CORTEVA INC (CTVA) Stock Fundamental Analysis
USA - NYSE:CTVA - US22052L1044 - Common Stock
64.15 USD
+1 (+1.58%)
64.71 USD
+0.56 (+0.87%)
Overall CTVA gets a fundamental rating of 6 out of 10. We evaluated CTVA against 82 industry peers in the Chemicals industry. CTVA scores excellent on profitability, but there are some minor concerns on its financial health. CTVA is not valued too expensively and it also shows a decent growth rate.
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.
CTVA had positive earnings in each of the past 5 years.
In the past 5 years CTVA always reported a positive cash flow from operatings.
1.2 Ratios
CTVA has a better Return On Assets (3.35%) than 68.29% of its industry peers.
With a decent Return On Equity value of 5.41%, CTVA is doing good in the industry, outperforming 62.20% of the companies in the same industry.
CTVA has a Return On Invested Capital of 5.76%. This is in the better half of the industry: CTVA outperforms 63.41% 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 6.22%.
The last Return On Invested Capital (5.76%) for CTVA is above the 3 year average (4.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 5.41% | ||
| ROIC | 5.76% |
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 (8.16%) is better than 79.27% of its industry peers.
CTVA's Profit Margin has declined in the last couple of years.
CTVA has a Operating Margin of 14.26%. This is in the better half of the industry: CTVA outperforms 74.39% of its industry peers.
CTVA's Operating Margin has improved in the last couple of years.
CTVA has a Gross Margin of 45.65%. This is amongst the best in the industry. CTVA outperforms 91.46% of its industry peers.
CTVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.26% | ||
| PM (TTM) | 8.16% | ||
| GM | 45.65% |
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
Compared to 5 years ago, CTVA has less shares outstanding
The debt/assets ratio for CTVA is higher compared to a year ago.
2.2 Solvency
CTVA has an Altman-Z score of 2.49. This is not the best score and indicates that CTVA is in the grey zone with still only limited risk for bankruptcy at the moment.
CTVA has a Altman-Z score of 2.49. This is in the better half of the industry: CTVA outperforms 76.83% of its industry peers.
The Debt to FCF ratio of CTVA is 1.40, which is an excellent value as it means it would take CTVA, only 1.40 years of fcf income to pay off all of its debts.
CTVA's Debt to FCF ratio of 1.40 is amongst the best of the industry. CTVA outperforms 95.12% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that CTVA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.08, CTVA belongs to the top of the industry, outperforming 91.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.66
WACC8.66%
2.3 Liquidity
A Current Ratio of 1.68 indicates that CTVA should not have too much problems paying its short term obligations.
CTVA has a worse Current ratio (1.68) than 67.07% of its industry peers.
CTVA has a Quick Ratio of 1.23. This is a normal value and indicates that CTVA is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.23, CTVA perfoms like the industry average, outperforming 45.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.23 |
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.
CTVA shows a decrease in Revenue. In the last year, the revenue decreased by -1.85%.
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)-1.85%
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 11.25% yearly.
Based on estimates for the next years, CTVA will show a small growth in Revenue. The Revenue will grow by 2.90% on average per year.
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.
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 18.76 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 26.06, CTVA is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.57, CTVA is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as CTVA.
The average S&P500 Price/Forward Earnings ratio is at 32.73. CTVA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 17.57 |
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.
Based on the Price/Free Cash Flow ratio, CTVA is valued a bit cheaper than the industry average as 71.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.79 | ||
| EV/EBITDA | 12.18 |
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.
CTVA has a very decent profitability rating, which 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)0.75
PEG (5Y)N/A
EPS Next 2Y19.67%
EPS Next 3Y17.37%
5. Dividend
5.1 Amount
CTVA has a Yearly Dividend Yield of 1.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.15, CTVA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, CTVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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
CTVA pays out 33.33% of its income as dividend. This is a sustainable payout ratio.
The dividend of CTVA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.33%
EPS Next 2Y19.67%
EPS Next 3Y17.37%
64.15
+1 (+1.58%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners86.31%
Inst Owner Change-1.51%
Ins Owners0.07%
Ins Owner Change-2.5%
Market Cap43.56B
Revenue(TTM)16.91B
Net Income(TTM)1.40B
Analysts80
Price Target79.92 (24.58%)
Short Float %1.1%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend0.66
Dividend Growth(5Y)30.66%
DP33.33%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.12%
Min EPS beat(2)14.15%
Max EPS beat(2)26.09%
EPS beat(4)3
Avg EPS beat(4)-5.18%
Min EPS beat(4)-61.17%
Max EPS beat(4)26.09%
EPS beat(8)7
Avg EPS beat(8)17.8%
EPS beat(12)10
Avg EPS beat(12)34.81%
EPS beat(16)13
Avg EPS beat(16)30.68%
Revenue beat(2)1
Avg Revenue beat(2)-1.84%
Min Revenue beat(2)-4.68%
Max Revenue beat(2)1%
Revenue beat(4)1
Avg Revenue beat(4)-5.46%
Min Revenue beat(4)-15.45%
Max Revenue beat(4)1%
Revenue beat(8)2
Avg Revenue beat(8)-4.11%
Revenue beat(12)4
Avg Revenue beat(12)-3.07%
Revenue beat(16)7
Avg Revenue beat(16)-1.4%
PT rev (1m)-3.67%
PT rev (3m)-0.77%
EPS NQ rev (1m)-3.11%
EPS NQ rev (3m)-47.42%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)3.68%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 17.57 | ||
| P/S | 2.54 | ||
| P/FCF | 16.79 | ||
| P/OCF | 13.87 | ||
| P/B | 1.68 | ||
| P/tB | 6.4 | ||
| EV/EBITDA | 12.18 |
EPS(TTM)3.42
EY5.33%
EPS(NY)3.65
Fwd EY5.69%
FCF(TTM)3.82
FCFY5.95%
OCF(TTM)4.63
OCFY7.21%
SpS25.29
BVpS38.15
TBVpS10.03
PEG (NY)0.75
PEG (5Y)N/A
Graham Number54.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 5.41% | ||
| ROCE | 7.6% | ||
| ROIC | 5.76% | ||
| ROICexc | 6.16% | ||
| ROICexgc | 16.43% | ||
| OM | 14.26% | ||
| PM (TTM) | 8.16% | ||
| GM | 45.65% | ||
| FCFM | 15.1% |
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-Score8
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.4 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 45.39% | ||
| Cap/Sales | 3.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.96% | ||
| Profit Quality | 185.15% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 2.49 |
F-Score8
WACC8.66%
ROIC/WACC0.66
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)-1.85%
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 1Y14.17%
EBIT growth 3Y16.75%
EBIT growth 5Y29.12%
EBIT Next Year56.21%
EBIT Next 3Y21.78%
EBIT Next 5Y14.12%
FCF growth 1Y577.72%
FCF growth 3Y-10.43%
FCF growth 5YN/A
OCF growth 1Y52450%
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 7 / 10.
What is the financial health of CORTEVA INC (CTVA) stock?
The financial health rating of CORTEVA INC (CTVA) is 6 / 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 33.33%.