CORTEVA INC (CTVA) Stock Fundamental Analysis
NYSE:CTVA - New York Stock Exchange, Inc. - US22052L1044 - Common Stock - Currency: USD
CTVA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. CTVA has an average financial health and profitability rating. CTVA has a correct valuation and a medium growth rate.
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's Return On Assets of 2.71% is in line compared to the rest of the industry. CTVA outperforms 58.82% of its industry peers.
The Return On Equity of CTVA (4.69%) is comparable to the rest of the industry.
The Return On Invested Capital of CTVA (5.35%) is comparable to the rest of the industry.
CTVA had an Average Return On Invested Capital over the past 3 years of 4.97%. This is below the industry average of 7.01%.
The last Return On Invested Capital (5.35%) for CTVA is above the 3 year average (4.97%), which is a sign of increasing profitability.
| 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 better Profit Margin (6.77%) than 74.12% of its industry peers.
CTVA's Profit Margin has declined in the last couple of years.
The Operating Margin of CTVA (13.22%) is better than 70.59% of its industry peers.
CTVA's Operating Margin has improved in the last couple of years.
CTVA has a better Gross Margin (44.63%) than 90.59% of its industry peers.
CTVA's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, CTVA has less shares outstanding
The number of shares outstanding for CTVA has been reduced compared to 5 years ago.
The debt/assets ratio for CTVA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.33 indicates that CTVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
CTVA has a better Altman-Z score (2.33) than 64.71% of its industry peers.
CTVA has a debt to FCF ratio of 1.94. This is a very positive value and a sign of high solvency as it would only need 1.94 years to pay back of all of its debts.
CTVA's Debt to FCF ratio of 1.94 is amongst the best of the industry. CTVA outperforms 90.59% of its industry peers.
CTVA has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
CTVA has a Debt to Equity ratio of 0.13. This is amongst the best in the industry. CTVA outperforms 84.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 2.33 |
ROIC/WACC0.59
WACC9.09%
2.3 Liquidity
CTVA has a Current Ratio of 1.44. 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 1.44. This is in the lower half of the industry: CTVA underperforms 68.24% of its industry peers.
A Quick Ratio of 1.00 indicates that CTVA may have some problems paying its short term obligations.
CTVA has a Quick ratio of 1.00. This is comparable to the rest of the industry: CTVA outperforms 43.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
CTVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.77%, which is quite good.
CTVA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.18% yearly.
CTVA shows a decrease in Revenue. In the last year, the revenue decreased by -0.01%.
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
The Earnings Per Share is expected to grow by 11.94% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.70% on average over the next years.
EPS Next Y19.35%
EPS Next 2Y18.12%
EPS Next 3Y16.95%
EPS Next 5Y11.94%
Revenue Next Year1.96%
Revenue Next 2Y2.75%
Revenue Next 3Y2.83%
Revenue Next 5Y2.7%
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
A Price/Earnings ratio of 24.72 indicates a rather expensive valuation of CTVA.
The rest of the industry has a similar Price/Earnings ratio as CTVA.
CTVA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.03.
A Price/Forward Earnings ratio of 19.38 indicates a rather expensive valuation of CTVA.
CTVA's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CTVA to the average of the S&P500 Index (21.94), we can say CTVA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.72 | ||
| Fwd PE | 19.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CTVA indicates a slightly more expensive valuation: CTVA is more expensive than 61.18% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CTVA is valued a bit cheaper than 63.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.41 | ||
| EV/EBITDA | 13.94 |
4.3 Compensation for Growth
CTVA's 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.
A more expensive valuation may be justified as CTVA's earnings are expected to grow with 16.95% in the coming years.
PEG (NY)1.28
PEG (5Y)N/A
EPS Next 2Y18.12%
EPS Next 3Y16.95%
5. Dividend
5.1 Amount
CTVA has a yearly dividend return of 1.00%, which is pretty low.
CTVA's Dividend Yield is comparable with the industry average which is at 3.70.
Compared to an average S&P500 Dividend Yield of 2.36, CTVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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.
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
40.53% of the earnings are spent on dividend by CTVA. This is a bit on the high side, but may be sustainable.
The dividend of CTVA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.53%
EPS Next 2Y18.12%
EPS Next 3Y16.95%
68.96
-0.22 (-0.32%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.39%
Inst Owner Change0.34%
Ins Owners0.11%
Ins Owner Change3.49%
Market Cap47.10B
Analysts80
Price Target70.86 (2.76%)
Short Float %1.37%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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)0.03%
PT rev (3m)5.33%
EPS NQ rev (1m)-5.23%
EPS NQ rev (3m)-5.13%
EPS NY rev (1m)1.26%
EPS NY rev (3m)1.33%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.72 | ||
| Fwd PE | 19.38 | ||
| P/S | 2.8 | ||
| P/FCF | 22.41 | ||
| P/OCF | 17.81 | ||
| P/B | 1.94 | ||
| P/tB | 9 | ||
| EV/EBITDA | 13.94 |
EPS(TTM)2.79
EY4.05%
EPS(NY)3.56
Fwd EY5.16%
FCF(TTM)3.08
FCFY4.46%
OCF(TTM)3.87
OCFY5.62%
SpS24.65
BVpS35.56
TBVpS7.66
PEG (NY)1.28
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 | 2.33 |
F-Score8
WACC9.09%
ROIC/WACC0.59
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 Y19.35%
EPS Next 2Y18.12%
EPS Next 3Y16.95%
EPS Next 5Y11.94%
Revenue 1Y (TTM)-0.01%
Revenue growth 3Y2.6%
Revenue growth 5Y4.08%
Sales Q2Q%-1.67%
Revenue Next Year1.96%
Revenue Next 2Y2.75%
Revenue Next 3Y2.83%
Revenue Next 5Y2.7%
EBIT growth 1Y17.41%
EBIT growth 3Y16.75%
EBIT growth 5Y29.12%
EBIT Next Year52.44%
EBIT Next 3Y21.04%
EBIT Next 5Y14.99%
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%