CTVA Falls 9.1% In A Single Day, Should You Buy The Stock?

We believe there are a few things to fear in CTVA stock given its overall Moderate operating performance and financial condition. This is aligned with the stock’s Moderate valuation because of which we think it is Fairly Priced. Here is our multi-factor assessment.

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Let’s get into details of each of the assessed factors but before that, for quick background: With $42 Bil in market cap, Corteva provides advanced seeds and crop protection solutions, including herbicides, insecticides, and nitrogen stabilizers, to optimize farm yields and manage pastures effectively.

[1] Valuation Looks Moderate

This table highlights how CTVA is valued vs broader market. For more details see: CTVA Valuation Ratios

[2] Growth Is Weak

• Corteva has seen its top line grow at an average rate of 1.0% over the last 3 years
• Its revenues have grown 1.6% from $17 Bil to $17 Bil in the last 12 months
• Also, its quarterly revenues grew 5.6% to $6.5 Bil in the most recent quarter from $6.1 Bil a year ago.

This table highlights how CTVA is growing vs broader market. For more details see: CTVA Revenue Comparison

[3] Profitability Appears Moderate

• CTVA last 12 month operating income was $2.5 Bil representing operating margin of 14.7%
• With cash flow margin of 18.3%, it generated nearly $3.1 Bil in operating cash flow over this period
• For the same period, CTVA generated nearly $1.4 Bil in net income, suggesting net margin of about 8.2%

This table highlights how CTVA profitability vs broader market. For more details see: CTVA Operating Income Comparison

[4] Financial Stability Looks Strong

• CTVA Debt was $3.6 Bil at the end of the most recent quarter, while its current Market Cap is $42 Bil. This implies Debt-to-Equity Ratio of 8.7%
• CTVA Cash (including cash equivalents) makes up $2.1 Bil of $42 Bil in total Assets. This yields a Cash-to-Assets Ratio of 5.1%

[4] Downturn Resilience Is Weak

CTVA has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• CTVA stock fell 35.3% from a high of $67.31 on 2 December 2022 to $43.55 on 10 November 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 9 May 2025
• Since then, the stock increased to a high of $77.12 on 6 July 2025 , and currently trades at $61.47

 
2020 Covid Pandemic

• CTVA stock fell 34.6% from a high of $31.71 on 5 February 2020 to $20.74 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 8 October 2020

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