NYSE:CTVA

Stock Analysis Report

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Executive Summary

Corteva, Inc. operates in the agriculture business.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Corteva's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CTVA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

CTVA

3.2%

US Chemicals

1.7%

US Market


1 Year Return

0.6%

CTVA

-2.4%

US Chemicals

6.0%

US Market

Return vs Industry: CTVA exceeded the US Chemicals industry which returned -3.3% over the past year.

Return vs Market: CTVA underperformed the US Market which returned 7.4% over the past year.


Shareholder returns

CTVAIndustryMarket
7 Day1.3%3.2%1.7%
30 Day-11.5%-4.0%-0.5%
90 Day4.2%19.8%17.8%
1 Year2.6%0.6%-0.1%-2.4%8.2%6.0%
3 Yearn/a16.4%-5.4%36.3%27.4%
5 Yearn/a34.3%4.0%63.0%45.0%

Price Volatility Vs. Market

How volatile is Corteva's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Corteva undervalued compared to its fair value and its price relative to the market?

46.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTVA ($27.14) is trading below our estimate of fair value ($50.42)

Significantly Below Fair Value: CTVA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CTVA is poor value based on its PE Ratio (113.7x) compared to the Chemicals industry average (21x).

PE vs Market: CTVA is poor value based on its PE Ratio (113.7x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: CTVA is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: CTVA is good value based on its PB Ratio (0.9x) compared to the US Chemicals industry average (2x).


Next Steps

Future Growth

How is Corteva forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

28.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTVA's forecast earnings growth (28.5% per year) is above the savings rate (2.2%).

Earnings vs Market: CTVA's earnings (28.5% per year) are forecast to grow faster than the US market (22.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CTVA's revenue (3.5% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: CTVA's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CTVA's Return on Equity is forecast to be low in 3 years time (6.4%).


Next Steps

Past Performance

How has Corteva performed over the past 5 years?

-37.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTVA has a large one-off loss of $845.0M impacting its March 31 2020 financial results.

Growing Profit Margin: CTVA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CTVA has become profitable over the past 5 years, growing earnings by -37.6% per year.

Accelerating Growth: CTVA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CTVA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (-11.3%).


Return on Equity

High ROE: CTVA's Return on Equity (0.8%) is considered low.


Next Steps

Financial Health

How is Corteva's financial position?


Financial Position Analysis

Short Term Liabilities: CTVA's short term assets ($14.7B) exceed its short term liabilities ($9.2B).

Long Term Liabilities: CTVA's short term assets ($14.7B) exceed its long term liabilities ($9.7B).


Debt to Equity History and Analysis

Debt Level: CTVA's debt to equity ratio (9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CTVA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CTVA's debt is well covered by operating cash flow (31.3%).

Interest Coverage: CTVA's interest payments on its debt are well covered by EBIT (50.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Corteva current dividend yield, its reliability and sustainability?

1.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CTVA's dividend (1.92%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: CTVA's dividend (1.92%) is low compared to the top 25% of dividend payers in the US market (4.49%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether CTVA's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if CTVA's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (217.8%), CTVA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CTVA's dividends in 3 years are forecast to be well covered by earnings (27.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average board tenure


CEO

Jim Collins (57yo)

no data

Tenure

US$11,357,053

Compensation

Mr. James C. Collins, Jr., also known as Jim, is the Chief Executive Officer of Corteva, Inc. and has been its Director since May 6, 2019. Mr. Collins has been an Executive Vice President of Agriculture Bu ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD11.36M) is about average for companies of similar size in the US market ($USD11.50M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
James Collins
CEO & Directorno dataUS$11.36m0.015% $3.0m
Lois Juliber
Independent Director1.08yrsUS$367.53k0.0069% $1.4m
Lee Thomas
Independent Director1.08yrsUS$237.58k0.0035% $712.9k
Gregory Page
Independent Chairman of the Boardno dataUS$424.15k0.0040% $820.6k
Lamberto Andreotti
Independent Director1.08yrsUS$252.16k0.0028% $568.7k
Klaus Engel
Independent Director1.08yrsUS$237.46k0.0025% $499.6k
Robert Brown
Independent Director1.08yrsUS$362.04k0.000010% $2.0k
Rebecca Liebert
Independent Director1.08yrsUS$237.46k0.000010% $2.0k
Patrick Ward
Independent Director1.08yrsUS$258.00kno data
Michael Johanns
Independent Director1.08yrsUS$237.58kno data

1.1yrs

Average Tenure

68.5yo

Average Age

Experienced Board: CTVA's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CTVA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Corteva, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Corteva, Inc.
  • Ticker: CTVA
  • Exchange: NYSE
  • Founded:
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: US$20.311b
  • Shares outstanding: 748.37m
  • Website: https://www.corteva.com

Number of Employees


Location

  • Corteva, Inc.
  • 974 Centre Road
  • Wilmington
  • Delaware
  • 19805
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTVANYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2019
2X0BST (Boerse-Stuttgart)YesCommon StockDEEURJun 2019
CTVA *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 2019
0A1WLSE (London Stock Exchange)YesCommon StockGBEURJun 2019
2X0DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2019
CTVAWBAG (Wiener Boerse AG)YesCommon StockATEURJun 2019

Biography

Corteva, Inc. operates in the agriculture business. It operates through two segments, Seed and Crop Protection. The Seed segment develops and supplies advanced germplasm and traits that produce optimum yield for farms. It offers trait technologies that enhance resistance to weather, disease, insects, and weeds, as well as food and nutritional characteristics. This segment also provides digital solutions that assist farmer decision-making with a view to optimize product selection, and maximize yield and profitability. The Crop Protection segment offers products that protect against weeds, insects and other pests, and disease, as well as enhances crop health above and below ground through nitrogen management and seed-applied technologies. This segment provides herbicides, insecticides, below-ground nitrogen stabilizers, and pasture and range management herbicides. It serves agricultural input industry. The company operates in the United States, Canada, Latin America, the Asia Pacific, Europe, the Middle East, and Africa. Corteva, Inc. is headquartered in Wilmington, Delaware. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 23:51
End of Day Share Price2020/07/07 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.