CORTEVA INC (CTVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CTVA - US22052L1044 - Common Stock
66.12 USD
+0.08 (+0.12%)
65.5082 USD
-0.61 (-0.93%)
Taking everything into account, CTVA scores 6 out of 10 in our fundamental rating. CTVA was compared to 83 industry peers in the Chemicals industry. CTVA gets an excellent profitability rating and is at the same time showing great financial health properties. CTVA has a decent growth rate and is not valued too expensively. With these ratings, CTVA could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year CTVA was profitable.
CTVA had a positive operating cash flow in the past year.
Each year in the past 5 years CTVA has been profitable.
CTVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CTVA has a Return On Assets of 3.80%. This is in the better half of the industry: CTVA outperforms 73.17% of its industry peers.
CTVA's Return On Equity of 6.36% is fine compared to the rest of the industry. CTVA outperforms 70.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.99%, CTVA is in the better half of the industry, outperforming 69.51% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CTVA is in line with the industry average of 5.95%.
The 3 year average ROIC (4.97%) for CTVA is below the current ROIC(5.99%), indicating increased profibility in the last year.
| 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 85.37% of its industry peers.
In the last couple of years the Profit Margin of CTVA has declined.
The Operating Margin of CTVA (14.96%) is better than 78.05% of its industry peers.
In the last couple of years the Operating Margin of CTVA has grown nicely.
CTVA has a Gross Margin of 46.11%. This is amongst the best in the industry. CTVA outperforms 90.24% of its industry peers.
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
CTVA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CTVA has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 2.40 indicates that CTVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CTVA (2.40) is better than 71.95% of its industry peers.
CTVA has a debt to FCF ratio of 1.65. This is a very positive value and a sign of high solvency as it would only need 1.65 years to pay back of 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 92.68% 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.
CTVA's Debt to Equity ratio of 0.14 is amongst the best of the industry. CTVA outperforms 86.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.65 | ||
| Altman-Z | 2.4 |
ROIC/WACC0.68
WACC8.85%
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's Current ratio of 1.58 is on the low side compared to the rest of the industry. CTVA is outperformed by 65.85% of its industry peers.
A Quick Ratio of 1.07 indicates that CTVA should not have too much problems paying its short term obligations.
CTVA has a worse Quick ratio (1.07) than 60.98% of its industry peers.
The current and quick ratio evaluation for CTVA is rather negative, while it does have 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
CTVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.70%, which is quite impressive.
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.
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)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
Based on estimates for the next years, CTVA will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.87% on average per year.
CTVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.98% yearly.
EPS Next Y32.42%
EPS Next 2Y21.26%
EPS Next 3Y18.05%
EPS Next 5Y12.87%
Revenue Next Year4.54%
Revenue Next 2Y4.03%
Revenue Next 3Y3.73%
Revenue Next 5Y2.98%
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.
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 19.33 indicates a rather expensive valuation of CTVA.
CTVA's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.56. CTVA is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.63, which indicates a rather expensive current valuation of CTVA.
CTVA's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.79. CTVA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.33 | ||
| Fwd PE | 17.63 |
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 74.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.83 | ||
| EV/EBITDA | 11.7 |
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 18.05% in the coming years.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y21.26%
EPS Next 3Y18.05%
5. Dividend
5.1 Amount
CTVA has a Yearly Dividend Yield of 1.09%. Purely for dividend investing, there may be better candidates out there.
CTVA's Dividend Yield is comparable with the industry average which is at 2.66.
Compared to an average S&P500 Dividend Yield of 1.87, CTVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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
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 2Y21.26%
EPS Next 3Y18.05%
66.12
+0.08 (+0.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.09%
Inst Owner Change-1.6%
Ins Owners0.07%
Ins Owner Change-0.69%
Market Cap44.68B
Revenue(TTM)17.47B
Net Income(TTM)1.60B
Analysts80
Price Target79 (19.48%)
Short Float %1.8%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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)-1.15%
PT rev (3m)-4.28%
EPS NQ rev (1m)-11.72%
EPS NQ rev (3m)-30.61%
EPS NY rev (1m)5.93%
EPS NY rev (3m)5.46%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.33 | ||
| Fwd PE | 17.63 | ||
| P/S | 2.56 | ||
| P/FCF | 16.83 | ||
| P/OCF | 13.94 | ||
| P/B | 1.77 | ||
| P/tB | 7.12 | ||
| EV/EBITDA | 11.7 |
EPS(TTM)3.42
EY5.17%
EPS(NY)3.75
Fwd EY5.67%
FCF(TTM)3.93
FCFY5.94%
OCF(TTM)4.74
OCFY7.17%
SpS25.85
BVpS37.32
TBVpS9.29
PEG (NY)0.6
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 | 2.4 |
F-Score9
WACC8.85%
ROIC/WACC0.68
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 Y32.42%
EPS Next 2Y21.26%
EPS Next 3Y18.05%
EPS Next 5Y12.87%
Revenue 1Y (TTM)5%
Revenue growth 3Y2.6%
Revenue growth 5Y4.08%
Sales Q2Q%12.55%
Revenue Next Year4.54%
Revenue Next 2Y4.03%
Revenue Next 3Y3.73%
Revenue Next 5Y2.98%
EBIT growth 1Y33.86%
EBIT growth 3Y16.75%
EBIT growth 5Y29.12%
EBIT Next Year58.29%
EBIT Next 3Y21.73%
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%.