Corteva (CTVA) AI Stock Analysis

• Market Cap: $39.57B
• Dividend Yield: 1.13%
• Average Volume (3M): 3.96M
• Price to Earnings (P/E): 44.5
• Beta (1Y): 0.73
• Revenue Growth: -1.85%
• EPS Growth: 26.00%
• Country: US
• Employees: 22,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 1.29
• Shares Outstanding: 683,014,600
• 10 Day Avg. Volume: 4,841,866
• 30 Day Avg. Volume: 3,960,219
• PEG Ratio: 1.71
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.50
• Price to Cash Flow (P/CF): 2.50
• P/FCF Ratio: 2.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $69.87
• Price Target Upside: 17.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

Corteva's overall score reflects a solid financial base with strong equity and low leverage, contributing to financial stability. The technical analysis indicates positive momentum, supporting the stock's upward trend. However, the high P/E ratio suggests potential overvaluation, which is a risk to consider. The recent earnings call provided a positive outlook with record margins and growth in key segments, enhancing the stock's attractiveness. Challenges such as currency headwinds and pricing pressures are notable but do not overshadow the company's strengths.

Positive Factors

Financial Performance

Corteva's strong balance sheet and margin expansion provide a positive quantitative tailwind.

Market Position

Corteva is considered the best-positioned name in agriculture due to its more resilient Seed portfolio.

Strategic Initiatives

The $1 billion buyback is supportive of Corteva's stock.

Negative Factors

Currency Fluctuations

The stronger USD has caused more foreign exchange headwinds for Corteva.

Foreign Exchange Impact

The $100mn reduction in the EBITDA guidance midpoint reflects a $125mn increase in FX headwinds.

Market Risks

Risks are increasing for a more extended downturn in the agriculture cycle due to credit channels, shifting tariff regimes, and the biofuel market.

Corteva Business Overview & Revenue Model

Company Description

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 herbicides used to control 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 diseases, as well as enhances crop health above and below ground through nitrogen management and seed-applied technologies. This segment provides herbicides, insecticides, 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. was incorporated in 2018 and is headquartered in Indianapolis, Indiana.

How the Company Makes Money

Corteva 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 financial stability. However, challenges include revenue growth instability and inconsistent profitability, with fluctuating net margins and cash flow metrics.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 59.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 59.28 is below the 20-day moving average (MA) of 60.69, below the 50-day MA of 61.56, and above the 200-day MA of 58.15, indicating a neutral trend. The MACD of 0.28 indicates Negative momentum. The RSI at 59.04 is Neutral, neither overbought nor oversold. The STOCH value of 65.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CTVA.

Corteva Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CF	78 Outperform	$11.99B	10.68	22.76%	2.78%	-10.48%	-13.78%
ICL	76 Outperform	$7.72B	18.95	7.08%	3.13%	-8.59%	-37.13%
CTVA	73 Outperform	$39.57B	44.46	3.49%	1.13%	-1.85%	26.00%
MOS	64 Neutral	$8.18B	47.32	1.47%	3.29%	-18.79%	-84.24%
FMC	63 Neutral	$4.53B	13.37	9.02%	6.25%	-5.36%	-74.25%
Sector *	47 Neutral	$2.49B	-2.97	-22.82%	3.51%	4.13%	-28.53%
SMG	45 Neutral	$2.94B	―	4.98%	5.16%	3.61%	94.27%

Corteva Corporate Events

Corteva Board Member Rebecca Liebert Resigns

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.