Corteva (CTVA) AI Stock Analysis

• Market Cap: $46.80B
• Dividend Yield: 0.98%
• Average Volume (3M): 3.74M
• Price to Earnings (P/E): 41.8
• Beta (1Y): 0.66
• Revenue Growth: >-0.01%
• EPS Growth: 108.45%
• Country: US
• Employees: 22,000
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Agricultural Inputs
• EPS (TTM): 1.13
• Shares Outstanding: 682,170,000
• 10 Day Avg. Volume: 3,607,214
• 30 Day Avg. Volume: 3,742,377
• PEG Ratio: 1.52
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.27
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 6.51
• Enterprise Value/Ebitda: 4.61
• 1Y Price Target: $71.88
• Price Target Upside: 4.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

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 Business Overview & Revenue Model

Company Description

Corteva, 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 Money

Corteva 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 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
16.83B	16.91B	17.23B	17.45B	15.65B	14.22B
	Gross Profit
7.51B	7.38B	7.31B	7.02B	6.43B	5.71B
	EBIT
2.26B	2.10B	2.11B	1.87B	2.67B	1.05B
	EBITDA
3.02B	2.73B	2.54B	3.31B	3.88B	2.39B
	Net Income Common Stockholders
1.14B	907.00M	735.00M	1.15B	1.76B	681.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.66B	3.17B	2.74B	3.31B	4.54B	3.79B
	Total Assets
43.63B	40.83B	43.00B	42.62B	42.34B	42.65B
	Total Debt
4.64B	2.70B	2.49B	1.31B	1.12B	1.10B
	Net Debt
3.13B	-403.00M	-155.00M	-1.88B	-3.34B	-2.42B
	Total Liabilities
18.62B	16.80B	17.72B	17.08B	16.72B	17.59B
	Stockholders Equity
24.77B	23.79B	25.04B	25.30B	25.38B	24.82B
Cash Flow		Free Cash Flow
2.10B	1.55B	1.17B	267.00M	2.15B	1.59B
	Operating Cash Flow
2.65B	2.15B	1.77B	872.00M	2.73B	2.06B
	Investing Cash Flow
-353.00M	-589.00M	-1.99B	-632.00M	-362.00M	-674.00M
	Financing Cash Flow
-1.97B	-1.20B	-99.00M	-1.18B	-1.27B	303.00M

Corteva Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 68.61 is above the 20-day moving average (MA) of 63.82, above the 50-day MA of 61.74, and above the 200-day MA of 59.34, indicating a bullish trend. The MACD of 2.06 indicates Negative momentum. The RSI at 75.97 is Negative, neither overbought nor oversold. The STOCH value of 84.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTVA.

Corteva Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CF	80 Outperform	$14.22B	11.58	26.14%	2.28%	0.66%	25.75%
CTVA	78 Outperform	$46.80B	41.83	4.66%	0.98%	>-0.01%	108.45%
ICL	76 Outperform	$8.70B	21.36	7.08%	2.78%	-8.59%	-37.13%
MOS	72 Outperform	$11.17B	30.39	3.09%	2.41%	-13.37%	-50.63%
FMC	65 Neutral	$5.00B	15.36	8.81%	5.80%	1.45%	-70.85%
SMG	58 Neutral	$3.60B	124.70	4.98%	4.23%	0.75%	―
Sector *	50 Neutral	$1.98B	-1.06	-21.29%	3.61%	1.95%	-30.61%

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.

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.

Corteva Board Member Rebecca Liebert Resigns

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.