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 has a correct valuation and a medium 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.
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
The Return On Assets of CTVA (2.71%) is better than 61.18% of its industry peers.
CTVA has a Return On Equity (4.69%) which is in line with its industry peers.
CTVA has a Return On Invested Capital (5.35%) which 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 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
Looking at the Profit Margin, with a value of 6.77%, CTVA is in the better half of the industry, outperforming 75.29% of the companies in the same industry.
CTVA's Profit Margin has declined in the last couple of years.
CTVA's Operating Margin of 13.22% is fine compared to the rest of the industry. CTVA outperforms 72.94% of its industry peers.
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
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 2.43. 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 (2.43) than 68.24% 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.
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.
CTVA's Debt to Equity ratio of 0.13 is amongst the best of the industry. CTVA outperforms 84.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 2.43 |
ROIC/WACC0.59
WACC9.11%
2.3 Liquidity
A Current Ratio of 1.44 indicates that CTVA should not have too much problems paying its short term obligations.
The Current ratio of CTVA (1.44) is worse than 70.59% 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 worse Quick ratio (1.00) than 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.
The Earnings Per Share has been growing slightly by 6.18% on average over the past years.
CTVA shows a decrease in Revenue. In the last year, the revenue decreased by -0.01%.
The Revenue has been growing slightly by 4.08% on average over the past years.
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 Y20.58%
EPS Next 2Y19.02%
EPS Next 3Y17.54%
EPS Next 5Y10.51%
Revenue Next Year2.02%
Revenue Next 2Y2.77%
Revenue Next 3Y2.9%
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 26.37, which means the current valuation is very expensive for 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 27.30.
Based on the Price/Forward Earnings ratio of 20.37, the valuation of CTVA can be described as rather expensive.
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 (21.76), we can say CTVA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.37 | ||
| Fwd PE | 20.37 |
4.2 Price Multiples
CTVA's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CTVA is more expensive than 60.00% of the companies in the same industry.
CTVA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CTVA is cheaper than 65.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.88 | ||
| EV/EBITDA | 14.79 |
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 17.54% in the coming years.
PEG (NY)1.28
PEG (5Y)N/A
EPS Next 2Y19.02%
EPS Next 3Y17.54%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, CTVA is not a good candidate for dividend investing.
CTVA's Dividend Yield is comparable with the industry average which is at 3.53.
Compared to an average S&P500 Dividend Yield of 2.35, CTVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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.
CTVA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.53%
EPS Next 2Y19.02%
EPS Next 3Y17.54%
73.57
-1.26 (-1.68%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners86.62%
Inst Owner Change0.01%
Ins Owners0.07%
Ins Owner Change3.49%
Market Cap50.19B
Analysts80
Price Target75.95 (3.24%)
Short Float %1.03%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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)2.14%
PT rev (3m)7.22%
EPS NQ rev (1m)1.49%
EPS NQ rev (3m)-3.82%
EPS NY rev (1m)1.03%
EPS NY rev (3m)2.68%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.37 | ||
| Fwd PE | 20.37 | ||
| P/S | 2.98 | ||
| P/FCF | 23.88 | ||
| P/OCF | 18.97 | ||
| P/B | 2.07 | ||
| P/tB | 9.59 | ||
| EV/EBITDA | 14.79 |
EPS(TTM)2.79
EY3.79%
EPS(NY)3.61
Fwd EY4.91%
FCF(TTM)3.08
FCFY4.19%
OCF(TTM)3.88
OCFY5.27%
SpS24.68
BVpS35.6
TBVpS7.67
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 | 2.43 |
F-Score8
WACC9.11%
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 Y20.58%
EPS Next 2Y19.02%
EPS Next 3Y17.54%
EPS Next 5Y10.51%
Revenue 1Y (TTM)-0.01%
Revenue growth 3Y2.6%
Revenue growth 5Y4.08%
Sales Q2Q%-1.67%
Revenue Next Year2.02%
Revenue Next 2Y2.77%
Revenue Next 3Y2.9%
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%