CORTEVA INC (CTVA) Stock Fundamental Analysis
USA - NYSE:CTVA - US22052L1044 - Common Stock
63.88 USD
-2.12 (-3.21%)
63.88 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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CTVA has a correct valuation and a medium growth rate. With these ratings, CTVA could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
CTVA had positive earnings in the past year.
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 better Return On Assets (3.80%) than 70.73% of its industry peers.
Looking at the Return On Equity, with a value of 6.36%, CTVA is in the better half of the industry, outperforming 67.07% of the companies in the same industry.
CTVA has a better Return On Invested Capital (5.99%) than 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 has a better Profit Margin (9.19%) than 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 has a Gross Margin of 46.11%. This is amongst the best in 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
CTVA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CTVA has less shares outstanding
Compared to 5 years ago, CTVA has less shares outstanding
CTVA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.40 indicates that CTVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
CTVA's Altman-Z score of 2.40 is fine compared to the rest of the industry. CTVA outperforms 75.61% of its industry peers.
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.
A Debt/Equity ratio of 0.14 indicates that CTVA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.14, CTVA belongs to the top of the industry, outperforming 86.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.69
WACC8.69%
2.3 Liquidity
A Current Ratio of 1.58 indicates that CTVA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.58, CTVA is not doing good in the industry: 67.07% of the companies in the same industry are doing better.
A Quick Ratio of 1.07 indicates that CTVA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.07, CTVA is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
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.
Looking at the last year, CTVA shows a small growth in Revenue. The Revenue has grown by 5.00% in the last year.
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 11.25% yearly.
The Revenue is expected to grow by 2.90% on average over the next years.
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
Based on the Price/Earnings ratio of 18.68, the valuation of CTVA can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CTVA is on the same level as its industry peers.
When comparing the Price/Earnings ratio of CTVA to the average of the S&P500 Index (25.56), we can say CTVA is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.49, 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 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.68 | ||
| Fwd PE | 17.49 |
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.
71.95% of the companies in the same industry are more expensive than CTVA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.35 | ||
| EV/EBITDA | 11.74 |
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)0.75
PEG (5Y)N/A
EPS Next 2Y19.67%
EPS Next 3Y17.37%
5. Dividend
5.1 Amount
CTVA has a Yearly Dividend Yield of 1.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.00, CTVA has a dividend in line with its industry peers.
With a Dividend Yield of 1.09, CTVA pays less dividend than the S&P500 average, which is at 2.44.
| 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.
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
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%
63.88
-2.12 (-3.21%)
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 Cap43.38B
Revenue(TTM)17.47B
Net Income(TTM)1.60B
Analysts80
Price Target79.92 (25.11%)
Short Float %1.1%
Short Ratio1.62
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 | 18.68 | ||
| Fwd PE | 17.49 | ||
| P/S | 2.48 | ||
| P/FCF | 16.35 | ||
| P/OCF | 13.54 | ||
| P/B | 1.72 | ||
| P/tB | 6.91 | ||
| EV/EBITDA | 11.74 |
EPS(TTM)3.42
EY5.35%
EPS(NY)3.65
Fwd EY5.72%
FCF(TTM)3.91
FCFY6.12%
OCF(TTM)4.72
OCFY7.39%
SpS25.72
BVpS37.14
TBVpS9.25
PEG (NY)0.75
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 | 2.4 |
F-Score9
WACC8.69%
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%.