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Corteva (CTVA)
NYSE:CTVA
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Corteva
(NYSE:CTVA)
71Outperform
Positive Factors
Financial Performance
Corteva offers relative stability and double-digit EBITDA growth from several growth drivers at a reasonable valuation.
Stock Buyback
The $1 billion buyback is supportive of the stock.
Negative Factors
Foreign Exchange Headwinds
The stronger USD has caused more foreign exchange headwinds for Corteva.
Corteva (CTVA) vs. S&P 500 (SPY)
Market Cap
$41.30B
Dividend Yield1.09%
Average Volume (3M)3.93M
Price to Earnings (P/E)46.5
Beta (1Y)0.72
Revenue Growth-1.85%
EPS Growth26.00%
CountryUS
Employees22,000
SectorBasic Materials
Sector Strength63
IndustryAgriculture
Share Statistics
EPS (TTM)1.29
Shares Outstanding685,556,000
10 Day Avg. Volume3,601,985
30 Day Avg. Volume3,933,135
Financial Highlights & Ratios
PEG Ratio1.79
Price to Book (P/B)N/A
Price to Sales (P/S)2.46
Price to Cash Flow (P/CF)2.50
P/FCF Ratio2.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$70.31Price Target Upside17.24% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
Corteva Business Overview & Revenue Model
Company DescriptionCorteva, Inc. is an agricultural chemical and seed company. It develops and supplies advanced germplasm and traits that helps in maximizing yield for farms. It also supplies products that enhances enhance crop health and protectagainst weeds, insects and other pests, and diseases.
How the Company Makes MoneyCorteva generates revenue primarily through the sale of its seeds and crop protection products. The seeds segment includes the sale of various genetically modified and non-genetically modified seeds that are engineered to improve yield and resist pests and diseases. The crop protection segment includes herbicides, insecticides, and fungicides that help protect crops from weeds, insects, and diseases. Corteva's revenue model is heavily dependent on its ability to innovate and deliver high-quality, scientifically advanced agricultural solutions that meet the needs of farmers worldwide. The company also engages in strategic partnerships and collaborations to enhance its technological capabilities and market reach, contributing to its revenue streams. Factors such as global agricultural trends, climate conditions, and regulatory environments also significantly impact Corteva's earnings.
Corteva Financial Statement Overview
Summary
Corteva's financial health is characterized by strong equity and low leverage, enhancing its financial stability and flexibility. However, challenges persist in sustaining revenue growth and consistent profitability, as seen in fluctuating net margins and cash flow metrics. The balance sheet's strength offsets some concerns about income and cash flow volatility.Income Statement
Corteva shows a strong gross profit margin due to total revenue equaling gross profit in the latest year, indicating efficient cost management. However, the net profit margin is moderate, showing some room for improvement in managing operational costs. The revenue growth trend is unstable, with revenue decreasing from 2023 to 2024, which could be a concern. The EBIT and EBITDA margins have weakened compared to previous years, suggesting pressure on earnings before interest and taxes.70
Positive
Balance Sheet
The balance sheet reveals a solid equity base with a low debt-to-equity ratio, indicating conservative leverage and financial stability. Return on equity has shown variability, reflecting inconsistent net income performance, but remains positive. The equity ratio is robust, underscoring the company's reliance on equity financing rather than debt, which is prudent in maintaining financial health.75
Positive
Cash Flow
Operating cash flow is stable, but the free cash flow growth rate has been inconsistent, indicating fluctuations in capital expenditures. The operating cash flow to net income ratio suggests a good conversion of earnings into cash. However, the free cash flow to net income ratio is moderate, highlighting potential challenges in managing cash generation relative to earnings.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 16.91B | 17.23B | 17.45B | 15.65B | 14.22B | Gross Profit |
| 7.38B | 7.31B | 7.02B | 6.43B | 5.71B | EBIT |
| 863.00M | 2.11B | 1.87B | 2.67B | 1.05B | EBITDA |
| 2.73B | 2.54B | 3.31B | 3.88B | 2.39B | Net Income Common Stockholders |
| 907.00M | 735.00M | 1.15B | 1.76B | 681.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.17B | 2.74B | 3.31B | 4.54B | 3.79B | Total Assets |
| 40.83B | 43.00B | 42.62B | 42.34B | 42.65B | Total Debt |
| 2.70B | 2.49B | 1.31B | 1.12B | 1.10B | Net Debt |
| -403.00M | -155.00M | -1.88B | -3.34B | -2.42B | Total Liabilities |
| 16.80B | 17.72B | 17.08B | 16.72B | 17.59B | Stockholders Equity |
| 23.79B | 25.04B | 25.30B | 25.38B | 24.82B |
| Cash Flow | Free Cash Flow | |||
| 1.70B | 1.17B | 267.00M | 2.15B | 1.59B | Operating Cash Flow |
| 2.30B | 1.77B | 872.00M | 2.73B | 2.06B | Investing Cash Flow |
| -589.00M | -1.99B | -632.00M | -362.00M | -674.00M | Financing Cash Flow |
| -1.20B | -99.00M | -1.18B | -1.27B | 303.00M |
Corteva Technical Analysis
Negative
59.97
Price Trends
61.42
Negative
60.39
Negative
57.31
Positive
Market Momentum
-0.54
Positive
39.33
Neutral
25.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTVA, the sentiment is Negative. The current price of 59.97 is below the 20-day moving average (MA) of 62.08, below the 50-day MA of 61.42, and above the 200-day MA of 57.31, indicating a neutral trend. The MACD of -0.54 indicates Positive momentum. The RSI at 39.33 is Neutral, neither overbought nor oversold. The STOCH value of 25.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CTVA.
Corteva Risk Analysis
Corteva disclosed 31 risk factors in its most recent earnings report. Corteva reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Corteva Peers Comparison
Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $13.07B | 11.44 | 22.76% | 2.59% | -10.48% | -13.78% | |
71 Outperform | $41.30B | 46.47 | 3.49% | 1.09% | -1.85% | 26.00% | |
63 Neutral | $5.19B | 15.23 | 9.02% | 5.58% | -5.36% | -74.25% | |
63 Neutral | $7.89B | 46.09 | 1.47% | 3.34% | -18.79% | -84.24% | |
55 Neutral | $7.65B | 46.40 | -10.11% | 1.13% | -19.08% | -136.41% | |
46 Neutral | $2.64B | -3.89 | -29.36% | 3.33% | 2.89% | -29.66% |
* Basic Materials Sector Average
Performance Comparison
CTVA
Corteva
59.97
5.48
10.06%
AGCO
Agco
97.85
-11.72
-10.70%
CF
Cf Industries Holdings
76.83
-6.47
-7.77%
FMC
FMC
41.38
-19.94
-32.52%
MOS
Mosaic Co
24.86
-5.51
-18.14%
NTR
Nutrien
51.18
0.49
0.97%
Corteva Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -5.78% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
Corteva, Inc. showcased strong operational performance with record margins, robust growth in key segments, and ongoing shareholder returns. However, currency headwinds and competitive pricing pressures in crop protection pose challenges. Despite these challenges, the company remains optimistic about future growth driven by its strong seed portfolio and new product launches.Highlights
Record Operating EBITDA Margin Achieved
Corteva, Inc. achieved a 20% operating EBITDA margin for the first time in 2024, alongside operating free cash flow improvement by almost $500 million, reaching about $1.7 billion.
Strong Performance in Crop Protection
The crop protection segment experienced double-digit organic sales growth and 800 basis points of margin improvement in Q4 2024, driven by demand in Brazil.
Seed Business Market Leadership
Pioneer maintained its position as the number one corn and soybean brand in the US, with Enlist E3 soybeans reaching 65% market penetration.
Commitment to Shareholder Returns
Corteva returned approximately $1.5 billion to shareholders in 2024 and plans another $1 billion in share repurchases in 2025.
Growth in Biologicals and New Products
Biologicals witnessed mid-single-digit volume increases in 2024 with expectations of continued strength in 2025, alongside double-digit growth in new products like Spinozan.
Lowlights
Currency Headwinds Impact
Currency fluctuations, particularly in the Brazilian real and Canadian dollar, are expected to pose a $275 million headwind on operating EBITDA for 2025.
Pricing Pressures in Crop Protection
Crop protection pricing faced competitive pressures, especially in Latin America, leading to a 5% price decline for the full year 2024.
Challenges with High-Cost Inventory
The seed segment faced challenges due to high-cost inventory in Latin America, impacting pricing and competitive positioning.
Company Guidance
During the Corteva, Inc. 2024 Q4 earnings call, several key metrics and guidance for 2025 were highlighted. The company achieved a 20% operating EBITDA margin for the first time in 2024, with operating free cash flow improving by nearly $500 million to approximately $1.7 billion. Corteva, Inc. returned about $1.5 billion to shareholders through dividends and share repurchases and plans an additional $1 billion in share repurchases for 2025. Despite challenging market conditions, Corteva saw double-digit organic sales growth in crop protection and expects mid-single-digit organic sales growth in crop protection for 2025. Additionally, the seed business performed well, with Pioneer maintaining its position as the top corn and soybean brand in the U.S., and Enlist E3 soybeans reaching 65% market penetration. For 2025, the company anticipates approximately 10% EBITDA growth and margin expansion, expecting $3.6 billion to $3.8 billion in operating EBITDA, with an operating EPS of $2.70 to $2.95. The company aims for a 40% to 45% free cash flow to EBITDA conversion rate, despite facing a $275 million currency headwind primarily due to the Brazilian real, Turkish lira, and Canadian dollar.Corteva Corporate Events
Executive/Board Changes
Corteva Board Member Rebecca Liebert Resigns
Neutral
Feb 19, 2025
Rebecca Liebert, Ph.D., has announced her resignation from the Board of Directors of Corteva, Inc. effective February 28, 2025, as she intends to pursue other opportunities. Her resignation is not due to any disagreements with the company’s management or board, and the board will reduce in size from thirteen to twelve directors following her departure.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.