Q: What are your thoughts on Corteva (CTVA)?
5i Research Answer:
CTVA provides seed and crop protection for the agricultural industry and is now trading at 16.7x times the forward P/E (at the lower end of historical averages ranging from 16.7x to 22.9x). In the last five years, revenue growth was around 4% on average, but growth was not predictable, as the industry itself is quite cyclical. The balance sheet is okay, with net debt of $3.5B and net debt/EBITDA is currently around 1.0x. CTVA did increase its dividend and repurchase shares consistently over the last few years. Overall, we think CTVA is a solid name for investors to get exposure to the agriculture sector. We also like NTR.