Corteva (CTVA)
NYSE:CTVA
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Corteva
(NYSE:CTVA)
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Rating:71Outperform
Price Target:
$93.00
▲(10.77% Upside)
Action:ReiteratedDate:02/05/26
The score is driven primarily by solid financial health (low leverage, improving margins, strong recent free cash flow) and a constructive earnings outlook with reiterated 2026 growth guidance and licensing/royalty tailwinds from the Bayer agreement. These positives are tempered by a rich valuation (high P/E, low yield) and technically overbought momentum, plus revenue inconsistency and pricing/tariff/FCF-normalization risks highlighted on the call.
Positive Factors
Conservative balance sheet
Very low leverage and a sizable equity base provide durable financial flexibility for an agricultural cyclical business. This supports funding R&D, separation costs, and capital returns without relying on volatile markets, reducing refinancing and solvency risk through cycles.
Negative Factors
Revenue inconsistency
Stagnant or declining top line limits the durability of margin gains and cash generation. In an input-driven industry, persistent revenue weakness raises risk that margin improvements are cyclical, making sustained profit growth harder without renewed volume or pricing power.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and a sizable equity base provide durable financial flexibility for an agricultural cyclical business. This supports funding R&D, separation costs, and capital returns without relying on volatile markets, reducing refinancing and solvency risk through cycles.
Read all positive factors
Corteva (CTVA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$56.47B
Dividend Yield1.04%
Average Volume (3M)4.22M
Price to Earnings (P/E)41.2
Beta (1Y)0.58
Revenue Growth5.00%
EPS Growth136.31%
CountryUS
Employees22,000
SectorBasic Materials
Sector Strength58
IndustryAgricultural Inputs
Share Statistics
EPS (TTM)0.22
Shares Outstanding672,524,000
10 Day Avg. Volume3,936,823
30 Day Avg. Volume4,223,561
Financial Highlights & Ratios
PEG Ratio1.80
Price to Book (P/B)1.87
Price to Sales (P/S)2.59
P/FCF Ratio16.03
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue3.12
Enterprise Value/Gross Profit6.73
Enterprise Value/Ebitda17.67
Forecast
1Y Price Target
$85.42Price Target Upside1.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)3.64
Revenue Forecast (FY)$18.09B
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...
How the Company Makes Money
Corteva primarily makes money by selling agricultural inputs to farmers, retailers, and distributors through two main revenue streams:
1) Seed (product sales plus trait and technology value)
- Proprietary seed sales: Corteva generates revenue fro...
Corteva Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down total revenue by business segment, offering a clear view of which areas drive growth and contribute most to the company's financial health.
Breaks down total revenue by business segment, offering a clear view of which areas drive growth and contribute most to the company's financial health.
Data provided by:
The Fly
The FlyCorteva Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive outlook driven by strong 2025 results (14% EBITDA growth, margin expansion to >22%, $2.9B FCF), successful strategic progress (Bayer settlement accelerating licensing and reducing royalty risk), and reiterated 2026 guidance with continued productivity targets. Key near-term risks include Q4 timing-related volume softness, competitive pricing pressures in Crop Protection (notably Brazil), currency headwinds in 2025 and expected tariff impacts in 2026, along with higher SG&A/R&D and potential normalization of working capital that could temper free cash flow. On balance, the company highlighted more material progress and upside catalysts than offsets, with a clear path to additional licensing revenue and margin/cash improvement.Positive Updates
Strong Full-Year Financial Performance
Full-year 2025 operating EBITDA of $3.85 billion, up roughly $470 million (about +14% year-over-year), with operating EBITDA margin expanding over ~215 basis points to above 22%.
Negative Updates
Q4 Near-Term Weakness and Volume Timing Shifts
Q4 2025 sales and operating EBITDA were down versus prior year; Q4 organic sales down ~4%. Seed volumes declined ~8% in Q4 (timing shifts such as safrinha sales and North America deliveries moved into 1H 2026); CP volumes down ~2% in Q4 due to seasonal/timing shifts.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Financial Performance
Full-year 2025 operating EBITDA of $3.85 billion, up roughly $470 million (about +14% year-over-year), with operating EBITDA margin expanding over ~215 basis points to above 22%.
Read all positive updates
Company Guidance
Corteva reiterated 2026 guidance of operating EBITDA $4.0–$4.2 billion (midpoint $4.1B, ~7% growth vs. 2025’s $3.85B), operating EPS $3.45–$3.70 (≈7% increase at midpoint), and roughly 50 basis points of margin expansion; the plan assumes about $120M of net royalty improvement, ~$200M of productivity savings, an ~$80M tariff headwind, and ~$50M of net dissynergies already built in, with currency providing roughly a $75M EBITDA tailwind (low-single-digit sales tailwind); they expect Seed pricing slightly up and volumes roughly flat, Crop Protection volumes up mid-single digits but prices down low-single digits, about 60% of 2026 sales and ~85% of EBITDA to occur in H1, FCF to be impacted by separation items and the Bayer payment (the $610M cash payment recently made) yet the company is targeting ~$500M of share repurchases in H1 and remains committed to returning cash to shareholders.Corteva Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
82
Very Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 17.40B | 16.91B | 17.23B | 17.45B | 15.65B |
| Gross Profit | 7.58B | 7.38B | 7.31B | 7.02B | 6.43B |
| EBITDA | 3.07B | 2.73B | 2.54B | 2.73B | 3.62B |
| Net Income | 1.09B | 907.00M | 735.00M | 1.15B | 1.76B |
Balance Sheet | |||||
| Total Assets | 42.84B | 40.83B | 43.00B | 42.62B | 42.34B |
| Cash, Cash Equivalents and Short-Term Investments | 4.53B | 3.17B | 2.74B | 3.31B | 4.54B |
| Total Debt | 2.58B | 2.70B | 2.49B | 1.31B | 1.12B |
| Total Liabilities | 18.46B | 16.80B | 17.72B | 17.08B | 16.72B |
| Stockholders Equity | 24.14B | 23.79B | 25.04B | 25.30B | 25.38B |
Cash Flow | |||||
| Free Cash Flow | 2.81B | 1.55B | 1.17B | 267.00M | 2.15B |
| Operating Cash Flow | 3.41B | 2.15B | 1.77B | 872.00M | 2.73B |
| Investing Cash Flow | -543.00M | -589.00M | -1.99B | -632.00M | -362.00M |
| Financing Cash Flow | -1.64B | -1.20B | -99.00M | -1.18B | -1.27B |
Corteva Technical Analysis
Positive
83.96
Price Trends
77.95
Positive
72.51
Positive
70.91
Positive
Market Momentum
2.07
Negative
61.59
Neutral
78.62
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 83.96 is above the 20-day moving average (MA) of 81.30, above the 50-day MA of 77.95, and above the 200-day MA of 70.91, indicating a bullish trend. The MACD of 2.07 indicates Negative momentum. The RSI at 61.59 is Neutral, neither overbought nor oversold. The STOCH value of 78.62 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 0 New Risks
Corteva Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $19.38B | 8.62 | 29.95% | 2.56% | 12.59% | 31.40% | |
71 Outperform | $56.47B | 41.25 | 4.40% | 1.04% | 5.00% | 136.31% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $8.45B | 14.14 | 9.96% | 3.70% | 3.82% | 239.39% | |
59 Neutral | $6.96B | 32.61 | 3.77% | 3.36% | 1.77% | -8.72% | |
59 Neutral | $3.70B | -6.71 | -27.23% | 4.52% | -3.93% | ― | |
49 Neutral | $2.23B | -0.78 | -61.24% | 16.68% | -13.42% | -136.59% |
* Basic Materials Sector Average
CTVA
Corteva
83.96
26.58
46.33%
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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.