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Corteva (CTVA)
NYSE:CTVA

Corteva (CTVA) AI Stock Analysis

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Corteva

(NYSE:CTVA)

78Outperform
Corteva's overall score reflects its strong financial stability and robust technical momentum, driven by solid cash flow management and strategic growth initiatives. The recent earnings call highlights positive operational performance and guidance, despite currency and tariff challenges. While the stock's high P/E ratio suggests potential overvaluation, its strong fundamentals and positive outlook in the agricultural sector support a favorable stock assessment.
Positive Factors
Earnings
Corteva delivered a solid EBITDA beat in 1Q, which indicates strong financial performance.
Financial Guidance
A strong 1Q has derisked 2025, and there is an upside bias to the company's full year guidance.
Market Position
CTVA is considered the best-positioned name in agriculture due to its more resilient Seed portfolio.
Negative Factors
Agricultural Cycle Risks
Risks are increasing for a more extended downturn in the agriculture cycle due to credit channels, shifting tariff regimes, and the biofuel market.
Foreign Exchange Impact
The $100mn reduction in the EBITDA guidance midpoint reflects a $125mn increase in FX headwinds.
Tariffs and Regulations
Tariff-related volatility reduces confidence in the second half results more than usual.

Corteva (CTVA) vs. S&P 500 (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 seeds and crop protection products. The seeds segment includes the sale of various genetically modified and non-genetically modified seeds that are engineered to improve yield and resist pests and diseases. The crop protection segment includes herbicides, insecticides, and fungicides that help protect crops from weeds, insects, and diseases. Corteva's revenue model is heavily dependent on its ability to innovate and deliver high-quality, scientifically advanced agricultural solutions that meet the needs of farmers worldwide. The company also engages in strategic partnerships and collaborations to enhance its technological capabilities and market reach, contributing to its revenue streams. Factors such as global agricultural trends, climate conditions, and regulatory environments also significantly impact Corteva's earnings.

Corteva Key Performance Indicators (KPIs)

Any
Any
Seed Sales by Segment
Seed Sales by Segment
Reveals how different segments contribute to overall seed sales, highlighting areas of strength and potential growth in the company's agricultural offerings.
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 Financial Statement Overview

Summary
Corteva's financial health is characterized by strong equity and low leverage, enhancing its financial stability and flexibility. Despite a robust gross profit margin, challenges exist in sustaining revenue growth and consistent profitability, reflected in fluctuating net margins and cash flow metrics. The balance sheet's strength offsets some concerns about income and cash flow volatility.
Income Statement
70
Positive
Corteva shows a strong gross profit margin due to total revenue equaling gross profit in the latest year, indicating efficient cost management. However, the net profit margin is moderate, showing some room for improvement in managing operational costs. The revenue growth trend is unstable, with revenue decreasing from 2023 to 2024, which could be a concern. The EBIT and EBITDA margins have weakened compared to previous years, suggesting pressure on earnings before interest and taxes.
Balance Sheet
75
Positive
The balance sheet reveals a solid equity base with a low debt-to-equity ratio, indicating conservative leverage and financial stability. Return on equity has shown variability, reflecting inconsistent net income performance, but remains positive. The equity ratio is robust, underscoring the company's reliance on equity financing rather than debt, which is prudent in maintaining financial health.
Cash Flow
65
Positive
Operating cash flow is stable, but the free cash flow growth rate has been inconsistent, indicating fluctuations in capital expenditures. The operating cash flow to net income ratio suggests a good conversion of earnings into cash. However, the free cash flow to net income ratio is moderate, highlighting potential challenges in managing cash generation relative to earnings.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
16.91B17.23B17.45B15.65B14.22B
Gross Profit
7.38B7.31B7.02B6.43B5.71B
EBIT
2.10B2.11B1.87B2.67B1.05B
EBITDA
2.73B2.54B3.31B3.88B2.39B
Net Income Common Stockholders
907.00M735.00M1.15B1.76B681.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.17B2.74B3.31B4.54B3.79B
Total Assets
40.83B43.00B42.62B42.34B42.65B
Total Debt
2.70B2.49B1.31B1.12B1.10B
Net Debt
-403.00M-155.00M-1.88B-3.34B-2.42B
Total Liabilities
16.80B17.72B17.08B16.72B17.59B
Stockholders Equity
23.79B25.04B25.30B25.38B24.82B
Cash FlowFree Cash Flow
1.55B1.17B267.00M2.15B1.59B
Operating Cash Flow
2.15B1.77B872.00M2.73B2.06B
Investing Cash Flow
-589.00M-1.99B-632.00M-362.00M-674.00M
Financing Cash Flow
-1.20B-99.00M-1.18B-1.27B303.00M

Corteva Technical Analysis

Technical Analysis Sentiment
Positive
Last Price68.29
Price Trends
50DMA
61.59
Positive
100DMA
61.36
Positive
200DMA
59.27
Positive
Market Momentum
MACD
1.96
Negative
RSI
75.15
Negative
STOCH
82.29
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTVA, the sentiment is Positive. The current price of 68.29 is above the 20-day moving average (MA) of 63.37, above the 50-day MA of 61.59, and above the 200-day MA of 59.27, indicating a bullish trend. The MACD of 1.96 indicates Negative momentum. The RSI at 75.15 is Negative, neither overbought nor oversold. The STOCH value of 82.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 0 New Risks

Corteva Peers Comparison

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
CFCF
80
Outperform
$13.93B11.3426.14%2.33%0.66%25.75%
78
Outperform
$46.11B41.214.66%0.99%>-0.01%108.45%
ICICL
76
Outperform
$8.79B21.587.08%2.75%-8.59%-37.13%
MOMOS
72
Outperform
$10.86B29.543.09%2.52%-13.37%-50.63%
FMFMC
60
Neutral
$4.64B14.278.81%6.24%1.45%-70.85%
SMSMG
58
Neutral
$3.41B117.814.98%4.48%0.75%
50
Neutral
$1.97B-1.14-21.33%3.61%1.59%-30.68%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CTVA
Corteva
68.29
12.92
23.33%
CF
Cf Industries Holdings
86.23
10.75
14.24%
FMC
FMC
39.22
-22.11
-36.05%
MOS
Mosaic Co
34.67
4.87
16.34%
SMG
Scotts Miracle-Gro Company
61.08
-5.53
-8.30%
ICL
Icl
6.78
2.16
46.75%

Corteva Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 9.30%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
Corteva delivered a strong first quarter performance with significant EBITDA growth and margin expansion, driven by operational excellence and strategic product launches. However, challenges such as currency headwinds, tariff impacts, and pricing pressure in crop protection remain. The overall outlook is positive, with strong growth expected in the seed business and corn planting.
Q1-2025 Updates
Positive Updates
Strong Start to 2025
Corteva reported a 15% increase in Q1 EBITDA and nearly 400 basis points of margin expansion, driven by strong cost execution in Biologicals, CP new products, and seed out-licensing.
Positive Outlook for Seed Business
Organic sales in the seed business were up 2% in Q1, with a strong demand for new products. The company plans to introduce approximately 500 new products, including 300 new seed hybrids and varieties.
Growth in Corn Planting and Ethanol Production
Farmers in the US are projected to increase corn planting by about 5%. Brazil's corn ethanol industry is expected to see significant growth, with corn accounting for nearly a third of the country's total ethanol production by 2026.
Operational Excellence and Cost Improvement
Corteva is tracking well against the $400 million net cost target and expects to generate $65 million in benefits this year from transitioning to a net out-licenser technology.
Resilience in Crop Protection
Organic sales for crop protection were up 3%, with double-digit volume growth for new products and Biologicals. The company expects high single-digit volume gains to offset low single-digit pricing headwinds.
Negative Updates
Currency Headwinds
The company faced a significant currency headwind of 5% of sales in Q1, with a total expected impact of $275 million for the year.
Tariff Challenges
Tariffs are expected to have a direct cost impact of about $50 million in 2025, mainly affecting the crop protection segment.
Pressure on Crop Protection Pricing
Crop protection pricing is expected to be down low single digits for the year due to competitive market dynamics, though volume growth is expected to compensate.
Company Guidance
In the call discussing Corteva Agriscience's first quarter 2025 earnings, the company reaffirmed its full-year guidance due to strong performance metrics. They reported a 15% year-over-year increase in Q1 EBITDA, with nearly 400 basis points of margin expansion driven by effective cost execution across three growth platforms: Biologicals, CP new products, and seed out-licensing. Both business segments achieved double-digit EBITDA growth, primarily due to operational excellence, and they are on track to meet their $400 million net cost improvement target. Corteva anticipates a 5% increase in corn planting in the U.S., while Enlist beans are expected to be planted on over 65% of U.S. soybean acres. Globally, Corteva projects high single-digit volume gains in crop protection, which will offset low single-digit pricing headwinds. Additionally, the company is managing potential $50 million tariff impacts, but these are not expected to affect the full-year guidance.

Corteva Corporate Events

Executive/Board ChangesShareholder Meetings
Corteva Stockholders Approve Key Proposals at Annual Meeting
Neutral
May 6, 2025

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.

Spark’s Take on CTVA Stock

According to Spark, TipRanks’ AI Analyst, CTVA is a Neutral.

Corteva’s stock score of 69 reflects its strong financial stability and positive guidance from the earnings call, which highlight record operational performance and future growth potential. However, challenges such as unstable revenue growth, valuation concerns, and technical signals indicating caution balance these strengths.

To see Spark’s full report on CTVA stock, click here.

Executive/Board Changes
Corteva Board Member Rebecca Liebert Resigns
Neutral
Feb 19, 2025

Rebecca Liebert, Ph.D., has announced her resignation from the Board of Directors of Corteva, Inc. effective February 28, 2025, as she intends to pursue other opportunities. Her resignation is not due to any disagreements with the company’s management or board, and the board will reduce in size from thirteen to twelve directors following her departure.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.