Corteva (CTVA) AI Stock Analysis

• Market Cap: $48.81B
• Dividend Yield: 0.95%
• Average Volume (3M): 4.01M
• Price to Earnings (P/E): 35.0
• Beta (1Y): 0.69
• Revenue Growth: 1.63%
• EPS Growth: 58.72%
• Country: US
• Employees: 22,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 2.20
• Shares Outstanding: 679,100,000
• 10 Day Avg. Volume: 4,930,374
• 30 Day Avg. Volume: 4,008,630
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 3.05
• Enterprise Value/Gross Profit: 6.68
• Enterprise Value/Ebitda: 15.13
• 1Y Price Target: $82.33
• Price Target Upside: 14.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 78 Outperform
• Price Target: $83.00 ▲(15.66% 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

Financial Performance

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

Innovation and Growth

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

Strategic Partnerships

The strategic agreement with FMC for Fluidapyr fungicide enhances Corteva's product offering.

Negative Factors

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.

Industry Challenges

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

Corteva Business Overview & Revenue Model

Company Description

Corteva, 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 Money

Corteva 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 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

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

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

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: Neutral
• Last Price: 71.76
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 71.76 is below the 20-day moving average (MA) of 72.23, below the 50-day MA of 73.19, and above the 200-day MA of 64.45, indicating a neutral trend. The MACD of -0.39 indicates Positive momentum. The RSI at 46.86 is Neutral, neither overbought nor oversold. The STOCH value of 76.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CTVA.

Corteva Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTVA	78 Outperform	$48.81B	34.97	5.75%	0.95%	1.63%	58.72%
CF	71 Outperform	$13.81B	11.15	24.98%	2.33%	9.53%	36.15%
MOS	63 Neutral	$10.19B	10.89	7.80%	2.65%	-7.71%	297.49%
ICL	59 Neutral	$7.98B	21.73	6.24%	2.98%	-1.22%	-14.31%
FMC	56 Neutral	$4.66B	47.35	2.88%	6.19%	1.16%	-92.85%
SMG	50 Neutral	$3.61B	81.42	4.98%	4.25%	-2.05%	―
Sector *	44 Neutral	AU$1.54B	-7.28	-22.62%	4.34%	-3.13%	-36.41%

Corteva Corporate Events

Corteva Stockholders Approve Key Proposals at Annual Meeting

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.