CORTEVA INC (CTVA) Stock Fundamental Analysis
NYSE:CTVA - US22052L1044 - Common Stock
73.37 USD
+0.39 (+0.53%)
73.37 USD
0 (0%)
CTVA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 industry peers in the Chemicals industry. CTVA has an excellent profitability rating, but 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.
In the past year CTVA had a positive cash flow from operations.
In the past 5 years CTVA has always been profitable.
CTVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CTVA has a better Return On Assets (3.35%) than 69.05% of its industry peers.
The Return On Equity of CTVA (5.41%) is better than 63.10% of its industry peers.
With a decent Return On Invested Capital value of 5.76%, CTVA is doing good in the industry, outperforming 65.48% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CTVA is in line with the industry average of 6.53%.
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 has a Profit Margin of 8.16%. This is in the better half of the industry: CTVA outperforms 78.57% 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 76.19% of its industry peers.
CTVA's Operating Margin has improved in the last couple of years.
CTVA's Gross Margin of 45.65% is amongst the best of the industry. CTVA outperforms 90.48% of its industry peers.
CTVA's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CTVA is destroying value.
CTVA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CTVA has less shares outstanding
The debt/assets ratio for CTVA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.73 indicates that CTVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CTVA (2.73) is better than 77.38% of its industry peers.
The Debt to FCF ratio of CTVA is 1.40, which is an excellent value as it means it would take CTVA, only 1.40 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CTVA (1.40) is better than 95.24% 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.
The Debt to Equity ratio of CTVA (0.08) is better than 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 2.73 |
ROIC/WACC0.63
WACC9.08%
2.3 Liquidity
A Current Ratio of 1.68 indicates that CTVA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.68, CTVA is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
A Quick Ratio of 1.23 indicates that CTVA should not have too much problems paying 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
CTVA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.70%, which is quite good.
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.
CTVA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.08% yearly.
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
Based on estimates for the next years, CTVA will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.56% on average per year.
Based on estimates for the next years, CTVA will show a small growth in Revenue. The Revenue will grow by 2.76% on average per year.
EPS Next Y25.57%
EPS Next 2Y20.35%
EPS Next 3Y18.19%
EPS Next 5Y11.56%
Revenue Next Year3.89%
Revenue Next 2Y3.67%
Revenue Next 3Y3.43%
Revenue Next 5Y2.76%
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
CTVA is valuated rather expensively with a Price/Earnings ratio of 23.22.
CTVA's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.24, CTVA is valued at the same level.
A Price/Forward Earnings ratio of 19.86 indicates a rather expensive valuation of CTVA.
CTVA's Price/Forward Earnings is on the same level as the industry average.
CTVA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 19.86 |
4.2 Price Multiples
CTVA's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CTVA indicates a somewhat cheap valuation: CTVA is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.21 | ||
| EV/EBITDA | 13.9 |
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.
CTVA has a very decent profitability rating, which may justify a higher PE ratio.
CTVA's earnings are expected to grow with 18.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y20.35%
EPS Next 3Y18.19%
5. Dividend
5.1 Amount
CTVA has a yearly dividend return of 0.99%, which is pretty low.
CTVA's Dividend Yield is comparable with the industry average which is at 3.54.
With a Dividend Yield of 0.99, CTVA pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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
33.33% of the earnings are spent on dividend by CTVA. This is a low number and sustainable payout ratio.
CTVA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.33%
EPS Next 2Y20.35%
EPS Next 3Y18.19%
73.37
+0.39 (+0.53%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners87.39%
Inst Owner Change-1.71%
Ins Owners0.07%
Ins Owner Change-0.97%
Market Cap49.83B
Analysts80
Price Target82.16 (11.98%)
Short Float %0.83%
Short Ratio1.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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)2.49%
PT rev (3m)15.95%
EPS NQ rev (1m)-22.17%
EPS NQ rev (3m)-35.74%
EPS NY rev (1m)4.14%
EPS NY rev (3m)5.22%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)3.96%
Revenue NY rev (1m)1.83%
Revenue NY rev (3m)1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 19.86 | ||
| P/S | 2.9 | ||
| P/FCF | 19.21 | ||
| P/OCF | 15.86 | ||
| P/B | 1.92 | ||
| P/tB | 7.32 | ||
| EV/EBITDA | 13.9 |
EPS(TTM)3.16
EY4.31%
EPS(NY)3.69
Fwd EY5.03%
FCF(TTM)3.82
FCFY5.21%
OCF(TTM)4.63
OCFY6.3%
SpS25.29
BVpS38.15
TBVpS10.03
PEG (NY)0.91
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 | 2.73 |
F-Score8
WACC9.08%
ROIC/WACC0.63
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 Y25.57%
EPS Next 2Y20.35%
EPS Next 3Y18.19%
EPS Next 5Y11.56%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y2.6%
Revenue growth 5Y4.08%
Sales Q2Q%5.63%
Revenue Next Year3.89%
Revenue Next 2Y3.67%
Revenue Next 3Y3.43%
Revenue Next 5Y2.76%
EBIT growth 1Y14.17%
EBIT growth 3Y16.75%
EBIT growth 5Y29.12%
EBIT Next Year54.4%
EBIT Next 3Y21.69%
EBIT Next 5Y14.35%
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%