CORTEVA INC (CTVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CTVA - US22052L1044 - Common Stock
66.65 USD
+0.6 (+0.91%)
66.65 USD
0 (0%)
Taking everything into account, CTVA scores 6 out of 10 in our fundamental rating. CTVA was compared to 81 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. 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.
In the past year CTVA had a positive cash flow from operations.
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
CTVA has a better Return On Assets (3.80%) than 71.60% of its industry peers.
CTVA has a better Return On Equity (6.36%) than 69.14% of its industry peers.
CTVA's Return On Invested Capital of 5.99% is fine compared to the rest of the industry. CTVA outperforms 67.90% 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 6.07%.
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
The Profit Margin of CTVA (9.19%) is better than 83.95% of its industry peers.
In the last couple of years the Profit Margin of CTVA has declined.
With a decent Operating Margin value of 14.96%, CTVA is doing good in the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Operating Margin of CTVA has grown nicely.
Looking at the Gross Margin, with a value of 46.11%, CTVA belongs to the top of the industry, outperforming 91.36% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CTVA is destroying value.
Compared to 1 year ago, CTVA has less shares outstanding
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
CTVA has an Altman-Z score of 2.41. 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's Altman-Z score of 2.41 is fine compared to the rest of the industry. CTVA outperforms 77.78% 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.
Looking at the Debt to FCF ratio, with a value of 1.65, CTVA belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
CTVA has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.14, CTVA belongs to the best of the industry, outperforming 87.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.7
WACC8.59%
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 Current ratio of 1.58. This is in the lower half of the industry: CTVA underperforms 67.90% 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 61.73% 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.
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
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 Y25.02%
EPS Next 2Y19.67%
EPS Next 3Y17.37%
EPS Next 5Y12.87%
Revenue Next Year3.84%
Revenue Next 2Y3.64%
Revenue Next 3Y3.4%
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
With a Price/Earnings ratio of 19.49, CTVA is valued on the expensive side.
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 26.15, CTVA is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.25, the valuation of CTVA can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as CTVA.
CTVA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.49 | ||
| Fwd PE | 18.25 |
4.2 Price Multiples
CTVA's Enterprise Value to EBITDA ratio is in line with the industry average.
72.84% 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 | 16.97 | ||
| EV/EBITDA | 11.8 |
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 an outstanding 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)0.78
PEG (5Y)N/A
EPS Next 2Y19.67%
EPS Next 3Y17.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.12%, CTVA has a reasonable but not impressive dividend return.
CTVA's Dividend Yield is comparable with the industry average which is at 4.16.
Compared to an average S&P500 Dividend Yield of 2.41, CTVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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 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%
66.65
+0.6 (+0.91%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners86.31%
Inst Owner Change-1.63%
Ins Owners0.07%
Ins Owner Change-0.69%
Market Cap45.04B
Revenue(TTM)17.47B
Net Income(TTM)1.60B
Analysts80
Price Target78.9 (18.38%)
Short Float %1.61%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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)-4.9%
PT rev (3m)-2.03%
EPS NQ rev (1m)-29.95%
EPS NQ rev (3m)-33.28%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)3.68%
Revenue NQ rev (1m)-1.08%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.49 | ||
| Fwd PE | 18.25 | ||
| P/S | 2.58 | ||
| P/FCF | 16.97 | ||
| P/OCF | 14.06 | ||
| P/B | 1.79 | ||
| P/tB | 7.17 | ||
| EV/EBITDA | 11.8 |
EPS(TTM)3.42
EY5.13%
EPS(NY)3.65
Fwd EY5.48%
FCF(TTM)3.93
FCFY5.89%
OCF(TTM)4.74
OCFY7.11%
SpS25.85
BVpS37.32
TBVpS9.29
PEG (NY)0.78
PEG (5Y)N/A
Graham Number53.59
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 | 2.41 |
F-Score9
WACC8.59%
ROIC/WACC0.7
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 5Y12.87%
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 5Y2.98%
EBIT growth 1Y33.86%
EBIT growth 3Y16.75%
EBIT growth 5Y29.12%
EBIT Next Year56.21%
EBIT Next 3Y21.78%
EBIT Next 5Y13.88%
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%.