Corteva (CTVA) AI Stock Analysis

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Corteva

(NYSE:CTVA)

Rating:78Outperform

Price Target:

$83.00

▲(14.80% Upside)

Corteva's overall stock score reflects strong financial performance and a positive earnings call, which are the most significant factors. The company's robust cash flow and profitability, along with strategic cost management, support its growth trajectory. However, the high P/E ratio and mixed technical indicators temper the score, indicating some caution is warranted.

Positive Factors

Earnings Growth

Corteva's strong execution and delivery of earnings growth are believed to deserve a premium valuation.

Innovation

Corteva's innovation pipeline, including advancements in technology and biofuels, is expected to drive the next phase of growth.

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 Performance

CTVA's EBITDA growth flattened out and was stuck in the $3.2-3.4B range for 2022-2024 given material headwinds from crop chems de-stocking, FX, and then lower estimates.

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

Market Cap

$49.10B

Dividend Yield0.95%

Average Volume (3M)3.92M

Price to Earnings (P/E)35.2

Beta (1Y)0.68

Revenue Growth1.63%

EPS Growth58.72%

CountryUS

Employees22,000

SectorBasic Materials

Sector Strength66

IndustryAgricultural Inputs

Share Statistics

EPS (TTM)2.20

Shares Outstanding679,100,000

10 Day Avg. Volume3,672,674

30 Day Avg. Volume3,918,887

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.07

Enterprise Value/Revenue3.05

Enterprise Value/Gross Profit6.68

Enterprise Value/Ebitda15.13

Forecast

1Y Price Target

$83.07

Price Target Upside14.90% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering15

Corteva Business Overview & Revenue Model

Company DescriptionCorteva, Inc. is a global agricultural company that provides farmers with a comprehensive range of seed and crop protection products. Formed from the agricultural division of DowDuPont, Corteva operates in two primary sectors: Seed and Crop Protection. The company offers a diverse portfolio of genetically modified and conventional seeds, alongside a suite of herbicides, insecticides, and fungicides designed to enhance crop yield and resilience. Corteva is committed to sustainable agriculture and innovation, focusing on research and development to meet the evolving needs of farmers worldwide.

How the Company Makes MoneyCorteva generates revenue primarily through the sale of its seed and crop protection products. The Seed segment includes genetically modified seeds, conventional seeds, and seed treatment products, which are sold to farmers and agricultural distributors. The Crop Protection segment focuses on chemical products such as herbicides, insecticides, and fungicides that help protect crops from pests and diseases. Significant revenue streams come from both North America and international markets, with the company leveraging its research and development capabilities to introduce new and improved products. Additionally, Corteva benefits from partnerships with agricultural retailers and distributors, enhancing its market reach and access to farmers. The company also engages in sustainability initiatives and precision agriculture, which may further drive sales as demand grows for environmentally friendly and efficient farming solutions.

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:Aug 06, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 30, 2025

Earnings Call Sentiment Positive

Corteva delivered a strong financial performance in the first half of 2025, with significant growth in both the Seed and Crop Protection segments. The company raised its financial guidance for the year, driven by operational excellence and cost improvements. However, challenges remain, particularly in the Crop Protection segment due to competitive pricing pressures in Brazil and currency headwinds. Despite these challenges, the company's overall performance and strategic initiatives indicate a positive outlook.

Q2-2025 Updates

Positive Updates

Strong Financial Performance

Corteva achieved top and bottom line growth with more than 200 basis points of operating EBITDA margin expansion. The company exceeded its 2025 net cost improvement target in the first half alone, raising the full year target to $450 million from $400 million.

Record First Half Performance

Operating EBITDA for the first half of 2025 was up over $400 million, reaching just over $3.35 billion. This was driven by organic sales growth, significant cost improvements, and a nearly 31% operating EBITDA margin.

Seed Business Success

The Seed business achieved 280 basis points of operating EBITDA margin expansion with pricing gains in most regions. The company also saw healthy branded share gains in both corn and soybeans.

Crop Protection Business Growth

The Crop Protection business delivered over 350 basis points of operating EBITDA margin expansion, with significant volume gains, especially in Brazil. This marks the fifth consecutive quarter of CP volume gains.

Increased Financial Guidance

Corteva raised the midpoint of its full year operating EBITDA guidance to $3.8 billion, a $100 million improvement from the previous quarter. Free cash flow guidance is also increased to approximately $1.9 billion.

Negative Updates

Continued Pricing Pressure in Crop Protection

Corteva faces low to mid-single-digit pricing headwinds in the Crop Protection segment, particularly in Brazil, due to competitive market dynamics.

Currency Headwinds

Currency fluctuations, particularly the Turkish Lira and Canadian Dollar, presented a $150 million headwind on EBITDA.

Company Guidance

During the Corteva Agriscience Second Quarter 2025 Earnings Call, the company reported significant financial improvements and provided optimistic guidance for the remainder of the year and into 2026. Corteva achieved over 200 basis points of operating EBITDA margin expansion in the second quarter, with seed business margins expanding by 280 basis points and crop protection by over 350 basis points. The company raised its full-year operating EBITDA target to $3.8 billion, an increase of $100 million from the previous guidance, and improved its free cash flow forecast to $1.9 billion, expecting a conversion rate of about 50%. This boost was attributed to exceeding net cost improvement targets, with cost savings in Seed and Crop Protection surpassing $400 million in the first half. Additionally, the company noted strong demand for proprietary technology and healthy branded share gains in key markets like North America, Brazil, and Argentina. Corteva is also on track with its financial framework set for 2027, contributing to its positive outlook for sustained growth.

Corteva Financial Statement Overview

Summary

Corteva exhibits a solid financial position with strong cash flow generation and a stable balance sheet. While profitability margins show room for improvement, the company's low leverage and healthy equity ratio provide a stable foundation. The consistent cash flow performance 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.18B	16.91B	17.23B	17.45B	15.65B	14.22B
Gross Profit	7.84B	7.38B	7.31B	7.02B	6.43B	5.71B
EBITDA	3.46B	2.73B	2.54B	2.73B	3.62B	1.90B
Net Income	1.40B	907.00M	735.00M	1.15B	1.76B	681.00M
Balance Sheet
Total Assets	41.76B	40.83B	43.00B	42.62B	42.34B	42.65B
Cash, Cash Equivalents and Short-Term Investments	2.14B	3.17B	2.74B	3.31B	4.54B	3.79B
Total Debt	3.63B	2.70B	2.49B	1.31B	1.12B	1.11B
Total Liabilities	15.61B	16.80B	17.72B	17.08B	16.72B	17.59B
Stockholders Equity	25.91B	23.79B	25.04B	25.30B	25.38B	24.82B
Cash Flow
Free Cash Flow	2.59B	1.55B	1.17B	267.00M	2.15B	1.59B
Operating Cash Flow	3.14B	2.15B	1.77B	872.00M	2.73B	2.06B
Investing Cash Flow	-482.00M	-589.00M	-1.99B	-632.00M	-362.00M	-674.00M
Financing Cash Flow	-2.53B	-1.20B	-99.00M	-1.18B	-1.27B	303.00M

Corteva Technical Analysis

Technical Analysis Sentiment

Positive

Last Price72.30

Price Trends

50DMA

73.12

Negative

100DMA

70.32

Positive

200DMA

65.36

Positive

Market Momentum

MACD

0.17

Positive

RSI

50.83

Neutral

STOCH

28.61

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 72.3 is below the 20-day moving average (MA) of 72.80, below the 50-day MA of 73.12, and above the 200-day MA of 65.36, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 28.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 1 New Risks

Our business, financial condition and results of operations could be materially affected by disruptions in the global economy caused by the ongoing conflict between Russia and Ukraine. Q3, 2022

Corteva Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTVA	78 Outperform	$49.10B	35.18	5.75%	0.95%	1.63%	58.72%
CF	72 Outperform	$13.68B	11.04	24.98%	2.37%	9.53%	36.15%
MOS	66 Neutral	$10.30B	11.00	7.80%	2.68%	-7.71%	297.49%
ICL	64 Neutral	$7.85B	21.38	6.24%	2.93%	-1.22%	-14.31%
Sector *	62 Neutral	$10.37B	6.45	0.80%	2.84%	3.09%	-36.03%
FMC	58 Neutral	$4.72B	47.96	2.88%	6.12%	1.16%	-92.85%
SMG	52 Neutral	$3.64B	82.13	4.98%	4.19%	-2.05%	―

* Basic Materials Sector Average

Performance Comparison

CTVA

Corteva

72.95

17.72

32.08%

Cf Industries Holdings

84.50

7.87

10.27%

FMC

37.90

-20.29

-34.87%

MOS

Mosaic Co

32.58

8.26

33.96%

SMG

Scotts Miracle-Gro Company

62.32

-2.40

-3.71%

ICL

Icl

6.10

2.19

56.01%

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: Aug 14, 2025