Corteva: Get Your Piece Of SpinCo As A Stable Portfolio Compounder

Andres Veurink482 FollowersFollow5ShareSavePlay(12min)CommentsSummaryCorteva is splitting into two pure-play companies, with the seed segment (SpinCo) offering superior stability and margin profile.I rate CTVA a buy, driven by SpinCo's consistent revenue growth, high operating margins (26%), and robust market position in seeds, especially corn.SpinCo trades at an implied 9.3x EV/EBITDA, below sector and CTVA's historical average, with potential for significant buybacks and dividend increases post-separation.Key risk is U.S. isolationism; deteriorating U.S.-China trade could impact corn and soybean sales, potentially altering the investment thesis.

Abstract Aerial Art/DigitalVision via Getty Images Investment Thesis With the announcement last year that Corteva (CTVA) is splitting up its two segment operations, investors can now get a pure seed play. There aren’t that many opportunities like this in theThis article was written byAndres Veurink482 FollowersFollowMy name is Andres Veurink and I have been in the financial markets for over a decade at this point, spending the majority of that in a hedge fund here in Rotterdam, working my way up as an analyst. My work relfect rigourious standards as I myself have a very high standard as to what I invest my money in. My preferred sectors to follow are tech, specifically SaaS and cloud business but recently I've also taken up an interest in writing about the energy and minerals sectors, two areas I'm quite familiar with having followed them for over a decade at this point. I find these offer incredible growth opportunities and are also very fun to research and follow. It's a very active space with plenty of news coming out each week. Work is my own thoughs and research is done only by myself.Analyst’s Disclosure:I/we have a beneficial long position in the shares of CTVA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.