Corteva: Relatively Cheap Valuation, Double-Digit Pro Forma Operating EBITDA Growth

About: Corteva, Inc. (CTVA)
by: Vasily Zyryanov
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Vasily Zyryanov
Long/short equity

Corteva was spun-off from DowDuPont in June 2019. Since then, despite a short-lived rally, the stock has lost ~14%.

Its 9M 2019 financial performance was imperfect, as net income and cash flow were negative, while sales were down 2%.

The management has ambitious medium-term goals like 12-16% operating EBITDA growth in 2020-2022.

Corteva is not generously valued at only ~9.4x EV/2020E operating EBITDA.

Corteva, Inc. (CTVA), a newly born agricultural chemicals and seed company that was spun off from DowDuPont in June 2019, has lost around 14% of its market value since then, as Q2 and