CORTEVA INC (CTVA) Stock Fundamental Analysis
USA - NYSE:CTVA - US22052L1044 - Common Stock
61.4 USD
+0.4 (+0.66%)
61.4 USD
0 (0%)
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. While CTVA has a great profitability rating, there are some minor concerns on its financial health. CTVA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
CTVA had positive earnings in the past year.
CTVA had a positive operating cash flow in the past year.
In the past 5 years CTVA has always been profitable.
Each year in the past 5 years CTVA had a positive operating cash flow.
1.2 Ratios
CTVA has a Return On Assets of 3.35%. This is in the better half of the industry: CTVA outperforms 68.67% of its industry peers.
With a decent Return On Equity value of 5.41%, CTVA is doing good in the industry, outperforming 62.65% of the companies in the same industry.
CTVA's Return On Invested Capital of 5.76% is fine compared to the rest of the industry. CTVA outperforms 65.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CTVA is in line with the industry average of 6.30%.
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
The Profit Margin of CTVA (8.16%) is better than 78.31% of its industry peers.
CTVA's Profit Margin has declined in the last couple of years.
CTVA's Operating Margin of 14.26% is fine compared to the rest of the industry. CTVA outperforms 74.70% of its industry peers.
In the last couple of years the Operating Margin of CTVA has grown nicely.
The Gross Margin of CTVA (45.65%) is better than 91.57% of its industry peers.
In the last couple of years the Gross Margin of CTVA has grown nicely.
| 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
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.
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 2.41 indicates that CTVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.41, CTVA is doing good in the industry, outperforming 71.08% of the companies in the same industry.
CTVA has a debt to FCF ratio of 1.40. This is a very positive value and a sign of high solvency as it would only need 1.40 years to pay back of all of its debts.
The Debt to FCF ratio of CTVA (1.40) is better than 95.18% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that CTVA is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.08, CTVA belongs to the best of the industry, outperforming 91.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.4 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.66
WACC8.7%
2.3 Liquidity
CTVA has a Current Ratio of 1.68. 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 worse Current ratio (1.68) than 65.06% of its industry peers.
CTVA has a Quick Ratio of 1.23. This is a normal value and indicates that CTVA is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CTVA (1.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.70% over the past year.
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 small growth in Revenue. In the last year, the Revenue has grown by 1.63%.
The Revenue has been growing slightly by 4.08% on average over the past years.
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 11.25% on average per year.
CTVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.90% yearly.
EPS Next Y25.45%
EPS Next 2Y20.24%
EPS Next 3Y17.93%
EPS Next 5Y11.25%
Revenue Next Year3.89%
Revenue Next 2Y3.64%
Revenue Next 3Y3.42%
Revenue Next 5Y2.9%
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 19.43 indicates a rather expensive valuation of CTVA.
CTVA's Price/Earnings is on the same level as the industry average.
CTVA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.40.
The Price/Forward Earnings ratio is 16.65, which indicates a correct valuation of CTVA.
CTVA's Price/Forward Earnings ratio is in line with the industry average.
CTVA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.43 | ||
| Fwd PE | 16.65 |
4.2 Price Multiples
CTVA's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CTVA is valued a bit cheaper than 74.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.07 | ||
| EV/EBITDA | 11.6 |
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.
The decent profitability rating of CTVA may justify a higher PE ratio.
CTVA's earnings are expected to grow with 17.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)N/A
EPS Next 2Y20.24%
EPS Next 3Y17.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.15%, CTVA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.69, CTVA has a dividend in line with its industry peers.
With a Dividend Yield of 1.15, CTVA pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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 33.33% 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.
DP33.33%
EPS Next 2Y20.24%
EPS Next 3Y17.93%
61.4
+0.4 (+0.66%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners86.31%
Inst Owner Change0.12%
Ins Owners0.07%
Ins Owner Change-0.93%
Market Cap41.70B
Analysts81.33
Price Target82.97 (35.13%)
Short Float %1.01%
Short Ratio1.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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)0.53%
PT rev (3m)9.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-40.27%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)4.73%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)1.4%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.43 | ||
| Fwd PE | 16.65 | ||
| P/S | 2.43 | ||
| P/FCF | 16.07 | ||
| P/OCF | 13.27 | ||
| P/B | 1.61 | ||
| P/tB | 6.12 | ||
| EV/EBITDA | 11.6 |
EPS(TTM)3.16
EY5.15%
EPS(NY)3.69
Fwd EY6%
FCF(TTM)3.82
FCFY6.22%
OCF(TTM)4.63
OCFY7.53%
SpS25.29
BVpS38.15
TBVpS10.03
PEG (NY)0.76
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 | 2.41 |
F-Score8
WACC8.7%
ROIC/WACC0.66
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 Y25.45%
EPS Next 2Y20.24%
EPS Next 3Y17.93%
EPS Next 5Y11.25%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y2.6%
Revenue growth 5Y4.08%
Sales Q2Q%5.63%
Revenue Next Year3.89%
Revenue Next 2Y3.64%
Revenue Next 3Y3.42%
Revenue Next 5Y2.9%
EBIT growth 1Y14.17%
EBIT growth 3Y16.75%
EBIT growth 5Y29.12%
EBIT Next Year56.21%
EBIT Next 3Y21.78%
EBIT Next 5Y14.12%
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%