CORTEVA INC (CTVA) Stock Fundamental Analysis
NYSE:CTVA - New York Stock Exchange, Inc. - US22052L1044 - Common Stock - Currency: USD
Taking everything into account, CTVA scores 5 out of 10 in our fundamental rating. CTVA was compared to 85 industry peers in the Chemicals industry. CTVA has an average financial health and profitability rating. CTVA has a expensive valuation and it also scores bad on growth.
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
CTVA has a Return On Assets (2.22%) which is comparable to the rest of the industry.
CTVA has a Return On Equity of 3.81%. This is comparable to the rest of the industry: CTVA outperforms 52.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.29%, CTVA is in line with its industry, outperforming 56.47% 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 below the industry average of 7.05%.
The 3 year average ROIC (4.97%) for CTVA is below the current ROIC(5.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 3.81% | ||
| ROIC | 5.29% |
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 (5.36%) is better than 69.41% of its industry peers.
CTVA's Profit Margin has declined in the last couple of years.
CTVA has a better Operating Margin (12.40%) than 69.41% of its industry peers.
In the last couple of years the Operating Margin of CTVA has grown nicely.
With an excellent Gross Margin value of 43.64%, CTVA belongs to the best of the industry, outperforming 90.59% 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 | 12.4% | ||
| PM (TTM) | 5.36% | ||
| GM | 43.64% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CTVA is destroying value.
The number of shares outstanding for CTVA has been reduced compared to 1 year ago.
CTVA has less shares outstanding than it did 5 years ago.
CTVA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.20 indicates that CTVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CTVA (2.20) is better than 65.88% of its industry peers.
The Debt to FCF ratio of CTVA is 1.75, which is an excellent value as it means it would take CTVA, only 1.75 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.75, CTVA belongs to the best of the industry, outperforming 90.59% of the companies in the same industry.
A Debt/Equity ratio of 0.08 indicates that CTVA is not too dependend on debt financing.
CTVA has a Debt to Equity ratio of 0.08. This is amongst the best in the industry. CTVA outperforms 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.75 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.6
WACC8.83%
2.3 Liquidity
A Current Ratio of 1.45 indicates that CTVA should not have too much problems paying its short term obligations.
CTVA has a worse Current ratio (1.45) than 64.71% of its industry peers.
CTVA has a Quick Ratio of 1.45. This is a bad value and indicates that CTVA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CTVA (0.93) is worse than 61.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The earnings per share for CTVA have decreased by -4.85% in the last year.
The Earnings Per Share has been growing slightly by 6.18% on average over the past years.
CTVA shows a decrease in Revenue. In the last year, the revenue decreased by -1.85%.
Measured over the past years, CTVA shows a small growth in Revenue. The Revenue has been growing by 4.08% on average per year.
EPS 1Y (TTM)-4.85%
EPS 3Y6.18%
EPS 5YN/A
EPS Q2Q%113.33%
Revenue 1Y (TTM)-1.85%
Revenue growth 3Y2.6%
Revenue growth 5Y4.08%
Sales Q2Q%7.31%
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 11.94% on average per year.
The Revenue is expected to grow by 2.70% on average over the next years.
EPS Next Y17.86%
EPS Next 2Y17.89%
EPS Next 3Y16.12%
EPS Next 5Y11.94%
Revenue Next Year2.23%
Revenue Next 2Y2.82%
Revenue Next 3Y2.86%
Revenue Next 5Y2.7%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 24.11 indicates a rather expensive valuation of CTVA.
CTVA's Price/Earnings is on the same level as the industry average.
CTVA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.79.
With a Price/Forward Earnings ratio of 20.45, CTVA is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as CTVA.
When comparing the Price/Forward Earnings ratio of CTVA to the average of the S&P500 Index (21.38), we can say CTVA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.11 | ||
| Fwd PE | 20.45 |
4.2 Price Multiples
CTVA's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as CTVA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.12 | ||
| EV/EBITDA | 12.48 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of CTVA may justify a higher PE ratio.
A more expensive valuation may be justified as CTVA's earnings are expected to grow with 16.12% in the coming years.
PEG (NY)1.35
PEG (5Y)N/A
EPS Next 2Y17.89%
EPS Next 3Y16.12%
5. Dividend
5.1 Amount
CTVA has a Yearly Dividend Yield of 1.10%.
CTVA's Dividend Yield is comparable with the industry average which is at 3.85.
With a Dividend Yield of 1.10, CTVA pays less dividend than the S&P500 average, which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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
50.50% of the earnings are spent on dividend by CTVA. This is a bit on the high side, but may be sustainable.
The dividend of CTVA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.5%
EPS Next 2Y17.89%
EPS Next 3Y16.12%
61.47
-0.24 (-0.39%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.39%
Inst Owner Change-47.16%
Ins Owners0.11%
Ins Owner Change3.7%
Market Cap41.98B
Analysts80
Price Target70.51 (14.71%)
Short Float %1.27%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend0.66
Dividend Growth(5Y)30.66%
DP50.5%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-30.48%
Min EPS beat(2)-61.17%
Max EPS beat(2)0.21%
EPS beat(4)3
Avg EPS beat(4)-13.32%
Min EPS beat(4)-61.17%
Max EPS beat(4)4.01%
EPS beat(8)6
Avg EPS beat(8)15.4%
EPS beat(12)10
Avg EPS beat(12)33.69%
EPS beat(16)13
Avg EPS beat(16)29.92%
Revenue beat(2)0
Avg Revenue beat(2)-9.08%
Min Revenue beat(2)-15.45%
Max Revenue beat(2)-2.71%
Revenue beat(4)0
Avg Revenue beat(4)-6.52%
Min Revenue beat(4)-15.45%
Max Revenue beat(4)-2.71%
Revenue beat(8)2
Avg Revenue beat(8)-4.62%
Revenue beat(12)5
Avg Revenue beat(12)-2.66%
Revenue beat(16)8
Avg Revenue beat(16)-0.48%
PT rev (1m)0.06%
PT rev (3m)5.47%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)-11.76%
EPS NY rev (1m)0.37%
EPS NY rev (3m)-7.41%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)-1.94%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.11 | ||
| Fwd PE | 20.45 | ||
| P/S | 2.48 | ||
| P/FCF | 27.12 | ||
| P/OCF | 19.57 | ||
| P/B | 1.76 | ||
| P/tB | 9.32 | ||
| EV/EBITDA | 12.48 |
EPS(TTM)2.55
EY4.15%
EPS(NY)3.01
Fwd EY4.89%
FCF(TTM)2.27
FCFY3.69%
OCF(TTM)3.14
OCFY5.11%
SpS24.76
BVpS34.83
TBVpS6.6
PEG (NY)1.35
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.22% | ||
| ROE | 3.81% | ||
| ROCE | 6.89% | ||
| ROIC | 5.29% | ||
| ROICexc | 5.91% | ||
| ROICexgc | 20.18% | ||
| OM | 12.4% | ||
| PM (TTM) | 5.36% | ||
| GM | 43.64% | ||
| FCFM | 9.16% |
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%
ROICexcg growth 3Y17.34%
ROICexcg 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-Score8
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.75 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 48.66% | ||
| Cap/Sales | 3.53% | ||
| Interest Coverage | 8.59 | ||
| Cash Conversion | 64.55% | ||
| Profit Quality | 170.67% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 2.2 |
F-Score8
WACC8.83%
ROIC/WACC0.6
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)-4.85%
EPS 3Y6.18%
EPS 5YN/A
EPS Q2Q%113.33%
EPS Next Y17.86%
EPS Next 2Y17.89%
EPS Next 3Y16.12%
EPS Next 5Y11.94%
Revenue 1Y (TTM)-1.85%
Revenue growth 3Y2.6%
Revenue growth 5Y4.08%
Sales Q2Q%7.31%
Revenue Next Year2.23%
Revenue Next 2Y2.82%
Revenue Next 3Y2.86%
Revenue Next 5Y2.7%
EBIT growth 1Y-0.66%
EBIT growth 3Y16.75%
EBIT growth 5Y29.12%
EBIT Next Year52.44%
EBIT Next 3Y21.04%
EBIT Next 5Y14.99%
FCF growth 1Y31.86%
FCF growth 3Y-10.43%
FCF growth 5YN/A
OCF growth 1Y21.25%
OCF growth 3Y-7.69%
OCF growth 5Y14.92%