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%)
Taking everything into account, CTVA scores 6 out of 10 in our fundamental rating. CTVA was compared to 82 industry peers in the Chemicals industry. CTVA gets an excellent profitability rating and is at the same time showing great financial health properties. 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
In the past year CTVA was profitable.
CTVA had a positive operating cash flow in the past year.
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 has a Return On Assets of 3.80%. This is in the better half of the industry: CTVA outperforms 70.73% of its industry peers.
With a decent Return On Equity value of 6.36%, CTVA is doing good in the industry, outperforming 67.07% of the companies in the same industry.
CTVA's Return On Invested Capital of 5.99% is fine compared to the rest of the industry. CTVA outperforms 67.07% 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
CTVA's Profit Margin of 9.19% is amongst the best of the industry. CTVA outperforms 85.37% of its industry peers.
CTVA's Profit Margin has declined in the last couple of years.
The Operating Margin of CTVA (14.96%) is better than 78.05% 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 91.46% 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
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.
Compared to 1 year ago, CTVA has a worse debt to assets ratio.
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 Altman-Z score of 2.36. This is in the better half of the industry: CTVA outperforms 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.
CTVA's Debt to FCF ratio of 1.65 is amongst the best of the industry. CTVA outperforms 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.
CTVA has a worse Current ratio (1.58) 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
The Earnings Per Share has grown by an impressive 43.70% over the past year.
CTVA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.18% yearly.
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 11.25% on average over the next years. This is quite good.
CTVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.90% yearly.
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
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
With a Price/Earnings ratio of 19.16, CTVA is valued on the expensive side.
CTVA's Price/Earnings is on the same level as the industry average.
CTVA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.45.
The Price/Forward Earnings ratio is 17.95, which indicates a rather expensive current 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.
CTVA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.16 | ||
| Fwd PE | 17.95 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTVA indicates a somewhat cheap valuation: CTVA is cheaper than 71.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.77 | ||
| EV/EBITDA | 11.45 |
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.
A more expensive valuation may be justified as CTVA's earnings are expected to grow with 17.37% in the coming years.
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%. Purely for dividend investing, there may be better candidates out there.
CTVA's Dividend Yield is comparable with the industry average which is at 4.00.
With a Dividend Yield of 1.09, CTVA pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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.
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
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 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%.