Corteva, Inc.
Corteva, Inc. Fundamental Analysis
Corteva, Inc. (CTVA) shows weak financial fundamentals with a PE ratio of 48.34, profit margin of 6.50%, and ROE of 4.67%. The company generates $17.8B in annual revenue with weak year-over-year growth of 2.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CTVA's fundamental strength across five key dimensions:
Efficiency Score
WeakCTVA struggles to generate sufficient returns from assets.
Valuation Score
WeakCTVA trades at a premium to fair value.
Growth Score
ModerateCTVA shows steady but slowing expansion.
Financial Health Score
ExcellentCTVA maintains a strong and stable balance sheet.
Profitability Score
WeakCTVA struggles to sustain strong margins.
Key Financial Metrics
Is CTVA Expensive or Cheap?
P/E Ratio
CTVA trades at 48.34 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CTVA's PEG of 11.32 indicates potential overvaluation.
Price to Book
The market values Corteva, Inc. at 2.31 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 16.01 times EBITDA. This signals the market has high growth expectations.
How Well Does CTVA Make Money?
Net Profit Margin
For every $100 in sales, Corteva, Inc. keeps $6.50 as profit after all expenses.
Operating Margin
Core operations generate 16.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.67 in profit for every $100 of shareholder equity.
ROA
Corteva, Inc. generates $2.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Corteva, Inc. produces operating cash flow of $2.61B, showing steady but balanced cash generation.
Free Cash Flow
Corteva, Inc. generates strong free cash flow of $2.03B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.04 in free cash annually.
FCF Yield
CTVA converts 3.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
48.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
11.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.47
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How CTVA Stacks Against Its Sector Peers
| Metric | CTVA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 48.34 | 25.14 | Worse (Expensive) |
| ROE | 4.67% | 963.00% | Weak |
| Net Margin | 6.50% | -105282.00% (disorted) | Weak |
| Debt/Equity | 0.14 | 0.52 | Strong (Low Leverage) |
| Current Ratio | 1.47 | 6.89 | Neutral |
| ROA | 2.72% | -3160.00% (disorted) | Weak |
CTVA outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Corteva, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
36.13%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
78.67%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
83.53%
Industry Style: Cyclical, Commodity, Value
High Growth