CORTEVA INC (CTVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CTVA - US22052L1044 - Common Stock
71.7 USD
+0.14 (+0.2%)
71.7 USD
0 (0%)
Taking everything into account, CTVA scores 6 out of 10 in our fundamental rating. 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 has a correct valuation and a medium growth rate. These ratings could make CTVA a good candidate 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.
- In the past 5 years CTVA always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 3.80%, CTVA is doing good in the industry, outperforming 72.29% of the companies in the same industry.
- CTVA has a Return On Equity of 6.36%. This is in the better half of the industry: CTVA outperforms 68.67% of its industry peers.
- With a decent Return On Invested Capital value of 5.99%, CTVA is doing good in the industry, outperforming 68.67% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for CTVA is in line with the industry average of 6.11%.
- 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 has a Profit Margin of 9.19%. This is amongst the best in the industry. CTVA outperforms 84.34% of its industry peers.
- CTVA's Profit Margin has declined in the last couple of years.
- 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.
- 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 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
- 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.
- The debt/assets ratio for CTVA is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.53 indicates that CTVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.53, CTVA is in the better half of the industry, outperforming 69.88% 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.
- The Debt to FCF ratio of CTVA (1.65) is better than 91.57% of its industry peers.
- A Debt/Equity ratio of 0.14 indicates that CTVA is not too dependend on debt financing.
- CTVA has a Debt to Equity ratio of 0.14. This is amongst the best in the industry. CTVA outperforms 84.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.39
WACC15.4%
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 worse Current ratio (1.58) than 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's Quick ratio of 1.07 is on the low side compared to the rest of the industry. CTVA is outperformed by 60.24% of its industry peers.
- CTVA does not score too well on the current and quick ratio evaluation. However, as it has 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.
- The Revenue has been growing slightly by 5.00% in the past year.
- 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)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.
- CTVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.98% yearly.
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
- 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 20.96 indicates a rather expensive valuation of CTVA.
- CTVA's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, CTVA is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 19.24, the valuation of CTVA can be described as rather expensive.
- 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 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 19.24 |
4.2 Price Multiples
- CTVA's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTVA indicates a somewhat cheap valuation: CTVA is cheaper than 74.70% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.26 | ||
| EV/EBITDA | 12.69 |
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 18.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
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.
- Compared to an average S&P500 Dividend Yield of 1.81, CTVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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.
- 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 20.96 and the Price/Book (PB) ratio is 1.92.
How financially healthy is CORTEVA INC?
The financial health rating of CORTEVA INC (CTVA) is 7 / 10.