% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 2.36 |
F-Score9
WACC8.66%
ROIC/WACC0.69
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)43.7%
EPS 3Y6.18%
EPS 5YN/A
EPS Q2Q%53.06%
EPS Next Y25.02%
EPS Next 2Y19.67%
EPS Next 3Y17.37%
EPS Next 5Y11.25%
Revenue 1Y (TTM)5%
Revenue growth 3Y2.6%
Revenue growth 5Y4.08%
Sales Q2Q%12.55%
Revenue Next Year3.84%
Revenue Next 2Y3.64%
Revenue Next 3Y3.4%
Revenue Next 5Y2.9%
EBIT growth 1Y33.86%
EBIT growth 3Y16.75%
EBIT growth 5Y29.12%
EBIT Next Year56.21%
EBIT Next 3Y21.78%
EBIT Next 5Y14.12%
FCF growth 1Y1955.94%
FCF growth 3Y-10.43%
FCF growth 5YN/A
OCF growth 1Y673.91%
OCF growth 3Y-7.69%
OCF growth 5Y14.92%
CORTEVA INC / CTVA FAQ
Can you provide the ChartMill fundamental rating for CORTEVA INC?
ChartMill assigns a fundamental rating of 6 / 10 to CTVA.
What is the valuation status of CORTEVA INC (CTVA) stock?
ChartMill assigns a valuation rating of 5 / 10 to CORTEVA INC (CTVA). This can be considered as Fairly Valued.
Can you provide the profitability details for CORTEVA INC?
CORTEVA INC (CTVA) has a profitability rating of 8 / 10.
What is the financial health of CORTEVA INC (CTVA) stock?
The financial health rating of CORTEVA INC (CTVA) is 7 / 10.
How sustainable is the dividend of CORTEVA INC (CTVA) stock?
The dividend rating of CORTEVA INC (CTVA) is 5 / 10 and the dividend payout ratio is 29.41%.