A Short Intro for Corteva Investors

Today we're going to take a closer look at large-cap Consumer Staples company Corteva, whose shares are currently trading at $47.75. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!

A Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:

Corteva, Inc. operates in the agriculture business. The company belongs to the Consumer Staples sector, which has an average price to earnings (P/E) ratio of 24.36 and an average price to book (P/B) ratio of 4.29. In contrast, Corteva has a trailing 12 month P/E ratio of 30.4 and a P/B ratio of 1.29.

Corteva's PEG ratio is 1.81, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.

Wider Gross Margins Than the Industry Average of 13.23%:

2019 2020 2021 2022 2023
Revenue (MM) $13,846 $14,217 $15,655 $17,455 $17,531
Gross Margins 38% 40% 41% 40% 41%
Operating Margins -2.0% 5.0% 15.0% 8.0% 10.0%
Net Margins 0.0% 5.0% 12.0% 7.0% 6.0%
Net Income (MM) $18 $756 $1,822 $1,216 $1,124
Net Interest Expense (MM) $215 $212 $1,348 $79 $167
Depreciation & Amort. (MM) $475 $682 $722 $702 $678
Earnings Per Share -$1.28 $0.91 $2.37 $1.58 $1.2999999999999998
Diluted Shares (MM) 750 751 742 724 697
Capital Expenditures (MM) $1,163 $475 $573 $605 $537
Net Current Assets (MM) -$4,323 -$2,818 -$1,175 -$282 -$521
Long Term Debt (MM) $0 $0 $0 $0 $0
Net Debt / EBITDA -11.05 -0.63 -0.4 0.1 0.19

Corteva has low leverage and growing revenues and decreasing reinvestment in the business. Additionally, the company's financial statements display wider gross margins than its peer group and a strong EPS growth trend. Furthermore, Corteva has average net margins with a positive growth rate.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.