CORTEVA INC (CTVA) Stock Fundamental Analysis
NYSE:CTVA - New York Stock Exchange, Inc. - US22052L1044 - Common Stock - Currency: USD
Overall CTVA gets a fundamental rating of 5 out of 10. We evaluated CTVA against 85 industry peers in the Chemicals industry. While CTVA has a great profitability rating, 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.
CTVA had a positive operating cash flow in the past year.
CTVA had positive earnings in each of the past 5 years.
Each year in the past 5 years CTVA had a positive operating cash flow.
1.2 Ratios
CTVA has a Return On Assets of 2.71%. This is in the better half of the industry: CTVA outperforms 61.18% of its industry peers.
Looking at the Return On Equity, with a value of 4.69%, CTVA is in line with its industry, outperforming 57.65% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.35%, CTVA is in line with its industry, outperforming 57.65% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CTVA is in line with the industry average of 6.84%.
The 3 year average ROIC (4.97%) for CTVA is below the current ROIC(5.35%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | 4.69% | ||
| ROIC | 5.35% |
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 6.77%. This is in the better half of the industry: CTVA outperforms 75.29% of its industry peers.
In the last couple of years the Profit Margin of CTVA has declined.
Looking at the Operating Margin, with a value of 13.22%, CTVA is in the better half of the industry, outperforming 72.94% of the companies in the same industry.
In the last couple of years the Operating Margin of CTVA has grown nicely.
CTVA has a better Gross Margin (44.63%) than 90.59% of its industry peers.
In the last couple of years the Gross Margin of CTVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.22% | ||
| PM (TTM) | 6.77% | ||
| GM | 44.63% |
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.
The number of shares outstanding for CTVA has been reduced compared to 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 2.51 indicates that CTVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CTVA (2.51) is better than 68.24% of its industry peers.
The Debt to FCF ratio of CTVA is 1.94, which is an excellent value as it means it would take CTVA, only 1.94 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.94, CTVA belongs to the top of the industry, outperforming 90.59% of the companies in the same industry.
A Debt/Equity ratio of 0.13 indicates that CTVA is not too dependend on debt financing.
The Debt to Equity ratio of CTVA (0.13) is better than 84.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.6
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.44 indicates that CTVA should not have too much problems paying its short term obligations.
CTVA's Current ratio of 1.44 is on the low side compared to the rest of the industry. CTVA is outperformed by 70.59% of its industry peers.
CTVA has a Quick Ratio of 1.44. This is a bad value and indicates that CTVA is not financially healthy enough and could expect problems in meeting its short term obligations.
CTVA has a Quick ratio of 1.00. This is in the lower half of the industry: CTVA underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.77% over the past year.
Measured over the past 5 years, CTVA shows a small growth in Earnings Per Share. The EPS has been growing by 6.18% on average per year.
The Revenue has decreased by -0.01% 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)15.77%
EPS 3Y6.18%
EPS 5YN/A
EPS Q2Q%26.97%
Revenue 1Y (TTM)-0.01%
Revenue growth 3Y2.6%
Revenue growth 5Y4.08%
Sales Q2Q%-1.67%
3.2 Future
Based on estimates for the next years, CTVA will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.51% on average per year.
Based on estimates for the next years, CTVA will show a small growth in Revenue. The Revenue will grow by 2.25% on average per year.
EPS Next Y19.78%
EPS Next 2Y18.65%
EPS Next 3Y17.34%
EPS Next 5Y10.51%
Revenue Next Year1.77%
Revenue Next 2Y2.63%
Revenue Next 3Y2.75%
Revenue Next 5Y2.25%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 27.64, which means the current valuation is very expensive for CTVA.
CTVA's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of CTVA to the average of the S&P500 Index (27.45), we can say CTVA is valued inline with the index average.
CTVA is valuated rather expensively with a Price/Forward Earnings ratio of 21.48.
CTVA's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CTVA to the average of the S&P500 Index (21.90), we can say CTVA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.64 | ||
| Fwd PE | 21.48 |
4.2 Price Multiples
62.35% of the companies in the same industry are cheaper than CTVA, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTVA indicates a somewhat cheap valuation: CTVA is cheaper than 65.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.03 | ||
| EV/EBITDA | 15.49 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of CTVA may justify a higher PE ratio.
CTVA's earnings are expected to grow with 17.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.4
PEG (5Y)N/A
EPS Next 2Y18.65%
EPS Next 3Y17.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, CTVA is not a good candidate for dividend investing.
CTVA's Dividend Yield is comparable with the industry average which is at 3.58.
With a Dividend Yield of 0.88, CTVA pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
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
40.53% of the earnings are spent on dividend by CTVA. This is a bit on the high side, but may be sustainable.
CTVA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.53%
EPS Next 2Y18.65%
EPS Next 3Y17.34%
77.12
+0.12 (+0.16%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners86.62%
Inst Owner Change-50.49%
Ins Owners0.07%
Ins Owner Change3.49%
Market Cap52.61B
Analysts80
Price Target75.95 (-1.52%)
Short Float %1.03%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend0.66
Dividend Growth(5Y)30.66%
DP40.53%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.15%
Min EPS beat(2)0.21%
Max EPS beat(2)26.09%
EPS beat(4)3
Avg EPS beat(4)-7.72%
Min EPS beat(4)-61.17%
Max EPS beat(4)26.09%
EPS beat(8)6
Avg EPS beat(8)15.91%
EPS beat(12)10
Avg EPS beat(12)34.5%
EPS beat(16)13
Avg EPS beat(16)30.33%
Revenue beat(2)0
Avg Revenue beat(2)-3.7%
Min Revenue beat(2)-4.68%
Max Revenue beat(2)-2.71%
Revenue beat(4)0
Avg Revenue beat(4)-6.39%
Min Revenue beat(4)-15.45%
Max Revenue beat(4)-2.71%
Revenue beat(8)1
Avg Revenue beat(8)-5.27%
Revenue beat(12)4
Avg Revenue beat(12)-3.08%
Revenue beat(16)7
Avg Revenue beat(16)-1.25%
PT rev (1m)7.19%
PT rev (3m)7.22%
EPS NQ rev (1m)0.9%
EPS NQ rev (3m)-3.94%
EPS NY rev (1m)0.36%
EPS NY rev (3m)2%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.64 | ||
| Fwd PE | 21.48 | ||
| P/S | 3.13 | ||
| P/FCF | 25.03 | ||
| P/OCF | 19.89 | ||
| P/B | 2.17 | ||
| P/tB | 10.05 | ||
| EV/EBITDA | 15.49 |
EPS(TTM)2.79
EY3.62%
EPS(NY)3.59
Fwd EY4.66%
FCF(TTM)3.08
FCFY4%
OCF(TTM)3.88
OCFY5.03%
SpS24.68
BVpS35.6
TBVpS7.67
PEG (NY)1.4
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.71% | ||
| ROE | 4.69% | ||
| ROCE | 7.26% | ||
| ROIC | 5.35% | ||
| ROICexc | 5.71% | ||
| ROICexgc | 15.65% | ||
| OM | 13.22% | ||
| PM (TTM) | 6.77% | ||
| GM | 44.63% | ||
| FCFM | 12.49% |
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%
ROICexcg growth 3Y17.34%
ROICexcg 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 Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.94 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 44.65% | ||
| Cap/Sales | 3.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.84% | ||
| Profit Quality | 184.39% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 2.51 |
F-Score8
WACC8.98%
ROIC/WACC0.6
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)15.77%
EPS 3Y6.18%
EPS 5YN/A
EPS Q2Q%26.97%
EPS Next Y19.78%
EPS Next 2Y18.65%
EPS Next 3Y17.34%
EPS Next 5Y10.51%
Revenue 1Y (TTM)-0.01%
Revenue growth 3Y2.6%
Revenue growth 5Y4.08%
Sales Q2Q%-1.67%
Revenue Next Year1.77%
Revenue Next 2Y2.63%
Revenue Next 3Y2.75%
Revenue Next 5Y2.25%
EBIT growth 1Y17.41%
EBIT growth 3Y16.75%
EBIT growth 5Y29.12%
EBIT Next Year53.72%
EBIT Next 3Y21.36%
EBIT Next 5Y13.68%
FCF growth 1Y834.97%
FCF growth 3Y-10.43%
FCF growth 5YN/A
OCF growth 1Y808.94%
OCF growth 3Y-7.69%
OCF growth 5Y14.92%