CORTEVA INC (CTVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CTVA - US22052L1044 - Common Stock
65.54 USD
+1.16 (+1.8%)
65.54 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to CTVA. CTVA was compared to 82 industry peers in the Chemicals industry. CTVA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CTVA has a decent growth rate and is not valued too expensively. This makes CTVA very considerable 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.
In the past 5 years CTVA has always 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 71.95% of its industry peers.
CTVA has a Return On Equity of 6.36%. This is in the better half of the industry: CTVA outperforms 69.51% 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.
Measured over the past 3 years, the Average Return On Invested Capital for CTVA is in line with the industry average of 6.13%.
The last Return On Invested Capital (5.99%) for CTVA is above the 3 year average (4.97%), which is a sign of increasing profitability.
| 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 84.15% of its industry peers.
CTVA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 14.96%, CTVA is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
In the last couple of years the Operating Margin of CTVA has grown nicely.
Looking at the Gross Margin, with a value of 46.11%, CTVA belongs to the top 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CTVA is destroying value.
Compared to 1 year ago, CTVA has less shares outstanding
CTVA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CTVA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.38 indicates that CTVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.38, CTVA is doing good in the industry, outperforming 76.83% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 1.65, CTVA belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
CTVA has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
CTVA has a better Debt to Equity ratio (0.14) than 86.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.69
WACC8.62%
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 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.
The Quick ratio of CTVA (1.07) is worse than 62.20% 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.
CTVA shows a small growth in Revenue. In the last year, the Revenue has grown by 5.00%.
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.
The Revenue is expected to grow by 2.98% on average over the next years.
EPS Next Y25.02%
EPS Next 2Y19.67%
EPS Next 3Y17.37%
EPS Next 5Y12.87%
Revenue Next Year3.84%
Revenue Next 2Y3.64%
Revenue Next 3Y3.4%
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 19.16, which indicates a rather expensive current valuation of CTVA.
The rest of the industry has a similar Price/Earnings ratio as CTVA.
CTVA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.45.
A Price/Forward Earnings ratio of 17.95 indicates a rather expensive valuation of CTVA.
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 34.46, CTVA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 17.95 |
4.2 Price Multiples
CTVA's Enterprise Value to EBITDA ratio is in line with the industry average.
CTVA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CTVA is cheaper than 73.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.69 | ||
| EV/EBITDA | 11.6 |
4.3 Compensation for Growth
CTVA's 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 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 1.12%.
CTVA's Dividend Yield is comparable with the industry average which is at 4.09.
Compared to an average S&P500 Dividend Yield of 2.42, CTVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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.
CTVA's earnings are growing slower than its dividend. 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-85.86%
Ins Owners0.07%
Ins Owner Change-0.69%
Market Cap44.29B
Revenue(TTM)17.47B
Net Income(TTM)1.60B
Analysts80
Price Target78.9 (20.38%)
Short Float %1.61%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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)-4.9%
PT rev (3m)-2.03%
EPS NQ rev (1m)-29.95%
EPS NQ rev (3m)-33.28%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)3.68%
Revenue NQ rev (1m)-1.08%
Revenue NQ rev (3m)0.07%
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 | 2.54 | ||
| P/FCF | 16.69 | ||
| P/OCF | 13.82 | ||
| P/B | 1.76 | ||
| P/tB | 7.05 | ||
| EV/EBITDA | 11.6 |
EPS(TTM)3.42
EY5.22%
EPS(NY)3.65
Fwd EY5.57%
FCF(TTM)3.93
FCFY5.99%
OCF(TTM)4.74
OCFY7.23%
SpS25.85
BVpS37.32
TBVpS9.29
PEG (NY)0.77
PEG (5Y)N/A
Graham Number53.59
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 | 2.38 |
F-Score9
WACC8.62%
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 5Y12.87%
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 5Y2.98%
EBIT growth 1Y33.86%
EBIT growth 3Y16.75%
EBIT growth 5Y29.12%
EBIT Next Year56.21%
EBIT Next 3Y21.78%
EBIT Next 5Y13.88%
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%.