Corteva (CTVA) AI Stock Analysis

• Market Cap: $46.11B
• Dividend Yield: 0.99%
• Average Volume (3M): 3.72M
• Price to Earnings (P/E): 41.2
• Beta (1Y): 0.69
• 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: 3,610,930
• 30 Day Avg. Volume: 3,716,629
• PEG Ratio: 1.71
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.47
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 6.48
• Enterprise Value/Ebitda: 4.33
• 1Y Price Target: $71.88
• Price Target Upside: 5.26% 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'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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
16.91B	17.23B	17.45B	15.65B	14.22B
	Gross Profit
7.38B	7.31B	7.02B	6.43B	5.71B
	EBIT
2.10B	2.11B	1.87B	2.67B	1.05B
	EBITDA
2.73B	2.54B	3.31B	3.88B	2.39B
	Net Income Common Stockholders
907.00M	735.00M	1.15B	1.76B	681.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.17B	2.74B	3.31B	4.54B	3.79B
	Total Assets
40.83B	43.00B	42.62B	42.34B	42.65B
	Total Debt
2.70B	2.49B	1.31B	1.12B	1.10B
	Net Debt
-403.00M	-155.00M	-1.88B	-3.34B	-2.42B
	Total Liabilities
16.80B	17.72B	17.08B	16.72B	17.59B
	Stockholders Equity
23.79B	25.04B	25.30B	25.38B	24.82B
Cash Flow		Free Cash Flow
1.55B	1.17B	267.00M	2.15B	1.59B
	Operating Cash Flow
2.15B	1.77B	872.00M	2.73B	2.06B
	Investing Cash Flow
-589.00M	-1.99B	-632.00M	-362.00M	-674.00M
	Financing Cash Flow
-1.20B	-99.00M	-1.18B	-1.27B	303.00M

Corteva Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.29
• 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 68.29 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CF	80 Outperform	$13.93B	11.34	26.14%	2.33%	0.66%	25.75%
CTVA	78 Outperform	$46.11B	41.21	4.66%	0.99%	>-0.01%	108.45%
ICL	76 Outperform	$8.79B	21.58	7.08%	2.75%	-8.59%	-37.13%
MOS	72 Outperform	$10.86B	29.54	3.09%	2.52%	-13.37%	-50.63%
FMC	60 Neutral	$4.64B	14.27	8.81%	6.24%	1.45%	-70.85%
SMG	58 Neutral	$3.41B	117.81	4.98%	4.48%	0.75%	―
Sector *	50 Neutral	$1.97B	-1.14	-21.33%	3.61%	1.59%	-30.68%

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.