CORTEVA INC (CTVA)
US22052L1044 - Common Stock
We assign a fundamental rating of 5 out of 10 to CTVA. CTVA was compared to 83 industry peers in the Chemicals industry. Both the profitability and the financial health of CTVA get a neutral evaluation. Nothing too spectacular is happening here. CTVA is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CTVA was profitable.
CTVA had a positive operating cash flow in the past year.
Of the past 5 years CTVA 4 years were profitable.
In the past 5 years CTVA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CTVA (1.66%) is comparable to the rest of the industry.
CTVA's Return On Equity of 2.81% is in line compared to the rest of the industry. CTVA outperforms 40.96% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.85%, CTVA is in line with its industry, outperforming 54.22% of the companies in the same industry.
CTVA had an Average Return On Invested Capital over the past 3 years of 4.72%. This is below the industry average of 7.24%.
The last Return On Invested Capital (4.85%) for CTVA is above the 3 year average (4.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.66% | ||
| ROE | 2.81% | ||
| ROIC | 4.85% |
ROA(3y)2.85%
ROA(5y)1.58%
ROE(3y)4.8%
ROE(5y)2.64%
ROIC(3y)4.72%
ROIC(5y)3.55%
1.3 Margins
Looking at the Profit Margin, with a value of 4.18%, CTVA is in line with its industry, outperforming 51.81% of the companies in the same industry.
CTVA's Profit Margin has declined in the last couple of years.
The Operating Margin of CTVA (11.73%) is better than 63.86% of its industry peers.
In the last couple of years the Operating Margin of CTVA has grown nicely.
CTVA has a Gross Margin of 43.51%. This is amongst the best in the industry. CTVA outperforms 86.75% of its industry peers.
In the last couple of years the Gross Margin of CTVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.73% | ||
| PM (TTM) | 4.18% | ||
| GM | 43.51% |
OM growth 3Y27.36%
OM growth 5YN/A
PM growth 3Y-3.78%
PM growth 5YN/A
GM growth 3Y1.83%
GM growth 5Y6.91%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CTVA is destroying value.
CTVA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CTVA has less shares outstanding
Compared to 1 year ago, CTVA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.08 indicates that CTVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
CTVA's Altman-Z score of 2.08 is fine compared to the rest of the industry. CTVA outperforms 62.65% of its industry peers.
The Debt to FCF ratio of CTVA is 3.27, which is a good value as it means it would take CTVA, 3.27 years of fcf income to pay off all of its debts.
CTVA's Debt to FCF ratio of 3.27 is amongst the best of the industry. CTVA outperforms 81.93% of its industry peers.
CTVA has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
CTVA has a Debt to Equity ratio of 0.20. This is in the better half of the industry: CTVA outperforms 79.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 2.08 |
ROIC/WACC0.52
WACC9.27%
2.3 Liquidity
CTVA has a Current Ratio of 1.50. 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 (1.50) than 71.08% of its industry peers.
CTVA has a Quick Ratio of 1.50. 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 (0.96) is worse than 71.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
CTVA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.52%.
CTVA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.34% yearly.
CTVA shows a decrease in Revenue. In the last year, the revenue decreased by -4.08%.
CTVA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.81% yearly.
EPS 1Y (TTM)-11.52%
EPS 3Y21.34%
EPS 5YN/A
EPS Q2Q%-113.04%
Revenue 1Y (TTM)-4.08%
Revenue growth 3Y6.61%
Revenue growth 5Y3.81%
Sales Q2Q%-10.19%
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 8.28% yearly.
Based on estimates for the next years, CTVA will show a small growth in Revenue. The Revenue will grow by 1.83% on average per year.
EPS Next Y-2.38%
EPS Next 2Y10.05%
EPS Next 3Y11.33%
EPS Next 5Y8.28%
Revenue Next Year-0.73%
Revenue Next 2Y0.79%
Revenue Next 3Y1.74%
Revenue Next 5Y1.83%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 24.15, which indicates a rather expensive current valuation of CTVA.
Compared to the rest of the industry, the Price/Earnings ratio of CTVA is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.73, CTVA is valued at the same level.
CTVA is valuated rather expensively with a Price/Forward Earnings ratio of 17.71.
The rest of the industry has a similar Price/Forward Earnings ratio as CTVA.
CTVA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.15 | ||
| Fwd PE | 17.71 |
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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.63 | ||
| EV/EBITDA | 12.45 |
4.3 Compensation for Growth
The decent profitability rating of CTVA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.05%
EPS Next 3Y11.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.21%, CTVA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.28, CTVA has a dividend in line with its industry peers.
With a Dividend Yield of 1.21, CTVA pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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
65.04% of the earnings are spent on dividend by CTVA. This is not a sustainable payout ratio.
The dividend of CTVA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP65.04%
EPS Next 2Y10.05%
EPS Next 3Y11.33%
CORTEVA INC
NYSE:CTVA (12/20/2024, 8:04:23 PM)
After market: 57.48 0 (0%)57.48
+1.32 (+2.35%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners84.86%
Inst Owner Change0.59%
Ins Owners0.09%
Ins Owner Change2.87%
Market Cap39.51B
Analysts79.33
Price Target66.44 (15.59%)
Short Float %1.69%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
Dividend Growth(5Y)30.66%
DP65.04%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-28.58%
Min EPS beat(2)-61.17%
Max EPS beat(2)4.01%
EPS beat(4)3
Avg EPS beat(4)24.66%
Min EPS beat(4)-61.17%
Max EPS beat(4)152.12%
EPS beat(8)6
Avg EPS beat(8)41.12%
EPS beat(12)9
Avg EPS beat(12)32.92%
EPS beat(16)13
Avg EPS beat(16)40.84%
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)1
Avg Revenue beat(4)-5.73%
Min Revenue beat(4)-15.45%
Max Revenue beat(4)0.46%
Revenue beat(8)2
Avg Revenue beat(8)-4.41%
Revenue beat(12)5
Avg Revenue beat(12)-2.54%
Revenue beat(16)9
Avg Revenue beat(16)0.05%
PT rev (1m)2.34%
PT rev (3m)3.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)24.25%
EPS NY rev (1m)-3.38%
EPS NY rev (3m)-4.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.87%
Revenue NY rev (1m)-0.98%
Revenue NY rev (3m)-1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.15 | ||
| Fwd PE | 17.71 | ||
| P/S | 2.37 | ||
| P/FCF | 22.63 | ||
| P/OCF | 16.85 | ||
| P/B | 1.6 | ||
| P/tB | 7.86 | ||
| EV/EBITDA | 12.45 |
EPS(TTM)2.38
EY4.14%
EPS(NY)3.25
Fwd EY5.65%
FCF(TTM)2.54
FCFY4.42%
OCF(TTM)3.41
OCFY5.94%
SpS24.21
BVpS35.99
TBVpS7.31
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.66% | ||
| ROE | 2.81% | ||
| ROCE | 6.2% | ||
| ROIC | 4.85% | ||
| ROICexc | 5.23% | ||
| ROICexgc | 13.66% | ||
| OM | 11.73% | ||
| PM (TTM) | 4.18% | ||
| GM | 43.51% | ||
| FCFM | 10.49% |
ROA(3y)2.85%
ROA(5y)1.58%
ROE(3y)4.8%
ROE(5y)2.64%
ROIC(3y)4.72%
ROIC(5y)3.55%
ROICexc(3y)5.28%
ROICexc(5y)3.95%
ROICexgc(3y)16.84%
ROICexgc(5y)12.59%
ROCE(3y)5.51%
ROCE(5y)4.14%
ROICexcg growth 3Y34.24%
ROICexcg growth 5YN/A
ROICexc growth 3Y36.47%
ROICexc growth 5YN/A
OM growth 3Y27.36%
OM growth 5YN/A
PM growth 3Y-3.78%
PM growth 5YN/A
GM growth 3Y1.83%
GM growth 5Y6.91%
F-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 3.27 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 48.42% | ||
| Cap/Sales | 3.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.53% | ||
| Profit Quality | 251.22% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 2.08 |
F-Score6
WACC9.27%
ROIC/WACC0.52
Cap/Depr(3y)48.23%
Cap/Depr(5y)51.56%
Cap/Sales(3y)3.53%
Cap/Sales(5y)4.46%
Profit Quality(3y)101.82%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.52%
EPS 3Y21.34%
EPS 5YN/A
EPS Q2Q%-113.04%
EPS Next Y-2.38%
EPS Next 2Y10.05%
EPS Next 3Y11.33%
EPS Next 5Y8.28%
Revenue 1Y (TTM)-4.08%
Revenue growth 3Y6.61%
Revenue growth 5Y3.81%
Sales Q2Q%-10.19%
Revenue Next Year-0.73%
Revenue Next 2Y0.79%
Revenue Next 3Y1.74%
Revenue Next 5Y1.83%
EBIT growth 1Y-6.2%
EBIT growth 3Y35.77%
EBIT growth 5YN/A
EBIT Next Year48.6%
EBIT Next 3Y22.3%
EBIT Next 5Y14.64%
FCF growth 1Y123.85%
FCF growth 3Y-9.6%
FCF growth 5YN/A
OCF growth 1Y67.5%
OCF growth 3Y-5.01%
OCF growth 5Y29.65%