Corteva, Inc. (NYSE: CTVA)

Sector: Basic Materials Industry: Agricultural Inputs CIK: 0001755672
Market Cap 51.66 Bn
P/B 2.14
P/E 47.22
P/S 2.97
ROIC (Qtr) 8.77
Div Yield % 0.93
Rev 1y % (Qtr) -1.71
Total Debt (Qtr) 2.58 Bn
Debt/Equity (Qtr) 0.11
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About

Corteva, Inc., a prominent player in the agriculture industry, operates under the ticker symbol CTVA and is dedicated to enhancing the global food supply through innovative seed and crop protection solutions. Established in Delaware in March 2018, the company's headquarters are located in Indianapolis, Indiana. Corteva is committed to advancing science-based innovations that cater to a diverse customer base, including farmers, agricultural cooperatives, and distributors, spread across over 125 countries. Corteva's primary business activities revolve...

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Investment thesis

Bull case

  • Strong operating cash flow of 3.41B provides robust 1.32x coverage of total debt 2.58B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 4.52B provide 5.06x coverage of short-term debt 894M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 24.08B provides 9.33x coverage of total debt 2.58B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 3.41B provides exceptional 309.64x coverage of minority interest expenses 11M, showing strong core operations.
  • Operating cash flow of 3.41B provides exceptional 18.92x coverage of interest expenses 180M, showing strong debt service capability.

Bear case

  • Operating cash flow of 3.41B barely covers its investment activities of (543M), with a coverage ratio of -6.27, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (543M) provide weak support for R&D spending of 1.47B, which is -0.37x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 3.41B provides thin coverage of dividend payments of (475M) with a -7.17 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating cash flow of 3.41B provides insufficient coverage of deferred revenue obligations of 3.58B, which is 0.95x, raising concerns about future service delivery capabilities.
  • Operating earnings of 1.76B show weak coverage of depreciation charges of 1.20B, with a 1.46 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Agricultural Inputs
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CTVA Corteva, Inc. 51.66 Bn 47.22 2.97 2.58 Bn
2 NTR Nutrien Ltd. 33.97 Bn 18.78 1.28 14.18 Bn
3 CF CF Industries Holdings, Inc. 24.01 Bn 17.27 5.06 3.40 Bn
4 MOS Mosaic Co 11.47 Bn 12.98 1.20 4.57 Bn
5 ICL ICL Group Ltd. 7.35 Bn 19.93 1.04 2.68 Bn
6 SMG Scotts Miracle-Gro Co 4.04 Bn 45.09 1.21 2.53 Bn
7 FMC Fmc Corp 1.81 Bn 1.37 0.40 4.58 Bn
8 UAN Cvr Partners, Lp 1.13 Bn 13.61 1.94 0.57 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.25 0.81
EV to Cash from Ops. EV/CFO 15.71 10.02
EV to Debt EV to Debt 20.74 10.62
EV to EBIT EV/EBIT 30.44 46.09
EV to EBITDA EV/EBITDA 14.70 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF 19.01 9.01
EV to Market Cap EV to Market Cap 1.04 1.48
EV to Revenue EV/Rev 3.08 1.04
Price to Book Value [P/B] P/B 2.14 0.69
Price to Earnings [P/E] P/E 47.22 13.22
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.30 1.10
Dividend Payout Ratio % Div Payout % (Qtr) 43.70 28.62
Dividend per Basic Share Div per Share (Qtr) 0.70 1.49
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 16.80 2.06
Interest Coverage Int. cover (Qtr) 9.77 3.21
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 1.01 10,378.95
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 45.56 20.72
Dividend Growth (1y) % Div 1y % (Qtr) 6.06 -0.75
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 14.20 -98.96
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 19.97 -212.56
EBIT Growth (1y) % EBIT 1y % (Qtr) 13.27 -25.56
EBT Growth (1y) % EBT 1y % (Qtr) 19.64 257.67
EPS Growth (1y) % EPS 1y % (Qtr) 22.14 -169.70
FCF Growth (1y) % FCF 1y % (Qtr) 81.85 -105.41
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 11.52 14.76
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.41 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.12 0.00
Cash Ratio Cash Ratio (Qtr) 0.37 0.66
Current Ratio Curr Ratio (Qtr) 1.43 1.99
Debt to Equity Ratio Debt/Equity (Qtr) 0.11 0.09
Interest Cover Ratio Int Coverage (Qtr) 9.77 3.21
Times Interest Earned Times Interest Earned (Qtr) 9.77 3.21
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 17.00 -162.19
EBIT Margin % EBIT Margin % (Qtr) 10.10 -175.66
EBT Margin % EBT Margin % (Qtr) 9.07 -244.07
Gross Margin % Gross Margin % (Qtr) 47.30 32.49
Net Profit Margin % Net Margin % (Qtr) 6.30 -252.26