GICS Sector : Basic Materials
Corteva, Inc.operates in the agriculture business.It operates through two segments, Seed and Crop Protection.
Corteva reported a strong financial performance in 2025, with organic sales growth of 4% driven by both Seed and Crop Protection businesses. The company's operating EBITDA margin expanded by over 200 basis points, driven by low double-digit growth in operating EBITDA. Earnings per share (EPS) came in at $0.22, slightly below the estimated $0.2229. Revenue growth was driven by a continuation of the company's price-for-value strategy, along with increased corn acres in North America and Latin America.
Publication Date: Feb -05
The Seed business performed well, with organic growth in every region and share gains in both corn and soybeans. The Crop Protection business also delivered top and bottom-line growth, as well as margin expansion, despite less-than-ideal market conditions. According to Judd O'Connor, the company's order books are very strong, with prepay collections on par with the prior year.
For 2026, Corteva is reiterating its preliminary operating EBITDA midpoint of $4.1 billion, representing 7% growth versus the prior year. The company expects momentum in its Seed Licensing business, growth in Crop Protection volumes driven by new products and biologicals, and productivity benefits in both businesses. Analysts estimate revenue growth of 3.3% for the next year.
With a P/E Ratio of 46.22, P/B Ratio of 2.09, and EV/EBITDA of 13.2, the market is pricing in a certain level of growth and profitability. The company's ROIC is 6.2%, and ROE is 4.4%, indicating a relatively efficient use of capital. The Net Debt/EBITDA ratio is -0.52, indicating a net cash position. The Free Cash Flow Yield is 5.55%, which is a positive sign.
The recent agreement with Bayer is a significant development, providing Corteva with freedom to operate and increased access to the licensing market. This deal is expected to drive growth and create new opportunities for the company. Additionally, the expected regulatory framework for gene editing in the EU could be a positive catalyst for the company's innovation pipeline.
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Corteva, Inc. (CTVA) Q4 2025 Earnings Call Transcript
Feb -04
Corteva's seed segment growth of 4.0% is driven by increased adoption of innovative and sustainable agricultural solutions, strong demand for high-yielding crop varieties, and expanding presence in emerging markets. Additionally, the company's strategic investments in digital agriculture and precision farming technologies are enhancing farmer productivity and driving growth.
Corteva, Inc.'s Crop Protection segment growth of 3.5% is driven by strong demand for sustainable agriculture solutions, increased adoption of precision farming, and a robust pipeline of innovative products, including insecticides, herbicides, and fungicides, that enhance crop yields and protect against emerging pests and diseases.
Corteva Agriscience offers a wide range of seeds for various crops, including corn, soybeans, wheat, and more. These seeds are designed to provide high yields, improved plant health, and enhanced resistance to diseases and pests.
Corteva Agriscience provides a variety of crop protection products, including insecticides, fungicides, and herbicides. These products help farmers control pests, diseases, and weeds that can damage crops and reduce yields.
Corteva Agriscience offers digital agriculture solutions, including data analytics, precision farming, and decision support tools. These solutions help farmers optimize crop yields, reduce waste, and improve resource allocation.
Corteva Agriscience has a plant breeding program that develops new crop varieties with improved traits, such as increased yields, drought tolerance, and disease resistance.
Corteva, Inc. operates in the agricultural industry, specifically in the seeds and crop protection business. While there are alternative products and solutions available, such as organic farming and biopesticides, the company has a strong portfolio of patented seeds and crop protection products, which limits the threat of substitutes.
Corteva's customers are primarily large agricultural companies and farmers. Given the company's strong brand portfolio and the critical nature of its products for agricultural productivity, customers have limited bargaining power.
Corteva has a diverse supplier base and does not rely heavily on any single supplier. The company also has significant negotiating power due to its large scale and market position.
The agricultural industry, particularly the seeds and crop protection segment, has high barriers to entry due to significant R&D investments, regulatory hurdles, and the need for a strong distribution network. This limits the threat of new entrants.
The seeds and crop protection industry is highly competitive, with major players like Monsanto (now part of Bayer), Syngenta (now part of ChemChina), and DowDuPont (Corteva's predecessor). The competition is driven by factors such as product innovation, pricing, and market share.
| Value | |
|---|---|
| Debt Weight | 10.20% |
| Debt Cost | 12.74% |
| Equity Weight | 89.80% |
| Equity Cost | 7.93% |
| WACC | 8.42% |
| Leverage | 11.36% |
Value: 5.9
Growth: 3.9
Quality: 4.9
Yield: 7.0
Momentum: 8.0
Volatility: 8.3
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Growth: 6.7
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Value: 1.9
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Value: 8.6
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Volatility: 5.0
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