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Corteva (CTVA)
NYSE:CTVA
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Corteva (CTVA) AI Stock Analysis

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CTVA

Corteva

(NYSE:CTVA)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
$78.00
▲(15.10% Upside)
Corteva's strong financial performance and positive earnings call are the most significant factors driving its score. While technical analysis and valuation present some concerns, the company's robust operational efficiency and strategic growth initiatives provide a solid foundation for future performance.
Positive Factors
Revenue Growth
Corteva's consistent revenue growth and margin expansion highlight its strong market position and operational efficiency, supporting long-term financial health.
Cash Flow Generation
Robust cash flow growth enhances Corteva's financial flexibility, enabling strategic investments and resilience against economic fluctuations.
Strategic Initiatives
Potential restructuring could optimize operations and shield assets from liabilities, enhancing focus and efficiency in each business segment.
Negative Factors
Pricing Pressure
Pricing pressures, particularly in Brazil, could impact profitability and market competitiveness, challenging long-term margin sustainability.
Currency Headwinds
Currency volatility poses risks to financial performance, potentially affecting revenue and profit margins in international markets.
Debt Increase
Rising debt levels may strain financial resources, limiting Corteva's ability to invest in growth opportunities and manage economic downturns.

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

Corteva Business Overview & Revenue Model

Company DescriptionCorteva, 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 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
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
85
Very 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
78
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
82
Very 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue17.18B16.91B17.23B17.45B15.65B14.22B
Gross Profit7.84B7.38B7.31B7.02B6.43B5.71B
EBITDA3.46B2.73B2.54B2.73B3.62B1.90B
Net Income1.40B907.00M735.00M1.15B1.76B681.00M
Balance Sheet
Total Assets41.76B40.83B43.00B42.62B42.34B42.65B
Cash, Cash Equivalents and Short-Term Investments2.14B3.17B2.74B3.31B4.54B3.79B
Total Debt3.63B2.70B2.49B1.31B1.12B1.11B
Total Liabilities15.61B16.80B17.72B17.08B16.72B17.59B
Stockholders Equity25.91B23.79B25.04B25.30B25.38B24.82B
Cash Flow
Free Cash Flow2.59B1.55B1.17B267.00M2.15B1.59B
Operating Cash Flow3.14B2.15B1.77B872.00M2.73B2.06B
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-1.27B303.00M

Corteva Technical Analysis

Technical Analysis Sentiment
Negative
Last Price67.77
Price Trends
50DMA
71.88
Negative
100DMA
71.74
Negative
200DMA
66.12
Positive
Market Momentum
MACD
-1.20
Positive
RSI
35.32
Neutral
STOCH
30.50
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 67.77 is below the 20-day moving average (MA) of 70.98, below the 50-day MA of 71.88, and above the 200-day MA of 66.12, indicating a neutral trend. The MACD of -1.20 indicates Positive momentum. The RSI at 35.32 is Neutral, neither overbought nor oversold. The STOCH value of 30.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
1.
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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$46.24B33.135.75%1.02%1.63%58.72%
72
Outperform
$14.92B12.0426.23%2.17%9.53%36.15%
65
Neutral
$11.21B11.987.56%2.46%-7.71%297.49%
63
Neutral
$8.17B22.266.10%2.82%-1.22%-14.31%
58
Neutral
$4.20B42.702.24%6.90%1.16%-92.85%
52
Neutral
$3.24B73.02-31.07%4.71%-2.05%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CTVA
Corteva
67.77
9.58
16.46%
CF
Cf Industries Holdings
90.51
6.72
8.02%
FMC
FMC
33.51
-29.88
-47.14%
MOS
Mosaic Co
34.70
8.71
33.51%
SMG
Scotts Miracle-Gro Company
55.82
-27.40
-32.92%
ICL
Icl
6.33
2.21
53.64%
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: Sep 16, 2025