Corteva, Inc. (CTVA) stock analysis

P/E below its 5-year median

Corteva's P/E of 8.1 is below its own 5-year median of 42.8.

P/E below the industry

Corteva's P/E of 8.1 is below the Consumer staples median of 23.3.

EV/EBITDA below its 5-year median

Corteva's EV/EBITDA of 3.8 is below its 5-year median of 18.1.

P/B below the industry

Corteva's price-to-book of 0.32 is below the Consumer staples median of 2.48.

Trading below fair value

The share price of $12.17 is below our fair value estimate of $55.12.

Margin of safety over 20%

The price is 77.9% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -0.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 0.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -28.0% over the last twelve months, against a 5-year average of 9.9% a year.

Growing faster than the industry

Revenue grew 3.7% over the last twelve months; the Consumer staples median is 1.6%.

Guidance raised

Corteva raised its full-year 2026 Operating EPS outlook on Jul 30, 2026.

Gross margin improving

Gross margin was 49.5% over the last twelve months, against 45.7% a year earlier.

Return on equity under 15%

Return on equity was 4.0% over the last twelve months and averaged 4.5% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Corteva's return on equity of 4.0% is above the Consumer staples median of 0.9%.

Earnings grew over 5 years

Net income grew 9.9% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 5.7% over the last twelve months, against a 5-year average of 6.7%.

Net margin above the industry

Corteva's net margin of 5.7% is above the Consumer staples median of -6.7%.

Low debt

Debt is 19.4% of shareholders' equity, under the 40% we consider low.

Debt rising against equity

Debt to equity rose from 4.5% five years ago to 19.4%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 24.8% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.52 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.93; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Corteva paid dividends worth 5.9% of the share price over the last twelve months.

Yield above Treasuries

The 5.9% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Corteva yields 5.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 7 fiscal years.

Covered by earnings

Dividends take 48.0% of net income.

Covered by free cash flow

Dividends take 76.9% of free cash flow.