Corteva (CTVA) AI Stock Analysis

Compare

1,617 Followers

Top Page

Corteva

(NYSE:CTVA)

Rating:73Outperform

Price Target:

$86.00

▲(17.61%Upside)

Corteva's overall stock score of 73 reflects its strong financial performance and positive earnings outlook. The company's cash flow and balance sheet are solid, and it has effective operational strategies. However, overvaluation concerns and technical indicators suggest potential short-term volatility.

Positive Factors

Market Positioning

CTVA remains the most attractive way to play the ag sector, given its industry-leading franchises, self-help margin improvement and diverse exposure.

Stock Valuation

The stock can continue to work as current attractive multiples keep getting rolled forward on a strong growth profile.

Strategic Partnerships

Strategic agreement with FMC for Fluidapyr fungicide enhances CTVA's product offering.

Negative Factors

Chemical Industry Challenges

Seeds resiliency should continue to partially offset industry-wide crop chems challenges.

EBITDA Growth

CTVA's EBITDA growth flattened out and was stuck in the $3.2-3.4B range given material headwinds from crop chems de-stocking, FX, and then lower estimates.

Corteva (CTVA) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$50.41B

Dividend Yield0.93%

Average Volume (3M)4.35M

Price to Earnings (P/E)45.1

Beta (1Y)0.70

Revenue Growth>-0.01%

EPS Growth108.45%

CountryUS

Employees22,000

SectorBasic Materials

Sector Strength73

IndustryAgricultural Inputs

Share Statistics

EPS (TTM)1.13

Shares Outstanding682,170,000

10 Day Avg. Volume4,078,723

30 Day Avg. Volume4,345,143

Financial Highlights & Ratios

PEG Ratio1.63

Price to Book (P/B)2.07

Price to Sales (P/S)0.00

P/FCF Ratio23.83

Enterprise Value/Market Cap1.03

Enterprise Value/Revenue1.28

Enterprise Value/Gross Profit25.42

Enterprise Value/Ebitda-20.55

Forecast

1Y Price Target

$81.08

Price Target Upside10.89% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering15

Corteva Business Overview & Revenue Model

Company DescriptionCorteva, Inc. (CTVA) is a global agriculture company that provides farmers around the world with a comprehensive portfolio of seed, crop protection, and digital solutions. Formed as a spin-off from DowDuPont in 2019, Corteva operates in two main segments: Seed and Crop Protection. The company's core products include high-yielding seeds, advanced crop protection solutions, and digital tools that enhance productivity and sustainability on the farm.

How the Company Makes MoneyCorteva generates revenue primarily through the sale of its seed and crop protection products. The Seed segment focuses on producing and selling a variety of seeds, including corn, soybean, and sunflower, which are engineered to improve yield and resist pests and diseases. The Crop Protection segment offers a range of products such as herbicides, insecticides, and fungicides, which help protect crops from weeds, insects, and disease. Additionally, Corteva leverages digital agriculture technologies that provide data-driven insights to optimize farming practices. The company benefits from strategic partnerships and a strong distribution network, allowing it to effectively reach global markets and support its earnings growth.

Corteva Key Performance Indicators (KPIs)

Any

Seed Sales by Segment

Seed Sales by Segment
Tracks revenue from seed sales across various segments, indicating market demand and competitive positioning in the agriculture sector.

Chart InsightsCorteva's seed sales show robust growth in corn and soybean segments, with corn sales peaking in Q2 2024. The company anticipates a 5% increase in U.S. corn planting, aligning with their strategic focus on new seed products. Despite tariff and currency challenges, Corteva's operational excellence and cost management have led to significant margin expansion. The introduction of 500 new seed products is expected to sustain growth, while high single-digit volume gains in crop protection will mitigate pricing pressures. The overall outlook remains positive, driven by strong demand and strategic initiatives.

Data provided by:

Main Street Data

Corteva Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q1-2025)

% Change Since: 17.31%|

Next Earnings Date:Aug 06, 2025

Earnings Call Sentiment Positive

Corteva delivered a strong first quarter performance with significant EBITDA growth and margin expansion, driven by operational excellence and strategic product launches. However, challenges such as currency headwinds, tariff impacts, and pricing pressure in crop protection remain. The overall outlook is positive, with strong growth expected in the seed business and corn planting.

Q1-2025 Updates

Positive Updates

Strong Start to 2025

Corteva reported a 15% increase in Q1 EBITDA and nearly 400 basis points of margin expansion, driven by strong cost execution in Biologicals, CP new products, and seed out-licensing.

Positive Outlook for Seed Business

Organic sales in the seed business were up 2% in Q1, with a strong demand for new products. The company plans to introduce approximately 500 new products, including 300 new seed hybrids and varieties.

Growth in Corn Planting and Ethanol Production

Farmers in the US are projected to increase corn planting by about 5%. Brazil's corn ethanol industry is expected to see significant growth, with corn accounting for nearly a third of the country's total ethanol production by 2026.

Operational Excellence and Cost Improvement

Corteva is tracking well against the $400 million net cost target and expects to generate $65 million in benefits this year from transitioning to a net out-licenser technology.

Resilience in Crop Protection

Organic sales for crop protection were up 3%, with double-digit volume growth for new products and Biologicals. The company expects high single-digit volume gains to offset low single-digit pricing headwinds.

Negative Updates

Currency Headwinds

The company faced a significant currency headwind of 5% of sales in Q1, with a total expected impact of $275 million for the year.

Tariff Challenges

Tariffs are expected to have a direct cost impact of about $50 million in 2025, mainly affecting the crop protection segment.

Pressure on Crop Protection Pricing

Crop protection pricing is expected to be down low single digits for the year due to competitive market dynamics, though volume growth is expected to compensate.

Company Guidance

In the call discussing Corteva Agriscience's first quarter 2025 earnings, the company reaffirmed its full-year guidance due to strong performance metrics. They reported a 15% year-over-year increase in Q1 EBITDA, with nearly 400 basis points of margin expansion driven by effective cost execution across three growth platforms: Biologicals, CP new products, and seed out-licensing. Both business segments achieved double-digit EBITDA growth, primarily due to operational excellence, and they are on track to meet their $400 million net cost improvement target. Corteva anticipates a 5% increase in corn planting in the U.S., while Enlist beans are expected to be planted on over 65% of U.S. soybean acres. Globally, Corteva projects high single-digit volume gains in crop protection, which will offset low single-digit pricing headwinds. Additionally, the company is managing potential $50 million tariff impacts, but these are not expected to affect the full-year guidance.

Corteva Financial Statement Overview

Summary

Corteva exhibits a solid financial position with strong cash flow generation and a stable balance sheet. The company has low leverage and a healthy equity ratio, though profitability margins show room for improvement. The strong cash flow supports future growth and strategic initiatives.

Income Statement

Positive

Corteva shows a solid performance with a stable revenue base in the TTM period. The gross profit margin stands at 44.6%, indicating efficient cost management, while the net profit margin is 6.8%, reflecting reasonable profitability. However, there is a slight decline in revenue from the previous year. The EBIT margin of 13.4% and EBITDA margin of 17.9% demonstrate healthy operational efficiency, although there's room for improvement in net profitability.

Balance Sheet

Positive

The balance sheet is robust, with a debt-to-equity ratio of 0.17, indicating low leverage and financial stability. The return on equity (ROE) is 4.7%, showing moderate returns for shareholders. The equity ratio is a strong 57.7%, reflecting a solid capital structure. Overall, the company maintains a healthy balance sheet with manageable debt levels.

Cash Flow

Positive

Corteva's cash flow is strong, with a free cash flow growth rate of 35.8% in the TTM period, highlighting effective cash generation. The operating cash flow to net income ratio is 2.32, showcasing excellent cash conversion capability. The free cash flow to net income ratio of 1.84 further underscores the company's ability to generate free cash relative to its net income. This positions the company well for potential reinvestment or debt servicing.

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
EBITDA	2.73B	2.54B	2.73B	3.62B	1.90B
Net Income	907.00M	735.00M	1.15B	1.76B	681.00M
Balance Sheet
Total Assets	40.83B	43.00B	42.62B	42.34B	42.65B
Cash, Cash Equivalents and Short-Term Investments	3.17B	2.74B	3.31B	4.54B	3.79B
Total Debt	2.70B	2.49B	1.31B	1.12B	1.11B
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	1.55B	1.17B	267.00M	2.15B	1.59B
Operating Cash Flow	2.15B	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

Neutral

Last Price73.12

Price Trends

50DMA

72.37

Positive

100DMA

66.68

Positive

200DMA

63.34

Positive

Market Momentum

MACD

0.22

Positive

RSI

48.23

Neutral

STOCH

59.43

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTVA, the sentiment is Neutral. The current price of 73.12 is below the 20-day moving average (MA) of 74.41, above the 50-day MA of 72.37, and above the 200-day MA of 63.34, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 48.23 is Neutral, neither overbought nor oversold. The STOCH value of 59.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CF	75 Outperform	$15.15B	12.36	26.14%	2.14%	0.66%	25.75%
CTVA	73 Outperform	$50.41B	45.06	4.66%	0.93%	>-0.01%	108.45%
FMC	71 Outperform	$5.28B	16.85	8.81%	5.49%	1.45%	-70.85%
ICL	70 Neutral	$8.83B	23.32	6.70%	2.70%	-3.48%	-18.34%
MOS	69 Neutral	$11.86B	32.09	3.09%	2.30%	-13.37%	-50.63%
Sector *	63 Neutral	$10.49B	9.49	1.49%	2.70%	2.28%	-33.88%
SMG	57 Neutral	$4.04B	139.94	4.98%	3.86%	0.75%	―

* Basic Materials Sector Average

Performance Comparison

CTVA

Corteva

73.12

18.33

33.46%

Cf Industries Holdings

93.50

20.24

27.63%

FMC

42.29

-14.50

-25.53%

MOS

Mosaic Co

37.39

8.72

30.42%

SMG

Scotts Miracle-Gro Company

68.38

0.51

0.75%

ICL

Icl

6.84

2.38

53.36%

Corteva Corporate Events

Executive/Board ChangesShareholder Meetings

Corteva Stockholders Approve Key Proposals at Annual Meeting

Neutral

May 6, 2025

On April 30, 2025, Corteva, Inc. held its Annual Meeting of Stockholders, where 89.05% of the company’s outstanding shares were voted. During the meeting, stockholders elected 12 directors, approved executive compensation, and ratified PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 03, 2025