Catching the Wave: Corteva Inc's Stock's Dramatic 19.5% Leap in 90 Days

Corteva Inc (CTVA, Financial) has experienced a significant uptick in its stock price, with a 19.50% gain over the past week and a 13.64% gain over the past three months. The company's market capitalization now stands at a robust $37.91 billion, with the current stock price at $54.06. When compared to the GF Value of $57.88, Corteva is considered fairly valued, a shift from its previous status of being modestly undervalued when the GF Value was at $59.25. This recent performance indicates a positive trend for the company's valuation in the market.

Introduction to Corteva Inc

Corteva Inc, a leader in the agriculture industry, specializes in the development of innovative seed and crop chemicals. Since its inception in 2019 following a spin-off from DowDuPont, Corteva has established a significant global presence, with North America accounting for approximately half of its revenue. The company's balanced focus on seeds and crop protection chemicals has positioned it as a key player in the agricultural sector. 1753421465111392256.png

Assessing Corteva's Profitability

Corteva's Profitability Rank stands at 5/10, reflecting a moderate level of profitability within the industry. The company's Operating Margin is 11.83%, which is commendable as it surpasses 69.92% of its industry peers. In terms of return on equity, Corteva's ROE is 3.67%, outperforming 37.55% of competitors. The ROA at 2.16% and ROIC at 5.61% also indicate that Corteva is generating cash flow effectively relative to its assets and invested capital, better than 44.8% and 52.02% of industry peers, respectively. Over the past decade, Corteva has maintained profitability for five years, which, while modest, is better than 19.11% of its industry counterparts. 1753421482920407040.png

Exploring Corteva's Growth Trajectory

Corteva's Growth Rank is currently at 4/10. The company has demonstrated a solid 3-Year Revenue Growth Rate per Share of 9.30%, outpacing 32.74% of its industry peers. Its 5-Year Revenue Growth Rate per Share stands at 4.40%, which is also better than 31.55% of competitors. Looking ahead, the estimated Total Revenue Growth Rate for the next 3 to 5 years is 3.07%, surpassing 42.86% of industry peers. Corteva's 3-Year EPS without NRI Growth Rate is an impressive 17.80%, which is higher than 46.04% of its competitors. However, the 5-Year EPS without NRI Growth Rate shows a decline of -3.70%, which is still better than 18.54% of industry peers. The future EPS Growth Rate for the next 3 to 5 years is projected at a robust 15.95%, placing Corteva ahead of 75% of its competitors. 1753421501190795264.png

Key Shareholders in Corteva

Corteva's shareholder base includes notable investors such as Bill Nygren (Trades, Portfolio), who holds 2,628,900 shares, representing a 0.37% share percentage. Larry Robbins (Trades, Portfolio) follows closely with 2,169,186 shares, accounting for a 0.31% share percentage. PRIMECAP Management (Trades, Portfolio) also has a significant stake, with 1,691,248 shares, equating to a 0.24% share percentage. These major holders reflect confidence in Corteva's business model and future prospects.

Competitive Landscape

In comparison to its competitors, Corteva holds a strong position with a market capitalization of $37.91 billion. Its closest competitors include CF Industries Holdings Inc (CF, Financial) with a market cap of $14.68 billion, The Mosaic Co (MOS, Financial) at $10.09 billion, and FMC Corp (FMC, Financial) with $7.75 billion. Corteva's market cap indicates a commanding presence in the agriculture industry, outpacing these key competitors.


In summary, Corteva Inc's recent stock performance and current valuation suggest a positive outlook for the company. Its profitability and growth metrics demonstrate a competitive edge within the agriculture industry. The significant stakes held by prominent investors further underscore the confidence in Corteva's business strategy and potential for continued success. When juxtaposed with its competitors, Corteva's substantial market capitalization reflects its strong industry position and the promising future that lies ahead for the company and its shareholders.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.


I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.