Corteva (CTVA) AI Stock Analysis

• Market Cap: $46.39B
• Dividend Yield: 1.04%
• Average Volume (3M): 3.21M
• Price to Earnings (P/E): 29.3
• Beta (1Y): 0.62
• Revenue Growth: 5.00%
• EPS Growth: 136.31%
• Country: US
• Employees: 22,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): -0.23
• Shares Outstanding: 675,732,000
• 10 Day Avg. Volume: 2,340,983
• 30 Day Avg. Volume: 3,208,585
• PEG Ratio: 1.68
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 2.34
• P/FCF Ratio: 25.53
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 2.73
• Enterprise Value/Gross Profit: 5.92
• Enterprise Value/Ebitda: 12.90
• 1Y Price Target: $79.17
• Price Target Upside: 15.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $72.00 ▲(5.12% Upside)

Corteva's overall stock score of 75 reflects its strong financial performance and positive earnings call, which highlight robust growth and strategic advancements. However, the high valuation and mixed technical indicators suggest caution. The company's ability to manage competitive pressures and leverage its strategic initiatives will be key to future performance.

Positive Factors

Revenue Growth

The strong EBITDA growth in key segments indicates robust demand and effective execution, supporting long-term revenue expansion.

Innovation and Product Development

Continuous innovation, such as new product launches, strengthens Corteva's competitive position and drives future growth.

Financial Guidance

Raising financial guidance reflects management's confidence in strategic execution and market conditions, indicating strong future performance.

Negative Factors

Competitive Pricing Pressures

Persistent pricing pressures can erode margins and profitability, challenging Corteva's ability to maintain competitive advantage.

Debt Increase

Rising debt levels may constrain financial flexibility and increase risk, potentially impacting long-term financial health.

Credit Challenges in Latin America

Credit challenges in key markets like Latin America can affect sales and cash flow, posing risks to regional growth and stability.

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 to farmers and agricultural retailers worldwide. The Seed segment is a significant revenue driver, as it includes both genetically modified and traditional seed varieties, which are sold at a premium price due to their yield-enhancing traits. The Crop Protection segment contributes to earnings by providing essential chemicals that protect crops from pests and diseases, thus ensuring higher yields for farmers. Additionally, Corteva engages in strategic partnerships with various agricultural stakeholders, including research institutions and technology companies, to enhance its product offerings and expand its market reach. The company's innovation in agricultural biotechnology and sustainable farming practices also plays a crucial role in attracting customers and driving sales growth.

Corteva Financial Statement Overview

Summary

Corteva demonstrates strong financial health with improving profitability and efficient cash flow management. The company maintains a solid balance sheet with low leverage, although the increase in debt warrants monitoring. The positive trends in revenue and profit margins, coupled with robust cash flow generation, position Corteva well for future growth in the agricultural inputs industry.

Income Statement

Corteva's income statement reflects strong profitability with a consistent gross profit margin around 46% in the TTM period. The net profit margin has improved to 9.19% from previous years, indicating enhanced efficiency. Revenue growth is modest at 1.7% in the TTM, but it shows a recovery from a slight decline in previous years. EBIT and EBITDA margins have also improved, suggesting better operational performance.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.17 in the TTM, indicating conservative leverage. Return on equity has improved to 5.68%, showing better utilization of equity. The equity ratio remains strong, reflecting a solid capital structure. However, the increase in total debt over the years could be a potential risk if not managed carefully.

Cash Flow

Corteva's cash flow statement shows a healthy free cash flow growth rate of 2.31% in the TTM, with a strong free cash flow to net income ratio of 0.83. The operating cash flow to net income ratio is stable, indicating efficient cash generation relative to net income. The company has consistently improved its cash flow metrics, supporting its financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.47B	16.91B	17.23B	17.45B	15.65B	14.22B
Gross Profit	8.05B	7.38B	7.31B	7.02B	6.43B	5.71B
EBITDA	3.70B	2.73B	2.54B	2.73B	3.62B	1.90B
Net Income	1.60B	907.00M	735.00M	1.15B	1.76B	681.00M
Balance Sheet
Total Assets	42.20B	40.83B	43.00B	42.62B	42.34B	42.65B
Cash, Cash Equivalents and Short-Term Investments	2.59B	3.17B	2.74B	3.31B	4.54B	3.79B
Total Debt	4.37B	2.70B	2.49B	1.31B	1.12B	1.11B
Total Liabilities	16.74B	16.80B	17.72B	17.08B	16.72B	17.59B
Stockholders Equity	25.22B	23.79B	25.04B	25.30B	25.38B	24.82B
Cash Flow
Free Cash Flow	2.65B	1.55B	1.17B	267.00M	2.15B	1.59B
Operating Cash Flow	3.20B	2.15B	1.77B	872.00M	2.73B	2.06B
Investing Cash Flow	-478.00M	-589.00M	-1.99B	-632.00M	-362.00M	-674.00M
Financing Cash Flow	-2.78B	-1.20B	-99.00M	-1.18B	-1.27B	303.00M

Corteva Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.49
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 68.49 is above the 20-day moving average (MA) of 67.45, above the 50-day MA of 65.89, and above the 200-day MA of 67.59, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 56.97 is Neutral, neither overbought nor oversold. The STOCH value of 66.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTVA.

Corteva Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTVA	75 Outperform	$46.39B	29.31	6.73%	1.04%	5.00%	136.31%
CF	70 Outperform	$12.88B	9.96	27.46%	2.56%	12.59%	31.40%
MOS	65 Neutral	$8.25B	6.74	10.00%	3.70%	3.82%	239.39%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ICL	60 Neutral	$7.21B	19.55	6.15%	3.36%	1.77%	-8.72%
SMG	50 Neutral	$3.58B	24.97	―	4.52%	-3.93%	―
FMC	47 Neutral	$1.90B	-3.56	-11.52%	16.68%	-13.42%	-136.59%