Corteva (CTVA) AI Stock Analysis

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Corteva

(NYSE:CTVA)

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Outperform 71 (OpenAI - 4o)

Rating:71Outperform

Price Target:

$68.00

▲(10.75% Upside)

Corteva's overall stock score reflects its strong financial performance and positive earnings call, which are the most significant factors. However, the bearish technical indicators and relatively high valuation moderate the overall score. The company's strategic initiatives and cost improvements provide a positive outlook, but market dynamics and valuation concerns remain.

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)

Market Cap

$41.70B

Dividend Yield1.12%

Average Volume (3M)5.29M

Price to Earnings (P/E)29.9

Beta (1Y)0.67

Revenue Growth1.63%

EPS Growth58.72%

CountryUS

Employees22,000

SectorBasic Materials

Sector Strength58

IndustryAgricultural Inputs

Share Statistics

EPS (TTM)2.20

Shares Outstanding679,100,000

10 Day Avg. Volume4,349,732

30 Day Avg. Volume5,286,212

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.26

Enterprise Value/Revenue3.05

Enterprise Value/Gross Profit6.68

Enterprise Value/Ebitda15.13

Forecast

1Y Price Target

$79.18

Price Target Upside28.96% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering18

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

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:Nov 04, 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

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

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

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.

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

Negative

Last Price61.40

Price Trends

50DMA

69.31

Negative

100DMA

71.10

Negative

200DMA

66.51

Negative

Market Momentum

MACD

-2.40

Positive

RSI

33.28

Neutral

STOCH

4.00

Positive

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 61.4 is below the 20-day moving average (MA) of 64.75, below the 50-day MA of 69.31, and below the 200-day MA of 66.51, indicating a bearish trend. The MACD of -2.40 indicates Positive momentum. The RSI at 33.28 is Neutral, neither overbought nor oversold. The STOCH value of 4.00 is Positive, 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

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
CF	72 Outperform	$13.53B	10.92	24.98%	2.39%	9.53%	36.15%
CTVA	71 Outperform	$41.70B	29.87	5.75%	1.12%	1.63%	58.72%
MOS	64 Neutral	$9.31B	9.94	7.80%	2.97%	-7.71%	297.49%
ICL	63 Neutral	$8.11B	22.08	6.24%	2.84%	-1.22%	-14.31%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
FMC	58 Neutral	$3.67B	37.32	2.88%	7.89%	1.16%	-92.85%
SMG	52 Neutral	$3.14B	70.79	4.98%	4.86%	-2.05%	―

* Basic Materials Sector Average

Performance Comparison

CTVA

Corteva

61.40

2.76

4.71%

Cf Industries Holdings

83.51

1.30

1.58%

FMC

29.40

-29.48

-50.07%

MOS

Mosaic Co

29.32

4.07

16.12%

SMG

Scotts Miracle-Gro Company

54.34

-31.89

-36.98%

ICL

Icl

6.28

2.20

53.92%

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: Oct 02, 2025