CORTEVA INC (CTVA) Stock Fundamental Analysis
USA - NYSE:CTVA - US22052L1044 - Common Stock
61.4 USD
+0.4 (+0.66%)
61.4 USD
0 (0%)
Overall CTVA gets a fundamental rating of 6 out of 10. We evaluated CTVA against 83 industry peers in the Chemicals industry. While CTVA has a great profitability rating, there are some minor concerns on its financial health. CTVA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CTVA was profitable.
In the past year CTVA had a positive cash flow from operations.
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 (3.35%) than 68.67% of its industry peers.
With a decent Return On Equity value of 5.41%, CTVA is doing good in the industry, outperforming 62.65% of the companies in the same industry.
CTVA's Return On Invested Capital of 5.76% is fine compared to the rest of the industry. CTVA outperforms 65.06% 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 6.30%.
The 3 year average ROIC (4.97%) for CTVA is below the current ROIC(5.76%), indicating increased profibility in the last year.
| 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
CTVA's Profit Margin of 8.16% is fine compared to the rest of the industry. CTVA outperforms 78.31% of its industry peers.
In the last couple of years the Profit Margin of CTVA has declined.
CTVA's Operating Margin of 14.26% is fine compared to the rest of the industry. CTVA outperforms 74.70% of its industry peers.
CTVA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 45.65%, CTVA belongs to the top of the industry, outperforming 91.57% 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 | 14.26% | ||
| 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.
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
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 has a better Altman-Z score (2.41) than 71.08% of its industry peers.
CTVA has a debt to FCF ratio of 1.40. This is a very positive value and a sign of high solvency as it would only need 1.40 years to pay back of all of its debts.
CTVA's Debt to FCF ratio of 1.40 is amongst the best of the industry. CTVA outperforms 95.18% of its industry peers.
CTVA has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
CTVA's Debt to Equity ratio of 0.08 is amongst the best of the industry. CTVA outperforms 91.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.66
WACC8.7%
2.3 Liquidity
CTVA has a Current Ratio of 1.68. 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 1.68. This is in the lower half of the industry: CTVA underperforms 65.06% 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.
CTVA has a Quick ratio (1.23) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.70% over the past year.
The Earnings Per Share has been growing slightly by 6.18% on average over the past years.
The Revenue has been growing slightly by 1.63% in the past year.
The Revenue has been growing slightly by 4.08% on average over the past years.
EPS 1Y (TTM)19.7%
EPS 3Y6.18%
EPS 5YN/A
EPS Q2Q%20.22%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y2.6%
Revenue growth 5Y4.08%
Sales Q2Q%5.63%
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 Y25.45%
EPS Next 2Y20.24%
EPS Next 3Y17.93%
EPS Next 5Y11.25%
Revenue Next Year3.89%
Revenue Next 2Y3.64%
Revenue Next 3Y3.42%
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 19.43 indicates a rather expensive valuation of CTVA.
CTVA's Price/Earnings ratio is in line with the industry average.
CTVA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.65 indicates a correct valuation of CTVA.
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 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.43 | ||
| Fwd PE | 16.65 |
4.2 Price Multiples
CTVA's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, CTVA is valued a bit cheaper than the industry average as 74.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.07 | ||
| EV/EBITDA | 11.6 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CTVA may justify a higher PE ratio.
CTVA's earnings are expected to grow with 17.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)N/A
EPS Next 2Y20.24%
EPS Next 3Y17.93%
5. Dividend
5.1 Amount
CTVA has a Yearly Dividend Yield of 1.18%.
CTVA's Dividend Yield is comparable with the industry average which is at 3.75.
With a Dividend Yield of 1.18, CTVA pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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 2Y20.24%
EPS Next 3Y17.93%
61.4
+0.4 (+0.66%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners86.31%
Inst Owner Change0.12%
Ins Owners0.07%
Ins Owner Change-0.93%
Market Cap41.70B
Analysts81.33
Price Target82.97 (35.13%)
Short Float %1.01%
Short Ratio1.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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)0.53%
PT rev (3m)9.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-40.27%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)4.73%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.43 | ||
| Fwd PE | 16.65 | ||
| P/S | 2.43 | ||
| P/FCF | 16.07 | ||
| P/OCF | 13.27 | ||
| P/B | 1.61 | ||
| P/tB | 6.12 | ||
| EV/EBITDA | 11.6 |
EPS(TTM)3.16
EY5.15%
EPS(NY)3.69
Fwd EY6%
FCF(TTM)3.82
FCFY6.22%
OCF(TTM)4.63
OCFY7.53%
SpS25.29
BVpS38.15
TBVpS10.03
PEG (NY)0.76
PEG (5Y)N/A
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%
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 Turnover0.41
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 | 2.41 |
F-Score8
WACC8.7%
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)19.7%
EPS 3Y6.18%
EPS 5YN/A
EPS Q2Q%20.22%
EPS Next Y25.45%
EPS Next 2Y20.24%
EPS Next 3Y17.93%
EPS Next 5Y11.25%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y2.6%
Revenue growth 5Y4.08%
Sales Q2Q%5.63%
Revenue Next Year3.89%
Revenue Next 2Y3.64%
Revenue Next 3Y3.42%
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%