CORTEVA INC (CTVA)
US22052L1044 - Common Stock
We assign a fundamental rating of 5 out of 10 to CTVA. CTVA was compared to 85 industry peers in the Chemicals industry. CTVA has only an average score on both its financial health and profitability. CTVA is quite expensive at the moment. It does show a decent growth rate.
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.
CTVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CTVA has a Return On Assets (1.71%) which is comparable to the rest of the industry.
The Return On Equity of CTVA (2.94%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 5.55%, CTVA perfoms like the industry average, outperforming 57.65% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CTVA is below the industry average of 7.47%.
The last Return On Invested Capital (5.55%) for CTVA is above the 3 year average (4.72%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 2.94% | ||
| ROIC | 5.55% |
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
The Profit Margin of CTVA (4.27%) is comparable to the rest of the industry.
CTVA's Profit Margin has declined in the last couple of years.
CTVA has a better Operating Margin (12.25%) than 68.24% of its industry peers.
In the last couple of years the Operating Margin of CTVA has grown nicely.
CTVA's Gross Margin of 42.41% is amongst the best of the industry. CTVA outperforms 85.88% of its industry peers.
CTVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.25% | ||
| PM (TTM) | 4.27% | ||
| GM | 42.41% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 2.00. 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 Altman-Z score (2.00) which is in line with its industry peers.
The Debt to FCF ratio of CTVA is 2.12, which is a good value as it means it would take CTVA, 2.12 years of fcf income to pay off all of its debts.
CTVA's Debt to FCF ratio of 2.12 is amongst the best of the industry. CTVA outperforms 88.24% of its industry peers.
CTVA has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.09, CTVA belongs to the top of the industry, outperforming 85.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 2.12 | ||
| Altman-Z | 2 |
ROIC/WACC0.59
WACC9.4%
2.3 Liquidity
CTVA has a Current Ratio of 1.56. 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 1.56. This is in the lower half of the industry: CTVA underperforms 68.24% of its industry peers.
CTVA has a Quick Ratio of 1.56. 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 (0.90) is worse than 77.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.13% over the past year.
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 -1.31%.
CTVA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.81% yearly.
EPS 1Y (TTM)1.13%
EPS 3Y21.34%
EPS 5YN/A
EPS growth Q2Q-6.25%
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y6.61%
Revenue growth 5Y3.81%
Revenue growth Q2Q-3.08%
3.2 Future
The Earnings Per Share is expected to grow by 10.24% 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 4.14% yearly.
EPS Next Y8.27%
EPS Next 2Y14.43%
EPS Next 3Y13.75%
EPS Next 5Y10.24%
Revenue Next Year2.75%
Revenue Next 2Y3.66%
Revenue Next 3Y3.64%
Revenue Next 5Y4.14%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CTVA is valuated rather expensively with a Price/Earnings ratio of 20.49.
CTVA's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 24.92. CTVA is around the same levels.
Based on the Price/Forward Earnings ratio of 18.93, the valuation of CTVA can be described as rather expensive.
CTVA's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, CTVA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.49 | ||
| Fwd PE | 18.93 |
4.2 Price Multiples
CTVA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CTVA is cheaper than 61.18% of the companies in the same industry.
CTVA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.69 | ||
| EV/EBITDA | 11.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CTVA does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of CTVA may justify a higher PE ratio.
CTVA's earnings are expected to grow with 13.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.48
PEG (5Y)N/A
EPS Next 2Y14.43%
EPS Next 3Y13.75%
5. Dividend
5.1 Amount
CTVA has a Yearly Dividend Yield of 1.19%. Purely for dividend investing, there may be better candidates out there.
CTVA's Dividend Yield is comparable with the industry average which is at 3.34.
Compared to an average S&P500 Dividend Yield of 2.43, CTVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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 last 3 years.
Dividend Growth(5Y)30.66%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
59.73% 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.
DP59.73%
EPS Next 2Y14.43%
EPS Next 3Y13.75%
CORTEVA INC
NYSE:CTVA (4/26/2024, 7:04:00 PM)
After market: 54.92 0 (0%)54.92
+0.22 (+0.4%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap38.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.49 | ||
| Fwd PE | 18.93 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 2.94% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.25% | ||
| PM (TTM) | 4.27% | ||
| GM | 42.41% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)1.13%
EPS 3Y21.34%
EPS 5Y
EPS growth Q2Q
EPS Next Y8.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.31%
Revenue growth 3Y6.61%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y