Now trading at a price of $59.8, Corteva has moved -1.5% so far today.
Corteva shares moved 0.3% over the last 52 weeks, with a high of $68.43 and a low of $50.03. During this time, the stock outperformed the S&P 500 index by 9.0%. As of January 2022, the company's 50-day average price is $61.0. Corteva, Inc. operates in the agriculture business. The large-cap Industrials company has 21,000 full time employees and is based in Indianapolis, IN. Corteva has returned a 1.0% dividend yield over the last 12 months.
Exceptional EPS Growth with Low Leverage Levels:
|Gross Margins Growth||n/a||5.51%||2.24%||-2.19%|
|Operating Margins Growth||n/a||40.48%||42.37%||30.95%|
|Net Margins Growth||n/a||169.12%||134.66%||-41.55%|
|Earnings Per Share||-$1.28||$0.91||$2.37||$1.66|
|Diluted Shares (MM)||750||751||742||713|
|Free Cash Flow (MM)||-$93||$1,589||$2,154||$267|
|Capital Expenditures (MM)||-$1,163||-$475||-$573||-$605|
|Net Debt / EBITDA||-0.68||-1.01||-0.85||-0.57|
Corteva Is Reasonably Valued:
Compared to the Industrials sector's average of 20.49, Corteva has a trailing twelve month P/E ratio of 36.0 and, according to its EPS guidance of 3.47, an expected P/E ratio of 17.2. Corteva's PEG ratio is 0.93 based on its 38.8% compound average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 13.05%, because the growth rate implied by Corteva's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 2.76, which suggests that the company's shares are actually overvalued.
However, Corteva is likely undervalued in terms of its equity because its P/B ratio is 1.7 compared to its sector average of 3.78. The company's shares are currently trading 120.7% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 0.92 * 35.466) = $27.1
Despite Corteva's elevated earnings multiple, the company's impressive cash flow trend, decent P/B ratio, and reasonable leverage demonstrate the company may be fairly valued.
Corteva Is the Subject of Mixed Market Indicators:
21 analysts are following Corteva and have set target prices ranging from $60.0 to $87.0 per share. On average, they have given the company a rating of buy. At the current price of $59.8, CTVA is trading -17.91% away from its average analyst target price of $72.85 per share, implying an analyst consensus of some upside potential for the stock.
The company has a very low short interest since 0.9% of the company's shares are tied to short positions. Institutions own 83.1% of Corteva's shares, while the insider ownership rate stands at 0.19%. The biggest shareholder is the Vanguard Group, Inc. with a 12% stake in the company worth approximately $4,917,142,843.